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Recap of Legal Actions in Spain against Banks & Others

352089_1280x720This article written by Lawyer Raymundo Larraín Nesbitt, gives a complete overview of the recent court cases in Spain which may award non-residents with unexpected huge windfalls.

Several key court rulings have hit the Spanish headlines over the last months raising huge waves which ripples we continue to feel every day in the shape of glossy newspaper and radio ads soliciting litigation clients. Lawyers have all too eagerly witnessed the recent snowball of landmark rulings which have opened up new venues to litigate that were previously barred to us.

To laymen, these rulings mark an inflection point allowing them a golden chance to claw back lost off-plan deposits from developers, undue interest rates pocketed by lenders, overcharged taxes from town halls and even from the Spanish Tax Office itself. Most of this money was written off years ago, by those affected (in the majority UK nationals). These new rulings have tipped the scales, turning legal outcomes upside down enabling successful litigation (and payback, which is really what it’s all about).

The best way to go about it is to simply provide a brief overview of all the ongoing court cases, one by one, giving the likely success odds, timeframe to claim and the amounts claimed back. I close each one referencing my own articles on a matter for those that seek more information. I only list those likely to affect my readers/clients i.e. non-residents.

There are more court cases than the ones I collate below, but these overwhelmingly affect Spanish nationals (e.g. preferentes) so I will purposely leave them off the list.

It should be noted that the following blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. Continue reading

Mortgage % upside down

Survey Spain-  Mortgage % upside downThere is a report that the EU is demanding that banks reduce the mortgage limit to 60% of valuation. Very sensible when the market is nearing its peak, but stifling when it’s at a low as now. Once again, there is a misunderstanding that one policy cannot be applied throughout the EU and especially not where the multitude of different property markets are concerned.

Prior to the crisis, the problem was that the banks were offering the highest mortgage % at the top of the market when they were awash with money and desperately seeking a place to invest it. There is danger of that happening again as the weight of money available in funds is huge and increasing every day. Continue reading

What caused the property boom in Spain?

Typical Spanish propertyAccording to local Costa del Sol newspaper, Euro Weekly News, the Spanish Institute of Family Policy has recently stated that the number of households in Spain has increased by 50 per cent since 1991, whilst the average number of family members has dropped from 2.6 to 2.3 (-11.5 per cent) during the same period.

Historically in Spain, many children lived with their parents until they married and many even for some time after that. The country also has a very strong tradition of home ownership, with residential tenancy being rare, principally due to laws biased very much in favour of the tenant, thus discouraging investment ownership of residential property. Continue reading