Maddie sighting in Spanish resort

 

Detectives are searching for the missing British girl on the Costa Del Sol following a tip-off from colleagues in Portugal. Portuguese police are understood to have received information from an informant about a Madeleine McCann lookalike in Nerja, near Malaga. The development is thought to be connected to a review of the investigation into Maddie’s disappearance. A team of Portuguese detectives have been instructed to re-examine the case and go through thousands of pages of case files and search for new clues. They are working with a Scotland Yard team set up in May last year. The McCanns’ Portuguese lawyer Rogerio Alves described the Portuguese police case review as a “very positive sign”. Maddie, then three, vanished from a holiday apartment in the Algarve resort of Praia da Luz in May 2007

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Thousands of British expats are on the brink of losing everything after being duped by unscrupulous financial advisers.

 

The cowboys have persuaded thousands of  our vulnerable pensioners — many in their 80s and 90s — to give up huge stakes of their property in exchange for investments that will never make a penny. 

The schemes are often sold by rogue financial advisers who exploit weak consumer laws on  the Continent by falsely claiming to be bona  fide accountants.

Most of the victims are Britons who retired to Spain or France and wanted to use the cash in their homes to help with soaring living costs. 

John Parsons, founder of the Costa del Sol Action Group that is helping some of the victims in Spain, says: ‘The effect of all this worry is enormous. The stress has brought on a lot of serious health issues and they are extremely worried about their futures.

‘These people were not greedy or stupid. They were on fixed pensions and being financially squeezed, so jumped at the possibility of solving that situation.’

The latest crisis follows a Money Mail  investigation in 2008, which exposed how hundreds of British pensioners living on the Costa del Sol had gambled their homes in a risky equity-release scheme run by failed Icelandic bank Landsbanki.

Now we can reveal how thousands more pensioners have fallen for other risky equity-release schemes on the Continent and are being hounded by banks demanding hundreds of thousands of pounds.

 

 PREYED ON BY  ROGUE SALESMEN

During the property boom at the start of this century, around 100,000 pensioners left Britain to live out their days in southern France and Spain — attracted by a warmer climate and cheaper way of life.

Many had a small pension, but hundreds of thousands of pounds from the sale of their UK home, which had soared in value over their lifetime.

This money was used to supplement their incomes and buy a new home abroad. But soon after they moved, the cost of living in some areas soared as hundreds of thousands of Britons and Germans bought second homes.

Many pensioners found they needed extra cash, and became easy prey for unregulated financial advisers who had left Britain to tap into the new wealth in these regions. 

Local rules meant they were able to act unchecked, selling investments from banks based anywhere in the world.

Sometimes they claimed to be chartered accountants, but were not — many had never even registered with local authorities. 

In Spain in particular, these advisers could largely sell whatever they wanted — including types of investments and equity-release schemes outlawed in the UK. These paid handsome commissions that could net advisers a £50,000 payday.

Banks offering equity-release loans included Icelandic bank Landsbanki, Scandinavian banks Nordea and Sydbank, and UK private bank Rothschild. However, Money Mail understands they are not the only banks involved.

The majority of victims were told they could borrow the entire value of their property. The loan would incur interest, typically of up to 6.5 per cent. It meant that after ten years, a €500,000 (£412,667) loan would balloon to €681,240 (£562,251). To offset this, a large chunk — usually around 75 per cent of the loan — would be invested in a fund sold by the adviser. 

Pensioners were told returns would be so good that not only would they cover the interest on the equity release, but give the borrowers a little extra to spend.

INVESTMENTS THAT TURNED TOXIC

But the promises made turned out to be very different to the theory. This meant returns did not cover the cost of the interest repayments on the equity release. 

As the fund fell in value, it ate into the capital that borrowers needed to repay the debt. Charges for fund managers and commission also reduced the returns further. 

Worse was to follow when house prices in Spain fell. They had risen by 44 per cent between 2004 and 2008, when many of the victims had bought their homes. They have since plummeted by around 20 per cent.

Those who had borrowed almost all of their property value were soon in negative equity — where the value of the property value was less than the money owed on it — leaving them unable to sell to clear their debt. 

In theory the borrowers were expected to pay off their loan at the end of four years. But because the value of the investments plunged so low, it triggered small print in the equity-release contract that allowed banks to demand repayment early.

In the case of those expats with Landsbanki, the bank collapsed and the investment fund was snatched by company liquidators. Then a further problem struck — the value of the pound plunged against the euro. 

Many of the victims were paid pensions in pounds and relied on converting the money into euros every month. The drop meant the value of their pensions fell by a third.

