When John Woodford, a British property developer, bought a rural property 11 years ago in the hills above Teulada, in the province of Alicante, he was looking forward to a quiet life in semi-retirement.
"We liked its rural position. It had views of the mountains and of the sea. It was really a beautiful spot," he says.
His two-acre plot was classified by the Teulada town hall as "no urbanizable" - a Spanish legal term meaning that the property would not be subject to urban development.
He obtained planning permission to replace an ugly bungalow with a more modern, five-bedroom family house. Its construction was well under way when the legal nightmare began.
Unbeknown to Woodford, a local property developer had submitted a "partial plan" to build a residential development on Woodford's property and adjacent areas.
The Teulada town hall had approved the development without notifying Woodford or his neighbours.
As if by magic, their plots had been reclassified as "urbanizables" - meaning that Woodford's idyllic rural setting was about to be transformed into yet another tourist residential development on Spain's Mediterranean coast.
Part of Woodford's plot was sliced off to build a road. Under phase two of the development, the most valuable half of his land will be "voluntarily ceded" for the residential development's "green zone".
"I am being allowed to keep my house, and some of my land, but I am being forced to pay a bill of €220,000 (£153,000) for the infrastructure being laid down by the property development company," Woodford says, not without indignation.
Woodford's plight - and that of thousands of property owners in Spain - stems from regional urbanisation laws that were first applied in Valencia but which have spread rapidly throughout Spain.
The laws were drawn up 10 years ago to fight speculators who were blocking urban development by sitting on land around coastal towns.
To get round this, town halls were allowed to approve urbanisation plans without the consent or knowledge of the property owners encompassed by these plans.
The law also allowed urbanisation agents to draw up plans even if they did not own the land earmarked for development.
According to a British diplomat, urbanisation agents (property developers in disguise), soon discovered how to twist the new law to their advantage. Property owners such as Woodford became, in effect, sitting ducks.
There are no rules governing how much they can be charged for the costs of laying down infrastructure such as roads, lighting and drains, or what compensation they should receive when their land is expropriated.
Woodford says he has been offered €20 a square metre for the half of his plot that will be made into a green area. "This is one-tenth of the present value of my land. It is outright robbery," he says.
Valencia's urbanisation law does not require property developers to negotiate their development plans with existing property owners.
Woodford says he has had half a dozen meetings with the property developer in an attempt to negotiate a mutually satisfactory solution. "I have come away empty handed," he laments.
Woodford is contesting the developers' plans in court, on the grounds that he was never properly notified of the plans, and was therefore denied the right of appeal.
According to Abusos Urbanisticos No (No to Urban Abuses), a pressure group, the case will be seen as an important test of the willingness of Spanish courts to uphold property rights.
Under pressure from Abusos Urbanisticos No, which has taken its grievances all the way to the European Parliament and the European Commission, the regional government of Valencia has drafted an amendment to its urban development law.
But, according to Charles Svoboda, a retired Canadian diplomat and the pressure group's leader, the new draft is, if anything, less favourable to property owners.
"It is difficult to see how the urbanisation agent would be placed under any additional scrutiny or restraints as a result of the proposed law," he said.
Svoboda is concerned that the new draft diminishes property owners' rights to notification, requiring only the publication of urban development plans in official bulletins. The new law would also require property owners to pay stiff fees up front if they wished to challenge an urban development plan or present alternatives of their own.
In addition, the new law would allow property developers to demand advance payments from existing property owners before carrying out infrastructure "improvements" in the land earmarked for development.
Abusos Urbanisticos No is planning a big demonstration today against the proposed new law outside the Valencian parliament, but it is unclear whether this will bring about the changes sought by the region's foreign residents.
Nor is it clear that the absence of clear property rights is denting foreign demand for holiday homes in Spain.
Last year, 190,000 newly built holiday homes were sold in Spain, half of them to foreigners, who spent a record €7.2bn on their Spanish properties, according to the Bank of Spain. The British accounted for just over a third of the new purchases, followed by the Germans and the French.
Prices for holiday homes rose 18.7 per cent last year, and have doubled since 1996. This year, however, prices on the Costa del Sol are expected to rise by a more modest 10 per cent, as more developments come on stream and demand cools off.
Nevertheless, according to Analistas Financieros Internacionales, a financial consultancy, demand for new holiday homes is expected to grow by 180,000 units a year until 2008, with foreigners again accounting for about half of the intake.
Regions such as Murcia and Almeria, and Tarragona in the south of Catalonia, are being targeted by developers because land is less expensive than in the overbuilt Costa del Sol.
