Is 2021 the year to work from Spain?

Is 2021 the year to work from Spain?

by Louise Spain ,
  • Move over Barbados, it’s Alicante’s turn!
  • New initiative encourages remote working globally from a base in Alicante
  • Taylor Wimpey España points to significant pent up demand for homes in Spain during 2021 and 2022

Barbados hit the headlines this summer with its ‘Welcome Stamp’ initiative, which encouraged people from around the world to move to the country to work remotely for a year. Now, it looks like Spain’s Alicante region wants a piece of the action.

Alicante has long been a popular holiday destination with Britons looking to soak up the sun and enjoy the Spanish lifestyle. But Provia, Alicante’s Builders’ Association, is encouraging people to go further than simply holidaying in the region and instead to live and work there.

“2020 has opened our eyes to the possibilities of remote working like never before. We’ve seen an explosion in the use of video conferencing. We’ve also seen teams thinking creatively not only about how they can work outside of the confines of the office but how they can be more productive while doing so. There are going to be a lot of individual workers – and forward-thinking employers – who want to continue to harness the benefits of remote working even after it becomes a choice once more, rather than a necessity.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

Alicante already attracts considerable attention from retirees as a place to live, but now the region is courting a younger clientele as well – remote workers and their families. It certainly has plenty to offer as a family lifestyle destination. Bustling cities with impressive arrays of restaurants, shops, cultural sites and international schools provide all the conveniences of modern life. The region’s beautiful beaches, meanwhile, are ideal for spending family time outdoors and appeal to a range of ages. For adults and older children, Alicante’s stunning golf courses can’t help but charm.

According to leading Spanish home builder Taylor Wimpey España, Alicante could be in for a bumper couple of years in terms of home purchases by British buyers, including those looking to relocate permanently to the region.

“The COVID-19 pandemic has changed so much about the way that we live and work, as well as making families focus on what is most important to them. We’ve seen a significant increase in the number of those viewing properties on our website over the course of 2020, with leads up on as well, so we’re anticipating a significant release of pent up demand over the next year or two.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

British buyers have recently shown a particular interest in Taylor Wimpey España’s Iconic development at Gran Alacant in Alicante. The show home at the site is due to open in March 2021, with completion of all 170 apartments expected by March of the following year.

The two- and three-bedroom homes at Iconic make the most of their sought-after location, which provides direct access to the blue flag beach of El Carabassi. The whole development has been carefully designed to maximise views of the Mediterranean, as well as Iconic’s impressive pool and garden areas with outdoor fitness equipment and children’s play area. Prices start from €199,000 plus VAT for a two-bedroom, two-bathroom apartment.

Those looking to work from Spain have the best of both worlds at Iconic. The peaceful location, between the towns of El Altet and Santa Pola blends a superb working environment with easy access to local amenities. With so much to offer, it seems that 2021 and 2022 could bring some very positive news for Alicante when it comes to attracting professionals looking to get more out of life than a daily commute.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit https://www.taylorwimpeyspain.com/. If you reside outside of the UK you will need to call 00 34 971 706 972.

Rental guarantor services “keeping up momentum” in private rented sector, reports Housing Hand

Rental guarantor services “keeping up momentum” in private rented sector, reports Housing Hand

by Louise United Kingdom
  • Guarantor services providing accommodation providers with more potential tenants
  • No-cost solution for landlords protects them against lost rental income
  • Guarantors helping to mitigate COVID’s impact on private rented sector

UK rental guarantor service Housing Hand has highlighted the importance of professional guarantors in keeping the private rented sector buoyant during the COVID-19 pandemic. The largest rent guarantor service in the UK, the company works with accommodation providers to deliver access to a wider pool of tenants.

By acting as a guarantor for working professionals and students, Housing Hand increases the number of renters available to accommodation providers, thus helping to keep the market buoyant, despite the financial uncertainties that currently abound.

“Rental guarantor services help tenants to access the accommodation they want, but they are also hugely beneficial to the providers of that accommodation. They provide a degree of certainty, as landlords know that there is a professional service ready to step in should the tenant become unable to pay their rent. In these uncertain economic times, that knowledge can be very reassuring; it is keeping up momentum in the private housing sector.”

