This week we finalised a settlement with a core Cypriot lender on a failing Cyprus property mortgage investment in Larnaca. The gentleman approached us for help solving his Cyprus property mortgage problem.
Following a recent discount offered by the Bank, the outstanding mortgage was £150,000. However, despite the discount, the property valued at a mere £50,000. The borrower was failing to meet monthly payments due to low rental income. He was also concerned about the security of his assets in the United Kingdom, which included multiple buy-to-let properties.
The case took significant time to finalise as it proved difficult to find a potential purchaser for the property despite its low value and marketed price. Nonetheless, EU Property Solutions achieved the following:
- The handback of the property to the Bank and a settlement of £13,000 paid by our client to close the mortgage account on a Full & Final basis.
- Our client avoided high sales costs associated with Cyprus property transactions.
- Our client’s 15 UK properties where protected.
EU Property Solutions understand the processes of Cypriot lenders and have the relevant communication streams to ensure your case reaches the correct individual.
We offer the following services in Cyprus:
- Offload the property. Be this through the Bank or an open market sale. Each case is different, and the Bank will make the choice here. Either way, pricing to sell is key.
- Negotiate on the shortfall (the difference between mortgage outstanding and property value/sale price) and achieve reduced settlements. Typically, we settle below 15% but this depends on the financial circumstances.
- Conversion of mortgage accounts from Swiss Francs to Euro’s and achieving a discount on the balance outstanding. This can be done for borrowers opting to retain the property only.
Should you have a Cypriot property issue that you wish to discuss please call EU Property Solutions today on +44 (0)330 124 1230.
To read more of our case studies and see how we could help you, click here to visit our Case Studies page.