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The BBC has reported that an estimate of up to 100,000 Brits
could very well receive compensation if they invested in property and lost
their money.
Spanish Legal Reclaims (SLR) is the law firm behind this
estimate and they believe that, as a result of a Supreme Court ruling from
2015, Spanish developers need to now pay back investors who invested in
property marketed as off-plan. It’s been estimated that the Brits could receive
up to £20,000 each in compensation.
One aspect of the boom in Spain was that people rushed to
buy unbuilt homes “off-plan” so that they were able to get the best deals on
the property. After the market turned sour in 2008 many of the more
unscrupulous developers collapsed and the money that had been invested in them
seemingly disappeared so now is the time to receive your lost off-plan deposit refunds
The Chief Executive of SLR, Luis Cuervo, condemned this and
said that the money should have been placed into an account with a bank
warranty that could cover the money even if the company failed.
The ruling by the Supreme Court means that financial
instutions are now obliged to return the money to investors if the developer
goes bankrupt or just disappears.
An estimated five million new apartments were built in Spain
before the financial crisis hit. Many of these properties were built “off-plan”.
A lot of these developments were later abandoned however, as developers
continued to default and disappear after the 2008 crash.
It looked like the buyers were last in line to receive money
from these firms as creditors went after them to reclaim debts.
It’s being recommended that Brits seek out the advice of an
independent law firm that knows the law before trying to submit a claim. The
law also states that a claim can only be made once. If the claim fails then
there are no appeals and no way to make another one.
It’s being suggested that Spanish banks could end up paying
out as much as £15 billion in these
off-plan development investors in compensation payouts as they will no doubt be the hardest hit as a result of all of these payments.
off-plan development investors in compensation payouts as they will no doubt be the hardest hit as a result of all of these payments.
