Posts Tagged ‘Cyprus’
Welcome to our latest blog! Today we’re focusing on our recent trip to Larnaca in Cyprus.
Are you one of the unfortunate souls who prior to 2008 took out a Swiss Franc or interest-only mortgage to purchase your dream holiday home in Larnaca, Cyprus?
If you can resonate with the above, you are not alone.
There are countless others in your situation, still struggling to pay off their mortgages abroad on their foreign homes. You see, a lot of these types of mortgages were created pre-2008, while the market was still booming.
The banks thought this ‘moneygoround’ would never stop. Oh, how wrong they were!
Cyprus’s entry into the EU caused a lot of problems for Cypriot banks as they were overexposed to:
- Greek government debt.
- Local property companies.
- Overleveraged property ventures.
As Cyprus is such a small country, they were taken advantage of in every way possible leading to some pretty unethical banking practices, with many clients became burdened with these terribly designed mortgages. This meant that the Cypriot economy plummeted to levels that it STILL has not shown any significant recovery from.
At EU Property Solutions we have spent well over a decade now helping people like you pick up the pieces from the fallout of the 2008 crisis. As part of our fight against the big banks, we went over to Larnaca, Cyprus to take a look at some of the developments there.
During our time in Cyprus, we checked out developments such as:
- Golden Hills
- Pelagos Breeze
- Paramount Gardens
- Regal Gardens
You can see some pictures from our trip below.
If you have any unwanted property in these developments please get in touch! Thanks to our close relationships with many European banks, EU Property Solutions are well equipped to offer guidance and support to you during this difficult time. Just check out some of our client testimonials on our YouTube channel for some of our success stories.
For more information on our background and how we operate you can download our free e-book here. You can also check out our blog, which we frequently update with the latest news related to the EU property market.
This blog focuses on our recent trip to Paphos, Cyprus.
The year is 2021, well over 10 years since many of you reading this would have bought a holiday home in Cyprus.
Who would have thought that we would still be picking up the pieces from the 2008 recession? Who would have thought that we would be about to head into yet another global financial crisis in 2021?
(Thanks a bunch COVID-19!) So who in their right mind would have thought that such poor-quality loans designed to mislead the consumer could have had such long-lasting implications?
As part of our efforts to hold the banks accountable for their role in the 2008 foreign property crisis, we recently went on a trip to Paphos, Cyprus to take a look at some of the developments there.
During our visit, we paid a visit to:
- Aphrodite Hills
- Thalassa View Gardens
- Coral Bay
You can check out the photos from our trip below.
If you are having a hard time trying to sell your property or pay off your foreign mortgage at Aphrodite Hills or Thalassa View Gardens please get in touch.
Many ex-pats in your position have tried to hold the banks accountable for this disaster. However, they haven’t had much luck. Unfortunately, Cypriot courts don’t seem to have too much sympathy.
Luckily for you, EU Property Solutions has regular contact with banks across Europe and has built strong relationships over the years.
This means that we are in a strong position to assist you in resolving these issues. Believe it or not, those working at the banks are people too. In many cases, they are happy to listen to reason.
We have helped hundreds of people in your position, you can take a look at our YouTube channel to hear testimonials from many of our satisfied clients.
For more information on our background and how we operate, you can download our free e-book here. You can also check out our blog, which we frequently update with the latest news related to the EU property market.
Together we can hold the big banks accountable.
We hosted a webinar back in July in respect of Interest-Only mortgages. We have had quite a bit of interest in this very niche subject. It is becoming more and more relevant as time goes on. Click here to watch it on demand!
We have seen and helped hundreds of clients who had taken out Interest-Only loans who are now paying the hefty price.
This type of mis-sold mortgage issue is something that we’re seeing with our clients. They come to us after realising their 15-year interest-only term is coming to an end. We had a recent client who found out that his monthly repayments would go from €250pm to €2,150pm; an extremely high spike in payments that would very quickly become unfeasible
In this Webinar; our Chairman, Terry goes through a few examples of what we have seen and the successes we have achieved for our clients. He talks about interest-only mortgages particularly in Spain but also discussed Europe as a whole.
