British Expats - COSTA ESURI

The issue with purchase at the moment may be a tricky one unless you are a cash buyer.
It has been rumoured that some agents have had potential buyers but the administrators are not prepared to take orders from now on, which, to say the least is a little unusual.
The administrator is the only entity who could have influence on Fadesa purchases or sales until the buisiness is either out of protection, or sold on.

Good point. Thats why I was uncertain of the timing of when miacat could go to Fadesa et al (i.e the administrators).

I have heard however of being able to do deals via the MF-Admin people. I know 2 people that have either done or in place to do interesting deals. If one is really interested - I suspect that there is still a hotline between the Fadesa sales team and administrators. ALso as you say Brizey, it seems odd that they wouldnt entertain an approach... I suspect that they will. One has to be a serious buyer though.

Please dont ask me about these 2 deals as Ive been told in confidence.

Rgs
Jon

betris

Nov 4th 2008 2:03 am

Re: COSTA ESURI - AYAMONTE

Quote:

Originally Posted by Brizey (Post 6938416)

fedesa was just one building company.There are others building company.s still building at essuri.Maybe a totaly different price range but I dont know.

CAROL ELIZABETH

Nov 4th 2008 4:40 am

Re: COSTA ESURI - AYAMONTE

Quote:

Originally Posted by Jon-Bxl (Post 6938680)

I am interested in this as I went over last week to try and get an exchange having not completed - I am still keen to complete but not on my original property. In the shed I was told there was limited choice of what I could exchange to - due to mortgages being held on all the properties? I did not fully understand but I was told there were few because of this and was shown only 3 properties - rest not available I was told - I would end up paying more than the advertised price due to the size of the mortgages held. This meant all the second phase of townhouses were not available. I had said I would pay more for the right property (pre slump prices!!) Seems not to change attitude.

I was told Rago 2 are sold bar one that was not suitable although residents on Rago 2 don't think that is the case, a couple on Pueblo Andaluz and a couple on phase 1 townhouses were available. There were one or two top end of the market townhouses available but out of our price bracket. Of the three I saw only one did not face north and on enquiring the price it was more expensive than our present one. I was told there would be no discounts.

So choice there is not at the present time. I imagine there is more chance of getting a deal on a resale. In the meantime there are quite a few of us in limbo not knowing what to do for the best.
Carol

matt begley

Nov 4th 2008 7:36 am

Re: COSTA ESURI - AYAMONTE

[QUOTE=CAROL ELIZABETH;6939871]I am interested in this as I went over last week to try and get an exchange having not completed - I am still keen to complete but not on my original property. In the shed I was told there was limited choice of what I could exchange to - due to mortgages being held on all the properties?

to clarify.........it is common practice for developers in Spain to have individual mortgages for each single property that is built. In a 'normal' market the mortgage would subrogate (transfer) across to the purchaser - in the current market this is unlikely to be possible, certainly with later phases since the debt is likely to exceed the property's current value. To complement the Spanish love affair with complication and bureaucracy the administrator is then dealing with literally 100's or 1000's of individual bank mortgages rather than just one commercial loan.

Like I say in a 'normal' market it is a great scheme as the new mortgagor (borrower) adopting the mortgage can more often than not save on fees - valuation, stamp duty, arrangement fee as the builder has already paid them.

I therefore assume that the situation Big F's administrators now face is having to consider each individual loan per property and negotiate for a settlement.

So Carol, they are probably offering you properties with lower debt and on established Manzanas that have less complications attached.

By the way, if you did manage to buy something else privately what chance have you of a refund of deposit already paid?

All the best,

Matt

CAROL ELIZABETH

Nov 4th 2008 7:52 am

Re: COSTA ESURI - AYAMONTE

[QUOTE=matt begley;6940495]

Quote:

Originally Posted by CAROL ELIZABETH (Post 6939871)

I am interested in this as I went over last week to try and get an exchange having not completed - I am still keen to complete but not on my original property. In the shed I was told there was limited choice of what I could exchange to - due to mortgages being held on all the properties?

to clarify.........it is common practice for developers in Spain to have individual mortgages for each single property that is built. In a 'normal' market the mortgage would subrogate (transfer) across to the purchaser - in the current market this is unlikely to be possible, certainly with later phases since the debt is likely to exceed the property's current value. To complement the Spanish love affair with complication and bureaucracy the administrator is then dealing with literally 100's or 1000's of individual bank mortgages rather than just one commercial loan.

Like I say in a 'normal' market it is a great scheme as the new mortgagor (borrower) adopting the mortgage can more often than not save on fees - valuation, stamp duty, arrangement fee as the builder has already paid them.

I therefore assume that the situation Big F's administrators now face is having to consider each individual loan per property and negotiate for a settlement.

So Carol, they are probably offering you properties with lower debt and on established Manzanas that have less complications attached.

By the way, if you did manage to buy something else privately what chance have you of a refund of deposit already paid?