Development is taking place with little regard to the environment, the availability of water or respect for rights of existing property owners.
But, according to Woodford, foreigners "are waking up to the fact that their land can be expropriated, and that your land can be reclassified overnight".
Abusos Urbanisticos No says it will take its fight for the enforcement of property rights to the European Court of Human Rights, if necessary.
Until then, Woodford's plight should serve as a cautionary tale for those dreaming of building themselves a home in the Spanish sun.
Leslie Crawford is the FT's Madrid bureau chief
DETAILS
Info: Abusos Urbanisticos No,
tel: +34 96-578 b6315; http://www.abusos-no.org
Copyright Financial Times
There's some information to digest there Glynis---I'm going to read it again after I've looked at the answers to all my posts---have you noticed it only ever seems to affect foreigners??? My Dad is from Andalucia, now lives in Barcelona---I've discussed this with him on many occasions, and he won't believe me that it's happening! Will post later---Barbs
Stories like this always leave many unanswered questions and I become very unpopular when I ask them and they never get answered anyway - so I am not going to. I will just make a couple of comments instead.
Rural land which has been made urbanisable increases drastically in value.
It only seems to affect foreigners because Spaniards are quite happy with a situation which allows them to sell off the remainder of their land for a huge profit.
I don't wish to detract from the plight of those affected and not living in the region of Valencia I don't know the full situation but I am certain that there is an element of selective reporting of these stories.
There was a programme on this subject on BBC Radio 4's Money Box programme. I have given this link before but I hope you won't mind me repeating it:
http://news.bbc.co.uk/1/hi/programmes/moneybox/3150393.stm
It doesn't answer all the questions but it is a little less sensationalist than some of the TV programmes and newspaper reporting on the subject.
There are also a few more links which may be of interest:
http://www.prodeinurbanismo.com/english/ley/law.htm
http://www.timesonline.co.uk/article/0,,7455-769648,00.html
http://spanishpropertyco.com/uda.htm
The last link is that of a real estate company but is quite objective nonetheless.
Rural land which has been made urbanisable increases drastically in value.
It only seems to affect foreigners because Spaniards are quite happy with a situation which allows them to sell off the remainder of their land for a huge profit.
I don't wish to detract from the plight of those affected and not living in the region of Valencia I don't know the full situation but I am certain that there is an element of selective reporting of these stories.
There was a programme on this subject on BBC Radio 4's Money Box programme. I have given this link before but I hope you won't mind me repeating it:
http://news.bbc.co.uk/1/hi/programmes/moneybox/3150393.stm
It doesn't answer all the questions but it is a little less sensationalist than some of the TV programmes and newspaper reporting on the subject.
There are also a few more links which may be of interest:
http://www.prodeinurbanismo.com/english/ley/law.htm
http://www.timesonline.co.uk/article/0,,7455-769648,00.html
http://spanishpropertyco.com/uda.htm
The last link is that of a real estate company but is quite objective nonetheless.
LAND GRAB UNDER EU SCRUTINY
European petitions commission arrives in Alicante
FIVE MEPs ARRIVED IN ALICANTE THIS WEEK TO INVESTIGATE ALLEGED ABUSES OF THE VALENCIAN REGION'S LRAU LAND GRAB LAW.
The members of the European Parliament's Petitions Committee will speak to parties affected by the law and compile a report when the fact-finding mission completes its investigation on Saturday.
The committee of MEPs from Norway, Germany, England and Wales and led by English Secretary General of the European Petitions Committee, David Lowe, stressed that their recommendations cannot be ignored by the Valencia Parliament.
Speaking later in an exclusive interview with Costa Blanca News, Mr Lowe said the situation in Valencia was being taken 'extremely seriously'.
"It is very disturbing to hear that the rights of residents are being undermined by the abuse of land laws," he said. "We understand their fears and their very deep concerns - that is why we are here. We have not come with a magic wand but we will do everything we can to ensure that, working with the Valencia Parliament, we will bring about a situation where homeowners' rights will be more fairly respected than seems the case at the moment."
Added Welsh MEP Eurig Wyn, "In the past, based on recommendations we have made, law has changed for the better and that is what we hope will happen here."
On Tuesday, the delegates spoke with Valencia's Ombudsman, Bernardo del Rosal, who has highlighted land law abuses in a report to regional government.
'EXPROPRIATION WITHOUT COMPENSATION'
At the Oami building in Alicante on Wednesday, the EU committee met Marina Baja residents who told their own horror stories of the LRAU land grabs.