EU Property Solutions, with our legal team, have the Bank’s gripped. But when it comes to loan sales, they are very often sold to vulture funds. They are different animals completely and these situations are becoming more prevalent. Last month a Spanish bank even sold a performing loan book. Everything was up to speed and good, but they still sold it on so be careful with that backdrop.
Undoubtedly, many people were mis-sold properties, however, it’s very difficult to win that argument or that war. There is one bank in Spain that has sold a lot of these interest-only mortgages but there are other banks involved too. If people try to do direct approaches with the Bank it very rarely works out, therefore we respectfully suggest that you don’t. In this webinar, Terry goes through why you shouldn’t do that and how we can attack the problem for you.
If your Interest-Only period is coming to the end of its term and you want to explore your options, contact EU Property Solutions today and we can help you.
?: 0330 124 1230
Michael is a previous Cypriot Client of EU Property Solutions that we reached a very successful settlement for. He featured as a guest on our latest webinar ‘Cypriot Mortgage Issues: Downward Spiral’ where he answered some questions regarding the issues he was facing with his property in Cyprus and his life now without the burden of foreign property debt.
Welcome Michael & thanks for joining us today, tell me a little bit about your Cypriot property experience and when did you know it was time to seek help?
I purchased my property in 2005 and from day one I saw the Developers and the Bank in a different light. Despite much communication between all stakeholders, it became clear there was no future with the property. After constant re-mortgaging, involvement with communities that were all in the same boat, and taking advice from Barristers; we knew there was no light at the end of the tunnel. It wasn’t until my wife came across EU Property Solutions and we engaged with you that the rest became history.
Did you find contacting the Developers & the Bank difficult?
They did play ball to start with but as soon as money had changed hands, we were treated like second-class citizens with regards to any plans or attempts to try and improve the situation. We found that the Bank was very rude, ignorant and they pushed us to the limit. The developers shrugged their shoulders and said, “You decided to buy in Cyprus, it’s your problem.” It was a problem, a big problem but the Bank and the Developers didn’t seem to care too much.
At that time, where you living out in Cyprus or traveling to and from the UK?
I was working and living in my property in Cyprus from 2005- 2010. These problems didn’t come to a head until we left the property. We moved back to the UK in 2013 with my job. We were grateful to have had the delight of living in our property in Cyprus and then renting the property out. But when we came back to the UK in 2013, that’s when things really took their toll.
After reaching out to EU Property Solutions, what was it about our company that made you and your wife feel like this is the route that you wanted to go down?
Right from the start really, I had an initial telephone call with a really nice chap who made us feel at ease. There was no pressure or sales pitch. He allowed us and permitted us to contact other people who were successful with EU Property Solutions. We thought are we going to be scammed again by another company because everyone we have dealt with previously just wanted to take our money with no interest in what we wanted to achieve. From day one we felt at ease with EU Property Solutions and the staffing, the staff work and the communication between EU property Solutions and ourselves was enough for us to commit to them looking after our case.
That’s a very interesting point you made about feeling like you were going to be scammed. At EU Property Solutions, that is a huge barrier that we come across with our clients because one of the main reasons that our clients are in their situation is because they have been wronged from the very beginning. So that is why we always try to put them in the right direction by speaking with our other clients who we have reached a settlement for who were in the same situation as yourself. Did you avail of that service?
Yes absolutely, I spoke to a couple of Spanish clients that you had in very similar situations. I hope I can be of value to anybody now, being an owner who invested in Cyprus and having gone through the process, I am more than happy to help anybody else in the same situation as ourselves.
In terms of your journey with us, after appointing our services, did you feel like our team was helpful?
Yes, my case manager was really on the ball. The biggest thing for me was being able to pass my problems on to her. I didn’t want to communicate with the Developers or the Bank while I was going through this process. EU Property Solutions took full ownership of my problems for the whole period while fighting my case. One of the big thing I found, was having the opportunity to forget about all the issues that were surrounding; knowing that it was being managed in good hands.
A lot of people think that even though they appoint our services, they think that they have to be in correspondence with the lender and the developer, but that all stops when you come on with us. It takes you away from that situation and our legal team deal with it. Once you knew we achieved a settlement, how did you and your family feel?
