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Untangling Mortgages in Spain: The Manchester Building Society Situation Unveiled

August 17th, 2023

Around 200 property owners in Spain who opted for a lifetime mortgage through Manchester Building Society, now under the umbrella of Newcastle Building Society, are facing a challenging situation.

Unfortunately, MBS ran out of cash to pay property owners. All agreed-upon instalments were halted due to a prohibition by its regulator (PRA) to grant further loans in Spain and elsewhere. This left borrowers “high and dry”, still with a Manchester Building Society mortgage registered against their property, and thus, unable to sell it.

In such situation, there is however a way out to free the property from this mortgage for good, and that solution is already available through Lawbird Legal Services. Last year, a Velez Malaga Court fully accepted executive proceedings brought by Lawbird against Manchester Building Society, on behalf of a British client, demanding full payment of the agreed loan of 300k Euro (with interest). This is in addition to the over 50 rulings won in many other courts against different equity release providers around Spain.

Now, more claims are being filed through the Courts to terminate the mortgage loans due to contractual default by Manchester Building Society, on the following grounds:

  1. Manchester Building Society has stopped making any further agreed payments.
  2. Manchester Building Society has not given a solution to the property owners.
  3. Manchester Building Society has not reviewed the existing mortgage loan proposal to adjust it to their inability to continue offering the promised cash.
  4. Manchester Building Society will not address the current situation of owners that are unable to sell, offer a compromise or terminate the mortgage loan.

If you have a property in Spain and  have a Manchester Building Society Spanish Lifetime Mortgage, you need to act now and take advantage of the existing favourable rulings to achieve the following:

  1. Nullify the MBS mortgage loan.
  2. Retain the sums received so far as compensation.
  3. Remove the encumbrance from the property.

Get in touch with us for a free online or office meeting with a one of the specialist lawyers.

 

Obtaining a Golden Visa in Spain: A Solution for Joint Property Owners

July 7th, 2023

Spain’s Golden Visa program has gained popularity among foreign investors seeking residency in the country. One of the key requirements for this visa is purchasing a property worth at least €500,000. However, it is important to clarify that this requirement can pose challenges for joint property owners who fall within the €500,000 to €1,000,000 range, particularly in cases where there is a marital property regime. In this blog post, we will explore a viable solution for joint property owners in this situation, highlighting how Lawbird can facilitate a smooth equity transfer while minimizing tax implications.

The Golden Visa Program in Spain

Spain’s Golden Visa program was established to attract foreign investors by granting them residency in exchange for significant investments in the country. The program allows non-European Union (EU) citizens and their families to obtain a residence permit and enjoy various benefits, including visa-free travel within the Schengen Area. Investing in real estate is one of the most common pathways to acquire a Golden Visa in Spain.

Challenges for Joint Property Owners

While the Golden Visa program welcomes property purchases of €500,000 or more, it presents a challenge for joint property owners, particularly in cases where there is a marital property regime. In such situations, where assets acquired during the marriage are considered common property, the total value of the property must reach the minimum investment threshold for each spouse to qualify for the Golden Visa. This means that joint property owners falling within the €500,000 to €1,000,000 range may not initially meet the investment requirement individually.

The Solution: Equity Transfer to Meet the Threshold

To overcome this obstacle, joint property owners can consider transferring equity between themselves to meet the €500,000 minimum requirement for the Golden Visa. By transferring the necessary amount from one spouse to the other, the receiving spouse becomes the primary owner of the property, thus qualifying for the Golden Visa. This solution allows both individuals to apply for residency under the name of the qualifying spouse, who holds the predominant ownership.

At Lawbird, we are a trusted law firm specializing in legal and tax advisory services, offering comprehensive assistance to individuals navigating the Spanish Golden Visa program. Our experienced team understands the complexities involved in equity transfers and provides professional guidance to ensure a smooth and efficient process.

Take Action Now: Contact Lawbird for a Swift Equity Transfer

As joint property owners seeking a Golden Visa in Spain, it is crucial to consult with legal experts who can navigate the intricacies of equity transfers. At Lawbird, we are here to help. Our team of experienced lawyers will guide you through the equity transfer process, streamlining the procedure and minimizing tax obligations. Don’t miss the opportunity to obtain Spanish residency through the Golden Visa program.

Contact Lawbird today to discuss your specific circumstances and take the necessary steps towards acquiring your Golden Visa.