RETIREMENT DREAMS LEFT SHATTERED

Campaigners estimate thousands of British pensioners have lost money through these schemes. Former actress Julia Hilling, 88, fears her home will be swallowed up in repayments to her mortgage from Rothschild Bank.

She was sold the mortgage in 2005 by a Malaga-based British financial adviser. Today, this company is classed as unauthorised by the Spanish authorities. Her property was valued at €300,000 (£249,966) and she took out a loan for €262,000 (£217,827). Around €17,000 (£14,138) was used for living expenses and she put €245,000 (£203,693) in an investment fund. 

Tempted: Julia Hilling, pictured was an actress in the 1940s, says she went for a scheme because she needed to pay bills

Mrs Hilling, who starred in musicals in the Forties and in revues with Sir Bruce Forsyth at the Windmill Theatre, London, had never invested or even had a mortgage before. 

Since 2005, the fund has plunged by around a third and will no longer cover her mortgage. She owes €330,000 (£274,362) and the debt continues to grow. Mrs Hilling says she is unable to cover these costs and fears the bank will take her property when she dies.

‘I needed the money desperately to pay everyday bills while I was out here, as I didn’t want to rely on my family,’ she says. 

Rothschild told Money Mail it would not repossess Mrs Hilling’s home. It stressed it had not sold the investment to her and was not demanding repayment nor had it paid commission. It urged her to contact the bank. 

Another victim is Eric Mould, 64, who after a career in sales moved to a seaside villa in Puerto Banus, near Malaga, in 2007. He and his wife Mary, 60, sold their four-bedroom detached house in the UK to buy a three-bedroom villa with a swimming pool for €1,188,000 (£990,000).

But five years later they are living in a friend’s flat in the town and battling to pay €2,100 (£1,745) a month in mortgage repayments to Danish bank Nykredit.

Shortly after arriving in Spain, the couple borrowed €1 million against their villa with the bank. They say the British financial adviser who sold them the equity-release mortgage told them it would be a ‘win-win’ situation.

They were told they could free up hundreds of thousands of pounds from the mortgage, and the fund would pay off the loan. They believed the investment they were sold separately through Danish bank Sydbank would leave a little extra to boost their pensions.

To cover the mortgage, the Moulds have rented out their dream home. Their friend is letting them live rent-free in the apartment. The couple fear it is only a matter of time before their home is repossessed. And because property values have dropped, they could lose up to €300,000 (£249,966)

‘This has totally devastated us. It is heart-breaking — we face losing the home we worked for a lifetime to buy,’  says Mr Mould. 

Sydbank would not comment on  the case.

Others who took out equity-release schemes with collapsed Icelandic bank Landsbanki have been told it will settle — as long as they pay part of the money owed, in some cases hundreds of thousands of pounds.

One couple, Linda and Frances Barlow, aged 63 and 75, who live in Nice in the south of France, believe the bank’s liquidators will repossess their home by May unless they stump up €1.3 million (£1.08 million).

The liquidators proposed a compromise deal, but it would have required the couple to find €500,000, which they do not have.

The Barlows took only a small proportion of the loan as cash. The rest was invested by the bank, and lost when it collapsed in 2008.

‘We wanted some cash to renovate,’ says Mrs Barlow, a musician from London. ‘We didn’t want to take out a big loan, but the financial adviser told us we were foolish to be sitting on an asset and that we should get an equity release to have an income. Now we are going to lose everything.’

Pensioners fight to keep their homes

Scores of pensioners have launched legal action against the banks and financial advisers who sold them the loans. Solicitor Antonio Flores, of Spanish law firm Law Bird, who is representing some of them, says: ‘Many people are left with huge bills and in fear of losing their homes.’

In February, the European Commission announced plans for an independent ombudsman to deal with mis-selling cases against financial advisers working in the Costa del Sol.

Meanwhile, the Foreign and Commonwealth Office has issued official warnings about mortgage schemes advertised as a way of cutting tax bills.

Any expats thinking of signing up to an equity-release scheme in Spain should check the company is registered with the agency in charge of the Spanish stock market, the Comision Nacional del Mercado de Valores (CNMV).

It will also provide a list of companies that are not authorised to operate in Spain and those that have warnings issued against them. 

Remember to seek independent legal advice before signing a contract.

If you believe you have been a victim of a fraud involving an equity-release scheme, then register a statement with the police.

Seek independent legal advice about taking action through the courts.

If you wish to complain about the performance of your investments, you should first complain to the equity-release company.

