Desperate sale

I am desperate to sell my property in Granada on the Medina Elvira development. 

I have a 2 bed 2 bath property on the Fairways which i can no longer afford to keep.  Peninsula, the developer, have changed the contract meaning i won't receive a guaranteed 5% rental return immediately, i have to wait 6 months on the variable scheme.  This means i can't afford the mortgage repayments.

Are there any others  out there who are in the same predicament as me?

cheers

mbpen

I am afraid there are, all over the south of Spain to be precise.

99% of the guaranteed rental schemes have been changed or cancelled.

Have you tried speaking to your bank to see if they can do anything? Maybe a small interest only preiod until things pic uk?

Joan

 Can they legally change the scheme after you signed up?

I have been to the bank and they offered me a short term interim mortgage if i met there new lending criteria, which i unfortunately don't.  i am now stumped!!!!

Most units on the Medina-Elvira development were sold on the back of what, at the time, seemed a solid, insurance-backed guaranteed rental scheme. This was one or two years before the worst financial crisis since the 1930s changed the financial world as we knew it.

I would suggest that you explore with a good lawyer your right to demand that the develpers fulfills their obligations, as, under Spanish law, any marketing promises are considered part of the contract. I wonder if Maria de Castro from Costa Luz lawyers could throw some light on this?

I need a good lawyer or a miracle.  I did question my lawyer if they were allowed to change the contract and she wasn't really forthcoming with a positive answer, basically Peninsula seem to be able to do what they like.  I only bought the apartment because of the guaranteed 5% rental return. 

Peninsula sacked the company who were going to run the lettings for them and decided to do it themselves.  This is the reason they say the guaranteed rental return won't be in place until you have been on the variable scheme for 6 months, plus the guaranteed rental return is now only 4%.

Publicity is part of the contract in Spain since 1977. Everything promised there needs to be delivered by developers. Non delivery of elements or features which made one of the most important selling points can result in a cancellation of the contract.

At these times, of course, check if developer is solvent enough to carry a claim against.

If you cannot meet the mortgage instalments, talk to the Bank first and try to agree on a way of payment the debt which of course can include the dation of the house as payment of the debt. 

So sorry to hear about you situation. I hope some of the advice available on this site helps.

Unforunately many dreams have and are being cast aside as the various European and World economies make adjustments away from living off credit. Yesterday Portugal had real problems getting their debt away having to pay 5+% and I suspect it will not be long before Spain has similar problems if the National and Local governments do not take some action on borrowing. if this happens there will be more people in your situation.

Until governments and the people realise the true situation things will not improve. The only consolation is that real estate is getting towards it's real value on the Costas, although there is a way to go. This means opportnuities for people who don't need a job picking up some real rental bargains and maybe some lower cost purchases providing it's not on an unfinished community -- who want to live on a building site, not knowing when it will be completed, or if there are sufficient fees to maintain the infrastructure.

Still the Sun still shines, most eateries are open and the beer and wine is still cheap.

All the best in your attemps to sell, I hope you don't take too much of a bath on the sale.

Thanks for the reply's from everyone.  I am not quite sure what dation on the property means.  I do know i stand to loose nearly £80.000 of my investment Maria, which was going to be my retirement pot!!!!!.

Thanks again for the reply

Mbpen