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[ariane] 24/4/2005 09:47

April 24, 2005

Costa Britons sink in tide of scandals
John Arlidge, Malaga



THE dream of a new life on the Costa del Sol has turned sour for thousands of British expatriates as a series of legal and financial scandals threatens to take away their homes.
An investigation into a £200m building scam involving money allegedly stolen from a Russian oil company has coincided with a crackdown on illegal building and a mis-selling dispute involving one of Spain's biggest developers of holiday homes.



Thousands of owners along the coast between Malaga and Gibraltar, a prime location for Britons, face financial ruin.

"The Costa del Sol market is in crisis," said Mark Stucklin, director of the market analysts Spanish Property Insight. "One scandal would have been bad enough, but for three to hit at once is devastating."

The trouble began last month in Marbella when police raided the offices of Fernando del Valle, the head of a local law firm. He is alleged to have helped clients invest as much as £200m from dubious sources in holiday-home developments through anonymous trusts in Gibraltar. Francisco Javier Nuñez, the lawyer for del Valle, 57, says his client strenuously denies any wrongdoing.

As part of the money-laundering inquiry, called Operation White Whale, ownership of 251 properties has been declared "frozen" by the courts. Police believe the homes may have been built with "dirty" money, including some illegally siphoned from Yukos, the Russian oil giant that disintegrated amid financial scandal. Buyers fear their homes may be sold to repay Yukos creditors.

Those affected include Edward Hunt, 62, a carpenter from Dorset, and his wife Angela, 47, who bought a £110,000 one-bedroom flat in a big new development at Alcaidesa, near Gibraltar. The couple moved in last month but are now locked in a legal battle to establish whether they own the apartment.

"We assume we are the owners, but we have not received the title deeds and we have had no proper contact with the developers or our lawyers since the money-laundering scandal broke," said Hunt.

"I'm a carpenter. I want to retire and work on my boat. I don't know anything about Yukos and all I can think about is what will happen to my money. Angela is in tears about this every night."

The Hunts are not alone. Dozens of Britons bought in the Alcaidesa development, marketed by Ocean Estates, a large Anglo-Spanish property agency. Lawyers and property analysts estimate that several hundred Britons have been affected by the court order.

"Fernando del Valle's firm was recommended by some big estate agents and acted for thousands of overseas buyers, many of them British," said Stucklin.

Operation White Whale has coincided with a crackdown on illegal building. Last month the Andalusian government, based in Seville, said it planned to demolish up to 1,600 homes that had been ruled by the Andalusian high court to have been built illegally. Officials had approved dozens of developments on greenbelt land.

One home earmarked for the wrecking ball is a two-bedroom flat in Banana Beach, Marbella, that Russell Ellis, 61, a builder from Devon, and his wife Lynn, 53, bought three years ago for £80,000. There are no plans to offer compensation.

"We bought in good faith," said Ellis. "We used a good lawyer and checked planning permission had been granted.

"The development should not have been built because it is too close to the beach and is on land earmarked for the local community. If the Andalusian government orders demolition, my two summers in the sun will have cost me £40,000 each and I may end up with nothing."







Lawyers trying to prevent demolition say 500 Britons have been caught up in the planning clampdown.
In the third scandal, thousands of Britons have invested in developments that have been put on hold and may never be built.



Paul McCall, 38, is one of them. Three years ago he moved from Bournemouth in Dorset, where he ran nightclubs, to the Hipodromo district, north of Fuengirola. He put down a £30,000 deposit on an unbuilt flat in a proposed development by Aifos, one of Spain's biggest developers.

The company, which is promoted by the singer Julio Iglesias, has dozens of offices in Spain, London, Manchester and Dublin. Aifos said it would get planning permission and start building within a year.

Three years on, the development of Aifos Hipodromo has not been started. "Not a brick has been laid or a trench dug. Aifos says it cannot get planning permission after all," said McCall.

"I should be sitting on my patio, enjoying a glass of wine with my girlfriend Dionne. As it is, we are being thrown out of the flat we rent in Mijas next week and we don't know where we are going to go."

David Greene, a British chartered accountant who runs de Bocuès Properties, an agency in Fuengirola, estimates that as many as 2,500 British buyers have been mis-sold Aifos homes along the coast.

