The Costa Blanca has long been a popular hotspot for many people wanting to buy their dream holiday home. Over the years many have followed their dream purchasing either investment properties or as holiday homes for retirement futures.
During the Spanish property boom pre-2008, many people purchased properties in this region. Our focus this week has turned to the notorious Polaris World Golf Resorts.
They were once Europe’s most ambitious holiday home developer and consisted of numerous large-scale projects. These resorts were widely advertised on TV in the UK by legendary golfer Jack Nicklaus (the designer) to entice investors looking for a better life in the sun.
During this period, properties sold at highly inflated prices. Some apartments going for €200,000 (£160,000). Thousands of foreign investors flocked to purchase at these resorts. However, when the financial crisis hit in 2008, the prices of these apartments declined rapidly. Despite the slump in the property market, Polaris World continued to build and ignored the warning signs.
By 2010, they were forced to relinquish most of their assets, including the golf courses and unsold properties, to the lender. These once popular resorts are now best described as ghost villages.
In 2018 some apartments are struggling to sell for €60,000. This is leaving many in Negative Equity with unaffordable mortgage payments to meet.
Do you own a property in the Costa Blanca?
Do you know someone going through a similar situation?
Are you struggling to pay your mortgage?
Are you having trouble selling your property due to Negative Equity?
There are solutions, do not delay and contact us today.
Our specialised team can offer tailored advice and solutions to end your nightmare forever.
EU Property Solutions have a legal team in Spain that work effectively with borrowers to offload the negative asset and secure a significant debt write down, often saving hundreds of thousands of euros for clients. Our dedicated team will keep you informed every step of the way.
Other well – known Golf resorts on the Costa Blanca such as Roda Golf, United Golf, Peraleja Golf and Corvera Golf & Country Club have now found that are in the same predicament and are essentially mortgage prisoners with nowhere to turn.
Our success is proven
EU Property Solutions recently worked with a client who had purchased a holiday home in Peraleja Golf, Murcia, Spain. Due to the property crash, our client’s property value plummeted from €300,000.00 to a forced sale price of €140,000. When the clients approached us, the outstanding mortgage was €257,000.
As the clients were pensioners, they were unable to maintain the high mortgage repayments. The property was no longer worth the sum they paid for it. The property had been placed on the market for 5 months at €200,000 and had generated zero interest due to the development itself falling into a state of disrepair and the linked golf course closing indefinitely.
To make matters worse, the couple owned a mortgage-free property in the UK with significant equity. They also owned other assets including ISAs and bonds, so understandably worried about the repercussions of this problem property on their assets in the UK.
After providing specialist assistance, we negotiated the voluntary surrender of the property along with a complete debt write off. This was an excellent result and has allowed the couple to move forward with their lives and enjoy their retirements.
If you find yourself in this situation, contact us today on 0330 124 1230, where one of our specialised agents will be able to assess your circumstances. We can help!
For more Case Studies, visit our page here.