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

Comments for Off plan property repossession?

Click here to add your own comments

Sep 29, 2012
Swiss Franc Loan/ Product ''Certified Bankers''
by: Alison Mark

Bankers in order to issue a loan or product how it is called, a loan in another currency, must be certified by the Central Bank. Certified Bankers are able to consult the buyer of the loan/ product about the risks to take their decision upon evaluation of risks.

My lawyer explained to me that most of bankers who issued such loans were not certified. I will try the case in the court of law because my banker who issued my loan/ product in swiss francs was not certified by Central Bank and anyway is my last hope. If he is not certified then the Bank is in violation of the LAW. So if the contract was illegal although i admit i took these money i will ask from the court to lock the rate in the same day that i took the money. My lawyer is from larnaca vasilis constantinoullc Remind him of Alison case !

Sep 25, 2012
Stung by Cyprus Property
by: Anonymous

I am considering defaulting on a mortgage on a Cyprus property because I am now unemployed and there is just no rental market for the property to pay for itself. I have been told the property is now worth 30% of what I have paid/still owe a local bank. I have invested around Euros 110K and still owe the same. The property may be worth Euros 85K = Euros 125K out of pocket already, even if I could get a buyer)

I have been told the developer will come after me (as the bank will go after them) I think they have easily made their money out of me already, regardless of the mortgage I now hold.

I would like to negotiate and get some leverage with the developer - I now realise I should have threatened to walk away before I signed the mortgage a couple of years ago. Can anyone advise me on how to proceed with either handing the property back to the bank without being stung any further? Or how I could get the developer to share some of the loss rather than go through the hassle of chasing me abroad and trying to drag me into court/seize my assets? I am trying to find a solicitor for advice.

Aug 23, 2012
How can I contact Louise ?
by: Anonymous

Kenny,

Have you got another email address for Louise - the one you gave on Aug 24th 2011 keeps bouncing back.

Thanks.

Jun 22, 2012
jurisdiction
by: Anonymous

http://www.news.cyprus-property-buyers.com/2012/06/16/uk-jurisdiction-granted-in-high-court-ruling/id=0011772

Yes i am completely right. This action will deter a lot of banks and developers pursuing anyone in the uk. Please remember, if you are issued a writ, make sure you make it clear that you intend to defend it in the uk. Defending it in cyprus is expensive and it is unlikely that you will get a fair trial

Jun 18, 2012
Torts Law.
by: Anonymous

You are right and also wrong. Your contract will say that any dispute will be held under cypriot law in a Cypriot court but if the Cypriot court gives a judgement against you the pursuer can automatically take you to a UK court where a judgement will also be given.

Kenny.

Jun 18, 2012
walking away
by: Anonymous

TO THE PERSON WHO'S MORTGAGE PAYMENTS HAVE GONE UP FROM 440 TO 920 PER MONTH. FIRSTLY DON'T STICK YOUR HEAD IN THE SAND AS THIS WILL NOT HELP. Speak to your bank and explain your situation. they might give you a better deal. You have taken out the mortgage with the bank and if you default they will want their money back with interest. Regarding your developer. It all depends on him being solvent and if he guaranteed your load with the bank. The bank would come after you first and could possibly come after your assets in the UK. IF THEY THOUGHT THERE WAS NOTHING TO COME AFTER THEY WOULD THEN PURSUE THE DEVELOPER IF HE WAS SOLVENT. AGAIN I SUGGEST YOU SPEAK TO YOUR BANK AND EXPLAIN YOUR SITUATION. BANKS ARE NOT ALL BAD BUT MUST PROTECT THEIR CLIENTS INVESTMENTS. ALSO SEEK OUT A GOOD LAWYER.

KENNY

Jun 18, 2012
kenny
by: Anonymous

hi kenny,
Fortunately it looks like you are wrong in your following statement made several months ago. SORRY


To the gentleman who wrote on the 9th Oct regarding Torts Law. His facts are not correct as I have looked into this myself. On signing your contract with the developer and the bank it clearly states that under Jurisdictional Laws any disputes will be in a Cyprus court only. This means you can't dispute your grievences in a British court, SORRY.

