A married couple from Hertfordshire approached us with their holiday villa in La Cala Golf & Country Club.
They had an outstanding mortgage of €678,000 with Banco Sabadell. The property was valued at €599,000 and the couple found it very hard to find buyers due to the uncertainty that Brexit has brought, coupled with Spanish banks tightening their lending. Any potential buyers would need a 20% deposit, equating to €120,000, so the buyer pool was very limited.
The couple were paying €3118 a month on the Spanish property which was unsustainable for them as their UK mortgage was moving from interest only to capital repayment. They had an excellent UK asset position and strong income so were understandably worried about the potential effect their problematic property could have on their current financial situation.
EU Property Solutions stepped in and negotiated with the bank to achieve the voluntary surrender of the La Cala property and a complete debt write off. Crucially, there was zero impact on the couple’s credit file which was sacrosanct for their job and we protected their UK assets and income. Additionally, by working with us they avoided the high costs associated with property sales in Spain. This is usually 10-12%, which could have worked out in excess of €50,000 in this case!
Summary of Case
Full mortgage write off – €678,000
Voluntary surrender of property
UK assets and income protected
Zero impact on credit file
Avoidance of €50,000 sales costs
The only fees payable in this instance were the consultancy fees of EU Property Solutions.
If you find yourself in a similar situation, call us today for a free consultation on 0330 124 1230, no obligation necessary. We only take on cases that we’re sure we can win for you.
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