I have just spoken with my lawyer. And she recommends I request a refund and go to court if i have to. She explained that the Junta Andalucia said two years ago that the property was illegal, however the Town Hall disregarded this. That is until two months ago, when the Town Hall accepted it is illegal and is now not issuing occupancy permits.
Just now the building (my flat is in manzana 5, block 2) is illegal - my lawyer has checked the documentation with the authorities - however the developer is saying it is legal. I will not be able to get finance from the bank, and I am highly unlikely to be able to sell it.
The flat may be demolished or there may be a 'battle' to make the building legal.
I am not willing to wait any longer. This is a huge mess and a year and a half late. I am getting out!