Spanish economy on the up, but what about the victims of the bust?

By on July 30th, 2018

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With recent news reports claiming that the Spanish economy is expanding and rebalancing since the 2008 banking crisis the question of, what happened to those affected, comes to the fore.

According to the Financial Times, the boom that preceded the bust ‘coincided with the arrival of millions of migrants from Latin America, eastern Europe and north Africa, fuelling demand for homes that eventually reached fantastical proportions. In 2007, Spain accounted for more housing starts than Germany, France, Britain and Italy combined and 2.7m Spanish workers were active in the construction sector — equivalent to 13 per cent of the national workforce’

This uplift in the amount of homes and developments being built prompted many in the UK and Ireland to invest in holiday homes and rentals whilst also being attracted by the low interest rates of the time.

Due to the subsequent bust, many investors lost deposits on unfinished or off plan developments and others were left with properties worth a fraction of the cost, leaving them in negative equity with over extended mortgages.

The majority of these properties and developments have been left abandoned, half-finished and derelict, the developers and builders having gone bankrupt during the financial crisis. While the house prices may be on the rise in areas of Spain, these properties lie dormant and neglected in somewhat of a no-man’s land with no one to finish or claim them.

Many people who lost deposits on unfinished properties thought their money lost but recent rulings have allowed many those affected to claim their deposits back. Click here to learn more

Those who successfully dodged this offshoot of the crisis and purchased completed homes abroad have been left with the prospect of being chased for the debt back home here in the UK.

With many of the foreign lenders taking legal action, interim charges are being placed on properties of those who fled the crisis. Those charges are being enforced by UK based representatives, many of which have been seen to take other actions to retrieve the outstanding debt. Click here for more info

Now that the dust has well and truly settled, many of these people now have the opportunity to resolve their overseas property issues.

We, at EU property solutions, are experts in these areas. If you lost a deposit on a property during the crash or feel trapped by the negative equity in your foreign property, contact us today on +44 330 124 1230. We understand your situation and know how to help.

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