It was a bittersweet feeling for my wife and I. We invested a lot of money into the property, and we were gutted it went down the drain. But we have now got no more trouble and a heavyweight has been lifted off our shoulders. We can move on forward with our lives and not feel threatened by Cypriot authorities. It was a Bittersweet feeling but a huge moment of celebration!
What would you say to people who have found themselves in a similar situation to what you experienced?
I would say across the board, it doesn’t matter who you are whether you are a serious investor in properties; there are people who fall foul to the Cypriot Scam. Hold your head up high, there is light at the end of the tunnel. It doesn’t matter how much debt you are in or how many properties you have; if you want to get out of it there is help available.
Chat to a member of our team today. Our initial consultations are free and we can quickly help clients with Cypriot property debt.
You can watch the full video interview here: https://youtu.be/RCr7irb-hIU?t=823
0044 330 124 1230
There are more than a few issues with the way property development and sales are handled in Cyprus. This was most prominent in the lead up to and aftermath of 2008. One of the biggest issues has been the fiasco surrounding Title Deeds for Cypriot holiday properties or should we say – the lack of…
So, what are the issues with Title Deeds in Cyprus? Read on to find out more.
What are Title Deeds and why do you need them?
Officially known as a “Certificate of Registration of Immovable Property” this is an official document that shows property ownership. It also contains details about its location, size and more.
They are particularly important when it comes to the sale of property, as they are needed to transfer ownership to any buyer.
When the problems arise…
In Cyprus, the developer, central government departments, and local government/councils are all involved in the process of issuing Title Deeds. Many developers did not correctly divide up the plots of land when they were building apartment developments. Therefore, they could not provide individual separate Title Deeds for purchasers.
If you were not issued Title Deeds, it can be an incredibly frustrating process, especially if you’re trying to find information regarding your property
Selling without Title Deeds
A lack of Title Deeds in Cyprus is not a major issue if you are happy to keep your property. The real problems arise if you’re trying to sell or if you’re property is in negative equity and you want to get rid.
Without Title Deeds, you will need to find a cash buyer to purchase your property. This makes a sale much more difficult and means you may have to sell for a lower price. This is not ideal if your property is already low in value.
There can be any number of issues if the property is in negative equity, has an interest-only mortgage or has Swiss Franc currency issues. If you fall into one of these categories, you could be ‘trapped’, unable to sell and unable to keep paying for your property.
Can you obtain Title Deeds?
If you have dealt with the Cypriot government or local councils you will be familiar with the frustration and red tape involved. As a result, many people will not be able to secure Title Deeds, especially for properties purchased pre-2008. In fact, there are still over 100,000 people in Cyprus are still without deeds.
Our team has to deal with the fact that many developers have now ceased to trade and are not contactable. This means the likelihood of ever obtaining complete Title Deeds is poor at best.
How can we help?
EU Property Solutions can help clients without Title Deeds in Cyprus. We have assisted with Swiss Franc issues, Negative Equity and interest-only mortgages.
EU Property Solutions and our Cypriot legal team understand how lenders work and their processes to resolve these property issues and settle mortgage debts. We aim to avoid sales procedures and assist borrowers with alleviating their Cypriot property debt burdens.
If you own a property in Cyprus and you’re experiencing any of the issues discussed above, call EU Property Solutions now on 0044 330 124 1230 to speak to one of our specialists.
Below is a settlement that EU Property Solution recently achieved for a client who thought they would never escape their nightmare because they couldn’t get their Title Deeds.
- A couple approached EU Property Solutions after struggling for years with their holiday home in Mazatos, Larnaca.
- They owned a 3-bedroom Townhouse, with no Title Deeds.
- Their outstanding mortgage at the time of our appointment was SwFr399,000 equating to £313,000 (Sterling).
- The property was worth €70,000.
- EU Property Solutions negotiated the successful settlement of the mortgage account.
- Including our fees and settlement with their developer, the clients saved over £200,000 and most importantly protected their UK assets.
Not convinced? We have UK clients who purchased in Cyprus who are willing to speak to you regarding their experience with EU Property Solutions. Call us today to arrange a chat.
Welcome to Part Two of our four-part Blog Series featuring the impending Loan Sales that are occurring with European Banks.
