Uncertainty of the pandemic continues around the world as economies reel because of Coronavirus and imposed lockdowns essential to Public Safety.
Undoubtedly, property markets suffer in periods of uncertainty.
2nd homeowners with property in Spain will be considering selling at this stage. Factors include no rental income for peak season, declining capital values imminent, and currently an inability to visit the property.
Selling property during a pandemic comes with its difficulties:
- The property could be in Negative Equity i.e. the outstanding mortgage is greater than the property value. With prices set to decline again, more borrowers will find themselves in this scenario.
- Costs of sale in Spain can be 10-12% of the sales price. Vendors must factor this into their calculations.
- The property must be “priced to sell”. There is a massive supply of 2nd home properties across the Spanish Costas, and being realistic is essential.
- Demand for 2nd homes will probably fall in this period, and for the rest of the year, as travel is restricted and confidence is hit.
- Lending restrictions imposed last year reduced the buyer pool, so we await the banks’ response to this crisis and how their criteria will change again.
If you are struggling to sell a property in Spain, EU Property Solutions can help. Our legal process avoids the sales process and associated costs.
As Mark Stücklin of Spanish Property Insight said in one of his articles:
“If you find yourself in financial distress as a non-resident or second-home owner due to this crisis you may see yourself miss your Spanish mortgage repayments.
You need to get hold of the situation quickly and start talking to your lender about the options.
If you feel you need professional help from experts who know how to negotiate with banks and get you the best outcome, get in touch with financial distress and negative equity experts EU Property Solutions to discuss your case.”
EU Property Solutions have options and plans for every eventuality, ensuring we protect you, your income, your home, pensions and other assets – from any potential or ensuing legal threat.
Get in touch now if you think you are going to have trouble with your Spanish mortgage. The earlier you take steps to address the problem, the better your chances of avoiding the worst case scenario.