Double trouble for second homes

LAST UPDATED: 8 Dec, 2010 @ 21:09
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Double trouble for second homes

NEWS of a British couple facing the loss of their UK home after an unsuccessful property investment in Spain has triggered a wave of indignant reader comments in the UK tabloid press.

‘Gamble on a paradise abroad and pay the dues,’ seems to be the general feeling among much of Blighty’s disgruntled masses, as they shiver in their snow-swept suburbs.

Home repossessions in Britain have been surprisingly low given the scale of the economic downturn, and certainly nothing comparable to the housing crisis in the USA.

The higher average debt levels of Britons with second homes in Spain, however, means many are still deep in the woods.

Banco Sabadell’s attempt to seize an English home to make up the loss on a bad Spanish debt will serve a crucial test case in this grey area of EU law.

It also says a lot about the comparative value of Andalucian to British property.

Furthermore, should the bank succeed in their goal, it is very likely that plenty of other disgruntled lenders are bound to follow suit.

All it takes is an illness, an unexpected job loss or even a big exchange rate shift – and dreams of a second home can quickly lead to the loss of the first.

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