This reminds me what estate agents were telling me here at the start of the property collapse in 2007.
Hi Folks
Thanks to those who've made constructive comments or enquiries.
The loans on their PPR have matured. They are on low tracker rates and they're with one of the (so called) pillar banks.
I'm struggling to understand the confusion regarding what the estate agent has said to be honest. If your home is worth (say) €250k but I tell you that you absolutely must sell it within one month, you may only get €100k for it. But if I say "sell it in an orderly fashion", then you're likely to realise its market value. That's all that the estate agent is saying (i.e. that in a "fire sale" he will get considerably less than in an orderly sale). All that's being asked of the bank is to accept interest only payments for a period of up to 12 months after which they'll be paid in full (whilst having security over a property that's mortgaged at 50% LTV). Hardly asking for the sun, moon and the stars, is it?
Many thanks.
I'm struggling to understand the confusion regarding what the estate agent has said to be honest. If your home is worth (say) €250k but I tell you that you absolutely must sell it within one month, you may only get €100k for it. But if I say "sell it in an orderly fashion", then you're likely to realise its market value.
There is no confusion, We just dont believe the estate agent, based on the information you have given.
If I put a house up for sale. An estate agent has told me that it will sell for 250k in a year but at the moment the best offer on it is €100K
It is worth €100k. It is not worth 250K. It might be worth 250K in a year if house prices increase but then again it might not.
I agree with oldnick there. However if they are paying interest only, they could always sell the properties in Spain over 2 or 3 months....the bank will still get their money. There are a hell of a lot of people worse off. Their net worth is still over a million, and the OP says their income from a private pension and the State Pension and amounts to around €50k per annum. Lots of people would cut off their right hand to be in that position.There are thousands of people in genuine difficulty .This couple in their one million euro house are not.
I'd second that opinion. In the current market Spain, Ireland the hopes of that kind of market turnaround in a year is unlikely. The property is worth what someone is willing to pay for it. I would be extremely wary of the estate agent who said that can more that double the price in a year. Get the valuation from three agents and then pick the one that quotes you the price which you hand an heart know the property(ies) are worth - usually the middle valuation.
Folks
You have to distinguish between the general market rising by 100% and the much reduced price one gets in a fire sale. I presume that the estate agent is not forecasting a 100% price rise. He is simply saying "These will take some time to sell. But if you want cash tomorrow, I can get a bargain hunter at €100k"
Brendan
Now it's clearer. The term of the mortgage has ended but the money to pay back the capital has disappeared (in bank shares collapse and bad financial scandal with their pension).
Nevertheless they have other options. They can sell their current home and downsize. An elderely couple in Dublin can get a much more manageable home for 500K surely.
Or they can put all 3 spanish properties on the market and see which will get the best price to pay back the Irish property. What they are trying to do is to force the bank to accept their decision of waiting a year or so (in a Spanish falling market). I don't think a year long strategy should be acceptable to the bank. Between 3 and 6 months. They should talk to the bank.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?