Off plan property repossession?

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Off plan property repossession?

by Maria
(England)

We are due to complete on our apartment in southern Cyprus in March but due to a delay in the build and the weakening of the £ our mortgage payment will go from approx £440 to £920! We simply cannot afford this with our own mortgage and want to know whether we would be able to pull out of the contract with the developer?

We have paid them 15% with another 5% due on completion and the rest is mortgage. What rights do we have to pull out of the contract now? We accept we may lose our 15% but feel that this is the best course of action. Would the developer need to pay the bank back?

Any advice would be good!
Thanks in advance

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Off plan property repossession?

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Jul 24, 2010

Reposession
by: Anonymous

Hi Sharon
Are you sure the bank will not come after you ?we are in same position bought 3 years ago apartment in paphos developer over a year late with delivery he wants remaining funds to complete but I found out development not complete no water in pools and no landscaping I have been paying a mortgage on the property (nearly doubled ) for the past six months which I have not completed on the developer says he will finish off development when he can sell all of properties which is no chance at his prices but i had a management company in place to rent it for me but there is no chance with development not complete I cannot afford mortgage payments without rental I am stuck any help please.

Jul 04, 2010

developers
by: Anonymous

Hi, its Sharon, I wrote the original thread. Just to let you all know that I have done my own investigation work- Ok, If you do not have the title deeds to your property or have not yet taken delivery then the bank MUST go after the guarantor, if you default- and this would be the Developer!! The developer would have guaranteed the debt (not just the mortgage but THE DEBT whatever that happens to be now) in order for the bank to lend you the money in the first place, therefore if you cannot pay, the bank (by law) has to persue the guarantor (developer).

I haven't paid a penny on my mortgage since I took it out 3.5 years ago- the bank rang me 4 months ago and said they were taking legal action- I said " go ahead because you are talking to someone who doesnt give a damn- the developer guaranteed the debt so get off the phone and do what is legally in my mortgage agreement- chase the guarantor"!!! The bank couldn't argue and I havent heard from them for months. Then they called me and asked if I would be prepared to have a meeting with the developer to settle this!! (which tells me the bank are panicking because they can't come after me) I told them that they wouldn't get a penny from me and neither would the developer- the mortgage was "missold" to me, I never had an independent choice of where I borrowed the money from so as far as I am concerned they could swing for it!!!! Never heard form them since!!!

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Jul 04, 2010
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Submitted by: Anonymous

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Hi, its Sharon, I wrote the original thread. Just to let you all know that I have done my own investigation work- Ok, If you do not have the title deeds to your property or have not yet taken delivery then the bank MUST go after the guarantor, if you default- and this would be the Developer!! The developer would have guaranteed the debt (not just the mortgage but THE DEBT whatever that happens to be now) in order for the bank to lend you the money in the first place, therefore if you cannot pay, the bank (by law) has to persue the guarantor (developer). I haven't paid a penny on my mortgage since I took it out 3.5 years ago- the bank rang me 4 months ago and said they were taking legal action- I said " go ahead because you are talking to someone who doesnt give a damn- the developer guaranteed the debt so get off the phone and do what is legally in my mortgage agreement- chase the guarantor"!!! The bank couldn't argue and I havent heard from them for months. Then they called me and asked if I would be prepared to have a meeting with the developer to settle this!! (which tells me the bank are panicking because they can't come after me) I told them that they wouldn't get a penny from me and neither would the developer- the mortgage was "missold" to me, I never had an independent choice of where I borrowed the money from so as far as I am concerned they could swing for it!!!! Never heard form them since!!!

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Jul 02, 2010

fng privillage palms
by: Anonymous

has anyone bought property at FNG privillage palms development, Frenaros, we paid £190 (£230k FNG valuation)each for 2 x properties off plan in 2008 only to discover that they were worth £150k max, off plan we should have bought these for around £130k each,it appears that in 2007 FNG attempted to sell these properties off plan for 170k euros under the name of MARY HOUSES, if you have bought into this development then you have also been conned

Apr 15, 2010

Repossion before property has been delivered!
by: Sharon

Hi
I am trying to find out what happens now as the bank has informed us today that they are now going to take legal action as we havent made any payments on our mortgage because the off plan apartment we bought we still havent taken delivery of! It is 3 years late, the developer has refused to pay any late penalty charges (even though it is in our sales contract) we have refused to hand over the last payment of 26k or accept delivery. It is at stalemate now and even the developers laywers are ignoring us! As far as I am aware the mortgage is secured against the property-which we dont own as we havent taken delivery! Therefore surley the bank should go after the developer? Not sure if anyone has been in this position of a repossesion before the property has been delivered??? I am prepared to walk away and lose the initial 30k we put in providing the developer suffers financially as well.

