I realise that there has been many discussion on Spanish property and repossessions over the last few years and much discussion on the Spanish procedure Dacion en Pago that effectively allows an owner to hand back the property to the Bank and cancel any existing debt.
I and my wife living in the UK found ourselves struggling to keep up repayments on our Spanish Mortgage in 2010, the mortgage was around 160K Euros and the property had dropped in value to 85K meaning we obviously couldn't sell, despite speaking with our Bank we hit a brick wall and were basically told if we didn't keep up repayments they would repossesse the property and come after us in the UK for the difference.
With this hanging our our heads I contacted Maria at Costaluz Lawyers who explained the princilpe of Dacion en Pago and assured us that even if the Bank didn't accept she was confident it would prevent them pursuing us in the UK.
I have to say at first we were very sceptical and didn't go down this route, however by early 2011 we felt we had no choice and instructed Costaluz Lawyers via Maria and Patricia Medina to begin the process.
At first the Bank (Banco Valencia) again refused our request, however over time after we had started the process the Bank offered us the Dation on the condition we make a one off payment of 10K Euros.
In late November 2011 we completed the Dation via Maria and Costaluz Lawyers and have now had our debt cancelled in Spain and can sleep not having to worry that we could be pursued in the UK.
Throughout the whole process Maria and her team were confident the could achieve this result, I have seen many posts saying this isn't possible however I can vouch having been though the process that there is an alternative to being stuck in a sitaution you can't see a way out of.
I can't thank or praise Maria and Costaluz Lawyers highly enough and would encourage anyone thinking of beginning this process to contact Maria, the whole process took around six months and while things move slow in Spain its a graet relief to have been released from ths burden.
I realise this won't work for those living in Spain but for those stuck in negative equity and a large Spanish mortgage it offers an escape provided you have a good lawyer you can trust.
Gavin