Jun 17, 2012
Recent developments at the High Court
by: Anonymous

Yes this is wonderful news for everyone that's been taken for a fool by the banks, developers and dare I say it ''unscrupulous agents'' posing as qualified accountants with bogus educational qualifications namely ????????? yes you know who I mean

Jun 15, 2012
Jurisdiction
by: Anonymous

For anyone that is not aware, Highgate Hill Solicitors have been successful in its action at the High Court against a Cypriot developer and bank. This means that if a Cypriot bank/developer attempts to take action against you, you can choose to have your case heard in the UK. For more information on this please refer to “Brussels Regulation: Article 6”. This basically states that we are consumers and not investors and for that reason can only be sued in our country of residence.

Mar 04, 2012
London Legal meeting 28th April 12 noon
by: LGPAG

Are you an investor who bought a golf apartment/villa/house in the Tersefanou proposed Golf region of Larnaca.
The LGPAG are taking legal action against the developers for mis-selling these overpriced, undersized and structually poor properties, we currently have over £360,000 fighting fund and have entered litigation.

Due to the large numbers of frightened and desperate
investors we are opening our doors by holding an emergency meeting in London 12 noon on 28th April.
There will be a nominal charge of £10 per person to cover venue hire.
We will inform you of our action and you will have opportunity to talk to our legal team and committee members.
To register visit LGPAG website and complete the form.
We will be in touch!

Mar 04, 2012
torts law
by: Anonymous


To the person who replied to my comments about torts law on 3rd Nov 2011.
If you are being pursued for money owed to a bank suing the developer under torts law is a different
matter. Your mortgage loan is completely different from your contract with the developer.
Your bank lent you the money and want it back. The only legal argument you can have with the bank is if you took the loan out in Swiss francs and you weren't advised of the risks with currency fluctuation.

Taking the developers to court is a risky business as a lot of them have gone bust or about to. The costs and time would be great

Kenny.

Mar 04, 2012
taking assets from family
by: Anonymous

Comments from the person asking if banks can take assets from family members for money due by them.
The bank can't take any assets from any family member by money owed by you. Your bank will have security over your Cyprus property only,not UK assets. Only problem you would have is if you did have UK assets and transferred them to a family member to hide them knowing that the bank was coming after you in the UK with a judgement. Same laws apply in UK.

Kenny.

Mar 03, 2012
If no assets and the bank repossesses
by: alison

Can the banks then go after your family if you have no assets, such as son etc.

Nov 05, 2011
Mandres Village
by: Anonymous

Hi I'm replying to a person who asked if anyone has a place/ property at Mandres- I have, and in the same situation as most people seem to be on reading the comments on this site!

Please email me at vallyj@googlemail.com

Thanks

V

Nov 03, 2011
conned
by: Anonymous

The person who wrote on the 12th Oct about being conned into paying interest until property was finished. Many others were told the same thing but if you didn't have it in your contract you have to pay the interest. Another misleading quote by dishonest developers.

Kenny.

Nov 03, 2011
basic law
by: Anonymous

I've had this checked by a leading barrister and it is absolutely possible to enforce torts law in the uk to pursue a developer. Which law firm are u from kenny?
The contract cannot dictate the law. I suggest you do some further investigation.

Oct 14, 2011
Torts Law.
by: Kenny

To the gentleman who wrote on the 9th Oct regarding Torts Law. His facts are not correct as I have looked into this myself. On signing your contract with the developer and the bank it clearly states that under Jurisdictional Laws any disputes will be in a Cyprus court only. This means you can't dispute your grievences in a British court, SORRY.

Oct 12, 2011
Larnaca property worry
by: Ian f

I was conned into buying a 2 bed apartment in larnaca, I was told by the agent that once I paid £23000 I would pay nothing till it was built . This was in may 2008 . I was told that the apartment would be ready in Dec 2010, but as far as I'm aware it's still not complete . What I was not told was that the bank wants around £20000 in intrest because of stage payments now .
Surly this should have been explained to me and other people who bought on this project , I cannot afford to send over any money and I'm getting threatened by the bank . I'm not so much worried about my deposit but can they come after me in the uk ?

Oct 09, 2011
Action in the UK
by: Anonymous

The action against a cypriot bank or developer does not necessarily have to happen in Cyprus. Torts law means that an action for misselling can be brought against the cypriot parties in the UK.

