Hi all
Hopefully someone has some useful advice for us, we cant be the first in this situation.
We purchased a Key Mare apartment in Almeria through MRI in July 2005. MRI ran through the projections for mortgages, increases in value and rental. This all looked great, we could buy a property in Spain use it our selves and rent it out easily to cover the mortgage. It was due to complete in March 2007. In late November 2007 we were contacted about completion within the next couple of weeks.
Now we are in a situation where the mortgage offers don't cover the purchase costs. The purchase and ongoing costs involved now look like they will be higher than the return. I am really worried that we are going to get into serious debt with a Spanish mortgage. The new mortgage projections will make us struggle in the UK if it is not rented at least 2 weeks every month and this cant be guaranteed. We tried a few mortgage providers (though CFP) and our original mortgage that was accepted in principle was withdrawn at the last minute leaving us with no mortgage offer (last week). We got a second offer a couple of days later but the payments are higher making it even worse. After much consideration we have come to the conclusion that the best option would be to walk away. We stand to loose £35k but wont be getting into masses of debt like we potentially would do if the property completes.
Our lawyer has been really good and helpful but he thinks that it will be difficult to get money back from Key Mare. Has anyone else got any advice that has been in a similair situation? Have you managed to get money back from a developer, especially in relation to Key Mare?
The property has been valued at 217k Euros thats 43k more than the purchase cost so Key Mare will make more money selling it again. I am hoping we can get some back if not all. We did try selling it privately but got no interest at 189k.
We were given bad information and advice by MRI from start to finish. I am not impressed with them one little bit.
Bendy