Terry Mason, Group Operations Director, Housing Hand

Housing Hand’s service, which is free for landlords and agents to use, can provide payment to an accommodation provider in the event that a tenant is unable to do so. The award-winning service also comprehensively covers damages and dilapidations. To date, Housing Hand has worked with over 3,500 accommodation providers and has covered more than £646 million in rent since 2013.

With a professional guarantor service in place, landlords are able to move forward with tenancies that may not otherwise have been viable, as they have the reassurance that they won’t end up out of pocket.

Housing Hand’s service is available to landlords, letting agents, universities and purpose-build student accommodation providers. In every case, the company works to provide access to a greater number of potential tenants.

“The rental sector is often quick to feel the impact of recessionary times. The COVID-19 pandemic has presented some unique economic challenges, which we will need to work together to overcome. Hopefully, by supporting the fluidity of the rental sector, we will help to mitigate at least some of the impact of the pandemic.”

Jeremy Robinson, Group Managing Director, Housing Hand

For more information please contact Housing Hand today on +44 (0) 207 205 2625 or visit https://www.housinghand.co.uk/

COVID can’t stop justice as €25 million now won for Spanish property owners by CostaLuz Lawyers

COVID can’t stop justice as €25 million now won for Spanish property owners by CostaLuz Lawyers

by Louise Spain
  • 500 cases now won using 50-year-old Spanish law
  • Cases for 71 clients won in 2020 despite COVID-19 disruption to courts
  • Decade-long cases see some clients spending entire retirement years fighting for justice

Spanish property law firm CostaLuz Lawyers has announced the recovery of €25 million for clients who paid deposits on homes that were never built (or finished) due to the global financial crisis back in 2007/08.

With another 200 cases in progress, the company expects that figure to rise significantly over the months and years ahead, despite the fact that 28 December 2020 marks the final date for buyers in this position to start legal proceedings.

“Since our first landmark victory using Law 57/1968 back in 2012, when we won €1.5 million plus costs and fees, we’ve won around 500 cases for clients who thought their deposits were gone forever. With some cases taking as long as a decade, this really highlights the value of persistence when it comes to navigating the Spanish legal system.”

Keith Rule, www.costaluzlawyers.com

47 of those wins, representing a total of 71 clients, have been won in 2020. That means the CostaLuz Lawyers team has won approximately €3.5 million this year alone, despite courts closing and other significant disruption due to the COVID-19 pandemic.

With cases taking as long as a decade to work their way through the courts, some of the clients that CostaLuz Lawyers is winning money back for are now in their 80s. Many were on the verge of retirement when they originally put deposits down on their dream Spanish homes back in the boom years of 2004 to 2008. They’ve since spent years of their retirement fighting for justice.

Other of CostaLuz Lawyers’ clients are just approaching retirement now – a prospect made vastly more appealing by wins representing tens of thousands of pounds. Chris Nairn, for example, was 50 when he first paid a deposit of around €125,000 for a property in Murcia. When the developer didn’t deliver on time, Chris asked for his deposit back. He finally got it back – plus interest and fees – a full decade later, thanks to the CostaLuz Lawyers team.

“When I first bought, putting down a 30% deposit, it was a dream come true, but the property was not completed on time and the nightmare began. CostaLuz Lawyers warned me the road ahead would be long and tough and that Spanish Law is complex and not easy to navigate. It took 10 years, with a lot of ups and downs, but I remembered what they said and held firm. Finally, we got our money back with interest.”

Chris Nairn, client of www.costaluzlawyers.com

The majority of those who have won their money back had put deposits down on properties on the Costa del Sol and Costa Blanca. However, CostaLuz Lawyers has also successfully represented clients in relation to off-plan properties on the Costa del Azahar, Costa Brava and inland. Most hail from the UK and Ireland originally, along with a number of Spanish nationals and residents from elsewhere in Europe.

“There is just a handful of days left for buyers who lost deposits to initiate legal proceedings. It can be a long, arduous process to obtain a refund, but with so much at stake, it’s a process that’s worth persevering with. The sums of money in question, particularly once interest and fees are factored in, can make a huge difference to the course of people’s retirement years.”