Apr 15, 2010

A very very good lawyer is...
by: Anonymous

Dr Kathy at www.highgate-hill-solicitors.co.uk/

She practices both UK and Cypriot law.

Please let me know how it all goes. My email address is rebecoliver@googlemail.com.

Good luck!

Apr 14, 2010

Good Lawyer
by: Dee

Hi

I purchased an apartment outside Larnaca and can not keep up the payments. It looks as if the property will go into repossession. Can anyone recommend a good Lawyer that they have used?

Thanks so much. I am now at the panic stage!

Dee

Dec 15, 2009

Repossession
by: Anonymous

If the developer ever took you to court in the UK, just ask him about your title deeds! Did you know that a mortgage was on your property when you bought it? If not, you have been missold the property and are therefore in a position to ask for your deposit back. A UK court will also never repossess your UK residence if you default on an overseas property. It will also take 5 years for a developer to get a case through Cypriot courts and a further few months to register a claim in the UK.

Oct 18, 2009

Ignoring
by: Anonymous

What do you do when the developer ignors solicitors correspondence, concerning financial settlements.
We have paid our first instalment on an off-plan property, need to withdraw and have offered a substantial amount to settle it.
Its stalemate, as the developers can not sell until our name is removed and we cant budge them to get our money back.
I expect the courts would have to decide how these Cyprus developers are being unreasonable.
Other solicitors have advised that these developers are not allowed to keep our money, only the deposit. Is this true?

Sep 23, 2009

MORPHEUS INVESTMENTS in Cyprus?
by: Anonymous

Like many people I bought an apartment off-plan from the title company. It subsequently became known that the major player in this company was one Derek Hatton! Strange this wasn`t mentioned during the negotiation phase! The company has now gone into liquidation, although the apartments are apparently close to completion, and due to be delivered in Dec 09. Unfortunately the original agreements with Morpheus, which included things like a "white goods" package, have now been withdrawn, and the apartment as delivered will be in every sense bare. Perversely a new company, Morpheus Rentals, featuring Mr Derek Hatton, is now e-mailing clients offering to supply "white goods" packages from a mere 2000 euros upwards! Every instinct tells me to walk away from this mess and refuse to make any mortgage payments - anyone any idea what the consequences would be? I accept that our deposit is lost forever, but really don`t want anything to do with this venture - advice please!

Sep 06, 2009

Get a good lawyer
by: Helen

Sarah You need to speak to a good lawyer. I have sent you the details of our recommended lawyer following your contact request on our lawyer page.

Sep 06, 2009

Need advice on property reposession
by: sarah

In 2007 I purchased a property from a large developer in Cyprus, I paid a 15% deposit and the developer has drawn 18000 euros from the mortgage thus far. Since buying the property my finances have got worse and I will now be unable to complete on the property when it is finished next year. I was told by a local estate agent that I should authorise no further payments to the developer and to basically ignore him. He told me if I were to do this he would more than likely disappear. However, yesterday he sent me an email saying that he is aware that this particular developer is now getting his lawyers to act against non closing buyers in the UK. I am not sure if this is true as I think he may have a hidden agenda - ie to sell my property once it is completed as he knows I am in a desperate position.

I have also read on certain web sites that it is very difficult, expensive and time consuming for companies/banks to pursue English buyers in the UK from Cyprus.

Could you please let me know what your thoughts are on this matter?

Jul 23, 2009

court action
by: Anonymous

Does anyone know what court costs we will incur approx, as we are trying to retrieve our first stage payment from a developer, as we have had to withdraw from an off plan property, since we cant afford the payments Thanks

Jul 20, 2009

New build scandal Ormedhia Cyprus
by: lancashire lad

Bought property off plan. Developer agreed a higher deposit without notification and stumped up the rest of the money himself to push through sale. Wanted to walk away then but was told by him we couldn't walk away. 2 members of my family who are named on the mortgage are now retired and the developer and bank were aware of this but the developer used a bank statement showing funds from a sale of a proprty 60.000 and told bank manager this was to be used as a deposit but this was a lie.

Property was supposed to be completed December 2008 and is near completion the mortgage is not getting paid. Is there anyway I can get out of this as basically the developer has lied and stumped up his own money to get the sale.

Jun 21, 2009

Off plan reposessions
by: Maria

Hi just tried to mail you on info@univac.com but bounced back undelivered. Is there another address?

Thanks

Jun 21, 2009

Property Repossession
by: Universal Realty

If you are thinking of "walking away" or need to sell your property urgently we may be able to help. We have a list of clients looking for investment properties at realistic prices. Please email to info@univac.com

Jun 06, 2009

Property Repossession
by: Anonymous

Can anyone confirm what the penalties would be by defaulting on mortgage payments. We own a property with title deeds and have contacted our Cyprus bank to ask for some help eg 6 months payment holiday or reduced payments. If they decide not to help us can we walk away from mortgage without any penalties? would be greatful for any advise.

