There’s fresh hope for homebuyers of off-plan Spanish properties after the deadline to claim for lost deposits was extended to December 28.
The majority of the claims relate to deposits paid by those looking to invest in off-plan properties in Spain which were never completed.
Due to the credit crunch, many of Spain’s property developers simply ran out of money, unable to complete the projects that many had poured their life savings into.
Due to the recent state of alarm, the legal system in Spain has been closed to claims and court cases. As a result, the government has decided to extend the original deadline of October 7 to allow investors sufficient time to recover their deposits.
The ruling means that anyone who paid a deposit to a bank for an off-plan property before January 1, 2016, for a home that was never built, will have two extra months in which to file their claim.
Under a 2015 ruling by the Supreme Court, there are two circumstances in which an investor may claim. These are:-
The ruling also meant that investors would qualify for a refund of all money paid out along with legal interest applied from the date the money was paid into the developer’s bank. In some cases, legal costs may also be recovered.
A leading property lawyer that has been specialising in protecting the rights and interests of English-speaking foreigners in Spain since 2006, is now urging expats to take action before it's too late.
Keith Rule, of CostaLuz Lawyers, said, “The stress of losing a deposit on an off-plan property in a foreign country is immense. However, there is now considerable precedent for such monies being repaid by banks.
“As such, I would urge anyone who has lost an off-plan deposit to take action before the December deadline. It's not too late to try to get your money back.”
For many years, British and Irish investors have looked to invest their money into Spanish property, however, this all came crashing down following the economic downturn of 2007.
It's thought that up to 130,000 investors may still be eligible to claim with the average family looking to claim back around €40,000 on average.
If you are hoping to recover your off-plan property deposit, you will need to file your claim before the December 28, 2020 deadline.
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