Keith Rule, www.costaluzlawyers.com

For more information, please contact CostaLuz Lawyers’ UK office on +44 1908 635 111 and speak with Keith. To speak with Maria in the Spanish office, call +34 956 092 687 or you can visit www.costaluzlawyers.es

5 new launches for the New Year: Taylor Wimpey España gears up for 2021

5 new launches for the New Year: Taylor Wimpey España gears up for 2021

by Louise Spain ,
  • Developments will launch in Q1 2021
  • New launches complement strong offer of key-ready homes
  • Taylor Wimpey España confident in enduring appeal of Spanish property

Leading Spanish home builder Taylor Wimpey España has announced that it will launch five new developments during the first quarter of 2021, in a move that signals the company’s confidence in the long-term appeal of Spanish second homes. The new launches will complement the rich variety of key-ready homes that Taylor Wimpey España already offers in Mallorca, the Costa Blanca and the Costa del Sol.

“We’ve seen plenty of interest in Spanish second homes during 2020, despite the COVID-19 pandemic. Many buyers are waiting out the travel and lifestyle restrictions and spending this time planning their property purchase. We’re going to be fully prepared when that pent-up demand is suddenly released in 2021.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

The five new launches will include Essential in Javea (Costa Blanca), Marbella Lake in Nueva Andalucia (Marbella) and three developments in Mallorca. Just as with Taylor Wimpey España’s key-ready developments, they will feature communal pools and gardens in addition to the carefully designed homes with their spacious outdoor terraces, solariums and/or private gardens.

iProperty Management recently revealed Spain to be the country that most people want to relocate to. Figures from the Spanish Registrars, meanwhile, have shown that even national lockdowns can’t stop foreigners flocking to buy homes in Spain. During Q2 2020, foreigners accounted for 35.2% of all home sales in Alicante and for 24.6% in the Balearic Islands.

“Spain retains all of those fundamental elements that second home buyers are looking for – sunshine, beaches, golf, a superb gastronomic scene and excellent value for money. It is also ideally suited to spending time outdoors throughout the year. Sitting on a terrace in the sunshine during a lockdown is a very different experience from being stuck indoors in the rain. That has been a driving factor for several of those who have purchased homes from us during the pandemic.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

For buyers who want to start using their property sooner, rather than later, Taylor Wimpey España is offering key-ready homes at a range of sites. Botanic, at La Reserva de Alcuzcuz, Benahavis (Malaga), offers a next-level experience for buyers looking to connect with the natural environment. Created in accordance with the principles of sustainability, ecology and bioclimatic architecture, the development integrates vertical gardens and green corridors into the design, respecting the variety of species and indigenous trees in the area while providing a stunning panorama over the gently sloping land leading down to the sea. The bright, three-bedroom homes have spacious, south-facing terraces and cost from €430,000 plus VAT.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit https://www.taylorwimpeyspain.com/. If you reside outside of the UK you will need to call 00 34 971 706 972.

Students to serve as landlords’ ray of light in 2021

Students to serve as landlords’ ray of light in 2021

by Louise United Kingdom
  • Housing Hand forecasts Brexit as exacerbating economic impact of COVID-19
  • Falling property prices, tax changes and fewer international renters will mean a tough year for landlords
  • A bumper cohort of students in September 2021 will provide the sole ray of light

Many people are looking to 2021 to deliver them from the horrors of 2020. However, with mass vaccination likely to take months and the impact of Brexit thrown into the mix, there’s unlikely to be much for landlords to celebrate during the first half of the year.

UK rental guarantor service Housing Hand has flagged up the combined impact of falling property prices, tax changes and lower numbers of international renters as a major stumbling block for the UK rental sector over the year ahead.

“The only thing certain about the UK rental market following Brexit, is uncertainty. Landlords face uncertain income from tenants, while tenants continue to face uncertain income due to the pandemic. Meanwhile, the number of working European tenants is likely to drop due to Brexit and COVID. All against a likely backdrop of falling property prices.

The requirements for European tenants to travel, work and rent in the UK will change as a result of Brexit. Renting is likely to become more difficult, as the right to rent requirements will almost certainly change at some point in the not-too-distant future. Brexit’s effect on rental property, compounded by COVID, tax and legislation changes, means it is difficult to foresee many positives for landlords in 2021.”

