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Foreign Debt |
Submitted on: 25th Jan 2011 by Non-Member | Total Answers: 1
Hi, Three years ago myself & my wife got a mortgage with a Spanish bank for a property in Spain which was going to be our retirement home. We had enough capital from our house sale in the UK & a private pension of £560 per month to pay the mortgage & associated bills etc. But due to various problems & unexpected expenses our money has run out & we will soon be unable to pay the bank. We have spoken to them but they seem uninterested. The house is up for sale but no signs of interest. The current value of the house is €90,000 & we still ow €105,000 We are both in our 60's & retired, we have no assets & are renting in the UK. We will soon be applying for social security for assistance. This has made us both ill with worry & we are dreading what will happen in the future. I would be most grateful for your advice. John
Re: Foreign Debt
You should speak to the benefits office and your local council immediately and apply for all the support you are entitled to. This could include pension credit, housing benefit, council tax benefit and potentially other benefits based on how good your health is. All these benefits are set up for circumstances like yours. The property in Spain will not be treated as an asset and therefore stop you from claiming, as it is in negative equity. If in doubt, speak to your local Citizens Advice who can calculate how much you will be entitled to.
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