Cox apartment ref. SP1176

Does anyone have any idea when Fairways is due to be completed ?

Hello Seagull - do you know when the completion date is - ie which month?

Thankyou - Russ

We cannot give exact completion dates until closer to the time. This is basically due to the fact that once the build has been completed we have to wait for the town hall to issue the first occupation licence. They will inspect the development, ensure that everything is as per the plans and then issue a licence. We will be in touch with exact completion dates, help with mortgage applications etc. closer to the time.

Regards,

Sharon Hitchcock Sales & Marketing Director Peninsula

I e-mailed Sharon earlier this week and she told me that Tee 17 is due for completion in Autumn / Winter 2009.

From the various messages there still look to be some uncertainty on the completion date. What is the best estimate?

Proadis, the actual developer for this section told me that they were planning to complete in late summer of this year.  This contradicts the information given to me by Sharon.  I do not know which one is the most accurate.

The developer responsible for the shopping centre and sports complex sent me an e-mail stating that they would not be completed until 2012 at the earliest when they would be economically viable.

I would appreciate any feedback from anyone else either confirming or denying this.

Thanks for your reply. We could do with a formal statement from Peninsula on completion dates and a comment on the worrying 2012 suggested completion date for the Shopping Centre and Sports complex. As a Tee 17 buyer (as I am sure with the rest of the developments) we was sold a full development package that underpins the rental opportunites. These issues in combination with the various articles on the local authorities being taken to court over the land sale is starting to build up a worrying picture to the whole thing.

Is anyone else starting to feel this way or am I missing some facts that brings some confidence back.

At the moment Ben it seems that its just me and you that are concerned.  However the rental contract does stipulate that rental guarantees will only be forthcoming if building work does not impede tourism.  This worries me as the shopping centre and sports complex are pretty close to Tee 17.

The niggling scenario on my mind concerns Royal Peninsula in that we pay a management fee in advance, as well as the furniture through them, we then wait for at least 6 months for any return, then no income because of works, then Royal Peninsula becomes bankrupt.  In the current economic climate, it has to be considered.  This resort was advertised to me as a guaranteed 5% return without condition (and still is if you look at the Peninsula website).

Of course I may be very wrong and would really value an example of where the Peninsula group / Royal Peninsula can show us how this scheme has worked.

I have asked a similar question to this to Royal Peninsula before and will not embarass anyone with publishing the answer that I was given at that time.  So once again any comments would be appreciated.

Does anyone have any news about the completion date?  My personal financial situation is such that I really need the 5% return on investment as a source of income.   I really need the completion to be as soon as possible so that I may benefit from the fantastic 5%   guaranteed rental income offer.  I feel that we are exceptionally lucky to have purchased on such a development that ensures this  return in such difficult times.

You may be interested to look at the sales figures I dug up about the whole complex including Tee 17 and posted in the Medina Golf forum:

http://www.eyeonspain.com/community-forum/14473/granada-greens-at-medina-elvira.aspx

Tee 17 looked in a difficult situation sales wise with only 20% sold at the start of last year. Have sales picked up? Is there definite confirmation that Tee 17 will build to completion as scheduled?

Hi,

You are not the only two people who are concerned.  I am certainly one of those too, having bought in Tee 17.  I also rely now more than ever on the 5% return and would not be able to complete should this not go ahead as advertised.  I haven't even had chance to have sight of any rental contract, despite having been promised to have it sent in two or three occasions.  I am not sure how this can still be a reality in the current climate and would like to hear from anyone who has already completed in Medina 23 and may be able to enlighten us.

I was also told just before Christmas by someone at Peninsula that Tee 17 was 70% sold, which beggars belief.

My question is, where do we stand if  we cannot complete due to Peninsula refusing to offer the promised 5%?  Is the fact that the development is not going to be completed for the time being sufficient grounds for not going ahead with the purchase? If one withdraws from the sale, how much of the deposits would be lost?

If anyone has had any information from their solicitors please share your thoughts.

The legal advice I have had is that your best bet for getting deposits back is to withdraw from your purchase contract AFTER the completion date on the contract and BEFORE the license of first occupation (habitation license) is obtained after the development is complete

This seems to be the 'industry standard' way of purchasers getting back their deposits in court with the best chance of success. If you don't go this route you have to get a lawyer to agree to persue the case on a different basis

Purchasers in developments that are not finishing are now being given the option of buying in ME23, Fairways etc and in some cases have been refused return of their deposit money if they do not transfer their purchase. See here: http://www.eyeonspain.com/community-forum/14473/granada-greens-at-medina-elvira.aspx. Regardless of deposit refusal on behalf of the developer, this should be a text-book court case on the grounds of delay

There is a regional regulation called Decreto 218 www.comply218.com - applying only to property purchase in the Andalucian region. One of the primary points of this regulation is that advertising and information provided by the sales agent / developer should be factually correct, cannot hide information etc. If the guaranteed rental scheme does not go ahead then the advertising was false and the finished product you are buying is not what you were sold, thus the contract should be null and void. I am currently trying to get this regulation ratified as a valid reason for legal action via a solicitor but so far have not had this confirmed

The legal info I posted here is purely from my own personal dealings as a purchaser and you should all do your own research to be sure. I do not pretend to fully understand Spanish law!

