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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3671
Experience:  Solicitors 2 years plus PQE
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I am one of the many hundreds/thousands? of UK investors

Resolved Question:


I am one of the many hundreds/thousands? of UK investors who bought off-plan property in Bulgaria's Sunny Beach resort area in the pre-crash boom years, or so we thought, in 2005. The property was built and the complex was one of the better ones. It really exists and so far as I know is fully operational in the summer as a holiday resort. I secured a ten year repayment mortgage on it which I managed to pay very month until about 18 months ago when I simply stopped paying altogether. It was either that or I went bankrupt in the UK. Today, after worrying about it all this time, I received my first email from the Bulgarian Bank, iBank, -"You are not in compliance with your obligations according Contract Lending 522-D/2007 long time.
We propose that Investbank take ownership of your property /apartment № 110 situated in holiday complex Riviera Fort Beach, Ravda/, instead of execution of your monetary debt.
purpose, you must give your consent to take part 1/2 pert of court fees.
I expect your reply."
As I do not know what "part 1/2 pert(sic) of court fees" would amount to I do not intend to reply until i know the likely amount. I would be delighted if the bank took it off my hands and I know they would probably hand it over to auction straightaway to dispose of it along, no doubt, with hundreds of other properties.
Do you have any idea what the scale of fees is likely to be?
Paul C
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
,
Thank you question and welcome.
My name is ***** ***** I will assist you.
Was the documentation you signed (mortgage deed), signed under English law?
Kind regards
AJ
Customer: replied 2 years ago.

Alex

I think it was signed under Bulgarian Law before Bulgaria became a member of the EU.

Paul

Expert:  Alex J. replied 2 years ago.

Thank you.
I am not sure what the court costs would be - so as a matter of course I would ask them to confirm a figure or at lease cap your liability otherwise you are jumping from one liability to another.
What you need (as your assets are based in England) is creditor to sign a "Deed of Release" releasing you from all liabilities under the mortgage (past, present and future) and holding harmless against any claim.
Without such a deed technically you may still be on the hook debt in the UK.
Have they repossessed the property?
Kind regards
AJ
Customer: replied 2 years ago.

No the property has not been repossessed - this morning's email, as copied into my question, is the first correspondence I've had from the bank since I stopped paying the mortgage.

P.

Expert:  Alex J. replied 2 years ago.
,
Thank you.
What they are suggesting is repossessing the property in settlement of your debt?
You need to ask them to confirm that they will release you from "all obligations under the mortgage". If they wont do this, there is no point giving up the property?
I look forward to hearing from you.
Kind regards
AJ
Customer: replied 2 years ago.

Thanks Alex

I think, from their email, they do mean repossessing in settlement of the debt. I will take your advice and ask release from "all obligations under the mortgage ( Deed of Release) and an indication of the likely court fees. My experience of Bulgarian lawyers re the property purchase etc was that they were very competent so hopefully that is still the case. I'll get back to you as soon as I get their reply.

Paul

Expert:  Alex J. replied 2 years ago.
,
Thank you.
What is crucial is (and I say this as I presume your assets are in the UK) is that you have an agreement that can be enforced here - a waiver of debt obligations and an obligation to hold you harmless from any claim by the bank and Investbank.
If you have point please do not hesitate to contact me on this thread?
Kind regards
AJ
Alex J. and other Law Specialists are ready to help you
Customer: replied 2 years ago.

Alex

I've been onto independent Bulgarian lawyers today and am awaiting response and will come back to you as soon as I hear back from them - hopefully tomorrow.

Paul

Expert:  Alex J. replied 2 years ago.
,
Thank you very much.
I look forward to hearing from you. I am travelling of the weekend so please do not be concerned if I do not respond straight away.
Any feedback is gratefully received.
Kind regards
AJ