Spanish mortgage debt charged against UK property

[Nigeljay]

Not sure you understood me, I'm mooting that their Spanish apartment is a sufficient asset for the bank to cover their debt ( in valuation terms) but if the bank think that it will be difficult to sell, it is preferentially going after a different asset( their UK property) as it may be easier to convert to a liquid asset.

[mrypg9]

Originally Posted by Nigeljay

Not sure you understood me, I'm mooting that their Spanish apartment is a sufficient asset for the bank to cover their debt ( in valuation terms) but if the bank think that it will be difficult to sell, it is preferentially going after a different asset( their UK property) as it may be easier to convert to a liquid asset.

I see...but whatever, if you don't pay, your assets will be seized and that is only to be expected.
The EU law enabling debts accrued in one member state to be pursued in another has been in force for a couple of years now, if I remember rightly so anyone with financial dealings in an EU state other than their own should keep abreast of legal developments relating to borrowing.
I just can't understand why this hapless couple are surprised to find that their UK assets are under threat of forfeiture. Did they think that they could never be held to account for failing to repay 'Spanish' debts?

[nigele2]

Originally Posted by Nigeljay

Not sure you understood me, I'm mooting that their Spanish apartment is a sufficient asset for the bank to cover their debt ( in valuation terms) but if the bank think that it will be difficult to sell, it is preferentially going after a different asset( their UK property) as it may be easier to convert to a liquid asset.

Nigel (great name by the way ) that's a very interesting point. Sort of cherry picking. For sure if bailiffs enter your home they take items that are the easiest to sell and easiest to transport. At that stage you have been given the chance to pay, failed to do so, and passed the decisions to the agents of the aggrieved party.

However when you say the bank think "that it will be difficult to sell" that would suggest an over evaluation. It surely is only worth what you can sell it for.

[Nigeljay]

Originally Posted by mrypg9

I see...but whatever, if you don't pay, your assets will be seized and that is only to be expected.
The EU law enabling debts accrued in one member state to be pursued in another has been in force for a couple of years now, if I remember rightly so anyone with financial dealings in an EU state other than their own should keep abreast of legal developments relating to borrowing.
I just can't understand why this hapless couple are surprised to find that their UK assets are under threat of forfeiture. Did they think that they could never be held to account for failing to repay 'Spanish' debts?

Yes but my point is can a Spanish Bank choose which asset to pursue against a defaulted mortgage on a Spanish property even if the Spanish property theoretically is sufficient to discharge the debt and costs. Could they for example say that you have sufficient cash in a German bank to repay the mortgage and costs and we would rather have that than your Spanish property on which we hold the mortgage. ( that doesn't apply to me by the way and is only a theoretical example)

[jojo]

Originally Posted by mrypg9

I just can't understand why this hapless couple are surprised to find that their UK assets are under threat of forfeiture. Did they think that they could never be held to account for failing to repay 'Spanish' debts?

I agree. Surely if you're going to borrow large sums of money in a foreign country, you should investigate the consequences. Its a risk and with all risks "knowledge is power". Not only can you make money by taking risks, you can lose it as well!

Jo xxx

[mrypg9]

Originally Posted by Nigeljay

Yes but my point is can a Spanish Bank choose which asset to pursue against a defaulted mortgage on a Spanish property even if the Spanish property theoretically is sufficient to discharge the debt and costs. Could they for example say that you have sufficient cash in a German bank to repay the mortgage and costs and we would rather have that than your Spanish property on which we hold the mortgage. ( that doesn't apply to me by the way and is only a theoretical example)

I would think the answer is 'yes'. After all, if I lend you money my sole interest is getting back the full value of the debt, if possible, from whatever assets you may hold.
European Repayment Orders or whatever they're called have made debt collection so much easier throughout the EU.
And rightly so.
I may be wrong but I get the feeling that far too many people have regarded Spain as some kind of banana republic where you can arrive, live beyond your means with the aid of loans you might not be able to repay. or by doing dodgy work on the black...and then when the proverbial hits the fan you just ****** off back to the UK.
'Ten bob millionaires', as someone posting in The Daily Mail described them.

[mrypg9]

Originally Posted by jojo

I agree. Surely if you're going to borrow large sums of money in a foreign country, you should investigate the consequences. Its a risk and with all risks "knowledge is power". Not only can you make money by taking risks, you can lose it as well!

Jo xxx

Agreed!

What irks me is that people complain when they lose but take their good luck for granted when they win.
They are the people who expect help from 'lenders' or 'taxpayers'. Perhaps they are socialists but aren't aware of it...
But they never consider sharing their luck when times are good.......

[Nigeljay]

Originally Posted by mrypg9

I would think the answer is 'yes'. After all, if I lend you money my sole interest is getting back the full value of the debt, if possible, from whatever assets you may hold.
European Repayment Orders or whatever they're called have made debt collection so much easier throughout the EU.
And rightly so.
I may be wrong but I get the feeling that far too many people have regarded Spain as some kind of banana republic where you can arrive, live beyond your means with the aid of loans you might not be able to repay. or by doing dodgy work on the black...and then when the proverbial hits the fan you just ****** off back to the UK.
'Ten bob millionaires', as someone posting in The Daily Mail described them.

My final comment on that is that I bet many UK expats who have mortgages on their Spanish property believe that, like in the UK, the banks will collect its debt from that property first and only if there is a residual indebtedness after that will they go after other assets

[Stravinsky]

Originally Posted by Nigeljay

My final comment on that is that I bet many UK expats who have mortgages on their Spanish property believe that, like in the UK, the banks will collect its debt from that property first and only if there is a residual indebtedness after that will they go after other assets

So .... do you think a bank in the UK would pursue someones assets in Spain if the situation were the other way around?

I'm wondering also how SOL Bank knew this couple had another home in the UK ... I assume they must have used the address when they were buying the Spanish property.

Not that it applies to me as I dont have a mortgage, but afaik my Bank doesnt know anything about my UK assets / address

[gus-lopez]

Originally Posted by Stravinsky

So .... do you think a bank in the UK would pursue someones assets in Spain if the situation were the other way around?

I'm wondering also how SOL Bank knew this couple had another home in the UK ... I assume they must have used the address when they were buying the Spanish property.

Not that it applies to me as I dont have a mortgage, but afaik my Bank doesnt know anything about my UK assets / address

Apparently what the spanish bank have done can't be done by a uk lender. Ie; if a spanish person buys in the uk ,like this couple, then can't afford to pay & hand in the keys & return to their spanish home , the UK lender is not able to use a ER order in the same way that the spaniards can.
What many people don't realise is that when you take out a mortgage with a spanish bank the foreclosure terms ( all costs, legalcosts, charges, advertising the propert for sale, etc. ) are included from the outset & are usually draconian.
Someone I know who purchased for 300k with a 200k mortgage found that her debt to the bank was not far short of 450k when she had to walk away.

Mary " ten bob millionaires " , I prefer the old one , " all fur coat & no knickers "