Apr 20, 2009

Off Plan Property in Cyprus
by: Lisa

I bought a property off plan last year.It is due to complete in May .We put down 15% then and now we need to put 5 %.My job is at risk and I can not afford the the 5 % let alone the mortage payments.
I want to walk away from the contract but I dont know how repossession works in Cyprus and also would the developer chase me for the 5% .
I really don't know what to do I am so stressed.
Can anybody advise me
Thanks

Apr 16, 2009

Cyprus Banks and property repossessions
by: Anonymous

Did you know they can cancel/terminate your mortgage in Cyprus without court action! Even for being 1-2-3 months in arrears, yes I know, it happened to me.

Apr 16, 2009

Recommended Cyprus lawyer
by: Anonymous

Try Andreas Mathakalonis in Larnaka, he does not work for any of the Banks, get in touch with a registered agent to look into ways of helping you out!

Good luck

Apr 07, 2009

uk lawyer
by: Ian

Can anyone give me a uk based solicitor who is familiar with Cypriot legal matters, particularly one who has advised on cancellation of contracts for property sales.

Apr 02, 2009

Euro, etc
by: Lin

It seems that the intro to the Euro makes no difference to our property price, even though at the time we purchased it in Cyprus pounds made the house an affordable 260.000 Sterling, now its about 80 grand more.
Still waiting for an extention of 5 years to complete payments, but with the housing crises everywhere the developers are going to struggle to sell to someone else quicker anyway.
Our developer has just had to make his salesman redundant. That says it all!
So really the Cypriots should help us English out in times of trouble, as much as possible, as we are, who have made Cyprus what it is today by purchasing property and keeping their country going. Don't you think?

Apr 02, 2009

The Developer will foot the bill
by: Anonymous

To anyone who bought off plan and has a bank loan, the bank will go after the developer first because he would have had to give a bank guarantee!
There you go, FREE advice from superior real estate, I'm not a lawyer, but this is my understanding.

Apr 01, 2009

Cyprus
by: kenny

Hi i am busy looking to buy a property,could you not sell your plot/investment onto someone like me what sort of property is it villa townhouse,let me know and maybe its what i am looking for,you can contact me on kenatkinson6@hotmail.com

Mar 26, 2009

OFF PLAN
by: LIN

We purchased an off plan last year, put down our 1st instalment but had to withdraw as we canot sell a property in England to fund it. The developers will not negotiate a refund so we suggested to our solicitor to ask developers to increase the term time by 5years. We are waiting for advice as to why should we pay the extra in Euros as we signed the contract in Cyprus pounds, then making it affordable.

Feb 19, 2009

UK based lawyer
by: Anonymous

Maria,

i'm now talking to a lawyer in Cyprus via my UK based lawyer and expect something back by the start of next week so I'll get back then. Just wanted you to know that I haven't forgotten. If favourable I'll on-pass details so you can talk with them direct.

Feb 11, 2009

Off Plan property repossession
by: Anonymous

Hi Tim, We have also been advised that we could be taken through the courts which we would like to avoid. our developer has refused any more cancellations so we feel as though we are now stuck with the only to go through with delivery and try to sell as soon as possible.

let me know how you get on as it might give us some hope!

Thanks

Feb 11, 2009

Walk away
by: Tim

Maria,

I'm in exactly the same position but have recently been made redundant so am looking to walk away with the loss of my deposit. I'm currently speaking to a UK lawyer with Cyprus legal knowledge. When initially I contacted my Cypriot lawyer I was informed that if I walked away the developer would retain my deposit, the bank would come after me for repossession and any shortfalls could be sought from my UK assets and belongings. I think the key word here is could. I believe in the current economic climate the Banks will cut their losses and haggle with the developer over the shortfalls. I'll revert when my Lawyer gets back to me but verbally she has already told me to call their bluff. I'll let you know the outcome of my discussion later this week. Stressful times indeed.

Feb 01, 2009

Good Cyprus lawyer
by: Helen

Hi Bob

I can recommend the lawyer we used for our property purchase. Fill in the form on the Cyprus lawyer page as I can't leave his contact details on the site (too many spammers!).

Maria
I'm no expert but a friend recently told me about a case of someone who left the UK 5 years ago owing the taxman a reasonable amount of money. The UK government traced him through the Cyprus authorities and the Cyprus courts are now asking for the money owed.

That implies to me that a Cyprus bank "could" sue you for lost money and go after your UK assets/property etc even though it would take some time.

As I said you really need to get advice from a good lawyer, one that is independent from the developer.

