Unfinished property in Spain

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  • #38366
    chris_ellerton
    Participant

    Hi all

    We have a customer who invested £40,000 into an apartment in a complex bordering a golf course in Spain.

    The customer informed us that it was unfinished though as unfinished apartments were selling for £70,000+ we valued it as property with a value in excess of £16k.

    However the property is VERY unfinished. Photos provided by the customer show a steel skeleton; no walls, floors, gardens etc.
    Building stopped as soon as the recession hit and the customer is now in dispute with the building company trying to get his money back.
    How do I value this? Do I disregard it due to the dispute?

    Many thanks in advance

    Chris

    #108015
    Kay_Tade
    Participant

    [quote=chris_ellerton]However the property is VERY unfinished. Photos provided by the customer show a steel skeleton; no walls, floors, gardens etc.
    Building stopped as soon as the recession hit and the customer is now in dispute with the building company trying to get his money back.[/quote]

    I think that sums it up [if he can show he can’t get any money back at the moment] if the capital is not accessible to him then he doesn’t have it.

    #108017
    Kevin D
    Participant

    The property may not be without value in itself. For example, someone may be prepared to pay an albeit much reduced amount. However, if the dispute is such that the premises cannot be sold in any case THEN I would agree with Kay that the value is, in reality, likely to be nil or negligible.

    #108073
    Anonymous
    Guest

    We had a customer in a similar situation a few years ago and I was persuaded that the property, such as it is, has no value. The company who were building them have gone out of business and there was an ongoing dispute with the Spanish tax authorities. Warning to all – never invest in an off plan development

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