All the best,

Matt

Hi Matt
Thanks for the explanation. Don't know what will happen to our deposits anyway - in the hands of the administrator. No way of knowing whether this is lost but if MF are allowed to continue trading who knows. As far as MF are concerned it is spent money. A resale is an option at the right price and then any return from the administrator is a bonus.

Brizey

Nov 4th 2008 8:14 am

Re: COSTA ESURI - AYAMONTE

[QUOTE=matt begley;6940495]

Quote:

Originally Posted by CAROL ELIZABETH (Post 6939871)

I am interested in this as I went over last week to try and get an exchange having not completed - I am still keen to complete but not on my original property. In the shed I was told there was limited choice of what I could exchange to - due to mortgages being held on all the properties?

to clarify.........it is common practice for developers in Spain to have individual mortgages for each single property that is built. In a 'normal' market the mortgage would subrogate (transfer) across to the purchaser - in the current market this is unlikely to be possible, certainly with later phases since the debt is likely to exceed the property's current value. To complement the Spanish love affair with complication and bureaucracy the administrator is then dealing with literally 100's or 1000's of individual bank mortgages rather than just one commercial loan.

Like I say in a 'normal' market it is a great scheme as the new mortgagor (borrower) adopting the mortgage can more often than not save on fees - valuation, stamp duty, arrangement fee as the builder has already paid them.

I therefore assume that the situation Big F's administrators now face is having to consider each individual loan per property and negotiate for a settlement.

So Carol, they are probably offering you properties with lower debt and on established Manzanas that have less complications attached.

By the way, if you did manage to buy something else privately what chance have you of a refund of deposit already paid?

All the best,

Matt

Matt

Very much in agreement with your observations.
My earlier post would be more to do with "new" business within the confines of the Fadesa situation and not with regard to re-negotiations on existing. It is possible that the administrators have decided that there are enough issues to deal with prior to completing on adminastrative process, and not inviting further dealings which may over complicate or extend the the current proposed timescales.

Betris is certainly right to point out that many other developers are progressing with their respective projects, and the fact that the administrators are (allegedly) not entering into new business might be an encouraging sign that they intend to shorten the administrative process.

Whatever the outcome, the Esuri development is still a great venture to be involved in, but as mentioned many times previously, the order of the day is to await the ruling on Fadesas future in the project. Once this is definitive, the current stagnation will subside as nothing will happen in relation to venture until all potential interested parties know what negotioations or deals may be available to them. For all we know the administators are already in negotiations with such parties.

Let's see if they achieve the latest deadline.

jackytoo

Nov 4th 2008 9:04 am

Re: COSTA ESURI - AYAMONTE

Maybe things are different now, ie. a bit speedier. Previous companies going bankrupt here have been in administration for about 5 years.

Brizey

Nov 4th 2008 10:37 am

Re: COSTA ESURI - AYAMONTE

Quote:

Originally Posted by jackytoo (Post 6940744)

Maybe things are different now, ie. a bit speedier. Previous companies going bankrupt here have been in administration for about 5 years.

One would hope things will move along quickly.
This particular issue is a bit of a political hot potato and therfore may warrant being dealt with as a matter of urgency.
It's not in the interest of any of the afflicted parties to allow the potential of this development to fade as there is too much at stake, not only financially but also politically .

Hopefully we will see this in the short term.

Jon-Bxl

Nov 4th 2008 8:02 pm

Re: COSTA ESURI - AYAMONTE

[QUOTE=CAROL ELIZABETH;6940542]

Quote:

Originally Posted by matt begley (Post 6940495)

As I mentioned initially, its all about timing I think, in the end there is a stock of properties a bunch of debts and a rising mortgage bill (+others) . At some point they are going to need money. Once the stock is valued, as part of the admin process - they can hypothetically take a loss on any mortgage overpayment and go for cash, as they will need that. Then you will have choice of more than 3 - and potentially more negotiation power.

I understood Matts post, but dont understnad the numbers. I thought there was a 60% mortgage on the property - so hypothetically they could, if they wanted to, drop price by 40% and break even. I dont think Fadesa are dropping prices anything like that, and therefore only showing 3 seems strange to me. Theres another hidden strategy here, and probably they are hamstrung by the administrators. Though I still think (guess) there is a hotline between them. Thet would still be in profit with a sizeable discount.

Reminds me of one of my fave investment sayings 'no-one ever got poor by taking a profit'! :)

In the meantime looking for deals at the agents is a good idea. I think there's no rush if you are a buyer, the deals will be out there later on - and there may even be a surplus driving down the price... the only problem is I dont know when....

Regarding payments already made - but not completed - I think there has already been a discussion about the bank guarantees...

Lets see if Obama can really do anything about this financial crisis and get America buying again.... that will be the best news financially for me personally.

JOn

yes we can

Nov 4th 2008 9:28 pm

Re: COSTA ESURI - AYAMONTE

:thumbsup:Congratulations to american people and to everybody who believe that a new world is possible. If we remenber that 143 years ago a black person was a slave in USA and today Barack Obama is the president, so we can believe in dreams and have hope.
Change the world is possible. If we want "YES WE CAN".:)