The committee heard of expropriations without compensation, houses demolished to make way for huge urbanisations, and of many pending 'Plan Parciales', which are causing distress and fear.
Some Costa Blanca town halls were accused of being 'in bed with the property speculators' and representations were made that the land seizures did not serve a useful social purpose, but only helped to line the pockets of developers.
Expatriate and Spanish residents warned the MEPs that Valencia's new land law (LUV) was no better than the one it will replace.
JULY DEADLINE
In Brussels next week the delegation will compile its report - a draft of which should be available by June 10. The Petitions Committee will debate the report before the end of July when its recommendations will be passed to the Valencian government.
Copyright Costa Blanca News
European petitions commission arrives in Alicante
FIVE MEPs ARRIVED IN ALICANTE THIS WEEK TO INVESTIGATE ALLEGED ABUSES OF THE VALENCIAN REGION'S LRAU LAND GRAB LAW.
The members of the European Parliament's Petitions Committee will speak to parties affected by the law and compile a report when the fact-finding mission completes its investigation on Saturday.
The committee of MEPs from Norway, Germany, England and Wales and led by English Secretary General of the European Petitions Committee, David Lowe, stressed that their recommendations cannot be ignored by the Valencia Parliament.
Speaking later in an exclusive interview with Costa Blanca News, Mr Lowe said the situation in Valencia was being taken 'extremely seriously'.
"It is very disturbing to hear that the rights of residents are being undermined by the abuse of land laws," he said. "We understand their fears and their very deep concerns - that is why we are here. We have not come with a magic wand but we will do everything we can to ensure that, working with the Valencia Parliament, we will bring about a situation where homeowners' rights will be more fairly respected than seems the case at the moment."
Added Welsh MEP Eurig Wyn, "In the past, based on recommendations we have made, law has changed for the better and that is what we hope will happen here."
On Tuesday, the delegates spoke with Valencia's Ombudsman, Bernardo del Rosal, who has highlighted land law abuses in a report to regional government.
'EXPROPRIATION WITHOUT COMPENSATION'
At the Oami building in Alicante on Wednesday, the EU committee met Marina Baja residents who told their own horror stories of the LRAU land grabs.
The committee heard of expropriations without compensation, houses demolished to make way for huge urbanisations, and of many pending 'Plan Parciales', which are causing distress and fear.
Some Costa Blanca town halls were accused of being 'in bed with the property speculators' and representations were made that the land seizures did not serve a useful social purpose, but only helped to line the pockets of developers.
Expatriate and Spanish residents warned the MEPs that Valencia's new land law (LUV) was no better than the one it will replace.
JULY DEADLINE
In Brussels next week the delegation will compile its report - a draft of which should be available by June 10. The Petitions Committee will debate the report before the end of July when its recommendations will be passed to the Valencian government.
Copyright Costa Blanca News
Euro MP's Seek LRAU Clarification
A delegation of Euro MP's visited Valencia yesterday to review the LRAU or Urban Planning Law that allows for developers to take land away from already residing land owners and charge them fees for a development they don't want.
The pressure group Abusos Urbanisticos No have taken the case tot eh European Parliament and the result was visit by, David Lowe who headed up a delegation with Margot Kessler & Eurig Wym.
The three Euro MP's met with Cristina Santamarina, who is the head of Regional Planning in the Valencian Government. She took the three through the new Law (LUV Ley UrbanÃÂÂÂstica Valenciana) which is still being taken through the parliamentary process.
The result of the meeting was that the Euro MP's have asked that no plans are approved until the new law is in place. The problem arises in that the new law is taking too long to go through the process. The three were aware of this and recognised the fact that the Valencian Government is trying everything in their power to get the law moving. Some have questioned whether there are interests at work that are delaying the law.
Copyright http://www.thisiscostablanca.com/costablanca/news_local.php
A delegation of Euro MP's visited Valencia yesterday to review the LRAU or Urban Planning Law that allows for developers to take land away from already residing land owners and charge them fees for a development they don't want.
The pressure group Abusos Urbanisticos No have taken the case tot eh European Parliament and the result was visit by, David Lowe who headed up a delegation with Margot Kessler & Eurig Wym.
The three Euro MP's met with Cristina Santamarina, who is the head of Regional Planning in the Valencian Government. She took the three through the new Law (LUV Ley UrbanÃÂÂÂstica Valenciana) which is still being taken through the parliamentary process.
The result of the meeting was that the Euro MP's have asked that no plans are approved until the new law is in place. The problem arises in that the new law is taking too long to go through the process. The three were aware of this and recognised the fact that the Valencian Government is trying everything in their power to get the law moving. Some have questioned whether there are interests at work that are delaying the law.