"Aifos takes deposits and assures buyers that planning permission is a formality," he said. "It is not and never has been. Aifos is so big that I see new cases every week."

Aifos admits it has 13 large developments, including Aifos Hipodromo, awaiting planning permission. But Juan Luis Gasco Aznar, its London representative, denied misleading buyers. "We are not here to collect deposits. We are a serious building company," he said.

Aifos has offered to return deposits to disgruntled buyers with interest but many have declined, saying it would leave them out of pocket because property prices have been rising sharply. "I want the home I bought three years ago," said McCall.

The scandals have focused attention on some of the unattractive realities of the Costa del Sol property market.

"Mindless, unfettered construction and speculation have damaged the area and corrupted the market. It's heading down," said Stucklin.

Estimates of house price rises in Spain last year range from 11%-19%. New properties in the Malaga area went up 10.8% in the first half of the year alone. Most experts predict a sharp slowdown this year.

Jose Maria Sanchez Alfonso, who runs a law practice in Fuengirola, said: "Nobody would discuss it in public, but in private everyone who works in property on the Costa del Sol has been predicting a crisis like the one we have now.

"Prices have been rocketing because of a flood of legitimate buyers and an influx of 'black' cash from unconventional sources. The over-the-top market has encouraged sharp practice among leading developers anxious to make a fast buck."

[waldron] 18/4/2005 05:09

Brussels condemns Spain's land-grab law
By Peter Upton in Valencia
(Filed: 17/04/2005)

Spain could be hauled before the European Court of Justice over its "land grab" law, which has allowed developers to plunder land belonging to foreign homeowners.

In a victory for hundreds of expatriate Britons who have had property seized, the European Commission has written to the Spanish government saying that the law breaches EU regulations as well as human rights statutes.

The rebuke follows a commission investigation into the poorly drafted 1994 planning law, Ley Reguladora de la Actividad Urbanista, which was originally intended to speed up development on the Costa Blanca.

Over the past year The Telegraph has reported how loopholes have been exploited by Spanish developers - who have been able ask for land to be reclassified from rural to urban without the owners' permission.

Developers have already made compulsory purchases of 20,000 properties at fractions of the market value. Last year, the European Parliament launched an investigation. Its report condemned the law and criticised apparent corruption among developers, officials and lawyers.

However, its call for a halt to the practice was ignored.

The European Commission's new letter gives Jose Luis Rodriguez Zapatero, Spain's socialist prime minister, until May 21 to resolve the situation. If the Commission is not satisfied, Mr Zapatero's officials will be issued with a summons to appear in the court in Luxembourg. The court has the power to inflict unlimited fines and stop European grants to Spain.

The Commission's stance has heartened Charles Svoboda, a former head of Canadian Intelligence, who lives in Benissa, near Benidorm, one of the main areas under threat from the land seizures.

"Madrid will ignore the Commission's infringement procedure or stall but Brussels has the bit between its teeth," said Mr Svoboda, who leads a victim protest group.

"If it doesn't get a satisfactory response, the commission will have no choice but to take Spain to the European Court of Justice. We have sympathisers in Brussels who will ensure this happens. To victims this is a ray of hope."

At least 20,000 people living on the Costa Blanca have protested about the law, under which estate agents - often in league with corrupt local politicians - have made enormous profits by snapping up land prime for development. Residents have also been forced to pay huge amounts towards new infrastructure, such as roads, drainage and street lighting - which developers would normally have to shoulder.

Mr Svoboda and his supporters are now threatening to sue local politicians. "We can't easily take on the developers because they just fold up their tents, go bankrupt and walk away," he said.

"But we can take on the mayors and town councillors who gave developers permission to use this illegal law to deprive people of their homes. We are going to take the mayors to court to demand compensation and damages. They know they are breaking the law - they should be liable."

The intervention from Brussels may come too late for victims such as Karen Marcos, 47, who is British, and her Spanish husband Juan. They have lived in their three-bedroom house in Finestrat, Benidorm, for 20 years. Now, developers are taking their home to make way for a new block of flats without giving them compensation.

The couple have already been forced to pay €97,000 (£68,000) towards new infrastructure costs, and 60 per cent of their land has been taken. "We could be forced to pay a lot more," said Ms Marcos, who works for a local newspaper. "They have told us they will pay us €92,000 for the small bit of remaining land and our home."