Oct 04, 2011
Legal action mandres village
by: Anonymous

Yes lots of people have. There is a very large action against the developer by Highgate hill solicitors - several hundred people have signed up to this. If you need more info you can email david pollard - david@univac.com

Oct 04, 2011
Mandres Village Cyprus
by: Anonymous

Hi,

Has anyone bought into this development or know of anyone who has?

Aug 24, 2011
We're all in this mess. Breach of Contract
by: Anonymous

The comments below carry a lot of sense.

The only way to resolve this is in Cyprus. The contracts are in Cyprus and the breaches of your contracts have all been made there. The UK IFA's etc are not worth chasing although they could however put some of their commissions back into the pot, to litigate the bank and AP on SGH and Arcadia.

Unfortunately anybody waiting to get out of this by seeing other people take them to court and then following suit may be seriously disappointed. Each case is separate and for obvious reasons and will addressed independently by the courts. The bank and AP are also now stalling to try and finish the builds and then demand their money. Doing nothing officially legal may be considered acceptance of the situation.

The simple answer is be pro-active and put these criminals on notice of action through legal channels and attack them on your breaches. This needs disclosure and paperwork, which most individuals are having trouble getting their hands son. Lawyers are necessity.

I notice that there are some lawyers listed below. Sabre Trust/Kyprianou & Co, have been excellent for me and would recommend them.

A word of warning however, some lawyers are less scrupulous and are more interested in voicing opinions rather than sueing their kin!

Aug 08, 2011
Cyprus bank mortgages
by: Anonymous

I agree that Kenny's comments although negative I can see his point but be aware that just because a bank tells you that they have the law on their side is not necessarily legally correct,or is the case.

If you purchased and signed, on the understanding that all due dilligence had been carried out on your behalf, and this turns out not to be the case, then you are entitled to some form of legal redress. If you feel that the banks, or the legal representative / developer did not follow the correct course of action then you need to seek the assistance of a good lawyer.

Please be aware that there are many charlatans about that will promise you the earth, you need to carry out your own due dilligence here, google any legal firm that professes to be a specialist on the recovery process or you will have your fingers burnt a second time.

You cannot let the Cypriot banks / developers get away with their lies and cheating, they are now in Europe and need to be aware that corrupt practice is not acceptable in the real world, their archiac business dealings of bribes and underhand dealings need to be quashed,
Best of luck

Aug 08, 2011
debt collection
by: Anonymous

Maybe Kenny works for the banks

Aug 08, 2011
Repossession in Cyprus
by: Anonymous

Hi,

I started this post but a while ago now so we ended up completing on our property but like most others our mortgage continues to increase as it is in Swiss francs.

So we have paid the developer but now have a mortgage with the bank.

Can I ask the bank to reposses the property and just walk away? The bank has an asset to sell to cover its cost.

Would be good to know your thoughts.

thanks

Aug 08, 2011
Facts as they are
by: Kenny

Kenny here, I am not wishing to be negative but trying to give you the facts as they are. I have spent a lot of sleepless nights over the amount my mortgage has gone up through currency fluctuation and high interest charges. I have visited the bank in Cyprus personally to try to come to an arrangement with them to no avail. They weren't interested and were very rude.

I have read on Cyprus forums that the bank won't pursue in the UK, just give the keys back, hide your money in the UK, give it to your family. That's a lot of rubbish.

The bank will and are pursuing for their depts in the UK. As I previously said I have one of the best lawyers in Cyprus and one of the best lawyers in the UK trying to get me out of this mess,they have covered every angle and can't see a way out of it. We now have to wait and see how we get on in the court in Nicosia as we are defending on all the issues relating to misselling, fraudulent powers of attorney, mortgage on land by developer, dodgy lawyer, not seeing the mortgage details that was signed by the lawyer in Swiss francs and hope for the best, but not hopeful with Cyprus Justice.

In the UK we would be home and dry.

Regarding your comment about dept collection.That is not how it works. If your bank takes you to court for non payment of mortgage they will ask for a judgement against you for payment of dept which they will probably get. Once they obtain this they will then apply to the UK courts for a judgement which they will automatically get as there is no appeal. You will then be issued with the UK judgement by the courts to pay the amount due within one month. If you can't pay they can then make you bankrupt and seize all your assets.

