Brits cash in on overseas homes
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In the past year Brits have been allowed to withdraw equity from their properties in Spain and France if they have more than a 30% stake in the property.
Keith Davie, national sales director for Viva Costa, says the euro moving closer to the pound has opened the door for holiday home owners to capitalise on the currency crisis.
He says: "By remortgaging their European property and switching the equity to sterling they can clear outstanding loans in the UK and even take advantage of property bargains at home or abroad."
Viva Costa has seen a surge in demand for this type of business, whereas previously buyers would remortgage their British homes to buy property in Europe.
He adds: "Advisers are missing out on this additional income stream by staying clear of the foreign mortgage bureaucracy. Advisers can generate a substantial income stream with minimal work."
To release the equity home owners will have to say what the money will be used for.
Davie says there is a risk if the property has fallen in value, but this is why it will only consider clients who own a 30% or more stake in their home.
Recent research by Tasaciones Inmobiliarias SA, Spain's biggest property valuer, shows house prices in the country fell by 10% in the 12 months to the end of April.
Hardest hit were coastal areas, where the high concentration of second homes has meant the market has seen a large decline in the number of foreign investors. Average prices in coastal areas fell by 13.5%.
Big cities including Madrid and Barcelona saw the next biggest drop in prices, down an average of 10.3%.
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