Clients commonly ask us whether Spanish banks can pursue their assets in the UK. The short answer is yes. Many people believe that where a property, bank and mortgage debt are all based in Spain, that the Spanish Bank cannot come after them in the UK for the debt, legally, this is certainly not the case.
In the majority of cases, the bank in Spain will have a first charge on the property and are likely to pursue that in the first instance. Often, the bank will resort to selling the property through an auction process if possible. Doing so may cover the amount outstanding and would swiftly bring the matter to an end.
If the value of the property is less than the amount outstanding, then the Bank has a right to pursue a borrower for any shortfall. This scenario results in the Bank in Spain coming after any assets that borrowers may have in the UK. In many cases these circumstances can result in charging orders being placed upon the property assets of borrowers in the UK, due to the Enforcement of a debt Judgement obtained by a bank in the Court in Spain.
While these details may sound worrying, the issue may not always escalate to such an extent. Banks are likely to assess whether a foreign debt recovery case is worth pursuing, as such cases can potentially be problematic and expensive.
We are often instructed by clients who have been notified of a Charging Order on their UK home in favour of a foreign Bank. Through negotiation, we have been able to reach settlements with those foreign Banks, ensuring that the client is fully and finally released from their debts and that the Charging Order removed from their UK home.
How can we help?
At Judicare, we are experts in this legal area, with decades of experience assisting clients who are being pursued by Spanish banks for mortgage liabilities. We understand that being contacted by a Spanish bank regarding property debt can be anxiety inducing, particularly where a client has believed for many years that the issue had gone away.
With our extensive experience, we are in the perfect position to assist clients, helping them to be finally free of their Spanish property debts, removing the potential of ongoing financial and legal issues.
Why use Judicare?
Below are just some of the reasons why clients choose us:
- Judicare are members of the the Association of International Property Professionals and dedicate ourselves to principles of good practice within the international property field.
- We are regulated by the Solicitors Regulation Authority (SRA) meaning that we have professional Indemnity Insurance in place, affording you vital protections in the unlikely event that something goes wrong.
- Using a Claims Management Company (CMC) or a so called “advisory firm” providing foreign property debt solutions across the EU can be risky, as there are no safeguards or any regulatory redress for clients if something goes wrong.
- Our expert solicitors have decades of experience of dealing with mortgage issues with Spanish banks.
- Our successful negotiations have resulted in over £40m of foreign debt being written off for clients.
Get in touch with our specialist solicitors
Whatever your circumstances, we are here to provide practical guidance, tailored to your requirements.
If you are experiencing mortgage issues with a Spanish bank, you can contact us by calling 01438 840258 or filling in our short enquiry form on this page. We offer a no obligation free consultation.