Copyright http://www.thisiscostablanca.com/costablanca/news_local.php
EU WANTS LAND GRAB PLANS SUSPENDED
Time out requested until new legislation comes into force
THE EU DELEGATION THAT VISITED VALENCIA LAST WEEK TO INVESTIGATE POSSIBLE ABUSES OF THE LEY REGULADORA DE LA ACTIVIDAD URBANISTICA, LRAU, HAS ASKED REGIONAL GOVERNMENT AND DEVELOPERS NOT TO INITIATE ANY NEW DEVELOPMENT PROJECTS UNTIL THE NEW LAND LAW (LUV) COMES INTO EFFECT.
Head of the delegation David Lowe has asked regional government to urgently resolve the situation of property owners who have been forced to hand over land due to LRAU backed urbanisation schemes. The delegation considered that the rights of property owners affected by the LRAU had been seriously compromised.
BUILDING BOOM AND WATER PLAN LINKED
During their four day visit the EU delegation made note that the demand for water to sustain the Costa building boom is directly linked to plans to channel water from the river Ebro. David Lowe said that water is badly needed in the region, but fears that pressure to channel it from other regions is linked to the need to sustain LRAU backed urban development. He added that channelling water to the area was vitally important for the people living here, but warned that EU funds for the project would only be released if it could be guaranteed that the water would be used for its intended purpose.
He also advised that the EU position on this matter was inflexible.
A full report on the EU delegates' findings is expected by the end of July.
Copyright Costa Blanca News
Time out requested until new legislation comes into force
THE EU DELEGATION THAT VISITED VALENCIA LAST WEEK TO INVESTIGATE POSSIBLE ABUSES OF THE LEY REGULADORA DE LA ACTIVIDAD URBANISTICA, LRAU, HAS ASKED REGIONAL GOVERNMENT AND DEVELOPERS NOT TO INITIATE ANY NEW DEVELOPMENT PROJECTS UNTIL THE NEW LAND LAW (LUV) COMES INTO EFFECT.
Head of the delegation David Lowe has asked regional government to urgently resolve the situation of property owners who have been forced to hand over land due to LRAU backed urbanisation schemes. The delegation considered that the rights of property owners affected by the LRAU had been seriously compromised.
BUILDING BOOM AND WATER PLAN LINKED
During their four day visit the EU delegation made note that the demand for water to sustain the Costa building boom is directly linked to plans to channel water from the river Ebro. David Lowe said that water is badly needed in the region, but fears that pressure to channel it from other regions is linked to the need to sustain LRAU backed urban development. He added that channelling water to the area was vitally important for the people living here, but warned that EU funds for the project would only be released if it could be guaranteed that the water would be used for its intended purpose.
He also advised that the EU position on this matter was inflexible.
A full report on the EU delegates' findings is expected by the end of July.
Copyright Costa Blanca News
MEP's Finally Call for Change to LRAU / LUV
The European parliament yesterday called on the Spanish region of Valencia to suspend all new property developments until the rights of existing homeowners - including those of a large expatriate community - are properly safeguarded under local laws.
The parliament sent a fact-finding mission to Valencia in May after receiving complaints from thousands of residents on the abuse of their property rights on Spain's Mediterranean coast.
A residential tourism boom on the coast has encouraged local councils to hand over vast tracts of rural land to property developers. Under Valencia's urban development law, property developers can then charge existing landowners exorbitant fees to "urbanise" their plots, even if residents already have access to roads, water and electricity.
The law makes it almost impossible for landowners to challenge property developers or present alternative urbanisation plans.
The highly critical report by the parliament's fact-finding mission is likely to embarrass Valencia's regional authorities. "There is no doubt that the application of the law has led to a serious abuse of the most elementary rights of many thousands of European citizens either by design or by deceit," says the report, a copy of which was obtained by the Financial Times.
"These citizens have had their homes and their land expropriated and had to pay for the experience, finding themselves in a surrealistic legal environment without any proper recourse to real justice."
Foreigners bought almost 100,000 holiday homes in Spain last year, spending €7.2bn ($9bn, £4.8bn), according to the Bank of Spain. Britons own almost 800,000 properties in Spain, accounting for about one-third of new purchases, followed by Germans and French. Some studies estimate up to 6m north Europeans will retire in Spain in the next 20 years.
The report warns Valencia that its lucrative residential tourism industry is being undermined by the absence of clear property rights. A spokesman for the regional government yesterday said urbanisation laws were being amended to strengthen the rights of existing property owners.