This series of blogs shares our knowledge and keeps our readers up to speed with the fast-developing market that covers foreign mortgages. This blog answers the question of ‘Why do banks sell on loan books?’ As Covid-19 restrictions ease, and life begins to resume, Banks are starting to face their issues. What they are faced with are a number of different aspects that are driving them to undertake loan sales which typically, they sell to what are called vulture funds.
The main points as to why Banks are selling these loans are:
1.) They are getting a lot of pressure from their Central Banks, such as the Bank of Spain, which is directing them as to how they must conduct themselves.
2.) There is still a lot of legacy debt left over from the 2008 Financial Crash which needs to be recovered.
3.) The banks want to free up funds on capital because very often this is not the best debt they can carry on their books, which in turn helps them tidy up their balance sheets and they can also get on with what they are supposed to do which is be a bank in their own country for their own people.
EU Property Solutions have seen a huge increase in enquiries from people who are sent threatening letters from foreign banks. We advise those in this situation to take action immediately, especially if there is a negative equity property involved.
Banks don’t give notice as to when they are looking at a loan sale. They can be brutal in their attack and they are far more aggressive in their approach. If they are going to come after you – they will come after you; they will look to get their pound of flesh.
Vulture Funds are a completely different animal therefore they have a completely different agenda, they are far more aggressive in their approach.
Furthermore, if you have contemplated resolving a Negative Equity issue, wherever it may be; then get in contact with our specialist team via the methods below:
Keep an eye out for Part 2 of our Loan Sales Blog Series to find out more!
Spanish Property Repossession is an incredibly slow process but once the Banks start the process, it becomes unrelenting.
The Spanish Courts are awash with Property issues including Repossession and Deposit Reclaim hearings and the Actions can take years. Nonetheless, if you are in arrears with mortgage payments – your property can and will ultimately be repossessed. The costs involved in such Bank Actions, for which you will be responsible can be horrendous.
EU Property Solutions encourage borrowers to engage with lenders through a third party before repossession occurs, as this is when the best results can be achieved for borrowers and the lender. Nonetheless, should Spanish Property Repossession occur or have already happened we can help. See our case study below.
This brief blog sees us share what we are seeing in the subject of Spanish Property Repossessions, most notably:
- UK Debt Collection Agencies (DCA’s) are being used frequently and are becoming more prominent in their approach.
- Most borrowers with a Spanish property issue have an asset position in the UK, e.g. home and investments. These will be at risk if the DCA and/or look to enforce the debt owed.
- Many Banks currently looking to secure Orders Charging Land on clients’ UK assets to secure their debt position.
- Vulture Funds are increasingly buying non-performing loans from Spanish Banks. These funds want full repayment and are extremely aggressive in their approach. They are far more efficient in debt collection than Spanish Banks using Insolvency action against borrowers. THIS IS AN INCREASINGLY WORRYING TREND HERE.
If repossession has occurred and you are being pursued for outstanding debt, it is essential to act now and to engage with the relevant collection agent.
EU Property Solutions understand how collection agents work and how Banks operate, working with them on a daily basis.
A recent example of a Spanish Property Repossession case, EU Property Solutions settled with a core Spanish lender saw:
- Our client owned a property in Estepona, Costa Del Sol.
- Following a period of financial difficulty, our client fell behind on her mortgage payments.
- Our clients’ property was repossessed and she received a letter from a UK Solicitors firm acting on behalf of the Spanish lender. They requested a full repayment of the £90,000 shortfall debt.
- The clients’ non-engagement with the Bank saw costs rise considerably. The Bank ultimately secured a Charge on her UK home.
- EU Property Solutions were appointed and within 6 months achieved a settlement. We achieved the settlement for £18,000 including; costs on a Full and Final Basis and the charge removed from her home.
- The home is now safe and savings of c£72,000 achieved.
If your Spanish Property is subject to repossession or has been repossessed, call EU Property Solutions, it’s not too late – but make sure you call us today.
Phone: +44 330 124 1230
Email: [email protected]
We are the ONLY dedicated advisors who cover this subject in this way and with our confidence and knowledge, we felt compelled to write this short book for borrowers out there who are struggling with a foreign mortgage. Click here to read the full eBook!
