How exactly this will affect those purchasers, whose properties have no yet been built is as yet unknown.

Each phase was funded by a different bank the key banks being

• Bancaja
• CAM
• Caja Murcia
• Banco Popular

Whilst all these banks will have provided Bank Guarantees protecting clients deposit monies most phases have now fallen outside the agreed dates for evoking the guarantee so clients may have to fight through the courts to get their money back, be offered a suitable alternative or have unit finally finished by another buyer of the whole development or phase.

If the clients lawyer did not inform the client at the point the delay on build had met bank guarantee rules, the bank guarantee may now be null and void. Any clients affected should immediately contact their lawyer to discuss their particular situation. If the bank guarantee has lapsed, changing lawyer and speaking to a lawyer from who is independent may be the most appropriate solution. There are already a few lawyers looking at class action to reduce court costs to individuals and a meeting is taking place next week W/C 18/01/10 to clarify exact situation and what action can be taken by those affected.

For clients who have already completed without golf course, hotels or facilities being in place it could be a long time before these are now developed if ever.

The Polaris developments which were dreamt up in much happier times and supposed to provide self-contained holiday villages at affordable prices will sadly have turned into a nightmare for many UK clients.

Over time these issues will be resolved and one day hopefully the Polaris vision will finally live up to its expectations. For investors it could however be a long haul.

If independent legal advice is required contact heather@imsmortages.com outlining which development phase was bought and current situation along with your full contact details. Your enquiry will be passed to a lawyer already taking action on behalf of other clients.

Polaris World Go Bust! is a post from: Spanish Mortgages Experts International Mortgage Solutions

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If you buy a property that forms part of a large development with many vacant units you may get it at a very good price but what are the longer-term realities?

Firstly, all apartment blocks need maintenance and this maintenance is paid for by the owners. Do not expect a bank selling a distressed property who also owns all other uninhabited apartments in your block to stump anything  toward these maintenance costs it just will not happen. This means that the overall maintenance of your complex over time will deteriorate until all units are filled and a community of owners created.

If electric and services are being supplied still via the current owners who maybe the banks again if they stop paying their share it could adversely affect you.

There is still a lot to be said for serious buyers to consider buying in developments where the original builder is committed in the long term to the project rather than offloading as much of it and any of it as quickly as they can.

Never has this been more highlighted than when I recently visited Samara Resort Marbella,  a development of the Hines group. Hines amazingly enough and unheard of in my experience when it became clear the urban issues in Marbella meant no development could be sure their development would finally receive a first habitation licence immediately offered to refund staged payments already made by buyers. More than this unlike other developers they refused to market the properties at all until the first licence was obtained and legally correct and development was fully finished. This delayed sale of any property for 2 years.

This level of ethics is rarely seen in Spain. Hines fully completed their luxury development with no contribution of monies from buyers buying off plan. Hines now pays the community fees proportionally to the unsold units and will continue to do so until all units are sold ensuring anyone who buys now does not end up surrounded by something that looks more like Beirut than a luxury complex.

There are developments ,on the other hand where a communal heating and air conditioning system is in place has left those few owners who have moved in with neither of the above due to the developer starting to not supporting his share for unsold units.

Hines are not heavily discounting their units as are some but for buyers wanting a high quality property built by a company who has 100% committed to keeping to their ethical business beliefs and supporting their brand; despite the fact that clearly means it is currently costing them money and eating heavily into profits not yet made; they can be highly recommended.

A superb development operating with transparency and a genuine care of their clients

There would be no requirement for programmes like Paradise Lost if all businesses had taken the same approach and many of the issues Spain now has would never have happened.

My faith in human nature is restored.

www.samaramarbella.com

www.hines.com

A Refreshing Change: An Ethical Spanish Property Developer is a post from: Spanish Mortgages Experts International Mortgage Solutions