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Real estate - Planning

114. We have a construction loan with Halifax, and we have completed the house, and have applied for the first occupation license in November, but have not yet received it. The bank says they won´t pay out the last 30 percent of the loan without it, but it didn´t say that I needed the license in the contract, only that I needed to finish the house within the two years, and the two years will be completed next month. I don´t think what they are doing is legal, and would like to know what steps to take. Many thanks, Wendy Warren - Wendy 24 - 06 - 2009

It would be necessary to examine the conditions of the loan contract in order to offer a more definite response. However from a legal point of view, the term “completion” refers not only to the actual construction of the house but also to compliance of the necessary legal requirements, such as the deed declaring the new build, registration of the deed in the relevant land registry and receipt of the first occupation licence. Failure to meet these requirements could lead to the property being considered unlawful.

87. please can you informe me on what to do, i bought a house year 2006 sept, but now i found it hard to make payment, i wanted the bank to reduce the payment or give me time to sell it.
at bank this morning the bank manager told me if i like to sell it i can do, but i will still continue to make payment, which i am not interested.if the reduce the monthly payment i can be struggling to make payment, but says it is not possible, well i have not own any month without payment, but its difficult for me to continue paying mortgage that is hard for me to pay.
please what can i do next. - linda 17 - 02 - 2009

If your bank agrees to do so, you could re-negotiate the terms of the mortgage, extending the life of the mortgage and reducing the amount of repayments made. If you are unable to attend to payment of the mortgage, you could apply for voluntary bankruptcy before the Courts which would force the bank to re-negotiate the terms of your mortgage.

62. hello,
I paid a deposit in October 2004 to Viva estates on 4 small properites which were due to be built in or around 2006.
I was informed some months ago that the development is not going to take place.
I contacted Viva to ask for my deposit to be refunded and was told I had to take the matter up with the developer.
I have emailed the person whom I thought was the developer and he informs me that he was only involved in the planning and he would speak to the developer directly.
It is now several months later and I and he has not been able to meet the developer.
He has informed me he will do whatever he can to get my money refunded and failing that he suggests I take legal action against the actual developer.
Can you help? - karen 02 - 12 - 2008

The first step would be to determine who you paid the deposit to and then try to claim it back from that party. Presumably you would have signed a contract or an agreement when making the deposit. If that party is now insolvent, unfortunately there is little that can now be done. In theory when buying a property there should be a guarantee or insurance policy securing monies received from purchasers but from what you say this does not seem to be the case.

65. I have been reading many articles in the English newspapers regarding the Spanish Authority's intention of grapping and demolishing many coastline properties.

How real is this threat?

My property sits about 10 meters from the beach! I bought the 3 apartments in 1987 in a 4 storey block of over 100 units.

The block was build in the 1970's . Next door is a complex of over 100 small houses which was built at the same time. More recently, and next door to the complex, a Five Star hotel was erected and next to that a luxury development was built on the beachfront about five years ago.

Please do let me know what you think the current situation may be regarding the building where I own the properties

Kind regards


- Alex 17 - 12 - 2008

From our experience, although the Shore Act (Ley de Costas) was passed to prohibit the construction of buildings near to the beach front, in practice there have been very few cases of properties being demolished. Furthermore, given that your property was built in the 1970s you are in a better position since the complex would have been approved and built before this law was passed.

67. Regarding the answer to No. 5 David 29-4-2008
Would it be unwise for David to contact the authorities unless he can prove that his property has been completed for at least 4 years? Is there a 4 years limit after which, if the authorities have not officially complained about the property offence, then they cannot demand demolition or administer a fine. However, the property is not legal, but in a 'limbo'. How can it be 'legalised' with regard to planning and the all important First Occupation Licence or is it not possible? - Surveyor 26 - 12 - 2008

Town planning rules envisage the possibility that properties which do not conform to the regulations may be demolished. However certain properties may be legalized provided that their situation is recognized in the town planning development plans for that locality. These plans establish where and what type of new properties may be built and therefore until such time as it conforms to those plans the completed property cannot be legalized.
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