After two months, if you are not happy with the response, take your complaint to the Spanish Investors’ Complaints Office: Oficina de Atención al Inversor, Miguel Ángel 11, 28010 Madrid. 

There is also an office at Paseo de Gràcia, 19, 4ª Planta, 08007 Barcelona.

THE FIGHT TO KEEP THEIR HOMES

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THE Marriott's Marbella Beach Resort is amongst the favourite family hotels in Spain, according to TripAdvisor’s Traveller’s Choice 2012 list.

The hotel comes in at 13th place on a list of the 25 favourite hotels for family vacations.
Nine of the first 10 positions are held by hotels in Mallorca, and the tenth, in fourth place, is the Aparthotel Golden Avenida Suites in Salou (Cataluña).
The list is created based on the opinion of millions of tourists who have travelled with their families.
Spain has five hotels amongst the top rated in the world, with the favourite being the Protur Bonaire Aparthotel in Mallorca, and eight amongst the Top 25 in Europe.
According to the results of a TripAdvisor survey carried out with 627 Spanish tourists, family holidays are the most popular in Spain, with 45.3 per cent of the total.
Most Spanish families take one or two holidays per year, and there are between two and four members.
Most of them travel to beach locations or cities, for an average of one week.

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Marbella’s “Familiar” House by A-Cero Architects

If you like keeping an eye on the cutting edge of modern architecture, you will decisively enjoy the latest work from renowned group A-Cero architects. This private residence is located in the Spanish town of Marbella, a cozy seaside village that you may recognize as fashionable and popular holiday destination for the rich and affluent. As you can see from the pictures below, this lovely display of Spanish architecture – known as the “Familiar” house – is nothing short of impressive, with its elegant use of natural stone and water mirrors.
The “Familiar” house looks strikingly elegant and sophisticated, and it exudes luxury and modernity… which is right in line with the previous work by A-Cero. From the ample spaces within to the bold angles outside, as well as the surrounding black swimming pool, there are many touches to this building that make it interesting from an architectural standpoint. If you ever get a chance to visit this lovely house, congratulate yourself: because it clearly means you’re living the high life.

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Loneliness is the main issue surrounding a move to Spain

According to the participants’ responses, Loneliness is the main issue surrounding a move to Spain, with the 35.29% of the vote.

The fact that loneliness, as is becoming a trend amongst the vast majority of countries, was one of the main issues facing expats moving to Spain may well surprise many. Spain is a country which, especially for the UK expat community, can in many ways seem like “home from home” due to the vast number of people having moved there over the years. However, it is easy to forget Spain is also a major attraction for other expat communities around the world and as such there may be issues for other foreign nationals.

The subject of loneliness is one which appears to be more and more prevalent in the minds of expats looking to move to many countries around the world. It is very often an issue which is initially ignored because many people automatically assume they will “drop into their new life” and all will be well. However, once the excitement, once the glitz and glamour of your new move have subsided you will literally be left to look at your new life and what that entails. One of the best means of combating loneliness is to get yourself out and about in the local community and ensure that you do your best to mix. Sitting back at home waiting for everybody else to do their bit to make you feel welcome is a recipe for disaster because everybody else has their own life and you need to be more proactive.

The common trend amongst expats moving overseas is to move for employment opportunities with more and more families now moving as a group. However, while the family environment will obviously assist in the settling down period there will be times when one partner in particular is left alone for a significant amount of time. This may well be somebody who is working out of a home office, a partner left behind to look after the children in the house or some other similar situation. It is these difficult situations which can introduce nerve wracking and emotional bouts of loneliness which can then transfer to other areas of your everyday life.

The main way in which you can address these issues is to talk, talk, talk and ensure that each and every person in your group is there for one another. If you find yourself in a situation which makes you feel uncomfortable or you can see bouts of loneliness on the horizon then you need to shout up and stand your corner. There is no point sitting back and hoping that the loneliness will pass because it is very often a self fulfilling prophecy once it begins. Build your own social network, make friends with the local community and above all get yourself out of the house as much as you can because it is unhealthy to stay between four walls 24 hours a day!

Relationship problems (17.65%)
The problem of relationship problems is never far behind in relation to potential issues awaiting expats moving overseas. The situation in Spain is no different to that anywhere else around the world and even before you apply for your travel documentation you need to be 200% certain that each and every member of your party is behind the move. If you yourself are having second thoughts or things are preying on your mind with regards to a move overseas then you need to make your partner aware as soon as possible. Even the best relationships in the world will at some stage encounter turbulent waters when moving overseas because of the alien environment in which you will find yourself. If you are at home and you have problems with your normal everyday life then you will have friends, family and colleagues to talk to, but if you are overseas then your expanded network is much smaller. You may not have anybody to talk to about relationship problems!