Mr Marcos, who has held down two jobs to pay the mortgage, said: "All that work, all for nothing. This is what my country is doing to me."

Government spokesmen in Madrid and Valencia said that no ministers were available to comment on the process instigated by Brussels.

[grupo] 11/4/2005 12:33

April 10, 2005

Elderly expats await Lords verdict on 'discrimination'
540,000 Britons who are resident in Commonwealth countries want a fair deal, writes David Budworth



MORE than half a million British pensioners who have retired overseas are anxiously waiting to hear if a legal battle to upgrade their state pensions has been successful. The House of Lords ruling, expected next month, could increase annual payments by hundreds of pounds.
Annette Carson, 64, who has been living in South Africa since 1989, is leading the campaign to overturn UK regulations that result in about 540,000 expatriates getting lower state pensions than their counterparts in many other parts of the world.



Pensioners retiring anywhere in the European Union, America and countries such as Israel and Barbados have their state pension increased each year in line with prices, just like a pensioner who stays in Britain. But those living in most Commonwealth countries, including Australia, Canada, New Zealand and South Africa, do not. Their state pension is frozen at the moment they retire, or when they leave Britain if they have already retired. Over time, that results in a pension that falls further and further behind the uprated version.

Carson's pension is frozen at £67.50 a week, the going rate when she retired. But if she still lived in Britain, or any of the countries where state pensions are uprated, she would now be receiving £82.05, the rate for the tax year that has just begun.

And her situation is by no means the worst. A couple in their late eighties living in South Africa will receive only £14 a week, while in the UK their weekly payment would be more than £130. Carson claims this is "unfair discrimination". She lost an earlier case in 2003, and expat supporters fear the ruling will go against her again.

More than 1m British pensioners have chosen to live abroad and the numbers are expected to soar in the next decade. But as the Carson case shows, it is often neither simple nor straightforward.

Debbie Falvey, head of retirement planning at Prudential, said: "It is vital to research your chosen destination before taking the plunge. Local taxes, costs of professional services and even healthcare need to be taken into consideration to ensure you don't get any nasty surprises."

You can claim the state pension from anywhere in the world. The money can even be paid straight into an overseas savings account, if the receiving bank allows it.

Some company and personal pensions can also be paid overseas. If not, you can use cash machines abroad to access money from your UK bank. It may work out cheaper to set up a foreign account and transfer the money, but it is still costly.

If you wanted to transfer money to a Spanish bank account, Lloyds TSB would charge up to £30 and HSBC as much as £21. Moneycorp's standard fee is £15, although it offers a regular-payment plan with a fee of only £4. Transfers from a Halifax or Bank of Scotland account to Banco Halifax España are free.

Overseas banks tend to pay lower rates of interest than in Britain, so you may want to leave your savings with a UK bank. Alliance & Leicester pays 5.35% on its UK easy- access internet account, compared with Banco Halifax España's top rate of 2%.

British pensioners officially resident in another EU country have the same entitlement to healthcare treatment as a national in the country they are living in. But be aware that free services may not be the same as those in the UK.

You need to fill in form E121 before you go. Once you arrive in your new home give the form to the authorities who run the sickness-insurance scheme. Outside the EU you are unlikely to be entitled to free healthcare, so private medical insurance is vital. If you already have it, you will usually have to switch to an international policy.

If you are looking for cover, brokers such as PHA Expat (0870 7700 946) specialise in searching for the best deal. For advice on getting your state pension paid abroad, and to request an E121 form, call the International Pensions Centre on 0191 218 2828.

[waldron] 03/4/2005 10:20

Getting your home benefits abroad
By Melanie Wright
(Filed: 16/03/2005)


Both state pensions and any pensions with former employers will, as a general rule, be subject to the taxation rules in your country of residence due to double taxation agreements.

Double taxation agreements are designed to protect against the risk of having the same income taxed twice by two countries. So, under such agreements, pensions are only eligible for tax in the country in which you are currently resident.

If you are abroad for fewer than 183 days in any tax year, or if you spend an average of 91 days or more in Britain over a four-year period, you will be treated as a UK resident for tax purposes.

According to the Inland Revenue, there are now more than 1,300 double taxation treaties around the world and the UK has the largest network of such agreements, covering more than 100 countries.


