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There has been
much scare mongering 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
sensationalize rather than properly inform. Headlines and
quotes from angry ex pats 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 urbanized,
land suitable for urbanization 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 urbanization (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
urbanization 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 there 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
urbanized or designated as such. This represents virtually
all apartments, townhouses and other linked properties, plus
a large majority of villas. The Spanish designation ‘urbanized/urbanization’
does not necessarily mean a complex with a pool etc. –
most streets of detached villas are in such zones. Purchases
in such 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.
In summary 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
urbanization (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.
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