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Dacion refused
Hi Raymundo
Answers below:
On what date (month & year) did you buy this property?
We bought off plan in 2001 but it didn't complete until November 2005
For what price?
The final figure with furniture package and taxes/fees was £267k euros
What was the mortgage loan on it?
We borrowed 160k euros
What are the current apparaisal values you mention in your post above?
We have had valuations at 230k and 255k euros from Direct Auctions and our Rental agent (his name is Domingo, sorry don't have his company name to hand)
Who commanded these aprraisal values and what companies did you use?
See above
Many thanks
SuR
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Dear SuR,
Appraisals done by the said companies are not good enough. I was referring to companies such as Tinsa, Eurotasaciones etc the ones that banks use specific for a dación en pago.
The price I was asking was without furniture, just the dwelling. How much was it bought for and declared in your Title Deed? Please do not tag on extra expenses.
Yours faithfully,
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Hi Raymundo
Thank you for your advice thus far on our situation. We have, since last talking with you, managed to secure an interest only mortgage with the bank for two years. We also have the property entered into a property auction to be held in March and it is listed for sale and rental with two estate agents. We are however preparing for the worst by looking into the specifics of the dacion en pago procedure. We believe a valuation needs to take place on our property to establish whether it is in negative equity. Does the bank have to do this or will an independent valuation suffice. We are understandably dubious as to whether the bank would value it highly enough to accept the dacion procedure given the effect it would have on their future credit rating.
If we need to arrange a valuation, bank or otherwise, how much should we expect to pay for this? I have heard figures of up to 3000 euros are not unusual, this being the case it begs the question...how are people in financial trouble expected to find the money to fund the valuation to get them out of financial trouble??
Many thanks
SRo
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Dear SRo,
I'm glad your lender gave you a 2 year interest-only ("carencia"). Spanish lenders currently are not willing to give more than that as a teaser really. Foreign banks, such as HBOS, used to give 15 years interest-only. But following the financial problems they've had that was struck off early last year.
Regarding a Dación en Pago an updated appraisal must be commanded prior to carrying it out. The reason is because appraisals commanded specifically for a dación en pago tend to be extremely conservative; many would say even below the current market value. It is not the same outcome to appraise to sell a property or request a mortgage loan than to hand over the keys. The latter will always be lower as it must be conservative (from the lender's point of view as it's a risk-taking decision for them).
Please read my article on the procedure to be followed, the first one written in English:
The Dación en Pago Explained - 28th March 2009
You can appoint your own valuer, but your lender is not forced to accept their valuation. So it will not be binding.
The way it works out in practice is that your Spanish lender will command their own appraisal from a trusted surveyor. They normally cost 350-400€ which are paid by yourself in advance. Obvioulsy the survey will all be in Spanish and it's for your lender.
Anyone quoting you 3,000€ is clearly either taking advantage of you or deluded.
Let me know if we can assit you handing in the keys of your property as we are fairly experienced on this. We charge a flat fee of 1,200€ for this service.
Yours sincerely,
Raymundo LarraÃ*n Nesbitt
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An offer!
Hi Raymundo
We have at last received an offer on our property and wondered if marbella-lawyers handled conveyancing? If so perhaps you could forward me a quote to complete the sale of our property?
Many thaanks
SRo
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Hi SRo,
I'm glad you received an offer. It would seem the real estate market is starting to move again.
Besides litigation we also deal with conveyancing, yes.
Please send me an e-mail and we'll take it on from there.
Regards,
Raymundo LarraÃ*n Nesbitt