I would advise anybody with serious problems not to bury their head in the sand. Speak to your bank and get a good Lawyer. Example Louise Zambartas lz.law@cytanet.cy she is English, has a English law degree and qualified in Cypriot law. She is excellent,has a good reputation and not frightened to take on the banks or developers plus she will tell you as it is. This is probably not what you want to hear. Kenny.

Aug 08, 2011
NEC Birmingham
by: Anonymous

Kenny,
You're experts opinion is certainly different to our barristers. Are you using Louise?

I think it will be beneficial for anyone involved in this fiasco to meet at the Birmingham NEC protest - the crowd currently meeting are extremely well informed, well organised and very well funded.

Regards

Aug 08, 2011
Negative comments
by: Anonymous

I've noticed all Kenny's comments are very negative almost to the point that we all might as well declare bankruptcy. In the UK under our credit laws we can only pay back what we can afford to pay back. Has anybody had a UK debt agency chase them for a Cypriot mortgage?

Aug 08, 2011
comments
by: Kenny

Ron, There are hundreds, maybe thousands in the same boat as you. Unfortunately you have no redress as you were not forced to use the developers lawyer or take out a mortgage in Swiss currency. As I have previously said on this forum, it was well publicized on all property programs and property magazines to get a good independent lawyer to act for you and take their advice. Unfortunately for you the laws in Cyprus differ from the laws in the UK.

To the person who has had his mortgage passed onto a dept recovery firm in the UK. This is the first I have heard of this happening so far. If you have not spoken to your bank or instructed a lawyer to defend you for misselling etc they have right on their side . You must have had plenty of warnings from your bank before they would take such action. You can't bury your head in the sand. Kenny.

Aug 07, 2011
Take positive action over Cyprus property
by: Anonymous

There is something you can do against the developer and the loan agreement. It is hard to believe that a Uk solicitor would say you cannot get out of the contract. That alone shows how the contract is loaded in the developers favour, a clear breach and one that can be proven in court. There are many such breaches, the late delivery being another very important one, the illegal drawdowns of the mortgages is another. The list goes on.

Call Sabretrust and get yourself a professional opinion with no obligation. If you want a practical and straightforward escape from your loan and sales agreements, you cannot delay any longer, once the developer has completed and you take possession, you have little recourse.

Aug 07, 2011
Me being in a real world ( of Cyprus property)
by: Anonymous

Ignorance of the facts will not stand up in court relating to title deeds,currency etc.

It was well publicised in property programs etc to get a good independent Lawyer. I reckon most people have ignored this advice. The banks have right on their side and have broken no laws in Cyprus.

In most cases powers of attorney were signed by the lawyer and purchaser and not in front of a commissioner as should be in Cyprus, but intent was there to take out a mortgage. If you were not happy you should have complained about it at the time, not years later.

We would not be on this forum if you were still getting good rentals,low interest rates and the property going up 10%+ per year. I am also a property owner in Cyprus with big problems.

I have hired the the best Cyprus and British Lawyers I can get. The advice from them is that there is no way of getting out of the mortgage as it is full proof, also the contract from the developer is full proof even though they have taken a mortgage out on the land my villa is built on.

Only chance you have is if you signed your contact after mid 2007. This was when European laws came into force in Cyprus relating to miss selling of property etc.

Kenny.

Aug 07, 2011
CCI Legal services
by: Anonymous

Has anybody else had a letter from CCI Legal services in the UK. It appears that the Cypriot bank have sold our mortgage debt to the debt recovery agency in the UK. This could be the start of something for all of us that have been ripped off by the Cypriot banks and developers. This bank guaranteed the mortage with the developer yet they have since gone bust and done a runner. Why can they change the rules in the contract and what grounds do the UK debt recovery agency have against me?

Aug 07, 2011
Bought in St George Hills
by: Anonymous

Like hundreds of other people I bought in Cyprus at St. George Hills. I have spoken to a few people aswell in Arcadia Gardens and other developments aswell and the story is the same:-

Money drawn down way above the build progress. Swiss Franc Mortgages, questionable bank and developer paperwork, possible double developer loans and phone calls from the developer wanting more money. Not to mention no responses to questions and agents who have gone under or who have disappeared.

