The Dream

In the early to mid-2000s, Cypriot developments and resorts were aggressively marketed to foreign investors, offering a luxurious lifestyle. Brochures and promotional materials showcased breathtaking pictures of the properties while promoting amazing amenities such as pools, beaches, grand villas, and beyond.

The promises of a Mediterranean haven, excellent weather, and a guaranteed return on investment were a win-win for buyers, or so they thought.

Then came the Swiss Franc mortgages

For many buyers, the off-plan Mediterranean homes were enough to say yes, then the Swiss Franc Mortgages arrived, which in return meant another influx of investors. Compared to the local currency, the mortgages offered significant savings thanks to the exchange rates.

Many banks and lenders pushed the product onto buyers while holding out vital information, which led to thousands of mortgages being missold.

Today’s issues

The 2008 financial crash left many developments unfinished, and now they are ghost towns which can be occupied by squatters, which is common in many European countries.

Borrowers who were tricked into borrowing through Swiss Franc mortgages find it impossible to sell, with many of them now in negative equity. This comes with huge shortfalls that must be paid regardless of whether the property is finished or not.

Those who manage to get buyers for properties struggle to complete due to the lack of title deeds which is a huge issue in Cyprus and are near to impossible to obtain, making the vicious circle a cycle.

Finding the best solution

The rise and fall of the Cypriot property development dream leaves many owners in an impossible situation. Do you stop the payments or walk away? No, you find a balance and a route that takes away this financial nightmare, which can be done by instructing EU Property Solutions.

We have been assisting clients for over a decade and have worked tirelessly with Cypriot banks to ensure the best outcome for borrowers. Whether your home is unfinished, you have squatters, or you cannot keep up with the payments, it’s important to take action before it impacts your financial security in your home country.

Now you are ready to take the first step, call our team on 0330 124 1230 or email us at [email protected] to book a free case review.