Professional Services
Mazars
Full Credential Description
A couple faced significant financial distress after purchasing two holiday homes in Europe through an international lending option that involved variable interest rates. They were unaware of the potential for volatile interest rates, which ultimately led to defaults on their international mortgages. As a result, they never took ownership of the properties, and the lenders did not repossess them due to a decline in the property market that left the homes in a negative equity situation. Instead, the lenders pursued the couple through international courts, with one lender attempting to secure a charging order on their UK residential property.
Upon being introduced to the couple, it was determined that an Individual Voluntary Arrangement (IVA) could be a viable solution, contingent upon the willingness of the lenders to consider this option, as they collectively held 98% of the couple's debts. After presenting a draft IVA to the UK court, one lender agreed to consider it, recognizing that bankruptcy would not allow for full repayment. The IVA was subsequently approved, resulting in creditors involved in the IVA receiving a full repayment of 100p in £.
Additionally, the advisory team provided international support by collaborating with colleagues in Europe to navigate the legal framework and communicate effectively with the lenders in their local language. This approach allowed them to assert the couple's legal position regarding the European properties and address the anticipated shortfall effectively.