It could be believed that 2005 – 2008 was a prosperous and positive time; with the Economic Boom and thousands of Brits and Irish, finally being able to afford the dream purchase of a ‘luxury’ holiday home in places like Spain or Cyprus.
At EU Property Solutions we see this experience in a different way. It was a time where the ‘buying frenzy’ was encouraged by duplicitous bankers, promoters, and developers.
For buyers, funds were easy to access both at home and abroad; non-status mortgages were two a penny, and credit checks didn’t even factor into the equation. With little to no barriers stopping the purchase of ‘too good to be true places’; it was only a matter of time before the foundations of this property boom literally crumbled underneath us all.
It was no wonder that in the autumn of 2008 when the world stopped turning and the financial crisis hit. These properties built on financial sand in the years before, suddenly sank quickly into Negative Equity; leaving people stuck with unwanted debt.
Countries including Cyprus and Spain were savagely hit as the whole banking industry was shored up by their State Banks. The collapse of the financial sector, and many of its long-established institutions, started a domino effect, leaving those at the end of the chain the main losers.
Those who dared to live the holiday home dream have now, unfortunately, become victims of the Economic Boom. Their once refreshing holiday cocktail soon left a bitter lingering aftertaste that is still being paying for to this day.
If the above sounds familiar and you have found yourself stuck with a Foreign Property in Negative Equity, our specialist team are here to take your call today!
We have published our first ever eBook ‘Foreign Property Mortgage Nightmare – 2006+ and all that..’
This book is not looking in any way to compound the pain of foreign property debt or ‘rub it in,’ but it seeks to explain the works that we undertake and what we have learned over the past ten years in this field.
Welcome to Part One of our four-part Blog Series featuring the impending Loan Sales that are happening with European Banks.
As we come out of the third lockdown, the banks are having to start facing issues in the real world.
What they are doing straight away (especially in Spain) is two things:
- Consolidating and merging. La Caixa and Bankia have now merged and,
- There is also the ongoing saga of BBVA and Sabadell who are contemplating merging.
What is more worrying is that across Europe, (including Cyprus) Loan Sales are impending. Banks are looking to avoid what they call delinquent or troublesome debt and anything that is hard work for them. Selling these debts off at a discount to what are called ‘Vulture Funds’
EU Property Solutions implore that people to try and keep control when there even a sniff of this because dealing with people that buy the loans are Vulture Funds, who are a lot stronger than banks.
They are very good on a cross-jurisdictional basis and with litigation. They want their pound of flesh and they are not going to wait forever! Vulture Funds are short-term investors seeking recovery on their funds and they are pretty brutal in their attack.
That said EU Property Solutions have dealt with a number of Loan Sales situations when vulture funds are involved.
So, we advise you against waiting for this to happen and to take action today!
Keep an eye out for Part 2 of our Loan Sales Blog Series to find out more!
A frequently asked question that we’ve been receiving recently has been “My Foreign Loan has been sold – Help!”
As we come out of Covid-19, Banks worldwide are looking to tidy up their acts. This usually takes the form of:
- Writing off bad or delinquent debt,
- Pressurising those struggling to maintain payments, and
- The worst of all – selling their loans to Vulture Funds.
When Banks start to struggle, they look to take the pain of quickly writing off what they see as ‘bad debts’ and then look to ‘cash out’.
By ‘cash out’ we mean to sell these loans at a discount. That then frees up capital funds and for them, they do not have to manage delinquent accounts.
This ‘hassle’ factor has become more prevalent for our dear foreign banks over time and with this recession, we believe, and we are hearing such Loan Sales are and will become more prevalent going forward.
The purchases of such loans are usually referred to as ‘Vulture Funds’ and their key characteristics and agendas are best summarised by the following facts:
- They are usually International Funds, Hedge or Venture Capital in nature,
- Unlike the European Banks, they are strong in their approach to cross-jurisdictional issues and collection of debts,
- They are looking for short term successors/cash flow from the portfolio they purchase from the Banks,
- In the main, they are not long-term lenders, and most importantly, and
- They are far more aggressive in their recovery approach, wanting their ‘pounds of flesh’.