If there is anybody out there who still hasn't done anything about this, then sometime next year these complexes may well get finished, be 25% occupied, with communcal facilities not supported and ridiculously high mortgages.

Fortunately I have found a good lawyer in Cyprus(at last)and things are moving ahead well: (Sabretrust.

Do something now, not when its too late!

Aug 07, 2011
mortgage con
by: ron3663

I'm in a similar position ,my mortgage has risen from £850 to £1690 a month and I obviously can't afford to pay .But whats becoming clear is. I was missold this mortgage. By Leptos , I was advised to use the developers solicitors. I thought that was odd . Normaly you would have your own. I was not given a choice of banks. to borrow from .again very odd. WHY. And advised to take out a Swiss mortgage . Whithout proper explanation of the pros and cons . Now its looking decidedly dodgy . Anyone know anything about this practice of selling Swiss mortgages . Ron Richardson

Aug 04, 2011
NEC Protest
by: Anonymous

Here is a link to a demonstration which will be held against the Cypriot property developers/sales people outside the NEC in Birmingham on 1st OCT. The more people from different developments, the better. We need to raise publicity!!!

http://www.facebook.com/#!/event.php?eid=250816074932052

Aug 03, 2011
NEC CYprus Property Protest
by: Anonymous

Kenny, I think you perhaps need to get in the real world. The banks have given mortgages on these properties, whilst knowing that purchasers would not receive their title deeds. Banks have also sold Swiss Franc mortgages to investors without explaining what these are ? some didn?t even realise they had mortgages in Swiss Francs. The banks and developers have both colluded in a way to maximise their potential profits and screw investors as much as possible. POAs have been incorrectly executed and I have heard of cases where drawdowns have been taken on the back of forged documents and emails.
I really think the banks have a lot to answer for and the only reason that this mess is still continuing is because it is allowed to by the government and police.

I hope everyone joins in the demonstration held and the NEC in October

Aug 03, 2011
Kenny comments
by: Anonymous

Kenny is not addressing apartments that have been sold due to misselling and were overpriced regarding the proposed golf course of which an action group is taking a legal fight to Cyprus courts next week.

Aug 03, 2011
Cyprus off plan properties
by: Kenny

I think everybody should get into the real world. If you have taken a mortgage out on a property you are due the money to the bank, whatever your developer has done.

The only reason you want to default now is due to the recession. If we were in the same situation that we were in three years ago you wouldn't be thinking about defaulting. Why should the banks' investers take a hit on your bad debt?

My advise is to speak to your bank and get a good Lawyer.

Also don't believe the banks can't pursue you in the UK. They can and they are.
The banks in Cyprus can make you bankrupt in the UK afer getting a judgement against you in Cyprus, then getting one in the UK. I don't want to be a doom monger but these are the facts.



Aug 02, 2011
Birmingham protest against Cyprus property sales
by: Anonymous

Hi everyone there is a massive property fair held in Birmingham this Oct ( NEC) where many investors are planning a massive protest to warn people about the dangers of Cypriot Banks, Lawyers, developers etc. Mainly buyers from Alpha Panareti in Paphos , why not join them ? They have a video on You Tube - look for Alpha Panareti. Or Facebook.

May 24, 2011
Cyprus property mess
by: Anonymous

Has anyone any news on Cyprus and the mess from off plan properties?

Mar 24, 2011
Help for Cyprus property investors
by: larnaca golf property action

we are a growing group of UK property developers who have lost money in The proposed Larnaca Golf project.
If you are in this situation visit our website, we are taking legal group action against the developers
we are holding a meeting in London soon
visit www.larnacagolfinfo and register we will contact you.

Mar 17, 2011
cash
by: Anonymous

If you sold everything and went into cash the banks wouldn't be able to get a penny back - you could just say you lost several 100k on the horses.
My advice is to get a good lawyer in Cyprus and stop the banks in their tracks. You should act first as this will slow the whole process down - the banks and developers will have made a mistake in the sales process. The important thing is to get a good lawyer - this will take time to find - also make sure they speak greek and are hard nosed litigation lawyers.

Writing to the developer and the bank letters saying you cannot afford payments will not send the matter away.

