Can a Spanish Developer force us to sell our house in the UK?

In 2006 we put down a deposit on a off plan apartment in Almerimar. It was due to be completed by Feb 2008 but wasn't in fact completed until about September 2008. When we were asked to arrange our mortgage the credit crunch had taken hold and we found due to the value of the pound against the euro and the interest rate rise, we could no longer afford a mortgage on our income. We informed the developers and in fact signed away our 60,000 euro deposit. The developer is now talking of sueing us for non-completion and is threatening to seize our UK assets. My question is - can a Spanish Developer force us to sell our house in the UK - which is mortgaged (to put down the 60,000 euro deposit) in order to complete on the property even though in the current climate we cannot get a mortgage to cover the rest of what we owe. Many thanks

Dear Madam,

The topic of forced completions has been covered extensively through many queries on the same matter:


forced complete ( 1 2)
Unregistered

chased to complete
abo07

What remedies does a developer have to enforce completion
Unregistered

Can we be chased by the bank after arranging a Dacion en Pago?
Unregistered

Will i lose my uk home
Unregistered

Property was bargained away and we are being chased for the shortfall. Please help!
Wendy

A Spanish developer can indeed pursue you, and many are already doing so, for the outstanding debt in the UK. They will place a charge against your UK property. I believe they cannot force the sale of the property if its your permanent dwelling, particularly if you already have a mortgage against it. On transfering ownership this debt would be settled.

These debts can be outsourced to local debt collecting agencies who will pursue you. I have no idea why people were under the wrong impression there would be no comeback on defaulting Spanish mortgage loans or else for non-completion on Spanish properties if in breach of contract.

Yours faithfully,