The only thing I can suggest is to ring and speak to Sharon and Laura at Peninsula about your options. Because of the exchange rate we have found ourselves also in a very reduced situation and they have been very helpful with their suggestions.
Also I dont think being over 60 means that you can't get a mortgage, but obviously it means that the term of the mortgage may be reduced, maybe to something like 10 years. However, getting a mortgage on this basis, though expensive monthly gives you some breathing space to work out other options longterm. In addition, mortgaging instead of handing over all your capital is a good option on many fronts especially in terms of the current exchange rate, paying tax on any rental yield and Spanish inheritance tax (which is punitive).
Finally, although the developers have threatened to sue if people 'won't' complete I think genuine cases of 'can't' complete will be looked at differently.
Having just been out to the site it will take an act of God for it not to be completed this summer so I wouldn't rely on the delayed licence option to bail you out.
Also personally I think if there is anyway you can complete you should as the project looks great. I too have had severe reservations over the last 12 months and wondered whay we had comitted to it, as our financila situation has changed, but seeing it last week confirms that it was the right decision for us.