The history behind the Cypriot property crisis
If you are a UK resident with a holiday home in Cyprus, particularly if you purchased before the 2008 financial crash, you might be all too familiar with the challenges that have followed.
The property market in Cyprus saw a boom in the early 2000s, drawing many holiday homeowners and investors with promises of sunshine, sea, and lucrative returns.
However, when the bubble burst, many found and still remain entangled in a web of financial and legal complications. From negative equity to the intricacies of Swiss Franc mortgages, title deed issues, and more, the aftermath has left many feeling overwhelmed and trapped.
Here is how we at EU Property Solutions can help you navigate through these turbulent waters.
Negative equity
The Cyprus property market’s decline post-2008 has left many properties in negative equity, where the mortgage exceeds the current market value of the property. This situation can feel like a financial dead-end, but there are strategies to mitigate the impact and we at EU Property Solutions are the experts in this field.
We work closely with hundreds of clients to explore options to minimise such shortfalls that are common in Cyprus.
Our goal is to help you find a way out of this predicament, reducing your financial burden while preserving your other assets as much as possible. There are options if you are proactive.
Swiss franc mortgages
Thousands of homeowners opted for or were sold Swiss Franc mortgages under the impression they were securing lower interest rates and the supposed comfort of the ‘safe’ currency. However, with the drastic appreciation of the Swiss Franc against the £, many have seen their mortgage debt and payments skyrocket.
We at EU Property Solutions specialise in dealing with the fallout of these loans. Our team has successfully negotiated with Cypriot banks and their myriads of advisors to alleviate the financial strain these mortgages have caused, helping clients manage and minimise these overwhelming debts.
Title deeds and Cypriot land registry
The absence of proper title deeds is still one of the most persistent issues for property owners in Cyprus. Without these, selling or refinancing becomes nearly impossible. This traps owners in a cycle of uncertainty.
This, in turn, has a catastrophic impact on values as no new mortgages can be obtained to purchase such properties for potential buyers.
We have a process that works with such properties, which invariably revolve around negative equity, and we undertake complex negotiations with the banks, developers or engaging with government agencies. We aim to clarify and expedite the process for you, minimising the risk for you and your UK assets.
The difficult Cypriot legal system
Cyprus’ legal framework can be daunting, especially when dealing with property disputes or mortgage issues.
We provide legal guidance tailored to the nuances of Cypriot law, using our own appointed Barrister who is qualified for Cyprus and the UK Courts. Our joint aim is to protect your UK assets, rights and interests.
Whether it’s addressing claims from banks and their legal teams in Cyprus or the UK or dealing with property disputes, our team is well-versed in the local legal practices and the specific challenges foreign property owners face. It is the ‘Wild West’ out there, and some of the legal advice and quality of work by some firms is very poor (polite phrase). Some charge very little initially but, in turn, do every little or do it badly, creating unnecessary risk and exposure for clients.
Aggressive banks
In the wake of the financial crisis, Cypriot banks have been known to take aggressive stances to recover loans, sometimes to the detriment of UK homeowners. There is an unhealthy attitude toward many banks that we will not accept.
We stand between you and these institutions, advocating on your behalf. Our approach includes negotiating settlements, challenging aggressive recovery actions legally, and finding paths to minimise your debt exposure forgiveness.
Unregulated vulture funds
The sale of non-performing loans to so-called “vulture funds” has introduced another layer of complexity. These funds often pursue recovery with little regard for the original loan terms or the borrower’s situation.
We help negotiate with these funds, offering strategies to settle these debts or contest their claims where applicable.
These funds are unregulated and solely want to recover as much as they can and by what ever method. At EU Property Solutions, we get that and work well with such funds along with our retained Barrister.
Failing class actions
While class actions have been initiated to seek redress for mis-sold financial products like Swiss Franc mortgages, most have failed.
For our part, we evaluate your involvement in these actions or explore individual legal recourse where collective efforts have fallen short.
We aim to find amicable actionable solutions, very often with the difficult scenario of failed class actions, which would have seen substantial legal costs incurred by the Banks in defending and, in most cases, winning. As you can imagine, they will not be too pleased, but we have overcome that ‘frostiness’, bringing such issues back to commercialism.
Your next step
So, there is a lot going on in this sphere of work in Cyprus and experience of the ‘lie of the land’ is vital….and that comes from us at EU Property Solutions.
If you feel trapped by any of these issues, remember that you are not alone, and there are solutions. We specialise in turning these complex problems into manageable financial and legal solutions.
We understand the unique challenges of owning property in Cyprus and are committed to providing expert advice and strategic action plans tailored to your situation.
Do not let the dream of your Cypriot holiday home turn into a financial nightmare.
**Contact us today** for a free, no-obligation consultation.
Let us help you reclaim control over your investment, navigate the legal landscape, and secure your financial future.
**Call us now at 03301241230 or email us at [email protected]** to begin your journey towards peace of mind with your Cyprus property.