Jeremy Robinson, Group Managing Director, Housing Hand

According to JLL, house prices in 2021 are likely to drop by 1.5%, with rental values falling by 1.0%. Lost GDP growth, rising unemployment, falling housing affordability and the removal of the furlough scheme will all play a role in this. Others in the industry are more confident, forecasting growth in prices in 2021, though the end of the Stamp Duty holiday could have a significant impact. In any case, the market for capital growth is likely to be flat.

Growth in income for landlords will also be a challenge due to increased competition. With job availability decreasing and freedom to travel for work stopping from Europe, the number of tenants coming into the UK will decrease, exacerbating landlords’ troubles.

Fewer international tenants, an increase in tenants defaulting on rent and a likely oversupply of rental accommodation shifting the national picture to a tenants’ market rather than a landlords’ one certainly paints a grim picture. However, Housing Hand does highlight one ray of hope: students.

“The indications are that the 2021/22 academic year is likely to be a bumper year for students, with little reaction to Brexit. We have last year’s candidates who decided to take a year out rather than attending university now wanting to start. We also have a larger number of students reaching university age with fewer jobs available, meaning going to university becomes a safer option. Then there’s the fact that a larger number of international students started university in 2020 and will thus be returning for their second year.”

Terry Mason, Group Operations Director, Housing Hand

Knight Frank and UCAS report that 30% of first-year students live in privately rented accommodation or at home with parents or guardians (in addition to the 30% who live in private purpose-built student accommodation). As such, a bumper year for university entrants spells very good news for landlords with properties in the right locations.

Rental guarantor services, meanwhile, provide those renting to students (and, indeed, working professionals), with the peace of mind that they won’t end up out of pocket should the tenant fail to pay their rent. This means that landlords can be confident in capitalising on renting to students over the course of 2021 – a ray of hope to which many will likely be clinging.

For more information please contact Housing Hand today on +44 (0) 207 205 2625 or visit https://www.housinghand.co.uk/

Just one month left to claim for lost Spanish property deposits

Just one month left to claim for lost Spanish property deposits

by Louise Spain
  • 28 December deadline looms for buyers who lost deposits to make claims
  • Opportunity applies to off-plan property buyers whose homes were never completed
  • CostaLuz Lawyers urging buyers who lost out to take action before it’s too late

There is just one month left for those who lost deposits on Spanish off-plan properties that were never completed to begin legal proceedings to try and get their money back. After 28 December 2020, these buyers will no longer have the option to take legal action against the banks and developers who took their money but never delivered the promised homes. As such, the team at CostaLuz Lawyers is urging any buyer who has not yet taken action to do so without delay.

The financial crisis hit Spain’s property market hard, causing a string of developers to go bust. Buyers from around the world – and in particular from the UK, due to the country’s long-standing love of Spain – suddenly found themselves without the properties they had been promised and without any means of claiming back their deposits.

CostaLuz Lawyers and Keith Rule changed all that in 2012, when they used a 45-year-old law to win a class action for off-plan deposits of almost €1.5 million plus interest and costs. It meant that those who lost their deposits now had recourse to take legal action against the banks who took their funds, as well as the developers.

The CostaLuz Lawyers team, with Keith now onboard, has won 450 such off-plan cases, including 110 in 2019 and 70 in 2020 despite the pandemic closing down much of the judicial system in Spain. Altogether, the CostaLuz Laywers team has won around €22 million for clients who lost off-plan deposits, but time is running out for those who have yet to start legal proceedings.

“In many cases, buyers are nervous about ‘throwing good money after bad,’ but we’ve proven time and again that legal action is the only way to win back not just the buyer’s original deposit, but costs and interest as well. Any buyers who don’t take action at this stage are effectively saying goodbye to tens of thousands of pounds – and sometimes more – forever.”

