Negative Equity Settlement in Alicante
29 November 2022 • 2 min read • by Tom Miskelly
This client approached us with a negative equity property in Torrevieja that was causing him an incredible amount of stress. This came after he attempted to surrender the property to the Bank in 2015. This was declined.
An offer was put in for one of his friends to purchase the property. This was declined as even with the sales funds, he would be left with a significant shortfall, and the Bank would not release their charge from the title deed.
When he came to EU Property Solutions, he had an outstanding mortgage of €90,000 and the apartment had a value of €60,000.
What was at risk?
- He owned his own home in the UK, and he had been paying the mortgage off for decades
- He had a pension in the UK that he was worried could be at risk
- He was also very worried about the impact on his UK credit score
What we did
After he got in contact with us, we were quickly appointed and started work on his case immediately. This included;
- The surrender of the property to the Bank – no sales costs involved, which are usually 10-12% in Spain.
- A complete debt write-off with no payment to the Bank required
- €1,000 of Community Fees and IBI Tax Arrears included in the settlement
- The process had no impact on his UK home, assets, or UK credit file
Overall the client was so glad to get rid of this property which had been hanging over him for years with no end in sight. He was even more amazed that we managed to sort this problem with a complete write-off, as he assumed he would have to pay the bank a significant sum.
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