Helen

Feb 01, 2009

Off plan property repossession
by: Anonymous

Hi Bob,

Things are still progressing so we are no further down the line. We have been told that we cant cancel our contract due to lots of other people cancelling.

I'm in the same boat as you - i really want to know what legally can be done if bank payments arent met, i dont believe they can come after your property in the UK as i've signed nothing that implies this so i'm left asking - so what? what can actually be done?

I'll let you know if i have any updates and would appreciate the same from yourself.

Thanks

Maria

Feb 01, 2009

cyprus repossession
by: bob

Hi Maria,
Did you have any progress with your situation?
I have a similar dilemma. I have an interest only loan for 5 years with remainder over the following 10 years capital plus interest. With the property nearing completion the repayments are now too high with the Euro/Pound exchange and I want to investigate having the property repossessed.
Do you know if a Cyprus bank can make a claim on a UK property.
Its also difficult to find a reputable lawyer.
Have you got any advice please or can you recommend anything.
Thanks
bob

Jan 05, 2009

Advice on property/mortgage payments
by: Paul W

Maria,

I work within Cyprus a great deal, and the best plan is to get your contract checked out by a Cypriot Lawyer, who is not the developers. He will advise you of your options, and be truthful with him about your situation, if he is good he will know how to help you.

If you signed your contract then you are bound by that contract under Cypriot law. If the developer has not completed yet then your mortgage repayments will not have been triggered, but the loan interest could be being charged on the loan (this does depend on the mortgage type).

Remember though, you are basing your situation on the current situation of exchange rate. Two things affect this 1. exchange rate , and 2. interest rates (and these are coming down) think long term as all of Europe is going through credit restrictions and rate changes. Also look for another mortgage? with a different bank?

regards

Jan 03, 2009

Thanks Helen
by: Maria

Thanks Helen for your reply.

the mortgage is in our name but the repayments dont start until completion - does this matter? We have emailed our solicitor to see what he says then will contact the developer on Monday.

Thanks again

Maria

Jan 03, 2009

Off plan property and mortgages
by: Helen

Hi Maria

So sorry to hear about your difficulties with buying an off plan property now that sterling is so weak against the euro.

I am not a property expert but I know that if you cannot afford to go ahead with the project then you are best to pull out now. I would advise the following:

1 Contact your developer to explain that you can longer afford to continue with the project due to sterling's weakness v the euro.
2 Contact the bank involved with financing your mortgage. If this was arranged via the developer all paperwork should still be in your name and you should liase with the relevant bank to cancel your mortgage application.
3 Re the deposit. Depending on the terms of your contract (you do have one don't you?) you may not forefeit your deposit as the developer has run late with the project and sterling has dropped v the euro in the meantime. In other words he is partly to blame for your current financial difficulties. It's advisable to have a good lawyer involved in contesting anything with your developer although the costs (maybe £1500+) could outweigh the value of the deposit.
4 If you bought your property via an agent contact them also. Remember that they will lose their commission on any sale that falls through so may not be overly helpful but if they want your business in the future they may be able to help.

Ultimately if you cannot afford the mortgage you simply don't take it out. Yes the developer may have borrowed money from the bank to finance the build but he is at fault for running late and putting you in this situation. Your property can only be repossessed if you take out the mortgage and then cannot afford to make the payments. If you pull out now it's the developer who has the problem.

Good luck

Helen

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Jan 03, 2009
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Submitted by: Helen

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Hi Maria So sorry to hear about your difficulties with buying an off plan property now that sterling is so weak against the euro. I am not a property expert but I know that if you cannot afford to go ahead with the project then you are best to pull out now. I would advise the following: 1 Contact your developer to explain that you can longer afford to continue with the project due to sterling's weakness v the euro. 2 Contact the bank involved with financing your mortgage. If this was arranged via the developer all paperwork should still be in your name and you should liase with the relevant bank to cancel your mortgage application. 3 Re the deposit. Depending on the terms of your contract (you do have one don't you?) you may not forefeit your deposit as the developer has run late with the project and sterling has dropped v the euro in the meantime. In other words he is partly to blame for your current financial difficulties. It's advisable to have a <a href="http://www.cyprus-travel-secrets.com/cyprus-lawyer.html">good lawyer</a> involved in contesting anything with your developer although the costs (maybe £1500+) could outweigh the value of the deposit. 4 If you bought your property via an agent contact them also. Remember that they will lose their commission on any sale that falls through so may not be overly helpful but if they want your business in the future they may be able to help. Ultimately if you cannot afford the mortgage you simply don't take it out. Yes the developer may have borrowed money from the bank to finance the build but he is at fault for running late and putting you in this situation. Your property can only be repossessed if you take out the mortgage and then cannot afford to make the payments. If you pull out now it's the developer who has the problem. Good luck Helen

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Off plan property repossession?

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