More than a hundred owners in Marbella risk losing their properties as a result of the collapse of the Icelandic bank Landsbanki, reports the Spanish press. The case is being treated as a potential fraud, and most of the victims are British pensioners.
Owners of properties were talked into mortgaging their homes to invest in a fund run by an insurance division of Landsbanki. The returns were supposed to cover the mortgage payments and provide an extra income, but now that the bank has collapsed owners cannot afford their mortgage payments and may lose their homes.
The public prosecutor in San Roque (Cadiz) is treating the case as a potential fraud by Landsbanki, and its Luxembourg-based subsidiaries Lansbanski Luxembourg and Lex Life and Pension. 3 financial advisors targeting the British community on the Costa del Sol are also implicated.
Landsbanki has closed its office in Marbella and stopped all communication with clients.