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Foreign Mortgage? Can they chase me in the UK? Are my assets under threat?

Foreign Mortgage? Can they chase me in the UK? Are my assets under threat? In the past few weeks we have seen a large increase in enquiries especially from people who have mortgages particularly in Cyprus and Spain. Many are concerned with some loan sales now being undertaken by Banks across Europe, as the Banks at last look to clear all problematic debt and tidy up their ‘books.’

Such problematic debt cases include:

Those in arrears, be they slightly or massively in arrears,
Unaffordable repayments brought about by mortgages going from the interest only form to repayment,
Maintenance costs/ management charges, and Continuing negative equity.

Many people and their advisors are deluded if the think merely ignoring a foreign mortgage debt problem will see it go away. Yes – a lot of time has lapsed since the 2009 crash but like elephants, these Banks do not forget! Banks are still relatively civil in most instances as long as there is engagement in some form, but across the board – their patience is wearing thin. They are employing the following approaches, to name but a few:

Applying for European Enforcement Orders, Appointing strong legal firms to enforce in the UK, Making their own enquiries as the people’s worth/assets, and Most worryingly for our clients, the sale of loans to Vulture Funds…the name should be a clue as to how they conduct themselves…not so civil!

Foreign Banks in the main are still approachable. As ever it’s a case of the right type of engagement, usually undertaken by a trusted party.

We would say this any way, but you need someone like EU Property Solutions because:

You need someone trusted by the Banks. They appreciate straight talking and know we perform on cases. We only act for the client, but know the different parameters that each and every Bank works within, Sometimes Banks are not fully truthful. EU Property Solutions cut through and call out any discrepancies from any financial institution, and Even though we are looking to alleviate the problem here, Banks and their advisors need to be driven.

Some people believe that this ability to chase foreign debt in the UK, as provided for under Cross Border Claims EC 44/2001, will diminish with Brexit. We definitely do not see this as the case because the EU will still be our main trading partner and such provisions ensure safer trade conditions for all.

Foreign Mortgage? Can they chase me in the UK? Are my assets under threat?

Under existing EU law anyone, including Bank’s and any other foreign trading entity can secure a Judgement in their country and then bring this to the UK and apply for a European Enforcement Order.

This Order when granted, and they usually are, enables the creditor to pursue clients here in the UK, which can in turn see UK assets such as homes, businesses and in some instances pensions, come under threat. The legal costs in such recovery actions can be horrific and payable by the debtor as well.

As ever we use the mantra of #KnowtheWorstAchievetheBest.

Definitive advice is imperative. Relying on uninformed opinions is no good to those facing this sort of situation. Relying on ‘bar room’ legal opinions is dangerous – especially when whilst these opinions that may suit your arguments, are wrong.

In conclusion if you face foreign mortgage problems, get the best advice you can. If it goes wrong then you will definitely be pursued at some time. Ignoring the issues is not sensible – to say the least.

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EU Property Solutions, Park House, Park Square West, Leeds LS1 2PW

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Assistance and advice for those who bought into the Spanish property dream and ended up living a nightmare

UK nationals often leap at the chance of owning a property elsewhere in the EU, with Spain being the favourite location for retirement and holiday homes, but occasionally their “dream homes in the sun” can turn into financial nightmares and in these cases EU Property Solutions offer practical and effective solutions to rescue buyers from crippling scenarios for which they are often not to blame.

One of the most common problems facing buyers in Spain is that of negative equity. Before the Spanish property market began its fall into decline in 2008 many buyers took advantage of over-generous mortgage lending terms to invest in overvalued property, as a result of which their homes are now worth far less than the price at which they purchased them. With high mortgage payments still outstanding - many of them now increasing as 10-year interest-only period expire - these owners believe they simply cannot sell, as the revenue would not bring in enough money to pay off the loan capital.

In this situation, many describe themselves as "mortgage prisoners", one of the phrases most frequently heard by the professionals on the staff of EU Property Solutions, but the belief that selling in negative equity is not an option is a mistaken one.

EU Property Solutions are experts in this field and have assisted in negative equity sales across Europe: even when the selling option is not available it is essential to seek professional advice in order to understand your circumstances exactly: there are almost always other possible solutions by which you can rid yourself of your negative equity burden in Spain and throughout Europe.

Another problem related to the boom-and-bust cycle in the early years of this century in EU Property Solutions for ways out of Spanish property debt nightmares the Spanish real estate market is securing a return of deposits on off-plan properties which were never completed. it is over a decade since the period of speculative buying in the boom years came to an end, but even now there are countless purchasers who handed over a deposit only to see the developers walk away from the construction project, taking the up-front deposits received with them.

In cases such as these EU Property Solutions have a 100-per-cent success rate, usually securing repayments significantly in excess of the amount originally paid. For example, a deposit of 100,000 pounds paid in 2004 might now entitle the purchaser to a refund of 160,000 pounds, although of course the exact amount will depend on the exact date of transfer, fluctuations in exchange rates and yearly interest rates.

The payment of these refunds was made compulsory by a Spanish Supreme Court judgement in December 2015 which stated that banks and property developers must refund deposits paid on off-plan property purchases when the property was never completed, and since then EU Property Solutions have lodged numerous cases in the Courts. They fully understand the legal process for obtaining a deposit refund, and that it is essential to follow process closely in order to guarantee success, always assuming that all of the relevant paperwork is made available.

You may have thought that a deposit you paid years ago was gone forever, but that’s not necessarily the case!

Similarly with all kinds of property debt: a large proportion of the clients of EU Property Solutions are people who invested In a property in Spain during the boom years and saw their homes completed but in a financial climate very different from the one in which they bought. This is the case in numerous coastal locations in southern Spain, including Roda Golf, Manilva Hills, Corvera, Torrevieja, Estepona and Los Alcázares to name but a few, and with banks at the time far too willing to lend money and corrupt planning regimes distressingly common, the result was a toxic concoction that was only ever going to end one way.

While some developments remained unfinished, in others homes were handed over to buyers but with drastically reduced market value and in deserted, run-down environments, leaving the owners with large mortgages on properties they no longer wanted. Again, EU Property Solutions have the expertise and experience to help people out of such situations: seek advice from the experts in this area and make it easy to see the future and move forward with their impartial and tailored advice.

Other specialist fields in which the team at EU Property Solutions can help out at both their UK and Spain offices include mortgage reclaims, repayment arrears and repossession orders and new mortgage advice for those currently buying: in short, a complete troubleshooting service for those who have fallen foul of the many potential pitfalls in buying a property in Spain and for those who are anxious to avoid doing so in the future!

Consultations are completely free and the obligation of EU Property Solutions is always to the client, enabling them to provide strategies some may not be able to. Call the team today to arrange a meeting with one of the team of Insolvency and Debt consultants who specialize in Spanish property debt, and begin the process of finding a tailored pre-insolvency strategy whether it is debt write-off, a returned deposit, help in ridding yourself of a property in negative equity or any other scenario.