A ‘long story short’ – Vulture Funds will:
- Be in it for the short term,
- Be legally aggressive with non-payers,
- Chase across borders more efficiently than the Banks, and
- Look to recover every €/£ they are owed.
We have several cases which saw us start our work with a Bank but they, in turn, sold that on to a ‘Vulture Fund’. That then requires us to pivot in terms of attitude, stance, and most importantly the strategy for our client.
If your Spanish/Cypriot/Portuguese mortgage loan has been sold to a third party AKA Vulture Fund, it is vital that you know your options.
Our specialist team are here to provide you with a strategy to alleviate foreign property debt as a whole.
You can also head over and watch our latest YouTube video on Vulture Funds, click HERE.
Costa Blanca has long been a popular hotspot for many people wanting to buy their dream holiday home. Over the years many have followed their dream purchasing either investment properties or holiday homes for retirement futures.
During the Spanish property boom pre-2008, many people purchased properties in this region. Our focus this week has turned to the notorious Polaris World Golf Resorts.
They were once Europe’s most ambitious holiday home developers and consisted of numerous large-scale projects. These resorts were widely advertised on TV in the UK by legendary golfer Jack Nicklaus (the designer). This was to entice investors looking for a better life in the sun.
During this period, properties sold at highly inflated prices. Some apartments going for €200,000 (£160,000). Thousands of foreign investors flocked to purchase at these resorts. However, when the financial crisis hit in 2008, the prices of these apartments declined rapidly.
Despite the slump in the property market, Polaris World continued to build and ignored the warning signs.
By 2010, they were forced to relinquish most of their assets. This included the golf courses and unsold properties, to the lender. These once-popular resorts are now best described as ghost villages.
In 2018 some apartments are struggling to sell for €60,000. This is leaving many in Negative Equity with unaffordable mortgage payments to meet.
- Do you own a property in Costa Blanca?
- Do you know someone going through a similar situation?
- Are you struggling to pay your mortgage?
- Are you having trouble selling your property due to Negative Equity?
There are solutions, do not delay and contact us today.
EU Property Solutions specialist team can offer tailored advice and solutions to end your nightmare forever.
Our legal team in Spain works effectively with borrowers to offload the negative asset and secure a significant debt write-down.
This often saves hundreds of thousands of euros for our clients. We have a dedicated team that will keep you informed every step of the way.
Other well-known golf resorts in Costa Blanca such as:
- Roda Golf
- United Golf
- Peraleja Golf
- Corvera Golf & Country Club
Have now found themselves in the same predicament and therefore are essentially mortgage prisoners with nowhere to turn.
Our success is proven, EU Property Solutions recently worked with a client who had purchased a holiday home in Peraleja Golf, Murcia, Spain. Due to the property crash, our client’s property value plummeted from €300,000 to a forced sale price of €140,000. When the clients approached us, the outstanding mortgage was €257,000.
As the clients were pensioners, they were unable to maintain the high mortgage repayments.
The property had been placed on the market for 5 months at €200,000. It had generated zero interest due to the development itself falling into a state of disrepair and the linked golf course closing indefinitely.
To make matters worse, the couple owned a mortgage-free property in the UK with significant equity. Furthermore, they also owned other assets including ISAs and bonds. Understandably, they were worried about the repercussions of this problem property on their assets in the UK.
After providing specialist assistance, we negotiated the voluntary surrender of the property along with a complete debt write-off (Only fees payable in this instance were the consultancy fees of EU Property Solutions.)
So, this was an excellent result and as such has allowed the couple to move forward with their lives and enjoy their retirements.
If you would like to ask us a question relating to your foreign property issue, click HERE
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EU Property Solutions receive numerous enquiries from borrowers who purchased properties in Cyprus pre-2008 and were offered Swiss Franc Loans. These mortgages were sold on the basis that the Swiss Franc was a stable currency. Unfortunately for mortgage holders, the Swiss Franc has been a very strong currency against the £ and the €.
Bizarrely pre-2008 Cyprus had the Cypriot Pound as their currency with the Euro then taking its place. At no point has the Swiss Franc ever been used other than for property purchases. Even more amazingly, Switzerland is not even an EU Country. Without doubt, these mortgages were mis-sold* and at best were deemed to be loose lending by the Cypriot Banks
Following the global financial crisis of 2008, Swiss Franc Loan balances grew due to the Swiss Franc appreciating against the Euro. Added to that there was a property crash worldwide and property prices in Cyprus plummeted. This created Negative Equity and left significant shortfalls for borrowers.
