I am in shock!!

Hi everybody.

I am completely in shock.  My lawyer was doing the due diligence thing on my upcoming purchase on Fairways and he has told me that the development is embargoed. Or rather the developers (Peninsula) are.

Not quite sure what it fully means,but  he explained to me that there are “leins” on the Medina Elvira 23 properties and all the properties on Fairways !!!!!!! This I understand means that we cannot complete until these embargos are lifted.

Are Peninsula broke??? Apparently these debts are in the millions of euros!!!!

Is there a bank guarantee on Fairways or Medina 23?

Looks to me that we d better move fast and claim our deposits back – before they go bust!!!

I have just spoken to Peninsula who assure me categorically that there are NO current embargoes on either Fairways or Medina  23.

There was apparently a problem a while ago,which has been resolved.

A check call to the Town Hall at Granada would confirm this,but much easier to ring Steve in the Peninsula office and he will explain the situation........... from UK.0034 952 902020

Two purchases were completed last week on Fairways and this coulld not have happened if a current embargo was in place.

I said it was obviously extremely worrying to read this on the forum,and Steve agreed an official explanation and re-assurance to all buyers should be made as soon as possible,which hopefully will be the case.

Hi all,

Just to clarify, the term "embargo" in spanish does not mean the same as in "embargo" in english.  Embargo means repossession.  I haven't bought in either Medina 23 or Fairways, but thought I would advise you so that you can seek further information.

Sabber

Hoping we can clear this up tomorrow.........it has been suggested that because of the "embargo",whatever it means, buyers can't complete,something which is obviously hugely significant,but also something which Peninsula strongly deny.

Hi all

It is very easy to check if your property has an embargo or not, you only has to apply a nota simple from the Land Registry and in 24hours you will know it.

Best regards

Jose Ramon

Does anyone have any more news on this?  Has anyone checked it out?

My lawyer is looking into it......I'm in touch with her and Peninsula,although back in the UK at the moment.

“Embargo”, within the Spanish legal system is the equivalent to “Lien” in English.

In law, a lien is a form of security interest given over an item of property to secure the payment of a debt or the performance of some other obligation.

This law gives the creditor who imposes a lien over an item of real estate or other chattel, the passive right to retain (but not sell) the asset until the debt is discharged.

Due to a dispute between Peninsula and two of its major contractors, over the non-fulfilment of the contractors’ obligations according to the original agreement, Peninsula, committed to defending the best interests of its clients, withheld payment due to the contractors, whilst renegotiations between all parties took place; in the meantime, they (the contractors) exercised their rights as creditors, imposing a preventive lien over Peninsula properties.

Negotiations have concluded over one month ago, and an agreement suitable to all parties has been reached, Peninsula has discharged the debt and, in turn, the other parties have released the lien over the properties.

Therefore, the situation which has been the subject of the posts in this forum during the past few days has been resolved, as a result, we have been completing on properties with our clients on ME23, with more completions already scheduled for the following weeks.

Should the legal representatives of any of our clients require documented proof of the settlement of the debt, and the release of the lien, Peninsula will be pleased to provide any confirmation requested. 

As regards completions on Fairways, after our last meeting with Town Hall, we can now confirm that, by next week, we will be in possession of the First Occupation Licence on that development. As soon as the licence is issued, we will advise all Fairways clients and their legal representatives accordingly.

As a result, the bank will be contacting all clients who have lodged mortgage applications with them, in order to provide them with formal mortgage offers, which, in turn, will allow us to proceed to completion.

We would like to take this opportunity to remind our valued clients that Peninsula has been involved in this project since its very beginnings, and that  the company’s commitment and its investment of almost 100 million Euros  during the past 5 years, has seen the  Medina Elvira complex  take shape from a vacant plot of rural land into an award winning  golf development [“Winner of the Golf Development Award” European Property Awards 2009] , with a golf course, club house and prestigious bilingual college already operational and  2 of Peninsula’s residential areas completed and ready for occupation.

Peninsula is proud to have not only overcome the current global crisis, which has crippled the sector, adversely affecting most of our competitors, but, also to be able to deliver these 2 developments according to the original plans and specs, and meeting the expectations of our valued clients.

Please do not hesitate to contact me personally or our Sales & Marketing Director, Sharon Hitchcock, regarding any of the above:

Gaspar Lino                                              

Managing Director                                   

Peninsula Project Management

Phone: +34 952 90 20 20

Fax: +34 952 90 17 80

Mobile: +34 696 94 94 40

Sharon Hitchcock

Sales & Marketing Director

Peninsula Project Management

Phone: +34 952 90 20 20

Fax: +34 952 90 17 80

Mobile: +34 600 41 17 39

For any other queries regarding your purchase or mortgage application, please contact either Mar Campuzano or Inma Mediero  in our Sales Management department.

Regards,

GASPAR LINO

MANAGING DIRECTOR

PENINSULA PROJECT MANAGEMENT

Grateful for the replies, but am still not convinced.  If this has happened once, what is to stop it happening again?  It seems that the liens DID affect signing of title deeds on Medina Elvira 23 – what if it affects us on Fairways?  We would lose lots of interest on the monies already paid over – I for one cant afford to lose it and am seriously going to find out if I can claim on any bank guarantee for my deposit back.

But surely,Vickydee,they are saying the Occupation Licence is NOW ready,and buyers are about to complete.Can't really understand what else you want them to say or do.The occupation licence is only given when EVERYTHING is in order.If there is any kind of embargo on a property,you obviously won't get the licence.You're not allowed to buy a Spanish property without it.

