Holiday home buyers at risk of losing tens of thousands of pounds after the collapse of Spanish developer Martinsa-Fadesa have been urged to act fast.

An estimated 12,500 families including potentially thousands of Britons are believed to have put down deposits on off-plan property with the developer – in some cases more than £100,000.
A Spanish judge placed Martinsa-Fadesa into administration on Thursday and British buyers have been warned they have just 30 days to stake their claims to get money back.

Many of the British buyers have placed sizeable deposits on properties often costing £200,000-plus, with some reported to have put down deposits of 50% and 60% on properties that may never be completed.

The collapse of the high-profile developer has rocked the already troubled Spanish property market further.

Martinsa-Fadesa has sites on the Costa Blanca and Costa De La Luz, among its more than 30 developments in Spain, Morocco, Portugal and Bulgaria.

Antonio Guillen, a Spanish lawyer working for Leeds-based law firm DWF, in the UK, says buyers should try to ascertain through their lawyer if the developer has a bank guarantee in place to cover their deposit, or any other sums they have already paid towards the price of their property.

Guillen said: 'Anyone who believes they are a creditor of Martinsa-Fadesa – and that includes purchasers of properties off-plan or owners of properties that have not been fully completed - should inform the administrators and the court as soon as possible.

'This has to be done within 30 days of the insolvency arrangement being published through official channels.

'Under the Spanish Insolvency Act all creditors should receive a personal communication from the administrators but this does not always happen.

'It is advisable for anyone affected to contact a lawyer versed in Spanish insolvency law and provide them with proof of payment. The lawyer will ensure that the necessary papers are in place for the purchaser to have their payment recognised by the court and the administrators.

'The lawyer will also ascertain whether the developer has a bank guarantee in place. This document is extremely important as it could make all the difference between buyers losing all their money and getting a refund.'



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