Hope this helps

Mar 17, 2011
FNG real estate
by: Anonymous

Has anyone noticed that all FNG real estate websites have been removed and all the celebrity endorsements have also disappeared,
Watch this space

Feb 23, 2011
Good sound advice
by: Anonymous

Your comments are completely wrong. If you try and get rid of assets before the banks come after you they will legally be able to take them back through the courts the same as if you were in dept to British banks with depts in UK.
The banks are making examples of people in arrears and will come after you even though you tell them you have no assets In UK for exactly the reasons that you are telling people to do. Get rid of assets.
The banks won't let you walk away as it will open the flood gates to others who will think they can just hand back the keys and run.

A few years ago the banks wouldn't come after you as they would probably get more for your property than the amount of the mortgage. Not now as you will be lucky to get half what you paid for it. The banks will be looking for the balance and they are pursuing people in the UK and don't believe. otherwise.
Speak to your bank and get a good Lawyer. Don't bury your head in the sand.

Kenny.

Feb 23, 2011
Trouble in Cyprus
by: Jb's

Hi,
Is there anyone out there who bought an apartment inthe Larnaca region based on the golf course been built and are in trouble I know there are alot of you out there.I may have a solution I'm a buyer myself phone 07905793039

Feb 16, 2011
Repossesion
by: Mr C

If the bank are aware you may have little assets left to pursue in the UK then chances are the cost is not worth it to them.

If you have assets of any solid value then consider acting now to protect them if you believe they will come after you. Consider asset protection by various means (web search).

If the bank think you are not worth chasing and you have no chance of paying the mortgage then consider reaching an agreement to co-operate on repossession. It can be done and the courts can issue an order within 6 months if both parties consent (backlogs accepted in the court system).

Feb 11, 2011
Latest Update
by: Anonymous

Hi Sharon

Can you update us on your situation. Have you still not heard anything from the Bank?

Feb 04, 2011
Don't rush into anything over property problems in Cyprus
by: Anonymous

There are 1000s like you and a lot of legal schemes starting to become available. A good place to start might be highgate hill solicitors. They are currently acting for me and are excellent. I have tried a few other legal firms but i really don't think any of these come close.



Feb 04, 2011
good advice
by: Anonymous

Sorry I don't have a magic wand. You can't set up a Ltd Co in Cyprus as the loan is with you not a Ltd Co. No bank especially now would lend money to a Ltd Co. My advice is speak to your bank and get a good Lawyer who is not in the banks pocket,Don't bury your head in the sand. AN IVF IS only an option if 75% of your debt is held by at least three firms and they must all agree to it.
The banks can come after you in the UK. They will get a judgement against you in Cyprus for the money due and could then take another judgement out against you in the UK if they don't get all their money after the sale of your property at auction. Only bit of comfort I can give you is that the bank might not come after you for such a small amount. Also you are one of thousands in the same boat.

Kenny,

Feb 04, 2011
HELP over Cyprus property
by: Anonymous

Hi David, I am in a similar situation. I have not yet signed the delivery form but mortgage payments have begun and i cannot afford them. I am terrified of being made bankrupt in the uk. I am under pressure to take delivery of the property, but unsure if this is wise? I am unsure if the the bank will only go after developers if i do not take delivery, for the shortfall if property is repossessed?? However by contract with the developers states if i dont sign within one month it will assume i have signed. The majority of the loan has been drawn down to the developers, there is one final payment due to developers when i take delivery. Have you found any info or does anyone have any advice on how i should proceed? Thanks, Coral

Jan 30, 2011
Cliffside apartments Nr Larnaca
by: David

I bought 2 bed property from Lividihotis developers Larnaca off plan which is now worth £45.000 less than I paid for it.
The £38,000 deposit I paid leaves a mortgage of £140,000 at £650 per month which I can't pay.
It was supposed to be flipped but golf course not built!
What can I do?
Could I set up company in Cyprus and go bankrupt or would they chase me in UK?
I'm getting ill with worry!
Should I offer half this per month until its price rises!? hopefully
or is it good money after bad?
Or should I crank up debts in UK and go into IVA

Jan 13, 2011
Media attention for property scams in Cyprus
by: BB.

Hi Everyone.

It seems we have all been led up the garden path, surely the next step is to go to the media and draw attention to these Gangsters.

Jan 01, 2011
Privillage Palms
by: Anonymous

Hi,
Call me on 07584632976

Dec 22, 2010
Privillage Palms
by: Anonymous

Please could someone give me the email address of the privillage palms action group.I need advice.
Thanx.