But the European members of parliament who visited Valencia say: "The main draft changes to the law highlight, yet fail to adequately address, the enormity of the problem facing so many European citizens".
The fact-finding mission found instances of corruption and bribery in local councils, which often receive big paybacks for reclassifying rural land. The report also accuses developers of charging extortionate fees for basic services and of being the "unscrupulous beneficiaries" of a bad law.
As well as a moratorium on new property developments, the European parliament urged Valencia to consider "an appropriate level of compensation" for people whose properties had been confiscated or destroyed by developers.
"Judging by the detailed correspondence received by the European parliament, there are likely to be hundreds, if not thousands, of such claims."
08 Jul 2004 09 07
Copyright http://www.thisiscostablanca.com/costablanca/news_local.php
The European parliament yesterday called on the Spanish region of Valencia to suspend all new property developments until the rights of existing homeowners - including those of a large expatriate community - are properly safeguarded under local laws.
The parliament sent a fact-finding mission to Valencia in May after receiving complaints from thousands of residents on the abuse of their property rights on Spain's Mediterranean coast.
A residential tourism boom on the coast has encouraged local councils to hand over vast tracts of rural land to property developers. Under Valencia's urban development law, property developers can then charge existing landowners exorbitant fees to "urbanise" their plots, even if residents already have access to roads, water and electricity.
The law makes it almost impossible for landowners to challenge property developers or present alternative urbanisation plans.
The highly critical report by the parliament's fact-finding mission is likely to embarrass Valencia's regional authorities. "There is no doubt that the application of the law has led to a serious abuse of the most elementary rights of many thousands of European citizens either by design or by deceit," says the report, a copy of which was obtained by the Financial Times.
"These citizens have had their homes and their land expropriated and had to pay for the experience, finding themselves in a surrealistic legal environment without any proper recourse to real justice."
Foreigners bought almost 100,000 holiday homes in Spain last year, spending €7.2bn ($9bn, £4.8bn), according to the Bank of Spain. Britons own almost 800,000 properties in Spain, accounting for about one-third of new purchases, followed by Germans and French. Some studies estimate up to 6m north Europeans will retire in Spain in the next 20 years.
The report warns Valencia that its lucrative residential tourism industry is being undermined by the absence of clear property rights. A spokesman for the regional government yesterday said urbanisation laws were being amended to strengthen the rights of existing property owners.
But the European members of parliament who visited Valencia say: "The main draft changes to the law highlight, yet fail to adequately address, the enormity of the problem facing so many European citizens".
The fact-finding mission found instances of corruption and bribery in local councils, which often receive big paybacks for reclassifying rural land. The report also accuses developers of charging extortionate fees for basic services and of being the "unscrupulous beneficiaries" of a bad law.
As well as a moratorium on new property developments, the European parliament urged Valencia to consider "an appropriate level of compensation" for people whose properties had been confiscated or destroyed by developers.
"Judging by the detailed correspondence received by the European parliament, there are likely to be hundreds, if not thousands, of such claims."
08 Jul 2004 09 07
Copyright http://www.thisiscostablanca.com/costablanca/news_local.php
EU OUSTS LAND GRABBERS
LRAU is condemned as 'a grave contravention of elemental human rights'
A SCATHING REPORT ON VALENCIA'S LAND GRAB LAW BY AN EU PETITIONS COMMITTEE HAS BEEN APPROVED BY THE EUROPEAN PARLIAMENT - BACKING RECOMMENDATIONS FOR A HALT TO LAND GRABS AND PAYMENT OF COMPENSATION TO PAST VICTIMS.
The three-man committee visited the region at the end of May this year in answer to a petition by Charles Svoboda, founder of action group Abusos UrbanÃÂÂÂsticos - No, against the LRAU (Ley Reguladora de la Actividad UrbanÃÂÂÂstica) placed before the EU parliament earlier this year.
Petitions Committee spokesman David Lowe said the acceptance of the committee's findings means the euro-delegates agree that the land legislation constitutes 'a grave contravention of the most elemental of human rights'. He added that the Parliamentary Petitions Committee will continue to collaborate with all those affected until the alleged abuses have been resolved.
The vote to accept the report, which means the EU Commission would eventually take action against Spain and the autonomous Valencian Region unless the fact-finding mission's recommendations of a moratorium on all LRAU projects and retrospective compensation for affected homeowners are acted upon with due process, was passed by 14 votes to three with three abstentions.
