As British citizens with properties abroad continue to struggle to gauge the impact that Brexit will have on them, European property debt experts EU Property Solutions is offering a wealth of expertise to those concerned.
The UK’s decision to leave the EU last June sparked an 11 per cent plunge in the pound against the euro, causing a dip in the amount Briton’s are now choosing to invest in the European property market. Research carried out by card payment company Fexco suggests that UK spending on property within the EU has been slashed by as much as 50% since Brexit.
James Bell, Director of EU Property Solutions, says: “Since Britain’s decision to leave the EU last year, the whole country has been left in a state of concern over their finances. These concerns are considerably worse for those who own property abroad, who are now fearful that a deduction in property prices could leave them in negative equity. We are committed to helping UK residents with homes abroad find the right solution. Our team of professionals have vast experience when it comes to negotiating foreign debt policies, so we are confident that we can help resolve even the most challenging of circumstances.”
While cheap housing and lower mortgage rates in Europe were often one of main attractions for brits looking to buy abroad, the effects of Brexit now mean that UK residents will find it more difficult to take out mortgages on holiday homes. This is because banks within the EU view non-residents less favourably, meaning that higher deposits will now be needed.
There are also concerns regarding taxation due to the fact that the law treats EU and non-EU citizens differently. While there is still a significant level of uncertainty surrounding Brexit, it is highly likely that British citizens who own property abroad are going to facing higher tax rates.
If British citizens are forced to sell their properties abroad, they could be left in a situation where they owe more on their mortgage than the value of the property they are selling, leaving them in a financial situation known as negative equity.
James Bell adds, “The weak pound as a result of Brexit is driving house hunters away from buying abroad and is also leaving those who already own property abroad with the concern of falling property value. I urge anyone with any concerns over these issues to contact a member of our team, who will be happy to discuss their options- we endeavour to get the best possible outcome for people post-Brexit.”
EU Property Solutions specialises in property-debt including negative equity, mortgage arrears and repossession.
For more information, visit the website: http://eupropertysolutions.com/