Monday, July 6, 2009

Spain to legalise 40,000 homes

Well, what else were they gonna do?

The Spanish property and mortgage market has been hit hard enough recently without having to worry about your apartment being knocked down

In fact, many people that had bought illegal properties had bought from developers that had honestly expected their licenses would be approved, or that had greased the way by way of back handers to dodgy Mayors and town hall officials

This was how things happened, and had been going on for years - build the develepment and sort the licence out later

Some people have mortgages at place like Reserva de Marbella, where the properties are illegal and they haven't been able to remortgage because no other bank will take on the risk

If they do sort this out and legalise a lot of properties, then it may help galvanise the mortgage market, as some clients will be able to remortgage or release equity - at least if there are any bloody banks still lending

If nothing else, once it is sorted then it will help give the impression that Spain has sorted out the problems, and it may be seen as a safe place to buy in again

Whether they will sort out the campo (country properties inland) remains to be seen.......

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