Add to this the issue of a lack of title deeds available and Land Registry issues for purchases in Cyprus, then you have a ‘heady mix’ of issues to overcome. This ‘heady mix’ manifests itself in sometimes huge Negative Equity positions.
Help is however at hand and settlements can be reached by us at EU Property Solutions ….. through our extensive knowledge, negotiating skills and together with our local legal teams, full technical understanding of all cases.
EU Property Solutions were appointed to assist a couple who purchased a holiday home in Paphos and their financial exposure position and our work saw:
- A mortgage balance was SwFr414,000 which at the time of purchase equated to £182,000,
- This ‘ballooned’ to £330,000 due to the currency fluctuation referred to above.
- The property value was only £150,000.
EU Property Solutions negotiated the sale of the property with the lender and a lump sum payment of £35,000 to close the mortgage account. Savings of c£145,000 achieved.
Furthermore, Cyprus is not the only country we have seen the use of Swiss Franc Mortgages. We have seen cases in Poland and Hungary with mortgages issued in Swiss Franc Mortgages.
If you are losing your Swiss Franc Mortgage battle and wish to discuss your options, please call EU Property Solutions today on +44 (0)330 124 1230.
Welcome to today’s blog on Webinar Feedback – Mark Stucklin. As you may be aware we held our first-ever live webinar on the 27th May 2020 on Spanish & Cypriot Property Debt. If you happened to attend, we would love to hear your thoughts on it, send them over to us on [email protected]
If you are interested in watching the live webinar over again, you can do so here: https://youtu.be/E4aRc_l8Oz8
We had a great blog write-up from Property Market expert Mark Stucklin who discusses our webinar below.
The economic crisis building as a result of the coronavirus pandemic will leave some people with mortgages in Spain in financial distress, through no fault of their own.
If this happens to you, it is advisable to seek help from independent experts on how to handle the situation.
Last week I attended my first webinar (online seminar, for those that don’t know), held by Terry Bell, speaking on behalf of Bell & Co. in the UK and Ireland, and EU Property Solutions in Spain and Cyprus.
These companies specialise in helping people with business and personal debt find negotiated solutions to their financial problems.
Terry’s presentation about the typical financial problems borrowers from the UK and Ireland run into with mortgages in Spain and Cyprus was an eye-opener.
For instance, there are still many people struggling with mortgages taken on in the boom years before 2008. They are not getting any younger.
Terry explained that the “demographic” of people with mortgage problems in Spain means that time is not on their side. They need to sort out this problem before it’s too late.
There are many people in arrears on their mortgage payments who think they can walk away from their foreign debts. They think the problem won’t catch up with them back home. That is wishful thinking, even for those who did this years ago.
Slowly slowly, Spanish mortgage debts are being worked through. Debtors are pursued back home on the basis of EU directives, increasingly by vulture funds who have bought the debt.
The worst thing you can do is stick your head in the sand and hope the problem will go away. It won’t.
The best thing you can do is contact third-party experts like EU Property Solutions, who have dealt with many cases like yours, and know what to do to get the best solution for you.
Experience is key to negotiating the best terms in this complicated situation. This is probably something you have never had to deal with before. And every lender in Spain has a different approach to dealing with what they refer to as ‘delinquent debt’. Only experience of dealing with many cases helps you decide the right strategy.
Terry talked about all the problems facing borrowers in Spain and Cyprus. There’s one brutal problem in Cyprus – that we can be grateful few borrowers in Spain are having to deal with:
- Namely the Swiss Franc mortgages that were so gaily mis-sold to borrowers in Cyprus back in the boom years.
Since then, the value of property in Cyprus has plummeted:
- Whilst the Swiss Franc has appreciated, crushing borrowers financially in a vice of negative equity.
Mercifully, most borrowers in Spain have euro mortgages, but some of them will still be in negative equity more than a decade after they purchased.
And now we have a new wave of financial problems to look forward to, thanks to the coronavirus crisis.