You could fly off into red tape
The leaflet Going Abroad and Social Security Benefits (GL29) provides plenty of useful information. You can get hold of a copy from your former Social Security office, or alternatively, the leaflet can be downloaded from the Department for Work and Pensions website at www.dwp.gov.uk.

The DSS Pensions and Overseas Benefits Directorate can also offer advice on certain transferable social security benefits and entitlements. If you receive a state pension from the UK and you live in another EU country, you and dependent members of your family will generally be entitled to the health services of that country.

It is necessary to apply for the DSS form E121 as early as possible before you go. This is obtainable from the Medical Benefits Section of the Pensions and Overseas Directorate.

If there is a difference in retirement age between the country you live in and the UK, this should not be relevant as it is the fact that you are in receipt of a UK state pension that determines your entitlement to healthcare, so it is the UK retirement age which applies.

However, if you don't live in an EU country, the rules may be different and your UK pension will not mean that you are entitled to healthcare costs.

[waldron] 03/4/2005 10:10

Choose your country carefully
By Melanie Wright
(Filed: 16/03/2005)


If you are retiring abroad, you are entitled to any United Kingdom state pension you have built up.

They can be paid straight into your overseas bank account in sterling. Alternatively, you can have your pension paid by order sent by post. Whichever option you choose, payments are made every four or 13 weeks in arrears.

However, it isn't always plain sailing. Only if you retire in a country that is in the European Economic Area (EEA) or that has a reciprocal agreement with the UK, will your pension be uprated in line with inflation, as it would if you were still based in the UK.

An estimated 900,000 British pensioners live abroad and fewer than half receive the increase.

Those who do qualify to have their pensions uprated live in EEA nations, including Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Portugal, Republic of Ireland, Spain and Sweden plus Iceland, Liechtenstein and Norway.

The countries with whom the UK has a reciprocal arrangement include Barbados, Bermuda, Cyprus, Israel, Jamaica, Jersey and Guernsey, Malta, Mauritius, Philippines, Switzerland, Turkey, USA, Yugoslavia (and its former republics).

Many of the pensioners who don't receive increases live in Commonwealth countries. These include an estimated 254,000 in Australia, 147,000 in Canada, 37,100 in New Zealand and 36,000 in South Africa.

Understandably, those affected are campaigning to get the law changed.

An appeal by Annette Carson's against Britain's freeze on certain expatriates' pensions was heard in the House of Lords on Feb 28-March 1.

Ms Carson, 64, who has been living in South Africa since 1989, has been fighting the Department for Work and Pensions in the courts and is asking that regulations barring her from receiving her full UK state pension rises are declared unlawful.

Her pension is frozen at the 2001 level of £67.50 a week, but if she still lived in the UK, she would now be receiving £79.60, with a further increase due in April.

Those affected include people in their 80s who receive pensions of £14 a week, whereas they would get £140 a week if they had remained in the UK or in other countries where pensions are uprated in line with inflation.

Mrs Carson lost her case in the Court of Appeal in June 2003, but the Appeal Committee of the House of Lords granted leave to appeal to the Lords.

The verdict is expected later this year, but if Mrs Carson wins, the Department for Work and Pensions estimates it would cost between £300m and £400m annually to uprate all frozen pensions for those who retire overseas.

Graham Chrystie, of law firm Thomas Eggar, who is representing Mrs Carson, said: "Over 500,000 UK pensioners living abroad are getting a much lower state pension than if they were living in the UK.

"If Annette Carson's Lords appeal is successful, this injustice will be remedied - at small cost to the Government, but with enormous benefit to a great many needy pensioners."

[waldron] 30/3/2005 09:08

Wednesday, March 30, 2005
Holiday homes in Spain
According to a report presented to the media here yesterday by Grupo Lar, Spain is the preferred choice of 66 percent of Britons who decide to buy a holiday home abroad. The reasons given for their preferrence are the Spanish climate (42 percent), personal or cultural reasons (30 percent) and the standard of living in Spain (15 percent). Surprisingly, less than one percent buy property in Spain purely as an investment made by a quick re-sale.

In Spain there are 3.3 million second homes and demand for holiday homes has risen on average 3 percent per year over the past decade. According to the Bank of Spain figures quoted by Lars however, the demand of foreign residents has risen much more sharply, including a rise of 147 percent in just four years. In 2003 foreign investment in Spanish real estate totalled 7,179 euros compared to 2,908 million euros in 1999.