Why would want your deposit back at this stage?

Your lawyer seems to have got it wrong so far,but all he/she needs to do is follow the normal procedure to establish that  the embargo has been lifted.

Don't know if you've been to the site lately,by the way,but those who have,and have posted on here,have all offered high praise for the quality of Fairways.

It certainly looks outstanding to me.

has anyone else noticed that peninsua did not mention medina golf and they have removed advertising for it from their website !!

I think that the most important question which Peninsula have to answer is why they have completely reneged on the rental guarantee scheme which they used to sell all of the phases. I have spoken to some owners in Medina 23 who have received no rent since purchasing. I looked at Medina 23 but decided not to purchase - thank goodness! I bought in Fairways. However, a friend of mine did by in Medina 23. The development has not been finished properly - There are many oustanding problems especially to do wth the power supply which Peninsula have been promising to fix for many months but its still not done. The communal gates and lifts do not work. I was forwded on an email sent out by Royal Peninsula (same address and phone number as Peninsula so I presume they are one in the same) saying that a 5 year rental contract had been agreed but that Peninsula first needed to put right the problems. Until the rentals for Medina 23 are proved I would be suggesting that people would be crazy to complete in other phases of Fairways and Medina Golf.

Seagull, you mention that Licence of firts occupation is only given when EVEERYTHING is ready. This was not the case with Medina 23. There are many outstanding problems which mean that the properties are un-rentable. I tried to rent an apartment at Medina 23 for a week and when I spoke to the agency they told me that they could not rent it because none of the lifts work and there are other electrical problems. There are people with mortgages who have not received a single euro in rent which is very worrying. Licence of firts occupation should be taken with a pinch of salt in my view.

I meant "everything ok" in terms of legality,really.

Anyway,as I said the other day,I'm not going to get involved any more by expressing any opinions on here..

I am using my lawyer to liaise with Peninsula on everything. Every buyer must  believe what he wants to believe,and act accordingly. 

Still, it would be nice to hear from Peninsula what they are doing to rectify the rental problems on Medina 23 and to explain why the rental guarantee that they promised has fallen through. It would also be good to hear their side of the argument about the unfinished issues in M23. In my view this is hugely important to anybody who is even thinking about completing on M23 or Fairways unless they intend to leave itheir property vacant and use it as a holiday home. As an investment (which is what I bought Fairways for) it is a financial black hole without the rental guarantee scheme.

Peninsula?

My lawyer hasn´t got it all wrong.  You are voicing your own opinions and I am quite at liberty to voice my own concerns.  I am extremely uncomfortable with the fact that there were or are embargos and will be in the future. This is our future Peninsula are manipulating – not theirs.  My kids don’t want to hear mummy and daddy cant pay the mortgage.

The Licence hasn’t been issued yet even although Peninsula said in May or June it was applied for.

Who is to say we wont have the same problems as Medina 23?  Friends have also bought there and are struggling with the lack of finishing – they wouldn’t rent there themselves!!! They even stayed in someone elses apartment because they couldn’t manage all the stairs with no lift.

I'm with you VickDee. Peninsula don't want to talk about the problems at M23 and the fact that the rental program is non-existant. If owners in Fairways want a glimpse at the future then have a look at Medina 23 and talk to some owners with serious mortgage problems. The ball is in Peninsula's court. They need to get M23 sorted out and get the rentals sorted out. Then we can all move forward to Fairways with a bit of confidence. 

Hello All.

I‘ve been reading through all the recent comments.   I must say that things are not smelling too good.  And that, as you will see, is a pun in rather poor taste.

Just before the recent Spanish holidays, my wife, who is Spanish, took Seagull’s advice and contacted the Town Hall.  The news is jaw-dropping to say the least.

It seems that none of the Medina Elvira development is connected to the mains water supply.

There is no way to remove the sewerage or residual water from any of the urbanizations.  Apparently part of the permission depended on the installation of a water purification plant that has never materialized and this is not acceptable to the town hall.

The cost to connect to the mains supply will be somewhere in the region of 6-800,000 euros.  The Town Hall has also said they are not going to assume this cost under any circumstances and this is down to the developer.  It is, apparently, why no water contracts are in place in Medina 23.  No connection, no contract.

It is a touch and go situation with the licences of first occupation for the urbanizations because of this – which might explain the massive delay (according to my information, the licence was applied for in May or June this year).

I think the whole thing stinks – obviously this has been known to the developers since the beginning.

I’ve now passed all the information onto my legal advisors and instructed them to, under no circumstances whatsoever, to complete on my purchase until all contracts for all utilities are in place, not just the certificates. I want the utilities up and running – proven to be – before I hand over another cent.  And that includes the water!

Contacted Steve Hindley at Pen.

Completely untrue,he says......and  is baffled by the water rumour.

He insists  Medina 23 DOES have mains water and the occupation licence.

He points out that people ARE living in Medina 23...and that the club house and restaurant,which are fully operational,could hardly be functioning without water,

He also says a newsletter is going out today to clarfiy and update various issues,in particular the rental scheme.He also repeats that he is only too pleased to discuss concerns with buyers,but admits very few bother to contact him.

I am not passing any comment on this or any other matter relating to Medina Elvira,merely passing on what he has told me.

My lawyer,as usual,is checking everything connected with the project before giving me the go-ahead