[Anonymous]

Hi can anyone advise what my options are please any info will be appreciated. I have had a villa in Spain for the past 6 years and the good times seem well and truly over. Like everyone I’m trying to sell my place, its on at 359,000 and the mortgage is 235,000. I’m lucky that I have some equity but am in arrears and owe some community fees as well and its getting close !

If I cant find a buyer I’m looking to hand it back but I’m still fighting ! My question is this….if i hand the property back with equity in it would the lender (Caja Murcia in this case) still chase me in the UK for the arrears money and the community fees ? Or would they right it off because of the equity ?

Any advise would help me thanks…

[Inez]

Hi Skopiio and sorry to hear your news. There are 3 options for you

1. Sell the property to cover what you owe in total, if you sell privately the notary will not sanction the sale unless all bills are paid to date and the mortgage cleared. You may need to look at your asking price. Work out what you owe, all the bills and add on any lawyers fees etc. Remember you will need to leave 3% of the total price to Hacienda to cover any outstanding taxes which is refunded at a later stage.

2. Sit and wait until its repossessed – if the mortgage is cleared then you shoulod be fine – if it isnt then depending on how much is outstanding then you may be chased back in the UK. It hasnt happened yet but I cant see the banks or debtors sitting back and leaving it if there is a big sum to recover. EU legislation makes it easier to sue cross borders and who knows what will happen in the future – after the 90s fiasco, people were being found many years after letting the property be repossesed and sold at a loss, I think the statute of limitation is 20 years!!! (in uk)

3. Find out from your bank re dacion de pago – this means its agreed they take the property back, you lose any equity but also walk away with a clean sheet. Its signed over at notary and you are then no longer liable as the bank actually owns the property then instead of the debt.

Good luck

[Anonymous]

Hi Inez

Many thanks for your help, advice and information really appreciated….thats given me something to think about.

Thanks for taking the time to respond…

All the best my friend

[Author]

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