Keith Rule, CostaLuz Lawyers

For more information, please contact CostaLuz Lawyers’ UK office on +44 1908 635 111 and speak with Keith. To speak with Maria in the Spanish office, call +34 956 092 687 or you can visit www.costaluzlawyers.es

Advantages of guarantor services still not fully understood within the private rented sector

Advantages of guarantor services still not fully understood within the private rented sector

by Louise United Kingdom
  • Housing Hand seeking to shed light on multiple benefits of using a guarantor company for covering rent performance
  • Guarantor services helping landlords, agents and tenants
  • Pandemic making such services more valuable than ever

UK rent guarantor service Housing Hand is seeking to clarify and confirm the advantages of guarantor companies to those operating in the private rented sector. It comes after the company revealed that there is still a common misconception among many letting agents that such services are only for the benefit of landlords. Some landlords, meanwhile, mistakenly believe that they won’t continue to receive full rent payments, should the tenant not be able to pay.

“The way that guarantor companies work delivers a triple set of benefits, with landlords, letting agents and tenants all gaining protection as a result of using these services. Yet the advantages are not fully understood. That’s why we’re working to showcase the triple benefits of guarantor services for the rental sector.”

Jeremy Robinson, Group Managing Director, Housing Hand

The benefit to landlords is immediately apparent. Should the tenant become unable to pay part or all of their rent, the landlord has a safety net that means they won’t lose out financially – the rent guarantor company pays 100% of the rent for all valid claims.

This safety net benefits agents as well. Rent collection and maintenance charges only apply as long as the rent keeps being paid. If a tenant cannot pay, then the agent loses out as well as the landlord. However, with a rent guarantor company in place, both landlord and agent will continue to receive their income, despite the tenant’s inability to pay.

Of course, for the tenants the advantage comes from not having to move out or face a lengthy and stressful potential eviction process when they can’t pay their rent. They can instead remain in the property and repay the debt over a period of time.

“There are many different risks and priorities for landlords, agents and tenants these days. The economic impact of the pandemic is already starting to bite and is sadly likely to get worse as we head into 2021. That’s why rent guarantor services are so important right now.”

Terry Mason, Group Operations Director, Housing Hand

One issue around how rent performance may be underwritten needs specific clarity and we can use the Housing Hand example to demonstrate this. Housing Hand (as a guarantor company) operates guarantees as a professional service. It is backed by Lloyds syndicate insurance, delivers 100% pay-out and is governed by the landlord.

A company guarantor, meanwhile, is where a company that provides other services or products, may guarantee its employees’ rent. These are subject to the quality of the company and are typically not backed by specific insurance.

And then there’s rental guarantee insurance, which is where a landlord or letting agent, in conjunction with an insurance broker, issues a policy that covers rent with a more limited scope or value.

“We’ve spent nearly eight years now proving that the guarantor company model is the safest approach for tenants, landlords and agents. All three key stakeholders benefit from knowing that they will be protected from financial loss and from the incredible stress of an eviction process. The more the mutual benefits are understood across the private rented sector, the better it will be for all concerned.”

Terry Mason, Group Operations Director, Housing Hand

For more information please contact Housing Hand today on +44 (0) 207 205 2625 or visit https://www.housinghand.co.uk/

Thousands paying up to €200 extra per month on their Spanish property mortgages

Thousands paying up to €200 extra per month on their Spanish property mortgages

by Louise Spain ,
  • Inclusion of Cláusula Suelo (Ground Clause) in mortgages provides potential for refunds
  • Affected property owners blocked from benefits of falling interest rates
  • CostaLuz Lawyers has already won many Ground Clause cases for UK owners

The Spanish property law experts at CostaLuz Lawyers are seeking to alert anyone who owns property in Spain that they may be able to claim refunds on their mortgage payments. The move follows a string of wins in the courts for property owners with a Cláusula Suelo (Ground Clause) in their mortgages.

The Ground Clause was included in many Spanish mortgages. It establishes a minimum interest rate applicable to mortgage repayments, meaning that variable rate or tracker mortgages never saw the benefits of falling interest rates filter through to the mortgage holders. In many instances, the banks issuing the mortgages did not clearly explain the implications of the Ground Clause. This has created the potential for mortgage holders to claim back the overpayments.

“While variable rate and tracker mortgages are linked to the Euribor rate, the inclusion of Cláusula Suelo meant that the interest rate could never drop below a much higher rate fixed by the bank. This has seen many mortgage holders paying several percentage points more in interest than they should have been over the past decade and more. We are keen to alert them that there is hope for having Ground Clauses removed from the mortgages and for reclaiming the overpaid interest.”

