Malaga Province sees first Inspections into illegal Buildings

Spain's Land Registry is getting ready to inspect 758,000 permanent and holiday homes in Malaga Province in a second phase inspection, but right now the Land Registry is concentrating on some 39,000 "suspect" homes that were illegally built or had illegal extensions added or modifications made without the necessary IBI local rent having been paid to the authorities.

Initially, the inspections started in 2013 and took the inspectors to around 29 towns in Malaga Province, including Malaga City itself, where around 390,000 such "suspect" homes are location. Here the Land Registry estimates that fines of ca. 2.3 million euros are due to be paid by home owners or developers who did not adhere to the law. Approximately one in ten of the total number of buildings in Malaga City is estimated to be illegally built, which includes home were owners have made small alterations that went unreported.

Land Registry inspectors will compare aerial photographs with what they find on the ground. Fines start at 60.00 euros but depend on the seriousness of the modification made. Common alterations made to homes without the necessary permits or payment of IBI local rent are extensions to villas or townhouses, swimming pools and the construction of houses on vacant plots that may not have had any planning permission in the first place.

Spanish Housing Market to remain subdued

Horror stories about illegal holiday or retirement homes being demolished have done little to encourage foreign buyers to part with investment for new or second-hand property in Spain. According the credit rating agency Fitch, the Spanish property will never fully recover from the economic crisis and total collapse it suffered at the beginning of 2008. Prices, so Fitch, won't return values of 2007, when the country's housing market last peaked.

The agency estimated that prices will remain at a 40% reduction of what they were before world-wide economic crisis. The market is beginning to level though and Spanish home values have reached their all time low.

Although BBVA bank has predicted a 2.7% growth rate for Spain's economy this year due to falling oil prices, property prices will remain at their current levels because the country has an ageing population and an unsold housing stock of nearly five million - many of these properties have stood empty since 2007 or are still under construction.

The BBVA announcement that around one million new jobs would be created in Spain this year did little to convince Fitch that the housing market would ever recover from its collapse. Spain must be "realistic", the agency said and accept that the property market will never return to its former glory days.

For potential property buyers looking to purchase a holiday home in Marbella's lovely San Pedro de Alcántara district the prospect of buying a second-hand home that may have "suspect" alterations done to it will be worrying. Hiring a quality lawyer locally is essential - especially when buying off-plan from a developer.

A two bedroom apartment in Marbella's upmarket San Pedro de Alcántara typically costs between 156,000 and 299,000 euros in smaller developments within walking distance of the beach and local amenities. Purchase costs can be as much as 10% of the asking price, but cutting corners when it comes to the choice of local legal representative can turn out to be a huge mistake.

If you are planning to sell your Costa del Sol dream home this year, be sure you have left no bill unpaid, including the IBI local rent for any building modifications you made to your Marbella home. Noboy likes a fine!