I am in urgent need of some good advice. I live in London and have 2 apartments in the centre of Madrid with large outstanding mortgages on which I have managed to pay interest only and avoid paying the capital for several years. Initially these properties seemed a good investment and the idea was to sell them on after about 3-5 years. But then came the collapse of the Spanish economy and with it the collapse of the Madrid property market. They have now dropped heavily in value and both have plunged heavily into negative equity.
Although both apartments are rented out from time to time as holiday lets, the income in no way covers the outgoings not even the interest only mortgage repayments. The bank now wants me to either start paying the capital (which would mean huge monthly payments) or sell both apartments at a loss. However if I sell I won’t be able to afford to pay the remaining shortfall of mortgage debt.
I really don’t want to keep either property nor their contents (they are fully furnished and equipped to a high standard). I would rather just give the bank the keys back and walk away. However I am really scared they will pursue me in the UK and that I would lose my home in London or worse.