Brexit hits the Spanish property market – but there’s a potential silver lining
Much has been stated about both the potential benefits and drawbacks of the UK’s impending departure from the European Union (EU), but if there’s one thing that can be said for it, it’s that it’s not spelt great news for the Spanish property market.
Are we seeing a Brexit property crash in Spain?
Britons have long been in love with Spanish homes – indeed, according to reports, the number of properties in the country sold to British clients more than doubled between 2012 and 2015.
However, that phenomenon was swiftly snuffed out by Brexit, with a mere 2% annual rise recorded for 2016, according to Spain’s land registrars’ association. Whereas Britons had bought 2,864 Spanish properties in the third quarter of 2016, that figure dropped to 2,073 for the last three months of the year.
It all means that while Britons represented 21% of purchases by foreigners in 2015, they made up only 19% of 2016’s total.
Plenty of concern among Britons in Spain
You may be one of the many British people currently living in Spain with concerns about your health care coverage once the UK has left the bloc.
However, there’s another problem – the recent stark fall in the value of the pound that could mean you get less money for your property if you sell right now, than would have been the case if the British electorate had not voted for divorce from the EU.
Talk to Rapido Claims about your mortgage floor clause
All of the above seemingly adds up to quite the Brexit property crash if you are a UK expat in Spain. Not only won’t you get as much money if you do sell your property now to return to the UK, but the uncertainty is putting off potential buyers, so you may find it harder to find a taker for your property in the first place.
Thankfully, there is something that you can do if you are trying to sell your Spanish property and need some extra cash in this unfortunate period of Brexit-induced chaos.
That thing is to check your mortgage contract to determine whether you have a clausula suelo, or floor clause, that could have led you to spend thousands of Euros more for your loan than should have been the case.
It’s a type of clause that has kept mortgage payments high at a time when Spanish householders should have been benefitting from record lows in the Euribor – as you can read more about here.
But the most important thing is that you can take action right now to remove your own mortgage contract’s floor clause and secure the compensation you deserve.
Simply get in touch with the Rapido Claims team today, and we can help to ensure you get the ideal cash boost during this ongoing Brexit property crash, with the minimum of effort or fuss – whether or not you are currently trying to sell your Spanish home.
What is a Clausula Suelo or Floor Clause?
It is a clause in a Spanish tracker mortgage agreement that requires you to pay a minimum interest rate, even when the interest rate that the mortgage is tracking – such as the Euribor – is lower.
This means that you could be paying thousands of Euros more than you should be, and the Supreme Court has agreed that many such clauses can be considered abusive.