Tens of thousands of British buyers left high and dry by bankrupt developers in Spain have been given fresh hope that they may be able to recoup some of the money they put down as a deposit.
As much as £5.3 billion could be made available thanks to a landmark ruling by the Spanish Supreme Court with buyers who suffered losses in line for payments ranging from £10,000 to £500,000.
Figures released by specialist legal service Spanish Legal Reclaims in conjunction with the Centre for Economics and Business Research (CEBR), suggest Spanish banks owe money to approximately 130,000 British buyers.
While earlier estimates put the bill facing Spanish banks at around £2 billion, this has more than doubled as more buyers emerge and more cases are won with buyers able to get their money back plus interest.
This comes after the Supreme Court declared that the Spanish banks, who were meant to safeguard buyers’ money, are now obliged to repay deposits if the developer went bankrupt.
One British man has already been awarded the money he put down as a deposit for two apartments in Marbella in 2004. Malcolm Young from Northumbria lost €130,000. ‘The entire development had been built without the appropriate planning permission, meaning my investment was completely worthless,’ he said.
‘Fortunately, I stumbled on the right Spanish lawyer, now working for Spanish Legal Reclaims, who guided us through the process and got all my deposit back plus the accumulated interest. The exchange rate movement did me a favour too,’ he added.
The firm reckons that there are more buyers who lost their deposits and who are still unaware of the court ruling and is urging anyone who knows people who suffered to let them know that they may be able to reclaim their money plus interest.
‘Thousands of British buyers who had big dreams of owning a place in the sun were left high and dry when builders and developers went bust. For years, buyers fought to get their money back unsuccessfully, but changes in the law mean they will finally get what they are owed,’ said Luis Cuervo, chief executive officer of Spanish Legal Reclaims.
‘The bill facing Spanish banks is expected to be around £5.3 billion, but only if buyers take action. British people have to fight in order to claim their money back. We’ve had huge success helping people secure the funds that are rightfully theirs and urge the thousands of people who haven’t yet made a claim to start the process,’ he added.
International property expert, Amanda Lamb, believes that people should not be put off investing in Spain. ‘The allure of Spain goes far beyond sun, sea and Sangria as many Brits invest significant sums in affordable holiday homes. Many of these buyers had fantastic experiences and will continue to do so, but for others, the property crash brought their holiday home dreams to a grinding halt,’ she said.
‘Spain remains an attractive opportunity for those looking to invest, and there’s a new window of opportunity for anyone who lost out first time around to reclaim the money they are owed,’ she added.