Malaga (Costa del Sol) is the most popular choice among non-resident home-owners in Spain (45 percent) followed by the Valencian Region (Costa Blanca and Costa Azahar), the Canary Islands, the rest of Andalucia, Catalunya, Murcia (La Manga and Costa Calida) and the Balearic Islands. A recent study carried out by IESE estimated that that by 2008 foreign demand for holiday homes will have exceeded domestic demand in Spain. The great majority of non-resident property buyers are first British and second German and this trend is expected to continue.

Related links:
Buying property in Spain
Buying land in Spain
Houses for sale Costa del Sol, Spain
News about Spanish property market

[ariane] 28/3/2005 09:30

Spanish Real Estate Purchasing Process Shared by Peek at Spain's Customers
Download this press release as an Adobe PDF document.

In response to the horror stories that many people have heard about foreigners buying property in Spain, Peek at Spain, a well-trusted Spanish real estate company owned by British people who assist foreigners in moving to a new life in Spain, has shared some of the stories about their clients to illustrate the Peek at Spain difference.

(PRWEB) March 28, 2005 -- Peek at Spain SL, a Spanish real estate company that specializes in the Valencia region, has shared some of their customers' experiences while buying Spanish real estate to counter the horror stories that frequently crop up when foreigners mention buying property in Spain.

Tony and Teresa Wheal had dreamed of moving to Spain for years. "Like everyone wanting to move to Spain we had heard the horror stories and of the complications and were beginning to lose heart," said the Wheals. "I contacted Chris [with Peek at Spain and he immediately reacted with information and advice, and despite making a real nuisance of myself ...both Chris and John continued to answer my questions and build our confidence in them. We arranged to meet Chris and he had already booked a number of visits for us (no wasted time with fancy presentations about the company, just straightforward information and detail) and after a quick coffee we were out on the road. At the end of Day 1 we had decided that we loved the area and more importantly wanted to work with Peek at Spain."

In addition to searching for houses that will meet a customer's specific needs, Peek at Spain will guide buyers through all the required steps of purchasing Spanish real estate with expertise and efficiency. When the Wheals found their dream home, Chris Proctor and John Knight of Peek at Spain began the purchasing process.

"It all seemed so simple, but only because they know what they are doing," said Wheal. "Appointments were made with the bank, the notary etc, etc. Things moved quickly and efficiently. John's attention to detail was really appreciated (you know exactly what is happening and how much, nothing is hidden) and before we knew it our dream was complete – [the property was ours."

Bill and Chris Eyre expected to need several trips to Spain before finding a property they loved and completing the legal side of the purchase, but were pleasantly surprised by their single visit with Peek at Spain.

"We had an appointment with Chris from the Peek at Spain team on Tuesday," said the Eyres. "He took us to see several properties and we viewed one that we liked. ...[We asked if it would be possible to get a builder along to give us an estimate for some alterations we would need doing. This was arranged without any fuss at all. The following Monday we again met Chris and the builder "Tomas". We again viewed the property and asked Tomas if he could give us a ballpark figure for the work we had asked for, which he did and we put in an offer to buy the property... in no time we were at the estate agent's and we put a deposit down. On the Wednesday Tomas delivered his quote which was very well prepared and in the ballpark. ...Chris had shown us some of Tomas's work and we were very impressed."

The Peek at Spain team, which is comprised of both British and Spanish members, works hard to smooth the way with the Spanish authorities for foreigners buying Spanish real estate. Peek at Spain ensures that foreigners buying Spanish property pay what a Spanish person would pay, with no hidden extras or fees.

But it does not stop there with Peek at Spain. Tony and Teresa Wheal said, "[We were given an excellent after sales package full of useful information, advice on all sorts of issues and introductions to new friends and contacts – all arranged by Peek at Spain. ...Not only do they care, with some good 'old fashioned' ideas about customer service, but they are also great people. We are very happy to be friends with them as well as clients. They are also highly rated by the Spanish too, not only personally but also professionally, their honesty is apparent for everyone."