Dec 06, 2010
FNG PRIVILLAGE PALMS
by: Anonymous

Hi everyone,
My comments earlier in the year re: FNG Privillage Palms seem to have stoked the fires of a lot of dis-gruntled purchasers.

I know of, and speak / communicate with the action group on a regular basis as I have been with the core from day one. Let me point out that I have been down the road of dealing first of all with DLA who put me in touch with another high profile team of Cypriot lawyers, what everyone needs to understand is that the island (CYPRUS)is a small community, to get a Cypriot lawyer to bite the hand that feeds it, ie, the Bank, is wishful thinking.

My feelings are that you risk being milked dry by these long winded parasites, and before you know it, your 3 year window of taking legal action / advice, will be no longer available, and, unfortunately you will be easy pickings for the banks.

You need to speak to the action group and ask them who the alternative legal team are that are pursuing the wrong doers in all of this. The deals that were set up to purchase these properties were totally illegal, they are so flawed it would be crazy not to pursue.
The team I'm using (UK legal consultant and Barrister) have already had a meeting with the Laiki Bank, they are due back for a further meeting in the new year.

Make no mistake, the bank will threaten you with legal action as the bank stand to lose a lot of money if it all goes pear shaped for them, in fact they told my representatives at their meeting that they will sue me; as a consequence of this, my team have told LAIKI BANK that we are counter suing, hence the follow on meeting.

Make no mistake they do not like the thought of a potential victim having legal representation, in particular, one from the UK that is willing to travel over to their office in Limassol and take them on at their own game.
Act sooner rather than later, the clock is ticking,
Good luck

Dec 05, 2010
Cyprus banks will pursue you over property default
by: Anonymous

I have not heard or seen anything on the forums about anyone being pursued and made bankrupt in the UK. But I can assure you they can and will.

In my case the bank have served a summons to take the property back and sell it at auction. They can then come after me for the balance which will be a lot.

I have taken advice from two top lawyers . What the bank can do after selling the property and making a loss is take a judgement out against me in Cyprus; once they get that they can take a judgement out against me in the UK and can have my assets frozen .If my assets don't cover the loan they could then make me bankrupt. Only then will they go after the developer who has a guarantee on the loan to the bank. kenny

Dec 05, 2010
Cyprus Defaults
by: Anonymous

The Orams case was completely different. They were pursued by a Greek Cypriot over land which their villa was built on in northern cyprus which they knew the consequences if it happened and the Orams appealed to a UK court and still lost.

But I am not aware of anybody being pursued in the UK yet but I can imagine over the next year this will change .

Dec 05, 2010
Cyprus property repossession
by: Anonymous

Kenny,

Do you know of anyone that has been pursued in the UK by a Cypriot bank? I spoke to the British embassay about this a while ago and they weren't aware of a case. I know of the Orhams case and I know that a lot of people are getting threats.

Thanks

Dec 05, 2010
Advice
by: Anonymous

Maria,

Have you paid the developer through draw down from your bank. If you have you will have a mortgage with the bank which means you will have paid the developer 80% of the property.
The bank will only go after the developer if you don't have assets to pay them.
Advice. Don't pay final 5% or sign any documents. If you have given your Cyprus Lawyer power of attorney, change Lawyer and get a new Lawyer who is working for Brits and would give you good advice on how to proceed.
Don't believe the stories about banks not chasing Brits in the UK. They didn't in the good years as they got the money back by selling the property but not now as property is so hard to sell.

Kenny.

Dec 05, 2010
Repossession
by: Anonymous

They will need to take a judgement out on you in Cyprus to reposess the property - this will take years. At the same time they will use tactics to scare you, such as saying they will pursue you in the UK - so far this has not happened. If I were you I would get legal advice from a UK/Cypriot lawye.

Dec 04, 2010
Repossessions
by: Anonymous

The person who wrote "They will come after you" is correct, I know that for a fact.
A local Cyprus company is organising court action against one of the banks on behalf of about 30 customers.
Oh and this 12 years to repossess is WRONG, it's now about 2 to 3 years and only if you are Cypriot.

