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EU Property Solutions are assisting borrowers with property in Cyprus that purchased property and were sold a mortgage product in Swiss-Francs rather than Euros. Reading this you are probably as baffled as we are as to why this was but as you will be aware lending processes where “loose” pre 2008.
In early 2016 Cypriot Banks begun to step up their perusal of UK based owners and are becoming more aggressive in their approach. Lenders have begun serving Writs of Summons due to borrowers defaulting on their loan agreements. Figures estimate that c20, 000 UK based borrowers could be effected by taking out Swiss-Franc mortgages.
On receipt of a writ of summons UK homeowners have 14 days to file an appearance in the Cyprus Court of Issue
Cypriot properties have been plummeting in value yet some borrowers advise they have seen mortgage repayments TRIPLE from £400 – £1,200 whilst seeing their account fall into negative equity.
However, there has recently been some good news for UK Cypriot homeowners. A ruling in the Supreme Court questions the validity of power of attorney documents (POAs) used, among other things, in transactions related to the purchase of immovable properties in Cyprus.
While this practice is legal the Supreme Court ruled that if the relevant process under Cyprus law is not followed then any incorrectly drafted POA would be invalid, rendering any agreement signed through its use invalid also. This is significant as in the large majority of cases involving loans and purchase contracts of property in Cyprus, POAs were used and in most cases these were not legally drafted.
It will be interesting to see the outcome of this ruling and how UK borrowers approach their case against their Cypriot lender. We will watch this space.
If you or anyone you know has an debt issue with European Property then please call EU Property Solutions today on +44 (0) 330 124 1330 to arrange your free initial consultation. We have office bases in Belfast, Leeds and Spain and endeavour to meet as many potential clients face to face as possible. If this is not feasible we welcome a skype meeting or a conference call.
We look forward to hearing from you.