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Leeds Man Among Spanish Home Buyers Taking Legal Action Over Property Firm Collapse Fears

Corvera Golf and Country Club, SL


Leeds Man Among Spanish Home Buyers Taking Legal Action Over Property Firm Collapse Fears

A Leeds man is among ten British home buyers who fear they could lose their life-savings if a developer becomes the latest Spanish property firm to go bust and have launched a legal battle to get their money back. 

Though Irwin Mitchell is so far representing 10 owners who have agreed to purchase 13 properties, the firm believes that there are more than 100 people affected in the UK.

The group, who have each paid deposits of up to 200,000 Euros to buy properties as holiday homes or for relocation in south eastern Spain off plan, are among up to 100 people who now fear they may lose the lot and have accused the property firm concerned of misleading them over leisure facilities, which have never been built.

The buyers met with Spanish legal experts from Irwin Mitchell recently at an emergency meeting in Birmingham and have now begun legal action alleging breach of contract amid fears that they may lose their dream homes on the Corvera Golf and Country Club and their deposits.

Many used their life savings as deposits for homes costing between 190,000 and 550,000 Euros after being promised top quality properties on the development near Murcia, which should also have included a five star hotel, in-door swimming pool, spa, medical centre, equestrian centre, leisure facilities and tennis courts, as well as a commercial centre with bars, restaurant and shops.

However, the group claim that none of the five star leisure facilities have been built, and that they are now being chased for final payment and face the threat of being sued under Spanish law by the developers Corvera Golf and Country Club, SL, despite being informed that building licences are not even in place for some facilities.

And to add to their concerns, they also fear that the failure to build the facilities on this and on a previous site, Roda Golf, is a sign that the developers have run out of money and may go bust, taking the group's hard-earned money with them.

One of the buyers affected by the issue, Ramesh Mehay, from Leeds, said: "We're all very worried but determined to fight this matter.

"It was a huge decision to use years of savings to buy these homes. Now, we want to make sure that Corvera Golf and Country Club cannot come after us for any more money. 

"None of us are particularly wealthy. Most of us just wanted to make a better life for ourselves. Imagine ploughing all your hard earned money built up over the years into a project that promised excellence by developers who seemed trustworthy. But then to be let down by a failure to offer that original package and its unlikely emergence in the future. And to top it all up, what about the fact that they can still chase you for the rest of the money and force you to complete. Seriously, how would you feel?"

"People do not want a reduction in price. No one trusts them anymore and the dream life they were selling is now a nightmare. We have been lied to and misled, and we want our money back and the contract cancelled so we can all walk away from this nightmare and live in peace."

Solicitor Alex Radford, from Irwin Mitchell Abogados in Malaga – the Spanish arm of UK law firm Irwin Mitchell – said the issue was of increasing concern to a growing number of people who had committed hard-earned money in Corvera and who travelled to the emergency meeting in Birmingham from across the country.

Radford said: "This is obviously a very worrying time for all of these people. Buying a property in Spain is a big decision. These people have worked hard to earn the money to buy these homes and saved for a very long time. To pay out this money was a decision they would not have taken lightly.

"Having done that, quite rightly, they expect to receive what they have paid for. They have been promised five star facilities to go with their homes, and they have been very badly let down indeed. Clearly they have been misled by the developers, and we want to get justice for them.

"These people want their money back or all the facilities they were promised to be built – it really is as simple as that. We believe the developers are in a breach of contract because of the lack of facilities that they said they would build when they first sold homes to our clients and a large number of other people who have also invested hard-earned money in a deal the developers haven't honoured."