The 5% rental scheme on ME23 and Fairways is not provided by any of the developers in this complex, but the company Royal Peninsula who is run by Margaret Corley, so I would assume its the same for Tee 17. I have a copy of the rental contract and will be happy to provide one if you PM me, but the best source would be Royal Peninsula

The single most important detail on this contract is the money will be backed by an insurance policy that you sign on the day of completion. So no insurance = no rental scheme. I haven't seen this insurance contract nor has any other purchaser I am talking to so far. I have been told by Peninsula that some purchasers in ME23 are now on the guaranteed rental scheme, so according to the rental contract I have these purchasers must have signed this insurance contract during their completion. Verifying that existing purchasers are now insured, and getting a copy of this contract and checking it out directly with the insurance company will validate the rental scheme beyond doubt

Other important info on the guaranteed scheme is that payments will be made 6 monthly in arrears, so you will have to cover the first 6 months running costs in full before you get any income. There is also a clause covering things that will impede (e.g. prevent) rentals such as 'ongoing building work'. So it is also extremely important to determine exactly what will prevent rentals in each individual development, e.g. ME23 is next to the Fairways building site, Tee 17 will be next to something else etc, do the shops or leisure centre matter etc? I have NOT yet had confirmation of what will impede rentals in my development, but if ongoing building work does indeed prevent rentals then this will extend the 6 months you have to wait before receiving rental income

I suggest everybody reading this post contacts Margaret Corley mailto:info@royalpeninsula.net and asks for a copy of this insurance contract, and asks for a crystal clear definition of exactly what will prevent rentals on your particular development. She will also be able to provide copies of rental contracts

Went to site this week,and can report that work is progressing,albeit slowly in terms of some of the development..Sharon showed us round and,as ever,was extremely helpful.Tee 17 won't be completed,she said,until the end of the year now.....so we all need to check how we stand with regard to the bank guarantees.

The international school,as we know,is open and there were boarders staying.The club house is about to open,and looks really impressive.We were shown round Medina 23.......really liked it with the courtyard around the central pool.Other developments on the site were all at varying stages,but the one where the builder had changed was now nearing completion,so seemed to be back on course.

The shopping facility and sports centre hasn't started yet,Sharon says work WILL start this year,and will only take a year or so to construct.....let's hope so,as obviously this is crucial to the rental success of Medina Elvira.

I complained about the lack of communication wih regard to the rental scheme,and she assured me that this was being addressed and that more information would be available soon.Again,we shall see.

I remain optomistic that the project can be a success,but there's a very long way to go yet!

Thanks Seagull for the update. As a purchaser on Tee 17 I have been keeping a close eye on progress. I work in the construction industry in the UK and based on this experience Tee 17 looks a long way from completion so I am not surprised to hear it will be late. I also think Sharon is still being a little optismitic with the end of the year but time will tell.

You made reference to bank gurantees. I thought the bank gurantee was there to complete the project if the developer cannot - or have I missed something!

Hi Ben,

Bank guarantees is Spain cover the payments made to the developer until the property is handed to the buyer.  Should anything go wrong such as the project not being completed or even started because of the developer going bust etc, you should, in theory, be able to get your deposit and other payments back, although not without the hassle of having to apply to the courts for an enforcement of such bank guarantee, which can take some time.

You must check that your bank or insurance guarantee does not expire prior to the development being completed as this could be a problem.

In the case of Tee 17, could anyone share what entity is backing up their deposits?  This needs to be looked at carefully in the present climate, as there are a number of insurance companies in Spain whose financial health may be worse than that of the developer! 

I hope this helps.

Sorry Ben,

I forgot to ask you whether you have taken any pictures during your visit.  Last time I was there was at the end of August and judging from the pictures posted in Peninsula's website dated Jan 09, not much, if any, seems to have changed with regards to Tee 17, which is quite concerning.

If you have, could you please upload them or let me have a couple of them via private message?

Thanks again

Think it's me you mean not Ben........sorry no photos,but as I said,work IS going on,including at Tee 17.

We were not allowed,for safety reasons,to go into our appt but were able to stand next to it(ours is in a corner on the ground floor).The interior dividing walls were in ,and work had been done on on the terrace etc.......certainly there had been progress since our last trip around November time.

According to Sharon ,by the way,Tee 17 IS 70 per cent sold,as reported by someone else on here.Obviously,sales have slowed lately.

She also said,and I do agree,that it really  would be better for buyers to visit the site for themselves to check on progress and have questions answered personally.I know people can't just drop everything and fly out to Spain...but I do think it would help allay at least some of the fears if you could do this. We certainly felt better about things after our visit. 

I have e-mailed Peninsula three times in the last 8 days concerning completion of Tee 17 and have not had any response whatsoever.  Could someone else on the forum have a go as I'm losing patience.  Thanks - Russ