Speaking with CBN Newsdesk by telephone yesterday, Abusos-No founder Charles Svoboda said: "This has been a first positive step, but there is still a long way to go. The matter will pass before the European parliament at one level or another and that will take time. The process is that Spain will eventually receive notification by letter from Brussels that the LRAU legislation is illegal under the EU Human Rights Charter and must be withdrawn in its current form. If this is ignored, the next step is the European Court of Human Rights." Mr Svoboda admitted that talks of compensation were 'a long way into the future' but he advised prospective claimants to 'start getting their documents together'.
BIGGEST ILLEGAL LAND GRAB
Brussels' condemnation of government-approved land grabs that left homeowners destitute and filled the pockets of developers and councillors has caught the attention of UK media this week. Announcing the EU verdict on Wednesday, The Times wrote: 'It has been described as one of the biggest illegal land grabs in Europe since the Second World War'.
Regular updates on the LRAU appeal process are available on http://www.abusos-no.org
Copyright Costa Blanca News
LRAU is condemned as 'a grave contravention of elemental human rights'
A SCATHING REPORT ON VALENCIA'S LAND GRAB LAW BY AN EU PETITIONS COMMITTEE HAS BEEN APPROVED BY THE EUROPEAN PARLIAMENT - BACKING RECOMMENDATIONS FOR A HALT TO LAND GRABS AND PAYMENT OF COMPENSATION TO PAST VICTIMS.
The three-man committee visited the region at the end of May this year in answer to a petition by Charles Svoboda, founder of action group Abusos UrbanÃÂÂÂsticos - No, against the LRAU (Ley Reguladora de la Actividad UrbanÃÂÂÂstica) placed before the EU parliament earlier this year.
Petitions Committee spokesman David Lowe said the acceptance of the committee's findings means the euro-delegates agree that the land legislation constitutes 'a grave contravention of the most elemental of human rights'. He added that the Parliamentary Petitions Committee will continue to collaborate with all those affected until the alleged abuses have been resolved.
The vote to accept the report, which means the EU Commission would eventually take action against Spain and the autonomous Valencian Region unless the fact-finding mission's recommendations of a moratorium on all LRAU projects and retrospective compensation for affected homeowners are acted upon with due process, was passed by 14 votes to three with three abstentions.
Speaking with CBN Newsdesk by telephone yesterday, Abusos-No founder Charles Svoboda said: "This has been a first positive step, but there is still a long way to go. The matter will pass before the European parliament at one level or another and that will take time. The process is that Spain will eventually receive notification by letter from Brussels that the LRAU legislation is illegal under the EU Human Rights Charter and must be withdrawn in its current form. If this is ignored, the next step is the European Court of Human Rights." Mr Svoboda admitted that talks of compensation were 'a long way into the future' but he advised prospective claimants to 'start getting their documents together'.
BIGGEST ILLEGAL LAND GRAB
Brussels' condemnation of government-approved land grabs that left homeowners destitute and filled the pockets of developers and councillors has caught the attention of UK media this week. Announcing the EU verdict on Wednesday, The Times wrote: 'It has been described as one of the biggest illegal land grabs in Europe since the Second World War'.
Regular updates on the LRAU appeal process are available on http://www.abusos-no.org
Copyright Costa Blanca News
BRITONS dreaming of a happy retirement in the Spanish sunshine were warned yesterday that they could fall victim to a scandalous land grab.
Foreign Office officials said anyone thinking of buying property in Spain should take legal advice before putting pen to paper.
Otherwise they could suffer the same fate as many in the south of the country who have been forced to hand over their land - and in some cases even pay for the privilege.
Russell Thompson, the British consul in Alicante, was joined by politicians and campaigners in calling for an immediate halt to the practice, which Spain has imposed in blatant defiance of international law.
He described it as 'a licence to print money using somebody else's paper and somebody else's ink'.
The mass seizure of land by property developers is being carried out in the autonomous region of Valencia, which includes the Costa Blanca.
The Urban Development Activity Act contravenes European Human Rights legislation, but the Valencian government has chosen to ignore this fact.
One of the biggest illegal land grabs in Europe since World War II, it arises from the enforcement of a property law passed ten years ago to kick-start a programme of housing for low-paid workers.
It was also designed to foil speculators who paid very little for huge holdings of scrub countryside and cashed in when it was wanted for developments such as airports, schools or hospitals.
The law decrees that if a rural area is re-zoned for building, the authorities can demand up to 70% of the land free - or, in some cases, paying only a tiny percentage of the market value. And the landowners can even be forced to hand over cash as well - supposedly to pay towards the development of the area which will 'benefit' them.
