If by this, Legally, you mean: do we have a mortgage on the illegal house, granted by a bank?
Yes, we have a mortgage on our illegal house. The bank sent someone to the house to value it before granting the mortgage so it is not as if they dont know where it was built!!
We were told that if a bank gives someone a mortgage then it is bound to be legal – this is untrue. We have no habitation license – but we only found this out 6 months after getting the mortgage and paying the developer (our Spanish neighbour) the balance of the purchase.
Your answers to my other questions are sort of reassuring however, I do not have the money to legally pursue this when I cant live in the Spanish house but am paying a mortgage and bills on it. We are renting a property as well (in the UK) and bringing up children with medical issues.
There is no money spare and I’m not going to take a chance on a judge finding in favour of our dodgy lawyers or dodgy developer.