Bankers Guarantee with Polaris World.

I am currently purchasing a 2 bed apartment in Phase 4 (under duress).  To keep a long story short my situation has changed somewhat and I no longer have a need for an apartment in Spain.  

I have tried to get out of my obligation to complete on the grounds that the developer 'miss informed ' me that the habitation licence had been applied for in December 06.  This was the last chance that I had to pull out of the deal which I most certainly would have done if I had known the truth about the habitation licence.  Since it became obvious that the habitation licence had not been applied for the developer has strung me along with promises of a full refund plus interest.  Call me gullible but I was actualy surprised when I was recently asked to complete the sale with no mention of a refund now that the habitation licence has eventualy been granted.

My questions are thus:

1.  Do I simply bite the bullit and purchase.  Try to rent the apartment long term and hope that this covers morgage costs untill such a time that the market improves and I can sell and hopefully recover my losses.
2.  Do I seek a better solicitor who can fight my corner for a refund due to the 'miss information'.
3.  Do i purchase and try to sell on immediately.
4.  Do I attempt to sell before purchase and try to limit my loss.

I have paid approx euro 70k off a final price of euro 202k.  Any advice would be welcome.

Our understanding is that purchasers can pull out of their purchase until the point at which the habitation licence is issued. If you have now passed that point, and you have not said in which Block you purchased, your options are limited to selling or renting out, short or long term. 

The market for sales is slow at the moment ,and there are a number of units that have been up for sale for several months now. The long term rental market, however,seems to be buoyant . We moved out of a rental in Phase 3 on the Monday to move into our Phase 4 purchase and new tenants had moved in within 36 hours. In Block 1 a completion took place on the Monday and a long term tenant moved in the following weekend.

A scan of the ads in the local press indicates that the rental cost of a 2 bedroom rental on Arenal seems to be in the range of 650-800 euros a month depending on size, location and whether it is furnished or un-furnished. Your rental income will need to cover not only your mortgage, but community fees, the local council and basuro taxes and any obligations you might have to pay the Spanish wealth tax. You will also need to take into account agency fees if you use the services of a rental company.

Perhaps your best option would be to put your apt up for sale but to rent it out on a six monthly contract in the meantime.

Hope this helps in terms of what must be a difficult decision for you.

Ken&Jenny German

I think what Ken&Jenny are saying is the best advice as once the Licence is granted you must complete.Long term rental might be your best bet but will it cover all your costs?.I'm assuming your apartment is in blocks 1-3 as these are the only blocks released todate.Your solicitor should have kept you informed along the way as to what options you had once Arenal 2000 looked to be missing the completion date by a long way.Hope it works out for you.

Cheers,

Dave.

Bluey,

I sent you a private message. I might have a win-win proposal for you.

Lweld