I am wanting to know of our rights regarding a dodgy deal I feel my pearents signed in order to keep their spanish property.
They fell into arrears on the mortgage and were looking at getting rid or re financing. The mortgage bank, I think Cam bank, said it was better to re sign another mortgage deal, effectivley increasing their debt by nearly 30,000 euro's due to charges and fees.
Also they were told they had to have a life insurnace on one of the applicants. This sounds stupid to me as they are four applicants so who knows which one could die during the term? The insurance premium equals nearly 3000 euros for 3 years of cover..
It scares me that now the mortgage will put them into negative equity and thus stop them being able to 'Hand the keys back'.
Here are some facts on the property to see if there is a legal way to get out of this terrible deal which has my Mother having sleepless nights.
The bank valued the 2 bed ground floor property on Aranal Golf in Benalmadena at 300,000 euros (which I though was much overpriced) approx 2 years ago, the bank were happy to lend against this valuation.
The mortgage is now 230,000 euros, they did the new mortgage at the end of this May. The bank said it did not need to revalue the property as it was happy with the original 2 year old valuation.
Information regarding the site on which building has ceased leaving a building site. Two years after it was supposed to be completed:
The complex was to have to have Golf, no such thing is there and looks likely there never will be.
The pools are condemned, out of use and always have been and will be for the foreseeable future.
There is a large school taking the place of where on the plans sold to my parents there should have been tennis courts.
There are no shops or bars (community) as promised in the plans.
The buildings are showing signs of large cracks which scare anyone with memories of the film 'Earthquake'.
Roof slates are dropping off the roof onto the patio areas, if someone had been under there then they would have been seriously injured or killed.
It seems that the builders broke the contract when they failed to finish to the correct plans on time. The bank took over the builders obligations when the builders went bankrupt and thus the bank should, in my eyes be liable for this mess. They have lent money based on their high valuation so they should be happy to keep this valuation and let my parents hand the keys back.
Can the insurance policy be cancelled? Everything was in Spanish and my parents didnt want to seem arrogant asking for English copies, so they signed everything without question.
Is there any legal way out of this mess without the spanish Cam bank coming after their only other house in the UK?
I hope everyone is enjoying their Spanish homes and has a great summer... We will smile again soon also... Thanks for any advice / help...