EU Property Solutions have successfully completed cases where borrowers were suffering from Negative Equity issues in Cyprus. We wanted to share our experiences to date and outline the routes available for borrowers losing the Swiss Franc Mortgage battle.
The majority of cases we resolve within Cyprus are as a result of mortgages being sold in Swiss Francs. Following the global financial crisis of 2008, the Swiss Franc balances grew due to Currency Fluctuations and property prices in Cyprus plummeted. This created huge gaps and massive Negative Equity Shortfalls.
Cypriot property debt cases take significant time to resolve and realistically a timeframe of 12 – 18 months is outlined to new clients. Cypriot Banks are awash with Property Debt cases largely brought on by their own loose lending practices pre-2008.
Through our works we know there are two routes Cypriot lenders prefer currently:
- The open market sale of the property and a negotiation on the shortfall balance. Finding buyers currently is difficult, confidence levels are low and the properties in question are typically sold to overseas investors who are wary of Brexit and tougher lending protocol.
- The surrender of the property to the Bank and a lump sum settlement. This route is preferred by customers as the uncertainty of a sale is avoided but it is not guaranteed to be offered by the lender.
Furthermore, Cyprus is not the only country we have seen the use of Swiss Franc Mortgages. We have seen cases in Poland and Hungary with mortgages issued in Swiss Franc Mortgages.
If you are losing your Swiss Franc Mortgage battle and wish to discuss your options, please call EU Property Solutions today on +44 (0)330 124 1230.