All any town hall has to do is proclaim the land is needed for 'public or social benefit'. There is no appeals process.
But after property prices soared in the late Nineties, developers in cahoots with corrupt local politicians started declaring the land attached to foreign-owned villas as needed for public benefit, forcing the owners to hand it over for nothing.
As a result an estimated 125,000 Britons who sold up to move to the area are living in fear of losing everything they own.
_____________________________________
"¢ The land grab victims
_____________________________________
Mr Thompson said: 'Back in the Nineties there were property developers sitting on land waiting for the price to go up so the law was given teeth to stop this from happening. Now it is being used by those same speculators against the small holiday home and retirement home owner.'
Mr Thompson, who himself owns a property in the region, added that it was bought within an existing town and he had a very good lawyer 'but I still have sleepless nights'.
Charles Svoboda, who is leading a campaign on behalf of more than 10,000 affected Britons, Germmans and other expatriates, described the law as 'brutal'.
He added: 'This is a charter for abuse through which private developers are making huge sums of money by effectively stealing from lawabiding homeowners.
'It is dastardly. This law is totally unjust and destroys people's lives.'
Mr Svoboda, 63, the former head of Canada's Security Intelligence Service, is fighting demands for his villa and land in Benimaro which will cost him about £700,000 if he loses.
Last night a spokesman for the Foreign Office said: 'Our main advice to British nationals who are thinking of purchasing property in Spain is to seek professional legal advice before proceeding.'
Shadow Foreign Secretary Michael Ancram said: 'If the EU is to provide any protection for its
memmbers it must resolve this situation urgently by protecting the property rights of British people living in Spain.'
Liberal Democrat Home Affairs spokesman Sir Menzies Campbell, the MP for North-East Fife, said: 'A number of my constituents have been hit by this law and suffered financially.
'The Spanish government would be well advised to reconsider a law which causes so much anxiety and hardship to innocent homeowners.'
Following a raft of complaints from aggrieved landowners the European Union finally took some action earlier this year.
A delegation of MEPs was sent to investigate land law abuses and last month they issued a damning 160-page report, calling for an immediate halt to the practice.
The report stated: 'They have had their land and their homes expropriated and had to pay for the experience, finding themselves in a surrealistic legal environment without any proper recourse to real justice.'
It also condemns some developers as 'unscrupulous beneficiaries of the law's application'.
The report added: 'The delegation heard first-hand accounts of attempts at bribery and corruption on local councils. Many Spanish citizens expressed their shame at the level of corruption. Others complained of being intimidated by local politicians and several received clear threats.'
However, campaigners are not convinced that the MEPs' concerns will lead to any action, as the matter has not yet been discussed at the top level of the EU.
According to Mr Svoboda, applications are still being made by developers and they are still being granted by councils.
As a result the campaigners have enlisted the help of the City law firm Irwin Mitchell, which has prepared a number of cases to go before the European Court of Human Rights should the EU's intervention fail. Hugh Robertson, a partner in the firm and who also has a house in the Valencia region, said: 'We believe we have a compelling case which could force the Spanish government to pay compensation to thousands of people.'
There are fears, however, that other autonomous Spanish provinces could jump on the lucrative bandwagon invented by Valencia - threatening yet more of the 800,000 properties owned by Britons.
Copyright This is London
Foreign Office officials said anyone thinking of buying property in Spain should take legal advice before putting pen to paper.
Otherwise they could suffer the same fate as many in the south of the country who have been forced to hand over their land - and in some cases even pay for the privilege.
Russell Thompson, the British consul in Alicante, was joined by politicians and campaigners in calling for an immediate halt to the practice, which Spain has imposed in blatant defiance of international law.
He described it as 'a licence to print money using somebody else's paper and somebody else's ink'.
The mass seizure of land by property developers is being carried out in the autonomous region of Valencia, which includes the Costa Blanca.
The Urban Development Activity Act contravenes European Human Rights legislation, but the Valencian government has chosen to ignore this fact.
One of the biggest illegal land grabs in Europe since World War II, it arises from the enforcement of a property law passed ten years ago to kick-start a programme of housing for low-paid workers.
It was also designed to foil speculators who paid very little for huge holdings of scrub countryside and cashed in when it was wanted for developments such as airports, schools or hospitals.
The law decrees that if a rural area is re-zoned for building, the authorities can demand up to 70% of the land free - or, in some cases, paying only a tiny percentage of the market value. And the landowners can even be forced to hand over cash as well - supposedly to pay towards the development of the area which will 'benefit' them.
