ADVOCO’s Free Offer to Brits in Spanish Mortgage Misery

Sept. 26, 2009 - PRLog -- Spanish law and accountancy firm Advoco is offering a helping hand to anyone struggling with the payments on their Spanish mortgages. With house prices falling and unemployment soaring in both countries, many British holiday home dreams have turned to mortgage payment nightmares.  Advoco, which serves mainly British clients, has published a guide on their website with advice on what to do and are offering a free consultation to anyone affected.

James Baker, a Chartered Accountant and a Marbella-based partner of Advoco, described the moves as “offering support to people facing some of the worst kind of stress imaginable. I have spoken to people in tears because they don’t know what to do.”  The guide describes the options available to Spanish mortgage strugglers and suggests strategies for at least making the best of a bad situation.  “However hopeless the situation seems it is still important to focus on solutions”, advised Mr Baker. “The worst thing you can do is give up and just let things happen.”

Mr Baker continued: “Anyone who doesn’t know the system here or is simply too intimidated to face the bank, perhaps because of the language barrier, should take a deep breath, read the guide and make a plan of action.  If they are still unsure what to do we will meet them without charge to discuss their particular situation or give free advice by email.”

Background to Spanish mortgage crisis

James Baker, a Chartered Accountant and a Marbella-based partner of Advoco, explained why the crisis has hit so hard in Spain: “we had the same sort of boom but the aftermath has been worse if anything, particularly in the areas popular with British buyers.”  He highlighted some factors especially damaging to the Spanish mortgage situation:

•   the glut of unsold homes weighing down the Spanish market (over a million units by some estimates)
•   the precarious finances of Brits who emigrated to Spain during the boom who never found permanent work
•   people caught out buying “off plan” with very small deposits planning to sell before the main payments became due but unable to do so
•   the fall in sterling against the Euro
•   the high cost of buying and selling property which exacerbates negative equity
•   lax lending standards including granting of mortgages without proof of income
•   a fall off in both holiday let and long term rental demand, reducing income often needed to pay the mortgage

Links to relevant material

Advoco's guide for those struggling with a Spanish mortgage:
http://www.advoco.es/home/22-latest/27-advice-if-you-cant...

Spanish property prices :  http://artilib.org/20006122-10-reasons-spanish-property-p...

Best independent source for Spanish property news, analysis and information:
http://www.spanishpropertyinsight.com/

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About Advoco: Partners

Manuel Garcia Pedregosa is a qualified lawyer and accountant and member of the Granada Colegio de Abogados. He has 23 years experience in private practice specialising in small / medium size businesses and property law.

James Baker is a Chartered Accountant who qualified in London in 1990. He moved to Spain in 2002 and is now registered as an accountant in Spain.

History

Advoco was formed in 2005 to serve the English-speaking residents of western Granada province. They cover most aspects of Spanish law, personal and business tax, small business accounting and public administration.
In 2009 the partnership was extended with the addition of professionals from Cordoba, Marbella, Benalmadena and Almuñecar and new specialisms in property law, litigation and family law. A network of customer service associates was recruited to serve English-speaking people across Cordoba, Malaga and Granada provinces.
August 2009: http://www.advoco.es/ goes live.