Anyone who dreams of moving to Spain but is discouraged by horror stories of buying Spanish real estate should contact Peek at Spain. John Knight, Chris Proctor, and the other members of the Peek at Spain team are available to answer any questions about the Spanish real estate process. Peek at Spain can be contacted via their website at www.Peek-At-Spain.com or by calling within the UK at 0871-990-3-550, in Spain at 034-96-299-8133, or by fax at 034-96-299-9076.

About Peek at Spain, SL
Peek at Spain is a Spanish real estate company run by British people who made the permanent move to Spain some time ago. They bought a lovely Spanish property overlooking Valencia and are now enjoying life there while helping others to do the same. Peek at Spain collaborates with Spanish real estate agents who have had years of experience in providing a professional service to Spanish people. Peek at Spain provides the same service to foreign buyers at no additional cost. Foreign buyers will pay the same with Peek at Spain as they would through any local agent, and in many cases, even less. They will then receive a unique information package after they purchase, to help them settle into the area. Also, all their prices on www.peek-at-spain.com are the maximum fully inclusive prices including all taxes and fees and you are guaranteed to get some change, as they know the system so well.

[waldron] 26/3/2005 09:28

'They made every mistake in the book'
(Filed: 26/03/2005)


Making sense of Spanish practices
Buying inland



If you're buying property in the sun, be sure to get the best advice and keep scouring the small print, as problems can be costly. Catherine Moye reports

David Robinson and Rosie Drew had hoped they would now be enjoying the good life in their restored Spanish ruin. But they are not. Their painful brush with local property law is a cautionary tale for anyone thinking of buying property in Spain.


Pain in Spain: David Robinson has a useless plot of land in Andalusia

A few years ago, David and Rosie were looking for a home in southern Spain. They ventured to Andalusia's countryside, where plots and old ruins were for sale at reasonable prices.

"A British estate agent in Mijas showed us some properties and we chose one that looked ideal," says David. "It had a ruin, which was important for planning permission, so we went ahead and bought it for €56,000 (£38,900)."

The agent introduced the couple to a lawyer friend on the coast. They paid a 10 per cent deposit but were never told that all was not well with the title deed.

Unfortunately for David and Rosie, their lawyer had little experience of working in inland Spain. Only on the day of completion were they told that the title deed referred only to land. The ruined house had never been registered and therefore, to all intents and purposes, did not exist. Assured that this could be resolved easily and warned that they would lose their deposit if they failed to complete, the couple signed.

But more problems cropped up. "It turned out that the land was not the 1,500 sq m described in writing but a mere 897 sq m," says David. The importance of this is that Spanish laws limit the size of any dwelling according to the size of a plot. Theirs was too small to build on. Consequently they became the owners of a useless piece of land.

"Unwittingly, David and Rosie made every mistake in the book," says Barbara Wood of the Property Finders, a buying agency specialising in Spain. "It's a common trap to fall into, using a British estate agent who is neither registered nor licensed but above all who doesn't speak Spanish. Without the language, they are incapable of checking things out properly or instructing Spanish lawyers."

David offers this advice: "Always make sure the deeds are translated into English. That way you can question the solicitor and make sure the deeds reflect what you think you are buying."

The couple's case is far from unique. Peter and Avril Hicks from Caterham found, in late 2001, what they thought was an idyllic spot - 14 acres of land about 30 miles north of Malaga. But they reckoned without the intervention of their British estate agent.

The agent recommended a lawyer and the purchase went ahead a year later. The Hicks spent £10,000 in architect's fees and planning applications on their proposed house only to have planning permission rejected in 2003. "The agent had led us to believe this was a mere formality," says Avril. It turned out that the land was not only agricultural, but was also within a nature reserve, making planning approval extremely unlikely.

Michael Soul, a lawyer who has practised in Spain for many years, cautions against using any estate agent without a reputation to lose.

"Anyone can become an estate agent on the Costa del Sol. It's an occupation that's going to prove attractive to the most scurrilous of individuals."

Even if you are dealing with a well-known agent, be wary of using their lawyer. "If a lawyer receives 95 per cent of his work from a particular agent, he is not necessarily going to act in your best interests," warns Soul.


Ruined house: if it's not registered, it does not exist

Whereas lawyers in Britain must be highly insured and professional bodies protect clients' interests, sorting out problems due to bad legal advice in Spain is complex.

