Well just to add a little info here – no names mentioned. I was speaking to one of our contacts, a small agent based in the Malaga area. They have ‘sold’ a property in Los Patios (no LFO and I think pronounced as illegal) They had a valuer go around who wrote on the valuation ILLEGAL BUILD, so they could not use it. However another valuation has been instructed and so far so good!

An obscure, new or small bank would really have not much idea as they rely on the valuers for correct information!!

Up until end of octeber, you could still get a mortgage on a property that did not have an LFO, but from around mid november we noticed a change in the valuers attitudes and they were asking for actual copies of them.

This seems to be relegated to th Marbella area as I have not experienced this for Estepona or Benahavis either – or Mijas so far.

Our colleague based in Torre del Mar says the PGOU of 1986 (the legal one) has agreement from the government to extend by 40% so its just deciding which are legal and which developments have to stop. Apparently that law came in on 28th december.

Trouble is because of the time they are taking to make any sort of decision it is totally confusing. We cannot get an actaul straight answer from any lawyer because in truth they themselves dont really know. There are too many interpretations.

So we only touch anything with a license – I see no point even trying to sell soemthing as it falls down at the valuation stage.

Unless the seller is totally desperate (and we have one in this situation) in which case once we have explained the options, they will have to accept offers at 40 to 50% of estimated bank valuation as the buyer will be speculating with his own money.

Oh and to finish, my pal in Malaga said to me the general advice given out by themselves and other agents is to buy, complete and move is because the more people living in the complex gives strength to stop a demolition order!!!

Empty buildings beware!!!!! 😯