EU Property Solutions to date have saved clients thousands by completing cases where borrowers were suffering from negative equity issues in Cyprus. We wanted to share our experiences to date and some of the settlements we have achieved on behalf of our clients.
What is the situation?
The majority of the time, Cypriot property debt cases can take significant time to come to a resolution. Cypriot Banks being awash with property debt due to their own loose lending practices pre-2008.
Most cases with property debt in Cyprus, are mortgage products sold in Swiss Francs. Given currency fluctuations in recent years, combined with a drastic drop in property prices have left individuals in dire financial ruin.
What can we do?
EU Property Solutions have met with many individuals who have tried going after developers and lenders. From these discussions, it seems these cases take years to move forward. There are multiple jurisdictions legally but many cases are to be decided where the case will be heard – Cyprus, or the UK and Ireland.
What have we done before?
With our intense and thorough negotiations, we lead these cases to a resolution, and rid the clients of this burden that is debt, see one case study below:
“EU Property Solutions client’s property in Cyprus was in significant negative equity. The outstanding mortgage balance was €230,000 the property only initially valued at approximately €70,000 the client was facing a debt of €160,000.
Our client was finding it increasingly difficult to keep up with mortgage repayments, despite the property being tenanted, the rental income only covered enough to pay half the management fees. Our client’s financial situation was understandably becoming more stressed and unsustainable due to this financial burden.
Following appointment, EU Property Solutions achieved a consensual sale of the property through negotiations with the developer and the lender, however, the property only generated €30,000 leaving a shortfall of €200,000.
Through extensive and labored negotiations with the lender, developer, and client, our team at EU Property Solutions achieved a settlement figure of €10,000 on a shortfall of €200,000.
EU Property Solutions achieved a debt write of off €190,000 and were able to safeguard the clients UK home and income. More importantly, however, the client was freed of an overhanging debt burden that was taking a massive toll on their lives.”
Our relationship has developed with key lenders in Cyprus and we understand their processes and the relevant individuals to contact to move matters forward. Providing the client is patient, proactive in document collation and understands funds are required to settle the matter then settlements can be reached in an amicable manner.
If you have a Cypriot Property headache and wish to discuss your options, please call EU Property Solutions today on +44 (0)330 124 1230.
James Bell – Director