REPOSSESSION OF PROPERTY IN SPAIN

Unfortunately for many the prospect of losing their property in Spain is a harsh reality.

For many it is a holiday home with a mortgage which had until the economic crisis been an affordable luxury. However, as times have become tighter the payment of the mortgage on the property in Spain has become secondary to the needs to pay bills in the UK. They obviously come first to the property abroad.

It was with some surprise that the spanish banks seemed not to acknowledge the difficulties with their customers. Nor did they take any action to assist them. Their view was "you must pay" and for some this was an impossibility.

For those living in their Spanish home the economic crisis has seen many lose their jobs, particularly if they were working in the property sector or associated trades, leaving them unable to pay their mortgage.

Sadly for many expats they have not been in the Spanish system either at all or for long enough to qualify for the limited benefits available.

The number of expats returning to the UK is unclear but there is clear evidence that the numbers are not low.

Abandonment of a property is not uncommon leaving the bank to deal with the repossession process without the owners being in the country.

The banks have somewhat belatedly, now realised the situation and there are certain options available to those facing repossession but they must fit certain criteria.

The level of repossession is so high that that the banks are now advertising repossessed or distressed properties for sale.

If anyone is in a situation whereby they either can't or may not be able to pay their mortgage then they should talk immediately to their lender because they may be able to help.

BUT BE WÄRNED some banks are not making any alternative arrangements. If you have a Mortgage you can be stuck with it without the bank making any changes.

A further difficulty that has arisen is the fact that there are more separations. Whilst settlement of the assets may be agreed between the parties the banks must give their consent to a change in Mortgage Deed. They are very reluctant to take a persons name off a Mortgage Deed because it reduces the prospect of recovery should repossession become an issue.

So even if you have resolved the financial side of a separation the bank may not.

If anyone is facing such a difficulty or has issues with their Mortgage then contact http://www.costablancalawyers.com/ who will try to assist you