Veronica and Edward Kitson, from Hertfordshire, came a cropper when they bought a two-bedroom apartment off-plan in a proposed development near Nerja in late 2001. Their agent also referred them to an English-speaking lawyer who sealed the €120,000 deal.

A year after it was due for completion, the developer was in trouble and construction work ceased. As their lawyer had failed to ensure that the developer had the necessary insurance, they were unable to claim against the developer and lost their deposit. Obtaining redress for the lawyer's negligence is proving difficult.

"When buying in Spain, many problems boil down to lack of common sense," says Soul. "Our ABC has to be learnt all over again."

Making sense of Spanish practices

• Be at least as careful as you would be buying in the UK. Owning a home abroad is fun but that is no excuse for not treating the purchasing very seriously. Take professional advice at every stage.

• Only use a reputable, certified estate agent, and preferably qualified in the country of residence or Britain.

• Get an independent lawyer fluent in the local language and English. If possible, use one recommended by a friend and talk to some of his clients. Never use lawyers allied to an agent. Instruct your lawyer carefully. Make sure he/she understands what you expect to be buying and do with your property.

• Get a survey from a qualified, independent, chartered surveyor.

• Only buy off-plan from reputable developers with a good track record and completed work you can inspect.

• Expect the contract to contain clauses governing time of delivery and, most importantly, a bank guarantee or insurance policy covering the developer against non-completion. You can claim against that insurance if things go belly up.

Buying inland

The regional government controls its own planning system. Make sure the plot is not classified "rural agricultural" because this cannot be built on. On a plot of less than 1.2 acres you can build a house with a 40 sq m living area. Between 1.2 and 2.4 acres you are allowed to use 3 per cent of the area for living space. Over 2.4 acres you are reduced to a 2.4 per cent. If venturing off the beaten track, use a buying agent.

[waldron] 10/3/2005 19:21

According to this evenings French television News;

More Brits moving to France in search of cheaper housing.

More French moving to Morocco in search of cheaper housing.

[waldron] 10/3/2005 08:02

Sterling service for your home in the sun
By Harriet Meyer
(Filed: 09/03/2005)


Many offshore subsidiaries of building societies now offer mortgage services to expatriates and they could well be beneficial once you have decided to take the plunge.

"One of the advantages of using these lenders is that they often lend in sterling, potentially a big boon for a borrower whose income is in sterling as well," says David Hollingworth, a broker from London & Country.

"If the mortgage is in a different currency, there is the risk of exchange rate fluctuation effectively increasing the size of the mortgage overnight and therefore the monthly payments, just because the foreign currency strengthens against the pound.

"Of course, if the property generates an income through letting, then exchange rate fluctuation may not be quite such an issue. It is important to check that renting the property is allowed by the lender."

And in general terms, it is very important to do your homework before buying your dream home in the sun.

Get an initial decision from your lender prior to making a decision so that you know what your price limit is. Being tempted by a property that is more than you can afford can, of course, lead to problems.


Do your homework: has your area the facilities you need, especially if retiring, say, to Spain?
For those wanting to buy in Spain, Norwich & Peterborough building society specialises in Spanish and Gibraltar home loans.

Mike Sketch, of Norwich & Peterborough, says: "Buying in Spain is still growing in popularity. Those who are looking to buy should move quickly though, as Spain is overtaking the UK in terms of house price growth."

Get to know the area you want to buy in by visiting and having a good look around.

Mr Sketch adds: "Consider if the area has all the facilities you may need, especially if retiring to Spain; facilities such as medical services, transport, shops and entertainment. Make several trips out, at different times of the year.

"Is it going to be your retirement home or a regular holiday home? Your needs will be very different if you are planning to live in it full time or just for a few weeks each year."

To qualify for a Norwich & Peterborough mortgage, you must be a resident or expatriate of the UK, or a permanent resident of Gibraltar. It is willing to accept applications for off-plan developments. However, you will not get an advance until the property is completed. Also, payments must be in sterling from a British bank or building society.

Norwich & Peterborough charges 3.79pc fixed for two years, or 5.49pc for five years. It also has mortgage that tracks the Bank of England base rate, currently 4.75pc, plus 0.24 percentage points in years one and two, rising to base rate plus 1.25pc in three to five.

It will lend up to 75pc of the valuation on a property bought for £60,000 or more, and loan terms are up to 20 years.

