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Tel: +44 (0) 330 124 1230  Offices in Leeds, Belfast and Spain

Negative Equity Debt on Property

What is Negative Equity? Negative Equity occurs when the current loan or mortgage balance secured on a property is higher than the current market value of the property. For example, a borrower’s current mortgage balance could be €150,000 but a recent comparable property may have sold for €100,000. This borrower is in Negative Equity and faces a shortfall of €50,000.

EU Property Solutions know those who purchased in Spain and across Europe at the height of the market pre-2008 took on a huge amount of debt, which later has left them in financial difficulty. These plummeting values since 2008 have left many facing the very real problem of Negative Equity on foreign property.

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THE EFFECTS OF NEGATIVE EQUITY

Debt is highly emotive. Many who own a property in Negative Equity feel trapped and unable to move on, being dubbed “mortgage prisoners”.

The threat of the crippling debt left after a sale may be enough to prevent anyone considering a sale or move, so feel the only option is to wait until house prices rise. However, the market may never return to the prices they once were. Couple this with having to keep paying the mortgage every month leaves the owner in a predicament to say the least.

EU Property Solutions know there are options in place for borrowers in Negative Equity. We work with a variety of lenders across Europe and can tailor our services based on your circumstances and lender. You are not a mortgage prisoner and we can find a way out of your predicament.

Success Story

Sotogrande, Costa del Sol.

Our client had a mortgage outstanding of €130,000 and the property being valued at €80,000. The client due to difficulties had not paid their mortgage in 5 years and due to the arrears, the Bank appointed a UK legal firm who placed a charging order on the client’s property in Bristol.

Our legal team were able to achieve the disposal of the property and a complete debt write off. Most importantly, following signing of the settlement in Spain an application was put to Land Registry in the UK and the charge removed from the client’s home in Bristol.


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We can help with debt in the many different countries

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We offer a completely free, no obligation initial consultation

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