Repurchase / repossession - advice needed

Yes Brian we do.

What you describe is correct but different countries and their justice system (or lack of one) will view this differently. In some countries nobody cares and a blind eye is turned, in stricter countries this is fraud and you would be dealt with accordingly.

The Spanish Banking industry .was bailed out ..with a  35 Billion Euro  EU hand out ..paid for in part by the UK Tax payer.

Now back to 5 year tenancies ...who on earth would give someone a mortgage on a property ...that did not have a clause in the contract that said no subletting without the permission of the lenders....what mortgage company could afford to wait 5 years for a none paying tenant to move out ...what loonie /shareholder  would agree to this type of mortgage...being granted... Doe's this screwball reckless lending only go on in Spain or what.

Yes Brian

i think we do have general agreement and in some countries time is of the essence, but what Kavanagh suggests is true.

What is considered almost fraud in some countries is considered normal practice in others such as Spain, where U.K. rules and ideals most certainly don’t apply.

I think windtalker will find that the U.K. banking industry was also bailed out by the tax payer, banks generally are currently greedy and not efficient.

windtalker still seems not to understand that a 5 year rental contract was provided by a dodgy landlord who speculatively purchased a number of apartments then defaulted on the mortgage as they realised they could not afford them, but they pocketed 5 yearvrent anyway.

Yes banks were stupid to lend on speculative purchases and rental properties in 2006/7 but that is with a certain amount of hindsight now.

Yes Hugh, I agree with you.

Sometimes it's hard to see where fraud exists though.  The investor buying the house would say they had the intention of providing a service (if only the market hadnt changed!).

The bank will say they were facilitating the service by lending on a small return to an investor with a business plan.

We and the tenant will say that there was not enough real expertise put into it to make sure it was a sound business plan that would stand the test of time.

So in all that 'mess', the court would have to decide what laws apply to protect the parties losing money and houses, and that costs a lot of money to decide.   You have to balance the ongoing cost as a 'throwing good money after bad' scenario and form your own judgement.

The bank may find it less messy to keep a tenant in a property if its not going to sell quickly, to look after it maybe?  The tenant would have to think about getting services at the property without a legal tenancy agreement perhaps (or just keep stumpf).

If I were the tenant in this situation I would salvage what I could from the wreckage and use the time to find another suitable place as quickly as I could?

Oh....and learn from the experience, dont trust to luck and cheap offers.

How can an honest prospective long term tenant avoid getting into this situation?.

And once duped into it what rights and security does he have?.

Perhaps rent through a recognised tenant association body, have their tenancy agreement overseen by a solicitor, carry out background checks, that sort of thing.

But dont see any way it can be guaranteed safe.

As johnzx and MARIA posted previously, there are laws that exist to protect the rights of both sides.

The biggest problem in Spain and possibly other countries is enforcing these laws IF someone wishes to ignore them completely.

This is where Brian is correct, eventually, after much time, effort and money a little common sense may prevail IF a judge receives the correct message, a long drawn out process, I might add, but as MARIA and I have both suggested, currently in Spain the tenant receives a lot of rights IF someone tries to evict them.

As a matter of fact, Land Registrars reject the clause on rental banning that many Banks add to their clauses in mortgage deeds as they consider them against our Mortgage Act

If the Land Regustry in Spain bans the registering of any differential between residential and B2L mortgages that certainly answers a number of the assumptions previously made on here.

Are your properties being repossessed by the Bank?

After recent Court decission by the European Court, possibilities to oppose an enforcement procedure if the anticipated maturity clause was included in your Notary deeds are much higher

Also, depending on value given to the property for auctions, a settlement with the Bank is possible. There are also other abusive clauses playing now much in your favour if a repossession is started

https://www.costaluzlawyers.es/2019/04/04/new-cjeu-sentence-to-favour-mortgage-holders-in-spain/

https://www.costaluzlawyers.es/2018/10/19/european-union-comission-on-irph-clause/