Strife in the sun

The demolition threat hanging over 4,500 homes in Marbella has left British owners bewildered. Lucia Adams suggests an action plan

Britons with homes in Spain have been left in doubt over the fate of their properties after the arrest of Marisol Yague, mayor of Marbella, and more than 20 others last week in a corruption investigation. It is estimated that 30,000 properties have been built illegally in the Marbella municipality. Now the Spanish courts are to decide whether up to 4,500 of these homes on the Costa del Sol will be demolished or given legal status. Some of the special protection areas where development is banned are shown in the map above. How will these changes affect your home? We answer your questions:

When will we know which developments will be demolished? The deliberations will take some time, according to José María de Lorenzo, of the Marbella law firm Irwin Mitchell. However, he believes that the Junta de Andalusía (regional government) realises that it needs to resolve the matter quickly.

How do I know if I am affected? Ask a lawyer to check whether your property is in one of the areas where building should not have taken place, or check it yourself at the local planning office. You can obtain a list of lawyers from the Law Society (www.lawsociety.org.uk) in the UK or at a local lawyers’ association (Colegio de Abogados, www.icamalaga.es).

What if I am in the process of buying? Some developers will recommend firms of lawyers but Señor de Lorenzo advises buyers to beware conflicts of interest. Check also that your lawyer has sufficiently high professional indemnity insurance. Your lawyer should ensure that your home has planning consent and that the title deeds are in order. Make sure that your property has a building licence with the correct stamps from the local authorities.

If you are buying off-plan, check that the developer offers bank guarantees to protect you should the company go bust. Señor de Lorenzo says that investors who have bought off-plan should keep a close eye on the development. “If there are delays in construction, or if plans have to be submitted again, you should find out why.”

How long have I got to appeal? Any letter of notification sent by the local authorities that your home is in a “no build” area may give you only a very short period within which to appeal: deadlines imposed by the authorities can vary from as little as 20 days to a year. If you spend long periods away from your property, you may miss the deadline for appeals.

What if my home is in a forbidden area? Buyers who have been issued with an illegal building licence by the local authority should be compensated if their home is demolished. However, John Howell, of John Howell & Co, a UK law firm specialising in overseas property, says that owners of properties in forbidden areas that do not already have planning consent and a building licence will not be entitled to government compensation. Areas where building is not allowed include those too close to the sea, on public parkland, or in the green belt.

Will some illegally built properties be unaffected? Some illegal buildings have been constructed on land that is considered by the Junta de Andalusía as sacrosanct. But in other areas some illegal buildings may be seen as a less serious transgression of the regional planning regulations. In the latter case, the local authority and the regional government could legalise the buildings by reclassifying the land on which they were built as urbano — in other words, an area approved for building. These areas are still in the process of being decided. Señor de Lorenzo says: “The question is whether 85 per cent of developments will be OK, or whether it is 90 per cent or 95 per cent. Only a small minority of owners will be affected, and those with building licences will receive compensation.”

Are other parts of Spain affected? The Spanish Government is trying to eradicate the granting of illegal licences by local authorities elsewhere. Several resorts, including Manilva and Benalmadena on the Costa del Sol and Elche on the Costa Blanca are already under investigation for property fraud. Mr Howell says: “I think we will see more stories emerging — not just in the Costa del Sol, but also in places such as Murcia and Alicante.”

How is all this likely to affect the market? Ian Elsby, of Manchego Moon Marbella, a property agent on the Costa del Sol, says that scandals such as this do breed uncertainty. Graham Keely, of the English news website Expatica Spain, agrees: “It has created worry about the long-term wisdom of investing there. People used to think, ‘buy a place on the Costa del Sol and you’re fine’, but the Costa del Sol is getting more of a bad name than a good name.”

Expatica has a link from its website, www.expatica.com, for property owners concerned about their home