Good Luck All

Dec 04, 2010
Repossessions
by: Anonymous

The bank may be able to repossess your property in Cyprus, but they will have to come over to the UK with a strong case to repossess your property.

As the EU law of encumbered land, which most developers have mortgaged land in Cyprus which off- plan properties sit on is a case of misselling, it could take a few years of appeals and expense to get back what the bank is seeking, if ever.

Dec 04, 2010
Cyprus repossessions
by: Anonymous

I have read all your comments. I think most of you are living in hope.
The banks are repossessing properties. They will repossess, sell your property and come after you through a judgement in Cyprus for the balance .If you can't pay, they will then serve a judgement on you in the UK and have your assets frozen and sold off. That's a fact as it is happening to me.

Dec 04, 2010
Alpha Bank repossessions
by: Anonymous

I have a property in Cyprus . Through redundancy ,interest rates going up, currency between Swiss Francs and Euro, I couldn't pay my mortgage. Although trying to pay some of it over the last year Alpha bank has served a summons to appear in court to repossess the property and sue me for the balance through a court judgement then do the same in the UK. This is after one year. The banks are now taking strong action.

Nov 11, 2010
Mortgage Arrears
by: Anonymous

Hi Dave-I have heard it can take upto 12 years to repossess a property in Cyprus, maybe this is why the bank does not want go down this route.

Nov 11, 2010
Cyprus property nightmare
by: Anonymous

Hi Dan-We are in the same boat covering an interest only mortgage and have not completed because it is on a building site. What's your reason for it not being complete?

Nov 10, 2010
Good lawyer to help with Cyprus property issues
by: Anonymous

I did respond to the post yesterday recommending Dr Kathy of Highgate hill solicitors - I found her very good and the benefit is she practices law in both Cyprus and the UK

Tessa Giles

Nov 09, 2010
Dr Kathy at Highgate hill solicitiors is excellent
by: Anonymous

I would suggest you contact Dr Kathy of Highgate hill solicitors. She practices greek and uk law, she is absolutely amazing! She works from late morning to midnight 7 days a week.

Nov 07, 2010
Same Boat
by: Dan

Hi Tracey

I'm afraid we're in the same boat. very stressful indeed. We've tried cyprus lawyers and they are very slow and communication is extremely frustrating.

We've still not completed (nearly 2 years on and currently paying an interest only mortgage on a property we dont have) due to the property being delivered 7 months late and we're trying to cancel the contract but not really happy having to use a cyprus lawyer. if you do find a UK Solicitor could you post who as i've had no luck searching for one.

If anyone has any advice on cancelling a contract please let me know.

Thanks,
Dan

Nov 06, 2010
Cant pay Cyprus mortgage!
by: Tracey

I'm in the same boat, purchased a property 3 years ago and can no longer afford the mortgage. The interest is £400 per month and the mortgage is £700!!!
Does any one know of a really good UK based solicitor with Cypriot law knowledge? We are based in Berkshire.
Very Stressful times!!!!!

Nov 05, 2010
To Sharon
by: Anonymous

Can you tell me who the Bank are that you have owed for years? FNG Privillage Palms at Frenaros is Laiki Bank who's behaviour in lack of duty of care appears disgraceful.In the UK, the regulators would have been all over them, but this is unregulated Cyprus!!

Nov 05, 2010
FNG Privillage Palms
by: Anonymous

The purchaser at above who posted in July 2010. Are you still on this thread? Are you part of the action group now formed that will meet later this month?

Oct 15, 2010
Reposession on property in Cyprus
by: Dave

We have/had a villa in Peyia , but have not been able to pay the mortgage for the last 6 months. We have only just heard from the bank via email telling us we had some arrears , and offering to put it on the end of the mortage ; it seems a pointless thing to do as we can't pay the mortgage any longer, we are wondering what happens next?

does anyone know ?


Aug 12, 2010
Repossesion
by: Linda

Hi Everybody
Can anyone please help me I am in such a mess I have a cypriot mortgage of 650 pounds a month I cannot afford ,the apartment is complete but the development is not. The developer has drawn down all the mortgage and I refuse to pay the final payment so I am in limbo with no title deeds ,cannot go in the apartment because developer has keys and wants final payment , I am at a loss, can I just walk away with no implications? any advice would be greatly appreciated.

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!!!

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

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Ask CTS.