The law and the banks have tightened up substantially over the last few years. Banks will lend depending on the registration of the property. If a house is 300sqm built but only 80sqm is registered then in the past they would lend based on the value of the 80sqm. NOW the valuation companies have to state any iregularity with the property and depending on that iregularity the banks are unable to lend until these have been legally rectified!

Correct me if Im wrong on this, but Im sure I have heard of cases where town halls have given planning permission and everything appeared to have been done according to the book only for the provincial or regional authority to look at it years later, long after constuction, and say no this is wrong.....
The town hall should never have allowed building in this area
and as far as we are concerned the properties are illegal.
They then continue by saying that anything built in these areas in the last twelve years or so may have to come down.
I know its hard to believe but some town halls have even been known to take sweeteners to help the planning process along....
I think in view of some recently widely publicised cases they may be a just little more cautious now than in the past.

Banks have been lending on illegal properties in Marbella for years. Why shouldn't they! it takes the heat of the Developers who they have bankrolled