Hi I’m new to SPI and am looking for some advice. I have share in a property 10km inland from Marbella. Its current planning status is “Suelo Urbanizable No Sectorizado”. There is no appetite (or funds) for us to attempt to obtain building permission and develop the site at the moment. Even if we could, I doubt there would be buyers for the finished development at prices that would make it worthwhile. However, the prospect of sitting on the property for the forseeable future is not an appealing one either.
Some of my co-investors (we are six – from the UK and the Netherlands) are proposing we simply walk away from the property. Without going into all the financial details, there is a mortgage on the property with a Spanish bank. Does anyone have any experience of the Spanish banking communities’ interest in pursuing defaultors abroad?
My opinion is that defaulting on the mortgage payments is not adviseable. Instead, my feeling is that we ought to negotiate with the bank – for example, to an interest-only agreement.
Does anyone have an opinion on this?