We’ve also seen the emergence of another trend with regards to the expat community with many people now moving overseas to be with a loved one they have met in a foreign land. For many people this is literally the stuff of fairytales and dreams but unfortunately these fairytales and these dreams can turn into a nightmare unless you are realistic and face reality as soon as possible. If you are moving overseas to be with a foreign national then there will at some point be cultural issues, work issues, social issues and a whole array of other problems which you may or may not have thought of. That is not to say these are not insurmountable problems and challenges but those who expect to move overseas with a new love may well find the waters a little more choppy than they had expected.

There are potentially unique situations in Spain regarding for example UK expats because of the number of UK expats already in the region. If one member of your party is spending more and more time with other expats then this can lead to jealousy and potential relationship problems although many of these feelings may well have never merged under “stress free” situations. Moving overseas is something which needs to be done as a group and together rather than going off doing your own thing and potentially leaving the opportunity for loneliness to creep in and lead to arguments and potentially serious relationship issues.

Healthcare (17.65%)
Healthcare is one of those issues which is initially in the upper most minds of many people but unfortunately it can be forgotten further down the line as money becomes tight and budgets are stretched. However, if you are moving to any country in the world you need to ensure that you are fully aware of the health services available and the potential cost to you. When in Spain, in simple terms, you will be treated on the same basis as a resident of Spain and indeed those who have a European health insurance card may well be able to claim back any medical costs upon returning to the UK. If you have moved to Spain full-time then obviously this will not be an option.

The NHS style service available in Spain offers free healthcare to the masses although there may well be areas in which you are asked to contribute towards the costs. One issue which you may encounter, and indeed you may already have come across when taking a holiday in Spain, is the number of private doctors. Many hotels and other corporate entities will automatically recommend you to a private practice because very often they will receive some form of remuneration possibly in the form of commission. Indeed, even if an NHS doctor is called out there is every chance that they may well offer some form of private treatment as well and you will need to specify what is required, i.e. state funded treatment.

While there are obvious attractions with regards to the Spanish healthcare system, and the fact it is available to the masses, you may well wish to look towards private healthcare especially if you have a family. There is no state funded health care system in the world which is not being overstretched with regards to funding and footfall and Spain is no different. We have seen similar issues in the UK whereby the cost of treatment continues to rise as does the number of people seeking treatment. There may be a situation when you require treatment immediately, something which may well lead to waiting lists with the state service, and in these situations private healthcare insurance can literally be worth its weight in gold. Healthcare is an issue which you should consider at a very early stage and you must make yourself fully aware of the pitfalls which may await you.

Cost of living (5.88%)
While there was a disappointing response from the Spanish expat community in relation to our online poll it is interesting to see that the cost of living does not appear to be a major problem for many people. We would assume that the vast majority of those who responded to this online poll, and who live in Spain, are from the UK expat community where the difference between the relative costs of living has been very clear for years.



It is interesting to see that a group of pensioners now living in Spain, but originally from the UK, have set up a movement to pressurise the UK government to reconsider increased pension payments to those overseas. It seems that a number of UK expats now living in Spain are struggling on a financial basis with their income well under the European level for “minimum income”. This is certainly a problem which is facing many from the UK who now live overseas but are entitled to pension payments from the UK government because of their previous national insurance payments. However, the cost of living in Spain has increased over the last few years in line with the rest of Europe where commodity prices have had a larger than expected impact upon food price inflation.

Spain is a country, like so many, which takes in everything from the cheap and cheerful holiday destination to the luxury areas such as Barcelona. The variation in climate, prospects, terrain and attractions is often translated into a large variation in the cost of living. The ongoing economic crisis across the Eurozone, and indeed across the world, has had a dramatic impact upon property prices but in many cases commodity prices have pushed food inflation higher and higher. If you are looking to move to Spain it is paramount that you look at an area which best suits your budget, best suits your hopes and then decide if a move to Spain is really in your best interests.

Cultural differences (5.88%)
Cultural differences between expats living in Spain and the Spanish national community would appear to be very thin on the ground if this poll is anything to go by. It is unclear exactly why this may be the case although when you consider that Spain has been a popular holiday destination for over 40 years now, especially amongst the UK population, it is maybe no surprise to learn that historical friction between cultures has reduced over the years.