Keith Rule, CostaLuz Lawyers

When the markets crashed at the end of 2008, so did the Euribor rate. This meant that, from early 2009, mortgage holders should have been paying much lower interest. However, those with a Ground Clause in their mortgage weren’t able to do so.

CostaLuz Lawyers reports that the existence of the Floor Clause implies a surplus in mortgage repayments, in general, of around €200 per month. On a 130,000€ mortgage taken out in 2006 over 30 years at Euribor + 1%, with a 4.25% Ground Clause, the mortgage holder would be due a refund of overpaid interest of around €20,000. Successful cases also see the Ground Clause removed from the mortgage, meaning that the property owner can also benefit from lower monthly payments directly linked to the Euribor rate in future.

“Both the Spanish and European courts have ruled that banks must refund all the overcharged interest since the very first application of the Ground Clause, together with default interest and legal costs. This applies even where mortgage agreements have passed from bank to bank during mergers and acquisitions.”

Keith Rule, CostaLuz Lawyers

Banks are given three months to respond to initial Cláusula Suelo claims brought against them. This means that some property owners may receive refunds without going through the courts. Where banks refuse to engage, however, the CostaLuz Lawyers team is ready and waiting to take appropriate legal action.

The firm has already won nearly 850 claims (in relation to Cláusula Suelo and other legal matters) from Spanish property developers and banks. In the process, it has helped more than 1,500 clients from the UK and Ireland, as well as Spanish and European nationals. Now, by publicising the Ground Clause scandal more widely, the firm hopes to help even more property owners reclaim what is rightfully theirs.

For more information, please contact CostaLuz Lawyers’ UK office on +44 1908 635 111 and speak with Keith. To speak with Maria in the Spanish office, call +34 956 092 687 or you can visit www.costaluzlawyers.es

Pandemic opens people’s eyes to potential of working remotely from overseas

Pandemic opens people’s eyes to potential of working remotely from overseas

by Louise Spain ,
  • Terraces with golf, marina and sea views await those looking to ditch the commute for good (Taylor Wimpey España)
  • 24% of employees now working remotely (ONS)
  • Longer-term benefits of remote-first approach now more widely understood

As the UK ploughs on with the battle against COVID-19, the government has once more asked that all those who can work from home do just that. The pandemic has made families re-evaluate their home environment like never before, particularly in relation to space in which to work and outdoor space. Now, leading Spanish home builder Taylor Wimpey España is providing the ideal solution to both, with selected properties offering spacious terraces with stunning views as the ideal spot from which to work.

“Even once the pandemic is under control, it’s likely that some of the lifestyle changes it brought about will stick. Many people’s eyes have been opened to how easily they can work from home and the lifestyle benefits that doing so can bring. As such, we’re catering to the needs of home-based workers not just for now but also for the longer-term.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

The waterfront homes at Pier are a case in point. The two- and three-bedroom apartments provide east and south-east facing terraces with marvellous views of the prestigious Marina de Sotogrande. The spacious terraces are ideal for sitting outdoors with a laptop, working from home in an absolutely stunning setting. The key-ready homes are priced from €342,000 plus VAT. Would-be buyers can take a virtual tour to discover Pier for themselves.

The Office for National Statistics reported on 1 October 2020 that just 62% of people were working at their normal place of work, with 11% furloughed and 24% now working remotely. It’s unlikely that that quarter of the working population will all be keen to start commuting again when the time comes, particularly when many will have proved how productive they can be when based from home.

This opens up the idea of working remotely from locations other than home, once lockdown and travel restrictions ease. After all, a stable internet connection, a decent mobile phone signal and a laptop are all that many people now need to do their jobs effectively, regardless of their location. With Spain being only an hour ahead of the UK, working from there fits perfectly with working for a UK company.

