We purchased an off plan property in Spain, at Fortuna Golf in Murcia, through X (now in administration), which was due to have completed March 2008. The developers are Y who have now stopped work on the site and therefore we believe they are in breach of the contract.

Our deposit was 30% of the purchase price of 148,325 euros, firstly 3000 then the main part 44,612.33 plus legal costs. We are paying 5.49% interest of around £125 per month (roughly £30k) since 1 June 2007, as we released equity in our residential property to fund it through a drawdown mortgage.

There are several complications.

Firstly, the developer failed to provide our spanish solicitors A, with the required Bank Guarantees, despite persistent requests on their part (apparently). Some investors may have these, others not (we think we have no B.G. and are trying to confirm that situation with solicitors A).

Secondly, the developer is in severe financial crisis (apparently) and may not have funds to return deposits (so is litigation a useless expense on our part especially if we do not have the legal B.G., which is our right to have received from the developer).

Thirdly, a newly formed child of Property services X, is trying to help investors of Y developments in offering a 'flip' property alternatives. Although these supposedly include a discount equivalent to our deposit with the developers, these are around 20 euros more expensive, which we are unable to find for above the budgeted completion costs.

Can you give me a call to discuss (i) in what ways you can advise us, e.g. regarding our chances wrt spanish property law, and (ii) what your charges would be for litigation and how long you believe the process would take. (You very useful article on Bank Guarantees suggested an Executive order for judges ruling would be only a few months to litigate, is this possible, we were told it could take 2-3 years!)

With best regards
Jay

P.S. I also submitted this with named parties through your contact us form.