getting license de obra for ibiza villa

 I have a property that I am building in Ibiza. The villa is in the most exclusive part of Ibiza and is 450m2 on a 25,000m plot with sea views. I have finished building the house but have not completed the kitchens and bathrooms yet or done the 2nd fix electrics and plumbing. So there is still a lot of work to do inside before I can get the license de obra. The roof is on though and the windows are in and it is all plastered inside. I recently asked a few local estate agents what the value would be when it was finished and they said about 3-3.5m euros. I know at the moment there is a property crash in Spain but Ibiza is meant to be holding up fairly good compared to some other places and my mortgage is only 220,000 Euros. Even though this is the case I cant get any more money off the bank to finish the house. Even though my earnings in the UK are high, my credit rating excellent and I have lots of equity in the property in Ibiza and also in my portfolio in London. My lawyer in Ibiza says that I really need to finish it as the license runs out in July and I have already had a years extension on the building license. I am quite happy taking my time to finish the house as I am happy not borrowing more money and completing it with my own earnings in my own time. I am however in a catch 22 situation as on one hand they are saying that I have to finish it and on the other hand I cant get anyone to lend me the money which is the only way I can finish it quickly. Is it a serious problem if I dont finish it on time. Everyone I speak to in Ibiza says that it is really important that I finish it. I agree with them and want to finish it too but if I don't have the money I can only go as quickly as available funds allow. I was wondering if anyone else has had similar experiences as I am unclear what problems I could face if I don't finish the house by the deadline.

 just realised I meant Fin de Obra. I have the license de obra but need to get the fin de obra. 

It is down to your regional government - presumably the Balearics.  Here on the mainland worst case scenario they would require you to knock it down or, if you failed to do so, they would knock it down and give you the bill for doing so.  Probably won't happen but that's almost certainly why everyone is advising you to take it seriously.  Liquidate some of your British assets.

Thank Jek. I agree with you. I will do this. It looks like I have no choice. The only thing is its not my preference as I have happy tenants in the UK and my mortgage deals there are good. Also although I can pull out equity its not exactly the time of the century to be selling and also selling takes months and I need the money asap. My Architect said once the outside is complete (which it will be next week) you can take a few pictures and then say its finished but keeping chipping away at the inside. I also spoke to a Spanish lawyer in Marbella this morning and he said he has never known it to be a problem finishing late as long as you communicate to the Town Hall but like you say its best not taking chances. it is frustrating as my loan to value is ridiculously low. It shows how far the credit crunch has swung lending the other way. You can get really high rents in Ibiza when the house is finished but the banks are not lending which makes it very difficult to finish it on time. You would think the bank would be keen to lend me more to finish it so that then they have their security covered and also I can get rental income but I suppose they dont see it like this. I may be able to find some money somehow and I may be able to get something off the bank but it has been an awful struggle for the last few years trying to get this project finished! its been  fun though and im sure it will be worth it in the end.  I count myself lucky that I am in a better situation than most as I have heard far worse stories than mine as I am sure you had on this site. I would appreciate if anyone else has any stories of other people not getting their fin de obra on time as I am sure there must be an awful lot of people in the same situation as me with bank lending the way it is. 

 You can apply for an extension of the work license. Will never be knocked down for that reason. It is an adminitrative procedure. we will be pleased to help you with this if you need.

Kind regards,

Maria

 Thanks

Copy and paste your question into the free advice box at the beginning of Spanish Lawyers Forum and they will give you free advise

sneezey

you are getting rather boring - can't you at least offer some advice and them politely mention your firm?

 That is my advice..... If a problem is complicated and the details aren't specific, it's better to contact a Lawyer , just to ask the question, especially if if it's free advice from a professional rather than a layman

Interesting. I never heard about this place, but sounds interesting. I wish to visit this soon. The above posted detail is a complete package. This info is more than enough to get in touch to such a new place. I recently spent about a week in Spain, but Barcelona is actually one place we did not go. We did go to Madrid (and the castle!) and Sevilla, Granada and another small town in the Andalucia (sp??) region.Thanks a lot for the help.

It sounds to me that the bank is being the problem here. From my own personal experience the banks are contributing to the property crisis rather than solving it. I was recently turned down for a mortgage by several Spanish banks although the amount i was aksing was extremely moderate in view of the value of the property, my own equity and my income situation. Several bank managers told me straight, if you buy a property off us we will give you a far bigger mortgage without much ado and they even offered to take me to see some properties. But we will do everything in our power to keep you from buying this place. It seems they are under orders to clear their own backlog of unsold properties, even if it involves cannibalising the rest of the property market. The world is going crazy.