Repurchase / repossession - advice needed

In a bank repossession court application, what is the legal rights of a family with children who have a ´long-term´ contract (Contrata de Vivienda) of the property. The tenant has a contract for five years and can always extend by a further 1 year. They have always paid their rent on time to the owner.

Bank needs to respect the current rental contract in that case

Sounds like a win win for the previous owner who received rent in advance and did not pay the Bank mortgage.

A win win for the tenant who has a contract and can’t be moved.

Bad news for the Bank who can’t easily sell with sitting tenant.

Possibly bad news for neighbours and Community IF the tenant decides not to follow Community rules.

I would have thought that the Spanish Banks would have  clauses...in the mortgage contract...the same as the UK Banking industry has ....for instance  you would need written  permission from the Bank to sub let ....I doubt very much if any Bank's ...especially the ones in Spain would agree to you subletting with a five year contract for obvious reasons.

I would have thought that the Spanish Banks would have  clauses...in the mortgage contract...the same as the UK Banking industry has ....for instance  you would need written  permission from the Bank to sub let ....I doubt very much if any Bank's ...especially the ones in Spain would agree to you subletting with a five year contract for obvious reasons.

I agree with that windtalker, there will be restrictions and they can likely evict lawfully.  

Knowing the scruples of the Spanish banks ,they will probably send minders to evict and break the legs of any tenants ?

Brian

Maria thinks not. Yes, maybe the bank can reposes but they may become heir to the tenants and their ´long-term´ contract (Contrata de Vivienda) of the property.

How are the tenants suppose to know about clauses in the landlords mortgage contract?.

Would a Spanish judge consent to an eviction and make them homeless?.

I was considering the point windtalker made Kavanagh.  

If a purchaser takes out a mortgage, the provider of the funds will protect their interests by making conditions that the mortgage holder will live there as their main residence.   If any tenancies are created that’s an arrangement between the mortgage holder and the tenant, if it isn’t declared or has any permission of the mortgage provider, the contract is broken isn’t it.

Surely the person holding the mortgage has to comply with the contract they signed with the bank, if the bank disallows tenancies in the contract then the tenant doesn’t have Safe rights to stay, it seems!

Windtalker 

The 5 year deal was no doubt negotiated before repossession hence the previous owner pocketed the 5 year rent with a pretty tight contract, believe me we had a few on our Community.

We also have problems with a very antisocial tenant who ignores many of the Community rules but it appears his landlord, a Bank who repossessed the apartment is also not receiving the due rent and appears to be finding it difficult to evict them.

The Law has come down very much in favour of supposedly hard done by tenants NOT banks as unhappy owners.

I am not disputing anything that you are saying Hugh Man...but knowing how unscrupulous the Spanish Banks are I am very surprised ..that they allow long term contract's on properties that they have mortgages on ...this subletting would not be allowed in the UK ...as the Bank's shareholders would not be happy having to wait five year's before they could Repo the property ...hence the maximum six month short hold contract's on buy to let's in the UK....this is good news to any one that is getting there so called property reposed by the Bank ...before they evict you if you want to have one over on them just rent the property out on a long term 5 year contract job done.

hugh_man

''Possibly bad news for neighbours and Community IF the tenant decides not to follow Community rules.''

The tenant is of good behaviour and always pays rent on time. Why think differently?.

Pays rent to who?

Windtalker

I could not agree more, banks most definitely are unscrupulous but I think there are also dodgy property owners who exploit loopholes.

How else do they get away with offering 5 year contracts at very low €150 per month contracts.

In our Community, one owner owned 10 apartments which were finally repossessed by Santander ALL with sitting tenants.

They even tried offering the tenants a mortgage to buy at 50% of current value but only sold one.

Kavanagh

I agree in this case tenant is good, I was merely pointing out the possibilities of circumstances when bad tenants exist.

No idea how owners can sublet without banks permission, then default but it has certainly happened in abundance.

Courts also very supportive of not  making tenants homeless by nasty banks.

La Caixa has one in ours and pays the fees, now but the tenant has erected an illegal green mesh shading.

Community cannot force the tenant to remove it, we have to send Burofax to Bank, who it would appear cannot evict non rent paying tenant.

Some, it would appear can outdo banks.

😀

Mortgage lending is a risk business, and it is the banks duty to be aware of those risks and pitfalls within the justice system. They will structure their products to financially take into account the known risks.

I suppose the tenant in this case will pay rent to whoever is the legal landlord.

Cases of bad tenants has nothing to do with this scenario, any tenant or property owner in the world can be a nuisance or defaulter. Any EOS member wishing to post about bad tenants should start a separate thread.

Perhaps a bit more thought should be given to the innocent tenant caught up in this situation.

But Kavanagh......

if it’s not clear who’s getting the rent, this whole thread falls apart.   The property has to be paid for, that’s page one point one of any mortgage, otherwise it’s foreclosed.   

The tenant becomes a squatter when the mortgagee is subject to foreclosure.   It doesn’t matter if the tenant is really nice or is a complete idiot, I don’t see any legal tenancy.

Brian it’s not what you see that counts, but it is how the Spanish courts choose to see it that counts. Sorry if that’s not to your liking.

That’s what the aim is for me Kavanagh.     It’s not a question of what I like, but what is correct and can be understood.

what I am not understanding is how a person who no longer owns a house, can continue to rent it out.   And how a tenancy can be secure when it’s set up by a person who doesn’t own a property any more.  

If you can provide the law that allows it, I can understand it.    But just because the tenant is really nice and pays their rent, doesn’t make it legal.  Lots of people who say, well this is Spain or you don’t understand because it’s not the UK are hiding behind the fact that they don’t know themselves (I often find!).  

what I am not understanding is how a person who no longer owns a house, can continue to rent it out.

Doubt they can legally.

 And how a tenancy can be secure when it’s set up by a person who doesn’t own a property any more.  

Is this a case of not wanting to understand?. Once the bank is granted legal possession (and that’s if) they inherit the tenancy agreement. If the bank does not want the tenant or the tenancy agreement they will have to apply to the courts to have it dissolved and the tenant made homeless. Of course it is possible the courts will refuse.

One of the two businesses I run I the UK is ....property development /rentals...What this involves is going to property auction's and buying Repo /rundown   properties and the likes ....I have seen many a property go to auction with sitting tenant's depending on how long you have to wait for full ownership ..will reflect apon the price paid ..a property with tenants with a five year rental agreement ..would only devalue the property by 10% providing if the seller's could  prove that the tenants are good payer's/if the tenants are bad payer's ...you will expect a 50% discount if you had to wait 5 years for the keys ...most in the trade would tend to keep away .