This week has been an interesting one for thought provoking challenges to the valuers of the Survey Spain Network.
documents, we discovered that the house is registered as a VPO, which means that it’s construction was Government subsidised and it’s the equivalent of council housing in Spain. Unfortunately, it also means that the house should not be sold at full market price for 30, 40 or even 50 years after its construction. The current owners bought it a few years after it was built and obviously their lawyers had ‘missed’ the fact that it was a VPO. Now, the client has to wait for legal advice on how to buy themselves out of the VPO situation, with the methodology for that, as for the creation of VPOs, being different in each of the various Comunidades of Spain. We have carried out a valuation of the property as if it was a normal apartment, but obviously if it is subject to VPO restrictions, it cannot have the same value as a ‘free’ apartment.
Planning Permission cancelled
Valuation of a partly built property is always difficult. This one has had a further refinement added. Full planning permission was given for the construction by the local authority, complying with the Regional
plans. However, political changes occurred within the Region, and the planning zoning for the area was changed from urban to rustic. Under rustic zoning, no construction whatsoever is permitted. We have assumed that because there is an existing permission and the property is partly built, that completion of the construction will be allowed, as long as it complies to every dot and comma of the permission granted. Any variation or additions to the property in the future are likely to be prohibited. Unless, of course, there’s another political change. We have also advised our client to seek specialist planning and legal advice!