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EU Property Solutions- Experts in all Spanish property issues

EU Property Solutions offer professional assistance and advice in all areas of European property in particular, Spain. We can help provide strategies and solutions to solve problematic property issues, negotiate with lenders on debts, help reclaim lost deposits on unfinished developments and help with repossessions and mortgage arrears across Europe. We have offices in London, Belfast and Spain.

Could I lose my home in the UK because of Negative Equity Abroad?
20 October 2017

Could I lose my home because of negative equity abroad?

Negative equity can often be confusing to deal with, but especially if it concerns a house abroad. Often, expats will be told by their lenders that they are in negative equity when they try to sell; that the current market value of their home is less than what they paid for it, meaning that selling at the current market value will leave them with less money and often means they cannot afford to pay the full amount that was originally lent to them.

This means that selling their foreign property will only cover some of their outstanding debt they owe to the lender. If these homeowners cannot keep up with mortgage payments as they attempt to sell on their property abroad, they could find their place in the sun repossessed by their lender.

However, this is often not the end for expats. If they still owe money to their lenders after a property is repossessed, many think that they can pack up and leave the country and that will be the end of the matter; they can return to Britain poorer but slightly wiser about the dangers of properties abroad. But foreign lenders can pursue them for the outstanding money through the UK courts.

The most worrying thing is that lenders can apply for an order against assets homeowners have in the UK—including their British home. This can often result in debt collectors being ruthless about collecting any assets and hounding families who have no means to pay, especially with the demands of bills and mortgage payments in the UK.

Ignoring the orders and hoping the debts will go away without taking any advice or action can often result in the worst being threatened; losing a ‘safe’ home in your home country because of mortgage debt accrued abroad.



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Keep an eye on European trends, say EU Property Solutions
20 October 2017

The news is our first port of call for information about what is going on around us.

Despite vast amounts of news being produced on a global scale every day, many of us are inclined to only pay attention to the stuff that is happening near us and will have a direct impact on our lives. We are advising to keep yourself in the know when it comes to European trends.

This all changes if you purchase a property abroad though.

If you own or have a mortgage on a house in a European country like Spain, Greece or Portugal, you’ll need to be sure that you are keeping up to date with everything that is going on in these locations as it could potentially be impacting on your property or finances at some point down the line.

In case you missed some of the big property trends where your holiday home is, we’ve rounded up some examples of what’s going on now so you can be sure you remain in the loop regarding your property abroad.

Residential property sales in Spain are increasing 

Spain’s economy is the fastest growing within the Eurozone, which is good news if you are looking to sell your Spanish holiday home. The value of property in sunny Spain also increased during the first six months of 2017, so if you do sell you may be able to pocket a healthy amount of money back.

House prices in Italy should stabilize soon

Italy is still in the process of working its way out of a significant financial crisis, but it looks as though property prices should be at a steady level by next year. This is good news for anyone who is fearful that they may be left in negative equity.

The luxury housing market in France is on the rise

France boasts the title of the most visited country in the world, with an astounding 82 million tourists passing through every single year. There are also reports that the French real estate market is on the rise, with an increase in interest from both commercial and domestic buyers. The luxury market is said to be experiencing the most activity, with properties priced within the region of $2 million – $4 million seeing the most interest from buyers.

Property prices in France are rising

The central German city of Frankfurt has seen residents from outside the country moving in, which has resulted in more construction activity. Despite more properties being built, there is still a gap between supply and demand, which has resulted in a rise in property prices.



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Things to consider before buying a property abroad
20 October 2017

 

While the idea of spending endless summers lounging around a pool in a gorgeous villa is appealing, a lot of time and care needs to be taken before you take the plunge and invest in a property abroad

Buying a home in the UK is hard enough these days, so factor in the language barrier, currency exchange, potential visa or resident issues and a lack of knowledge regarding foreign markets and interest rates and you’ll begin to understand why an investment in overseas property can be somewhat tricky. Before you pack your suitcase and make a rash decision, read on to find out what you should consider before you commit to purchasing a property abroad.

The property’s rental potential

When the summer is over and it’s time to head back to dreary old Britain, your holiday home will be left empty. Rather than leaving it unoccupied, it’s worth considering the prospect of renting it out during the months you won’t be staying there.

If you do choose to rent your property out, it’s worth giving some thought to these additional concerns. Firstly, does the location you are choosing benefit from dual-seasonality? If your place can be used both in the summer and winter months it will be a much better investment. You will also need to check out the local rental laws as you could be caught out if you are required to license the premises or collect tourist tax. It may also affect the kind of mortgage you have and will have implications on your own personal tax and the cost of insurance.

The market that you are entering into

While you may be well-versed in the property market in the UK, chances are you don’t know much about the day-to-day realities of the market in foreign countries. If you’re planning on buying abroad, it’s imperative that you become familiar with the property market in your country of choice. Be sure to keep up to date with interest rates and the volume of sales occurring as this will give you a clear indication of when and where the best place to buy is.

How much expert advice you will need

 When dealing with a large investment like buying a property, it’s no good trying to do it on your own. Accept that you will need to seek help from people who know what they’re talking about. Contracts may be written in different languages wh ich could make it difficult for you to decipher what you’re getting yourself into. Under no circumstances should you sign something that you don’t understand, so a translator will need to be present before you put pen to paper.



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