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Holiday homes under threat
Last updated: 27 January 2008
Angry Brits took to the streets in Spain yesterday in protest over their dream holiday homes being threatened with demolition
Earlier this month, the home of pensioners Len and Helen Prior on the south coast of Spain was demolished in front of them
due to the regional Andalusian government claiming 10 houses in the area had been built illegally.
At least four of the homes under threat in the village of Vera belong to Britons.
An estimated 100,000 homes have been built on protected land during a 10-year housing boom along Spain's 1,000-mile Mediterranean coastline.
Thousands of Britons bought homes in Spain only to discover they had been illegally granted planning permission by town halls.
Now a senior prosecutor has demanded that all those built illegally must be demolished.
Protest Organised for locals, by locals, reports say that between 800 and 1000 participated in the Vera protest of the demolition of Len and Helen Prior's
home on January 9th. Several local Spanish organiations pulled together to put pressure on the regional government to stop the demolitions.
The next victims?
One Briton, whose home has been deemed illegal, fears his £450,000 home will be next. John Bull, 66, a retired engineer,
and his wife Christine, 64, bought a three-bedroom villa 600 yards from the Priors' house six years ago.
He said: "Watching poor Len and Helen's house being demolished has brought home the realisation that we
could be next." The couple moved to Vera after selling their home in Worthing, West Sussex, in search
of a dream life in the sunshine. "We love the house and everything was perfect for the first three years.
Then we had a phone call saying it had been deemed illegal and was going to be knocked down.
We challenged that decision in the courts but lost. If they knock it down we will have nowhere to go."
Antonio Vercher, the chief state prosecutor in charge of protecting Spain's environment, ordered prosecutors
throughout the country to be relentless in pursuing demolition orders. Thousands of expats were duped into buying homes
that should never have been built.
Most bought in good faith using reliable solicitors and established developers and estate agents.
Bribes, corruption and backhanders between developers and town planners have been commonplace.
But Mr Vercher has said he is in favour of demolishing houses and leaving homeowners to seek compensation
from builders in the civil courts.
The story so far...
In October, 2006, Spain launched a specialist police force to investigate corruption in urban planning
Some 30,000 homes have been built illegally in Marbella, on the Costa del Sol,
where a £2billion corruption scandal has resulted
in the arrests of the mayor, head of planning and 50 other officials
In Catral, near Alicante, on the Costa Blanca, 1,270 homes owned by Britons and worth an average of £200,000 have been threatened with demolition
What should you do?
You should do your homework before buying any property abroad,
but it’s more important than ever when the market changes and prices begin to jump all over the place.
Invest your time wisely in researching the market and you may be able to save yourself tens of thousands of pounds.
There is no substitute for clear thinking and good research.
How do I do it?
Take a look at our FAQ's
Developers are having a hard time because of the downturn, which is hitting their sales hard – a fact reflected in the collapse of the share price of most developers quoted on the Spanish stock market in recent weeks.
So, now’s the time to drive a hard bargain if you are buying direct. Many developers are loath to drop prices, but will offer discounts in other forms, such as mortgage “holidays” or guaranteed yields.
Choose your development carefully:
Many are so unattractive and overbuilt that, however good a deal you get, you may never be able to sell on your flat. Be extra-careful if you are buying off-plan. Many developers are having financial problems, and nothing is a bargain if the developer folds and runs off with your money before the project is completed.
So, take your time, negotiate hard and buy only from developers with strong balance sheets and good reputations.
Distressed sellers:
Distasteful as it is, there’s no better way to get a bargain than to find someone who needs to sell because of a personal calamity such as death in the family, divorce, ill health or redundancy. Distressed sellers, especially Britons who need to return home with their money, can’t afford to sit out the buyers’ market, and the longer they delay, the more it costs them in mortgage payments and other expenses. Especially badly hit are those who bought off-plan when prices were rising, in the hope of selling on for a profit. One British owner in financial difficulties recently had to sell his £900,000 villa on the Costa del Sol for £415,000, leaving him £450,000 out of pocket once the mortgage had been cleared.
UNFORTUNATLEY THE SAYING :"One person’s pain is another’s gain,".
Keep it legal:
This being Spain, it is essential to do thorough legal searches before buying, no matter how good the price.
The regional government of Andalusia, for example, has just demolished the home of an elderly British couple in Almeria,
claiming it was illegal. No property, however cheap, is a bargain if it’s going to be knocked down.
That said, buying illegal properties at a discount could be a rational strategy for an investor with a large appetite for risk.
Some of the properties might be demolished, but others might pay off handsomely.
You would, however, need deep pockets and nerves of steel.
Thanks to The Times Online
So what are the real Prices?
Click the link below for a concise 3 page summary of the last year (2007) in the Spanish property market.
The national average property price is now €246,000. Which areas offer lower prices and which top the scale?
Who wins as the most popular province and coastline?
Find the hottest locations in Spain and the hottest properties. What's happening to inland properties? What about island living?
Where in Spain did property increase in value the most? Where did it decrease, and by how much?
Spanish Property Price Guide
Finally....................
We are in Spain. Do not believe all the hype. Talk to us.
We can only help you. The more information you have the better.
We have over 20 years experience with the property market.
Seven years established on the Costa Blanca
Contact us any time.
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