Property Value Plummets to 30%
London, UK (Pryce Warner International) May 24, 2012 – In an effort to combat the ever-diminishing benefits of owning Spanish real estate, which in some instances is now worth just a third of its original value, many British expats are looking to remortgage or entirely remove themselves from a property marketplace predominantly plagued by reduced exchange rates and credit ratings typified by Spain’s tumultuous economy.
International finance experts who have monitored the developing situation have issued a warning to those attempting to get out of the market where a dozen Spanish banks in particularly are trying to recoup a €170bn deficit collectively incurred as a direct result of reduced credit ratings. Sellers are warned that their livelihoods could be at stake if contracts are carelessly agreed to without proper inspection of the terms & conditions.
As is true of any such legal documentation, the small print must always be read, understood and scrutinised by experts wherever possible, especially true as property agreements are sometimes subject to strange stipulations that will be finalised amidst the language barriers and legal process of a foreign country such as Spain. Anyone unaccustomed with Spanish law should always seek expert advice.
Contractual amendments can prove costly and by the time changes have been applied to your mortgage and registry details are changed, sellers could find that all the applicable costs and associated fees have wiped thousands of Euros from their credit balance. Most banks are to some extent obliged to do what they can to help British expats struggling with the far-reaching situation but nevertheless, caution must be exercised at all times.
By Anthony Standring
Pryce Warner International Group
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