When you also take into account the fact that the Spanish economy relies very heavily upon the tourism industry then it would make sense for the Spanish population and the authorities to avoid conflict and friction wherever possible. That is not to say that instances of cultural friction do not occur because with the best will in the world people are very different and we all have very different views. It has long been said that those who move overseas and readily seek out cultural differences and cultural friction should not really be moving to another country. Part of the overall experience of moving to a new land to begin a new life is to appreciate the local culture otherwise why would you have left your original homeland in the first place?

If you ever do decide to move overseas you should move somewhere which attracts you on a basic level and somewhere which interests you on a higher level. Experiencing and integrating with new cultures around the world will most certainly broaden your own horizons and could even open up new opportunities and ambitions for you.

Other problems (17.65%), namely Bureaucracy and Employment
There were a number of other issues brought to the attention of the expat community on the expat forum website which mainly included Bureaucracy and Employment.

Time and time again the subject of bureaucracy, mountains of paperwork and forms are discussed in negative terms by the expat community. However, the truth is that due to issues out with the control of the Spanish authorities, i.e. international crime and terrorism, there is a need to be safer and ensure that all paperwork is in place and all people are who they say they are.

A good way to save up some of your precious time when doing your finance or daily banking is to open an offshore account that will allow you to meet those distinct financial needs that your local bank may not be able to meet by the time you can benefit from no-hassle online banking and financial planning help.

Employment under the current economic cloud is going to be very difficult in any country around the world and Spain is no different. Over recent days we have seen problems with the Spanish debt markets and indeed the government has been forced to increase the amount of interest it is willing to pay to attract IOUs from investors. However, it is not all doom and gloom because Spain is an enormous economy and no matter how difficult the environment is at the moment opportunities will be there if you look hard enough.

Conclusion
Spain has been one of the most popular expat destinations for the UK community for over 50 years now. It is an area of the world which takes in a number of cultures, climates and indeed a vast array of different terrains. However, moving to a new country will present challenges for you with loneliness, relationship problems, healthcare, cost of living and cultural differences very much at the forefront of the minds of many people.

The truth is that none of these problems are insurmountable and those who literally give up and go home at the first sign of difficulty should maybe never have considered a move in the first place. If you take a step back and consider the potential issues if you ever moved within your former homeland they are very similar. The only real difference is the fact that in a foreign land small issues can quickly become larger and if left to fester they can quickly impact upon other areas of your everyday life.

Spain is a country which is certain to attract more than its fair share of expats in the months and years ahead despite the fact that the ongoing economic downturn across Europe has had a big impact upon the region. However, there will always be a tourist industry in Spain which will attract visitors from overseas which will then have the knock-on effect of attracting more and more expats in the future. There are short-term issues to take into account regarding the economy and the immediate prospects for Spain but in the long run this is a country which has been held close to the hearts of many people.

There are many areas of Spain from which to choose so you need to do your homework and find something which is compatible with your prospects, your hopes and more importantly your finances. If you find this perfect area then you have every chance of a successful move to a very popular country!

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Easter airport 'gridlock' warning

 

Airlines have warned the Home Secretary that Britain "risks gridlock" at airports including Heathrow and Gatwick over the Easter break due to staff shortages. More than 370,000 passengers will leave Heathrow airport between Good Friday and Easter Monday, and 200,000 will pass through Gatwick. A spokesman for Heathrow owner BAA told the Daily Telegraph: "Immigration waiting times during peak periods at Heathrow are currently unacceptable and we have called on the UK Border Force to address the problem as a matter of urgency. "There isn't a trade-off between strong border security and a good passenger experience. UK Border Force should be delivering both." Meanwhile, Britons attempting to travel by rail and road face delays because of engineering works taking place on motorways and train lines. Stretches of the M1 and M25 will be affected, and the seven million passengers travelling by train over the weekend will see disruption to travel to and from Euston, King's Cross, Liverpool Street, and Waterloo stations in London. British Airways and Virgin Airlines are among 11 firms that have written to Theresa May in anticipation of "unacceptable" delays to hundreds of thousands of passengers travelling over the long weekend. The UK Border Agency is under fire for a lack of staff able to carry out full security checks, which the airlines say must result in a recruitment drive or the relaxing of some of the more stringent measures currently in place. A spokeswoman for Virgin Airlines said: "While the decision on what level of check should be made at the border is, of course, a matter for Government, we are concerned that there is currently a mismatch between policy and resource. "After years of reducing frontline staff, returning to a 100% check system will undoubtedly mean lengthy queues at UK airports over critical holiday periods such as Easter and the Diamond Jubilee."

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