Brits To Take Action Against Spanish Developers
Surge in number of people from the UK contacting property lawyers for advice as developers go out of business in Spain.
A growing number of British buyers who have invested in homes in Spain are planning to take legal action against property developers who have gone out of business.
According to reports on Telegraph.co.uk, lawyers specialising in property are noticing a surge in the number of British buyers contacting them for advice.
Some have paid as much as 50-60 per cent of the price of homes that will never be finished, while others have already taken possession of properties on half-built developments that won't be completed.
Although many may eventually get their money back it is a long process and courts in Spain are slow.
Just last week Homes Worldwide reported that one of Spain's largest property developers Martina-Fadesa, filed for insolvency, joining 60 other firms which have gone bankrupt since the start of the year when the bubble finally burst on Spain's decade-long construction boom.
Although around 1,000 people have already taken possession of their properties at Martina-Fadesa's latest resort, Costa Esuri in Ayamonte, 700 of which are British, it is full of unfinished properties, a half-built hotel and a golf course which is nothing more than bare earth.
According to the Telegraph, many of those properties that have been finished are not connected to water or electricity, and a centre containing shops and restaurants has also been left unbuilt.
It is a far cry from the dream resort investors believed they were buying into, and those who bought to homes to rent out to holidaymakers will now see them stand empty as there is little rental potential on a half-built resort.
More and more Brits are now consulting lawyers to see what action they can take as their dreams of owning a home in Spain have gone badly wrong.
Have you bought on a resort where the developer has gone out of business? Let us know on our forum.
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