“With the technology available to us now, there’s no longer the same need to be tied to a desk from 9 to 5. Increasingly, companies are understanding the benefits of remote working not just for their employees but for themselves. A remote-first approach can mean running a more cost-efficient operation with a lower carbon footprint thanks to the need for less office space and a reduction in employee commuting.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

What better place, then, than a terrace in the Spanish sunshine as a base for working from home? At Emerald Greens, the terraces look out over the verdant greenery of Cadiz’s renowned San Roque Club. Starting from €296,000 plus VAT, the two- and three-bedroom apartments and penthouses, with their communal pools and landscaped gardens, offer a stark contrast to a life of urban commuting. Embracing open plan and ‘total living’ concepts, the homes have spacious living areas that flow into large, open terraces. Meanwhile the surrounding corn oak meadows are offset beautifully against views that stretch out over the golf course down to the sea.

For more information, please contact Taylor Wimpey España on 08000 121 020 or visit https://www.taylorwimpeyspain.com/. Those outside of the UK can call 00 34 971 706 972.

CostaLuz Lawyers releasing ‘mortgage prisoners’ through distressed holiday home service

CostaLuz Lawyers releasing ‘mortgage prisoners’ through distressed holiday home service

by Louise Spain
  • Global financial crisis saw 36% fall in Spanish house prices (INE)
  • Prices now falling again, with 3.1% drop between March and September (Tinsa)
  • CostaLuz Lawyers facilitating below market value sales of distressed holiday homes before repossession

As Spain battles to cope with the economic impact of COVID-19, figures from Tinsa show that house prices have fallen by 3.1% since March – and by 7.6% in the Balearic and Canary Islands. It means that the country recorded its first year-on-year price drop for four years in September, with an average fall in value of 0.6%.

Yet for some of those who own property in Spain, this is just the latest instalment in a negative equity story that stretches back well over a decade. According to CostaLuz Lawyers, many families who bought holiday homes in Spain back at the peak of the bubble that burst so spectacularly back in the mid-2000s are still trapped in huge negative equity situations.

“Spanish house prices fell by 36.3% from 2007 to 2015 and many buyers are still trapped owning properties that are worth significantly less than they paid 14 or 15 years ago. With the economic situations in the UK and Spain both deteriorating as a result of the pandemic, and house prices in Spain starting to fall once more, many banks are open to taking back properties in lieu of the pending mortgage debt.”

Keith Rule, CostaLuz Lawyers

Foreclosures in Spain were already on the increase before anyone had even heard the term “COVID-19.” According to the National Statistics Institute (INE), foreclosures in the first three quarters of 2019 were 11% up on the same period a year earlier. For new dwellings, that figure shot up to 36.9%.

Spanish banks are often keen to close such deals by the end of December, to tie in with the end of the financial year. This means that many British owners of negative equity homes in Spain will be feeling the pressure to give the keys back to the bank, particularly in light of prices now starting to fall once again. Yet these property owners are not without options.

“Homeowners facing this scenario often refer to themselves as ‘mortgage prisoners’ and believe there’s no way out of their predicament but that’s not necessarily the case. We offer two services that mean those trapped in negative equity can finally escape the situation.”

Keith Rule, CostaLuz Lawyers

CostaLuz Lawyers has a service that enables homeowners to offer their properties back to the bank in lieu of their outstanding mortgage debt, negotiating the property’s handover even when the amount of the debt is significantly higher than the value of the home.

However, the company doesn’t stop there. It also serves to pair those wanting a way out of negative equity with those looking to purchase a below market value property in Spain.

“Most services of this nature take the repossessed property after it has been returned to the bank, add on a percentage and then sell it. We take a different path. We negotiate the sale before the repossession, using legal arguments to show how this is favourable to both the bank and the owner. It’s also highly advantageous to the new buyer, who can usually pick up a property for around 60% of the price paid back in 2007.”

Keith Rule, CostaLuz Lawyers

There is no time limit on the sale of these distressed properties, meaning that both seller and buyer can work together to find a solution that suits all parties, with CostaLuz Lawyers coordinating the legal side of the process.

CostaLuz Lawyers is already renowned for helping over 1,500 clients from across the UK and Ireland claim back deposits previously considered lost on properties that were never finished or built following the financial crisis. Now, their distressed property service is helping another swathe of property buyers who were caught out by the crisis.

For more information, please contact CostaLuz Lawyers’ UK office on +44 1908 635 111 and speak with Keith. To speak with Maria in the Spanish office, call +34 956 092 687 or you can visit www.costaluzlawyers.es