However, if you are thinking of buying in Spain, it can be expensive. About 10pc of the purchase price is made up of various taxes and legal fees. Also, there will be a Norwich & Peterborough arrangement fee of around £250, and a valuation/application fee from £375.

Mr Sketch adds: "Have independent transport to view properties and view as broad a cross-section of properties as possible before deciding.

"If you like a property because it has wonderful views, do find out if any development is planned or would be permitted that would ruin your vista. Contracts to purchase property can become legally binding very quickly so don't sign anything before seeking legal advice."

Expats seeking a mortgage on Guernsey should consider Skipton Guernsey, the only subsidiary of a top 10 building society to offer loans to locals and non-locals on the island.

Nigel Pascoe, director of lending at Skipton Guernsey, says: "The local market comprises of 90pc of the housing stock, while the open market is for the remaining 10pc, which is open for anyone who wants to live in Guernsey."

Loans are available for up to 25 years and of up to 95pc of a property's value. Skipton Guernsey's standard variable rate is 6pc and it has a two-year fixed rate of 5.54pc.

You will have to employ a local advocate to agree the conditions of the sale, whose fee will be around 4.25pc of the realty cost of the property.

[ariane] 09/3/2005 07:59

MADRID (AFX) - Morocco's energy sector regulator ANRT has extended
Telefonica Moviles SA's wireless licence until 2024 from the initial 2014
deadline, Cinco Dias reported, citing the regulator.
Moviles operates in Morocco through its Meditel joint venture with Portugal
Telecom SGPS SA.
Cinco Dias cited Meditel managing director Miguel Menchen as saying that
Moviles expects its Moroccan arm to be profitable at the net level in 2005,
after reporting positive EBITDA of 154 mln eur in 2004.
[e-mail]
jdy/cml

[maywillow] 04/3/2005 15:21

Spain tops Europe house league
Andrew Oxlade, This is Money
4 March 2005
SOUTH Africa had the hottest property market of the world's major economies at the end of 2004, according to a new study. Spain was the top performer in Europe, according to The Economist magazine's quarterly global house price index.



HOT PROPERTY: The market in Spain was the best performer in Europe during 2004

Prices in South Africa in the final quarter of 2004 were 29.6% higher than a year earlier, followed by Hong Kong at 28.7% and Spain at 17.2%. The Spanish market actually picked up from an annual gain of 16.5% a year earlier.


However, several markets showed rapid cooling. Annual gains slumped dramatically in some countries - from 18.9% to 2.7% in Australia with a study by the Commonwealth Bank of Australia suggesting prices in Sydney plunged 16%. In the UK, the gains were 10.2% compared to 15.6% previously.


Other markets picked up - the US, for example, saw an increase from 8.2% to 11.2% - and Continental Europe was also buoyant. The French market, a weak performer at the beginning of the decade, stepped up gains from 12.7% to 16%.


A worrying development for buy-to-let investors was that the magazine, with the help of investment house Barclays Capital, calculated house prices were at record levels in relation to rents in the US, UK, Australia, New Zealand, France, Spain, the Netherlands, Ireland and Belgium. It said property prices versus rent in Britain was 60% above the average between 1975 and 2000.


The magazine also claimed it had become far cheaper to rent than to buy. To calculated a Londoner renting a house worth £450,000 would be £35,000 better off after seven years, even if the property value rose in line with current inflation of 2%.


The study comes a day after the Royal Institution of Chartered Surveyors said Europe's housing market would remain buoyant in 2005 but was likely to weaken at the end of the year as pressure increased for the European Central Bank to raise interest rates.


It said France, Spain and Ireland all maintained double-digit house price inflation rates and that even Germany's long-term stagnant market appeared to be picking up. Out of the 17 European markets analysed in the report, only Austria and Hungary had a relatively poor housing market year in 2004. Most countries saw price rises between 5% and 8%, including Belgium, Italy, Sweden, Denmark, Finland and Portugal.

Economist Professor Michael Ball, author of the Rics European Housing Review 2005, said new EU countries in central and eastern Europe had more affordable but more precarious housing markets, warning foreign investors to be wary.

'A big issue facing the new accession countries is quality of housing as they are faced with the task of overhauling the legacy of poor quality housing from the post-war Soviet years,' the report warned. 'Some countries still lack an adequate legal property infrastructure to effect necessary improvements.'