Not being able to complete on off-plan property because of banks

[Bonkers]

I am asking for a friend of ours back in the UK who is in a terrible situation.


Basicaly she was told when paying the deposit and a couple of staged payments by 2 banks in Spain that it would not be a problem gaining a mortgage because of the property in the UK and their jobs.

Now the property is complete 6 months late I might mention the banks are saying no to a mortgage due to the reduce value in her property in the UK and the credit crunch they're not offering many mortgages. The developer is going mad of course and you can see their position on this but I can also see my friends who has done mostly right all the way through this and even if she had a mortgage offer in hand I would think the bank would want to restart the process seeing as the property is six months late. The developer has even mention getting a lawyer and actioning on her property in the UK is that even possible?

If she can not find a mortgage or be able to walk away from it with the money she has part page she will stand to lose a hell of a lot of money.

Please help!

[Darren]

What a miserable position to be in!

However, I do remember reading back when the credit crunch first hit that the Spanish government passed something that would allow people such as your friend to get out of the contract as it is the banks who are refusing credit so it's their problem.

My concern is that since I've recently read an article saying the wheels are slowly starting to move once again with bank lending that there may be a limited time to get out of the contract.

Tell your friend to consult a Spanish lawyer and explain what I have said and see if they can see the applicable law to help your friend out.

Fingers crossed for her.

PS: I do remember reading that the deposit/down payments would be refundable also.

[blondelancs]

I have been in a similar position for the past 3 years having put down a deposit on an off plan property as an investment after my separation. Things quickly started to go bad as I was going through my divorce because it became clear that I would not be able to manage the mortgage on my own, despite the agents' assurances.
I contacted a lawyer in Manchester Uk called Pannone, and after about 12 months of failed negotiations they passed it onto their Spanish branch. Finally, after another year, it looks as though we may be ready to go for a court date. In spite of my contract having a get-out clause, which states that if I cannot get a mortgage, I can cancel the purchase, the developers have chosen to fight me in the courts.
My lawyer has made no mention of any government response to the current situation as it affects people who cannot get a mortgage.
My question is: in the UK the mis-selling of investments is legislated against and we can reclaim our money - Does this apply in Spain? I would love to go after the toe rags who assured me my money was safe!
Your friends need to get the ball rolling quickly, things move so slowly in Spain.
Perhaps there should be a forum for people like us to share our experiences.

[Spain]

Perhaps there should be a forum for people like us to share our experiences.

There is blondelancs, Welcome to MySpain where you find many people with many experiences about living in Spain and moving here.

[Darren]

I have been in a similar position for the past 3 years having put down a deposit on an off plan property as an investment after my separation. Things quickly started to go bad as I was going through my divorce because it became clear that I would not be able to manage the mortgage on my own, despite the agents' assurances.
I contacted a lawyer in Manchester Uk called Pannone, and after about 12 months of failed negotiations they passed it onto their Spanish branch. Finally, after another year, it looks as though we may be ready to go for a court date. In spite of my contract having a get-out clause, which states that if I cannot get a mortgage, I can cancel the purchase, the developers have chosen to fight me in the courts.
My lawyer has made no mention of any government response to the current situation as it affects people who cannot get a mortgage.
My question is: in the UK the mis-selling of investments is legislated against and we can reclaim our money - Does this apply in Spain? I would love to go after the toe rags who assured me my money was safe!
Your friends need to get the ball rolling quickly, things move so slowly in Spain.
Perhaps there should be a forum for people like us to share our experiences.

Hi Blondelancs,

Another terrible position to be in and I'm sorry

Like anything even in the UK your solicitor has to be on the ball to get the best outcome for you and I know this much to my loss in the UK

I would contact these guys and enquire if the piece of legalisation that was passed is still in force.

URL: Costa Luz Lawyers - My Spain Links Directory

It may be that it's only valid if you have a pre-approved mortgage and either the bank is now saying no or your personal circumstances have changed and you can no longer afford it. Either way it's definitely worth looking into as it could be a 'quicker' way of sorting this.

From what I'm told they're a very good team of lawyers & deal with expats all the time but I'll leave you to make your own mind up on that one.

Hope this helps!