On the face of it that’s a very obvious question to answer and from a legal point of view you should never buy illegal Marbella properties. However there are quite a few property transactions taking place for Illegal properties in Marbella and especially in the Elviria area so why?
First things first what is an illegal Marbella property? Very simply it’s a property that never obtained a first occupation license and therefore is illegal
Secondly what can happen to you if you buy an Illegal property without a first occupation license? The most important factor to bear in mind is you have to be a cash buyer as it’s impossible to get a mortgage on the property. The exception to this rule is where the bank already has a mortgage on such illegal properties and will transfer it to the new buyer. Now however the banks are a lot wiser and will not lend on such properties. The most important factor for buyers of such properties is when you come to sell you can only sell to a cash buyer so selling such properties can be very difficult indeed.
Thirdly why do people continue to buy such properties? The answer is primarily due to the fact that the majority of illegal properties are in the process of being legalized under the Marbella Town Hall plan (PGOU) with some exceptions notably River Gardens and Banana Beach that will in reality never be legalized. So at some point in the future the properties will be able to be sold without any issues. The other major reason people still buy such properties is the price that they can buy for and the location of some properties such as Los Granados de Cabopino which you just can’t buy at the prices they are currently trading hands for.
So should you buy Illegal properties in Marbella? The advice is obviously not unless you see such an opportunity that makes sense for you but most importantly you must be aware of all the shortfalls with the major one being that you may never ever sell your property in the future.
If you want advice in making sure you don’t buy an illegal property in Marbella then please feel free to contact us at Spanish Hot Properties