All EOS blogs All Spain blogs  Start your own blog Start your own blog 

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 @ 11:42

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.

Like 0


healthyannie said:
24 October 2017 @ 13:10

Putting your UK home in trust may be a good idea before you actually try sell your home in the sun. Also, UK court will deal with foreign debt in a different way, and you may find a payment plan would be a good option. But yes, there is a lot of negative equity in Spain, and property values in many traditional expat countries, are still in dreamland.

Leave a comment

You don't have to be registered to leave a comment but it's quicker and easier if you are (and you also can get notified by email when others comment on the post). Please Sign In or Register now.

Name *
Spam protection: 
Your comment * (HTML not allowed)
(Items marked * are required)


This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x