'Land Grab' -
ITV's 'Holiday Homes from Hell' programme
The following explanation is courtesy of FOPDAC (Federation
of Overseas Property Developers and Consultants)
"There has been much scaremongering in the British
press and on TV (Holiday Homes from Hell) of late, which although it has helped by
highlighting an issue of relevance to some, has tended to sensationalise rather than
properly inform. Headlines and quotes from angry expats have suggested that a cruel
Spanish system is kicking people off their land completely or forcing them to pay for
infrastructures they don’t want and/or taking some of their land for private gain.
The majority of this coverage about the difficulties facing some British buyers of homes
in Spain, relates to emphasis on those affected by a law that came into force in the
Valencia region in 1994.
In this document we clarify the general position and also how it relates to the vast
variety of properties and locations throughout Spain.
In brief, the issue revolves around three classifications of land - land already
urbanised, land suitable for urbanisation and rural land. As in any country, when an area
grows then rural land is sometimes re-classified by the local authorities as suitable for
urbanisation (development). A law was introduced in Spain to prevent individual owners of
rural property in areas that have been re-classified standing in the way of developments
that would benefit the community as a whole, by improving services or creating affordable
local housing. In recognition of the fact that the value of their property would increase
significantly, the laws oblige these rural owners to contribute with cash and/or part of
their land towards bringing in benefits such as mains water, sewerage, new roads etc.,
even though they may not want such facilities, preferring the old rural ways.
Unfortunately, in one area of Spain the law was badly drafted, allowing a small number of
developers and local authorities to exploit the situation against the interests of
property owners, principally in coastal areas where land is in shorter supply and values
are at their highest. As in the UK, notices of intent must be published, but just 15
working days are allowed to present an alternative urbanisation plan or an objection.
Since many landowners are absentee and foreign, this can cause a breakdown in the process.
Firstly and most importantly, this particular version of the law only applies to the
Valencian Community, i.e. the provinces of Alicante, Valencia and Castellón. In practical
terms this means the Costa Blanca and the Costa del Azahar, plus their inland areas. The
rest of Spain has different versions of the law and we have not had reports of any
problems, although qualified legal advice should always be taken wherever you buy.
Secondly, the law does not affect anyone with an interest in property in an area already
urbanised or designated as such. This represents virtually all apartments, townhouses and
other linked properties, plus a large majority of (legal) villas - especially those near
the coast. The Spanish designation ‘urbanised/urbanisation’ does not necessarily
mean a complex with a pool etc. most streets of detached villas are in such zones - but
this cannot be guaranteed. Purchases in urbanised zones remain unaffected, although buyers
should still take independent legal advice. There are nearly a million British people with
an interest in a home in Spain. Only a small fraction could be faced with this problem.
The large majority of owners of property in Spain have never experienced any significant
problems in their many years of owning property there.
Thirdly, these cases are not an anti-British campaign by the Spanish, the small group
affected has Spaniards and other nationalities as well as British.
Lastly, anyone who purchased and used the services of a good independent lawyer should
have been fully informed as to any effect this law might have on them.
So, in summary, the use of independent legal advice continues to be the best way of
protecting yourself when buying a property in Spain, no matter what the property or
location. Beyond that, only those considering buying property in the area of the Valencian
Community AND outside of an existing urbanisation (be it of apartments, townhouses or
villas) need concern themselves about this particular law, although the same principals
relating to advice apply wherever in Spain you wish to buy."
Please rest assured that whether you buy a property through
us or another agent our solicitor can act on your behalf to thoroughly check out your
prospective property and advise accordingly.
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