All any town hall has to do is proclaim the land is needed for 'public or social benefit'. There is no appeals process.
But after property prices soared in the late Nineties, developers in cahoots with corrupt local politicians started declaring the land attached to foreign-owned villas as needed for public benefit, forcing the owners to hand it over for nothing.
As a result an estimated 125,000 Britons who sold up to move to the area are living in fear of losing everything they own.
_____________________________________
"¢ The land grab victims
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Mr Thompson said: 'Back in the Nineties there were property developers sitting on land waiting for the price to go up so the law was given teeth to stop this from happening. Now it is being used by those same speculators against the small holiday home and retirement home owner.'
Mr Thompson, who himself owns a property in the region, added that it was bought within an existing town and he had a very good lawyer 'but I still have sleepless nights'.
Charles Svoboda, who is leading a campaign on behalf of more than 10,000 affected Britons, Germmans and other expatriates, described the law as 'brutal'.
He added: 'This is a charter for abuse through which private developers are making huge sums of money by effectively stealing from lawabiding homeowners.
'It is dastardly. This law is totally unjust and destroys people's lives.'
Mr Svoboda, 63, the former head of Canada's Security Intelligence Service, is fighting demands for his villa and land in Benimaro which will cost him about £700,000 if he loses.
Last night a spokesman for the Foreign Office said: 'Our main advice to British nationals who are thinking of purchasing property in Spain is to seek professional legal advice before proceeding.'
Shadow Foreign Secretary Michael Ancram said: 'If the EU is to provide any protection for its
memmbers it must resolve this situation urgently by protecting the property rights of British people living in Spain.'
Liberal Democrat Home Affairs spokesman Sir Menzies Campbell, the MP for North-East Fife, said: 'A number of my constituents have been hit by this law and suffered financially.
'The Spanish government would be well advised to reconsider a law which causes so much anxiety and hardship to innocent homeowners.'
Following a raft of complaints from aggrieved landowners the European Union finally took some action earlier this year.
A delegation of MEPs was sent to investigate land law abuses and last month they issued a damning 160-page report, calling for an immediate halt to the practice.
The report stated: 'They have had their land and their homes expropriated and had to pay for the experience, finding themselves in a surrealistic legal environment without any proper recourse to real justice.'
It also condemns some developers as 'unscrupulous beneficiaries of the law's application'.
The report added: 'The delegation heard first-hand accounts of attempts at bribery and corruption on local councils. Many Spanish citizens expressed their shame at the level of corruption. Others complained of being intimidated by local politicians and several received clear threats.'
However, campaigners are not convinced that the MEPs' concerns will lead to any action, as the matter has not yet been discussed at the top level of the EU.
According to Mr Svoboda, applications are still being made by developers and they are still being granted by councils.
As a result the campaigners have enlisted the help of the City law firm Irwin Mitchell, which has prepared a number of cases to go before the European Court of Human Rights should the EU's intervention fail. Hugh Robertson, a partner in the firm and who also has a house in the Valencia region, said: 'We believe we have a compelling case which could force the Spanish government to pay compensation to thousands of people.'
There are fears, however, that other autonomous Spanish provinces could jump on the lucrative bandwagon invented by Valencia - threatening yet more of the 800,000 properties owned by Britons.
Copyright This is London
Apparantly the 'land grab' in spain has been declared illegall according to the european commision.
More information if required later.
More information if required later.
Yes thats as I understand it. Leaves the way open for Spanish Govt to be sued. Apparently though the Spanish Govt are playing silly beggars and dont agree with the ruling. At least its a victory of sorts for those who have had problems.
The Sunday Telegraph is reporting that the LRAU is to be scrapped and those who have already lost out are to be compensated.
Good news all round?
Good news all round?
excellent news!
Hate to be a killjoy but my understanding is that there is still a battle to be won on this issue - although the outlook is good, I would still say Buyer Beware.
Reprieve for land-grab Britons:
http://www.timesonline.co.uk/article/0,,13509-1927420,00.html
(Thanks to Sanji for link)
David
http://www.timesonline.co.uk/article/0,,13509-1927420,00.html
(Thanks to Sanji for link)
David
Some of you might like to read this....Sorry it is a long read. 
http://www.valencialife.net/CafeConLeche/statement.htm
and this one...
http://www.thinkspain.com/news-spain/10334
besos xxx
Sanji
http://www.valencialife.net/CafeConLeche/statement.htm
and this one...
http://www.thinkspain.com/news-spain/10334
besos xxx
Sanji
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