Spanish banks are thought to possess some €30 billion in unsold property, and to clear these properties off their books banks are willing to lend more than 100% of the value to prospective buyers. This means buyers may be able to acquire property by investing little or no capital in the transaction, while the bank assumes all the risk. Experts note that it is a policy unheard of in the rest of the world and is a sign Spanish banks believe properties have found a bottom and are prepared to start increasing in value. In some cases, it is resulting in properties being sold for half their original estimated value and being bought with money that comes entirely from the bank. For more on this continue reading the following article from Property Wire. Spanish Banks are prepared to lend over 100% on their own properties that have been repossessed, it has been revealed. They are also selling them at rock bottom prices to attract buyers so that they can reduce the amount of property on their books. According to Adam Cornwell, managing director of Feltrim International these are quality properties in desirable areas. Recent reports from a leading risk adviser say banks have around €30 billion worth of property that they can’t sell.
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