Vista de las Rocas mortgage shortfall

By on July 26th, 2017

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Case Study – Development – Vista de las Rocas mortgage shortfall

Client – Mr N – South England

Mortgage – 330,000 Euro

Current Value -120,000 Euro

Shortfall – 210,000 Euro


The Problem

Our UK based client owned a second property in Vista de las Rocas, Costa Del Sol, Spain and unfortunately became unemployed which in turn meant he could no longer afford to pay his mortgage.  The client had long term tenants in the property but the rental income was only marginally contributing to the mortgage and was leaving a deficit that the owner could no longer afford to bridge.  To make matters worse, the client’s mortgage repayments moved from interest only to repayment which seen a further increase in mortgage repayments which only added to the continually mounting debts.

The Development

The area seen a large amount of investment and influx of foreign buyers during the property market peak and this particular development had many foreign investors who bought their dream home in the sun.  Cut to nearly ten years later and the area was in a state of disrepair and was a far cry from the images sold in the glossy brochures.

Squatters were living in empty properties and general maintenance was slack due to a lack of community fees.  The client’s property was also in poor condition due to poor tenants.

The Mortgage Shortfall

The client approached EU Property Solutions and immediately wanted the team to help to dispose of the property and minimise the debt left after the sale of the property. The property was purchased at the height of the market with a mortgage of €330,000 with a current 2017 market value of €120,000.


This left a staggering €210,000 mortgage shortfall after the sale, not including the €1000 of outstanding Community fees and the further €1000 of IBI taxes.


The Solution

EU Property Solutions immediately liaised with the client’s UK lender presenting the case in its entirety.  As the lender was UK based the knowledge and understanding of the Spanish mortgage system was very limited.

EU Property Solutions engaged with solicitors on behalf of the lending institution and were able to successfully agree to hand back the property in its entirety with the lender absorbing all costs and outstanding fees.

Our client was now debt free and could move on with his life thanks to the team at EU Property Solutions.

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