Interim Charging Order - but payment plan was offered?

Strada77

Hi

I am looking for help on a issue I think many may be having.

I very stupidly got tied inot buying a Spainsh property many moons ago with promises of guarranteed income etc etc.

I guess I am one of the luckier ones as it was built etc and I started to pay the agreed mortagage.

But after about 18 months I hit financial difficulty and fell behind.

I then received a letter from a UK solictior asking me to pay the full balnace on mortgage or legal action would follow.

So I wrote asking explaining the financial situation with an offer of what I could afford along with the income outgoings sheet.

The property has not been reposessed so instead of wanting the balance of the mortgage after the sale of the house they want the full amount in one lump.

I got no responce for months and now have received a Interim Charging order on my UK property.

I am not living in it as due to the difficulties I have I have moved back in with my daughter and wife to her parents and rented the house to ensure I can pay that mortgage.

Its intrest only on the UK house and it was bought for £250k with £25k down but was recently valued at £220-230k in the current market.

Whats my next move?

Does the interim order mean they can force me to sell the house if the order is upheld?

Does it go against them they never responded to my offer?

Can they go after what is effectively my family home?

Can they not be forced to sell the property in SPain and simply claim and shortfall (my offer would clear that cosiderably quicker than the fulll balance!)

I did pay the mortgage for 18 months or so and I realise it is my responsiblity but I have made a genuine offer (£97.24 against a month motgage of £800 a month).

All help appreciated! I am going to attend the hearing but I need tio know what format to put my arguement in and what I should focus on.

I am happy to pay the debt at an agreed amount but really dont want to sell my family home or have something hanging over it

silvercar

I don't know all the answers, but some more questions first.

The UK property has a UK lender? and the spanish property had a mortgage on it with a different lender? Or did you extend the UK mortgage to buy the spanish property?

The UK property is valued at £220-230 with a mortgage of £225 or has this reduced?

Is the interrim charging order from a different lender? The lender in Spain? Or a UK loan for the spanish property?

What is the value of the spanish property? How much is the spanish mortgage? and how much is the uk interrim charging order for?

Depending how difficult the charging order people are, it may be possible to persuade them that there is no equity in the UK property, so they would gain nothing by repossessing.

The easiest action would be to sell the spanish property and use that money to make a settlement proposal to the people acting for the spanish mortgage. I suspect its not that simple.

Strada77

Hi thats for the reply.

The Spanish property is with a Spanish bank.
The property was 180k euros with £136 euros balance as I put a large deposit down. They are asking for the balance in full.

I paid a further 18k in mortgage payments on the intrest only mortgage before I fell in arrears.

The UK house is on Intrest only with UK Bank so the 225k owed has not reduced and its current value is £230k.

Id don't understand why they have not first repossed and chased for the shortfall if any. Im much mor elikey to be able to make a dent in that rather than the full sum!

Strada77

Oh the interim order is from Spanish bank.

Seling would be great but the case is in march and I wont sell in that short a time pus I dont trust spanish agents after my experience I rather the bank dealt with it!

Ineedaname

Strada77 wrote: »

Can they go after what is effectively my family home?

I'll leave others to advise on the Spanish property, however, just wanted to say your UK property is not your family home if you are not living there. It has turned into an investment property, albeit one currently in negative equity.

silvercar

Strada77 wrote: »

Oh the interim order is from Spanish bank.

Seling would be great but the case is in march and I wont sell in that short a time pus I dont trust spanish agents after my experience I rather the bank dealt with it!

I don't understand why they would come after a charging order on your UK property if they have the Spanish property as security for the loan.

I would contest the charging order on the grounds that they already have security for the loan ie the spanish property, it can't be right that they have two securities for the same loan - unless the spanish property is now worth considerably less than the loan.

Why aren't they repossessing the spanish property? Would you hand the keys back to them of the spanish property? You need to check how spanish repossession law works.

Your comment on Spanish agents raises an interesting question, on an internet only mortgage, how were you intending clearing the loan (eventually) if not by selling the property?

I'm guessing that the mortgage conditions allow them to demand full payback in the event you don't make repayments? But they must know that people who end up in arrears can't repay the mortgage in full...something doesn't sound right. Could they already be possessing the Spanish property and this be an attempt to cover the shortfall.

silvercar

Strada77 wrote: »

Oh the interim order is from Spanish bank.

Seling would be great but the case is in march and I wont sell in that short a time pus I dont trust spanish agents after my experience I rather the bank dealt with it!

Selling is the answer because that will release the interim charge if it clears the Spanish mortgage. Whether that is by using an agent or voluntary repossession I can't say, but there is enough equity to clear the Spanish mortgage and have money to spare.

In the short term, could you remortgage the Spanish property to a new lender?

See if you can find some Brit-abroad or foreign property forums/ advice websites for further advice, you can't be the first person to struggle with a mortgage on a second property.