An elderly couple purchased a property North of Valencia, with the intent to rent out the property, but also utilising it as a holiday home.
They borrowed €180,000 on an initial 10 year interest only period.
Unfortunately, following the collapse of the Spanish property market the value of the property plummeted to just €90,000.
This unfortunate situation was made worse with the declining rental income, and, the end of the 10-year interest-only period coming up. Thee retired couple could not see any way to make the increased repayments required.
Accordingly, they appointed EU Property Solutions to act on their behalf. We successfully negotiated the voluntary surrender of the property and a complete write-off of their debt. Significant savings have been achieved not only in respect of the negative equity shortfall but, also community fees and taxes.
EU Property Solutions understand that many 10-year interest only products are now maturing to repayment, causing significant issues and debts burdens on investors. If you or anyone you know is concerned regarding an impending change to repayment, or any negative equity issue in Europe please call us today +44 (0) 330 124 1230.