If you find yourself in financial distress, and unable to cope with your mortgage in Spain, don’t stick your head in the sand, get in touch with EU Property Solutions.
Following the UK confirming that those returning from overseas travel will have to Self-isolate for 14 days, the Spanish Government has followed suit imposing the same restrictions. With this in mind, the question is – will you be receiving no rental income in 2020?
This year’s Summer Holiday season may well and truly be cancelled.
If you are reliant on rental income to support:
- Your mortgage payments,
- IBI taxes, and
- Community Fees on your Spanish Second Home –
The above will see you face increasing pressure to top-up payments from your home income.
Speaking with a local Costa Del Sol Agent:
- It was confirmed that many Second Home Owners will take on long term rentals but given supply, these rental agreements will be very low in income.
Furthermore, many will be left without employment & may fall behind on their rent.
Second Home headaches are stressful enough in more positive times, but in these trying circumstances, they can be a real burden.
EU Property Solutions can end this burden in an effective manner without the need to travel to Spain.
We can help so your not asking yourself if you will be receiving no rental income in 2020?
Especially if the mortgage is greater than the true market price and the associated selling costs…which can be as much as 12%.
EU Property Solutions have options and plans for every eventuality, ensuring we protect you, your income, your home, pensions, and other assets – from any potential or ensuing legal threat.
WE HAVE THE SOLUTIONS TO DEAL WITH SPANISH PROPERTY DEBT ISSUES.
|Since the start of 2020, we have seen a spike in enquiries, particularly from those with problematic Cypriot mortgages due to Cypriot Vulture Funds.
It has been common knowledge for some time now, but the Cypriot & Greek Banks have been lining up the sale of their NPL loan books for a while.
A recent article in the excellent ‘Cyprus Property News’ https://www.news.cyprus-property-buyers.com/, confirms a €4 billion sale by two players in the mortgage market. This will develop as the Banks look to ‘tidy up’ their loan books STILL reeling from the 2008/9 crash.
With any Foreign mortgage, trying to decipher what is truly going on, is difficult. Sometimes the teams within the Banks don’t even know, so why should you.
This niche area needs serious negotiators with strong knowledgeable legal representation on the ground in the country in question. EU Property Solutions has the complete package here – right across Europe.
Getting the right advice, from afar is difficult at best….impossible in most instances.
NPL’s can arise from any Banking covenant failure that may arise. Typically, these Banking covenant failures can arise from:
Loans that revert from Interest Only to Repayment.
The issues above continue to plague mortgage holders and with over 60,000 British and Irish mortgage holders in Cyprus alone, these problems are not going away any time soon.
EU Property Solutions only ever act for the client and despite offers, would never act for banks.
That said, we recognize that the Banks of today are in an invidious position as they try to move on. They face the task of trying to unravel the awful loans written by less than scrupulous Banks and Brokers back in the day.
At best, the Banks are in zombie mode with all the pressure to bear from Bank of Cyprus, IMF etc, requiring them to sort these issues, but not providing them with the resources such as a Land Registry system that works.
EU Property Solutions and their sister company Bell & Company www.bellcomp.co.uk have over the past 10 years come across many, many debt purchasers such as the debt purchasers listed below.
The comments above are not in any way malicious about the teams in these Vulture Funds, but realistic. The teams within Vulture Funds have a job to do…and do it they will. Vulture Funds buy distressed debt/NPL’s from struggling financial institutions but get all the rights of the debt at their outstanding value i.e. the loan amount plus all costs and interest.
They are not long-term holders of this type of debt and look merely to maximize their return on the loan book and each and every loan in it.
What does this mean to those under such pressure, knowing a Vulture Fund now owns your mortgage?
Any other actions they see fit to maximise the return on their loan purchase.
HOW TO AVOID THE WRATH AND FURY OF VULTURE FUNDS….
Active engagement is vital, but, be aware Vulture Funds are far more clinical in their approach. There are no friendly chats here. They will hang on your every word; unlike previous conversations, you may have had with the Banks and their debt collection teams in Cyprus.
Third-Party Representation in such cases, where Vulture Funds now own your mortgage, is absolutely vital.
Vulture Funds are very effective in their work – which could possibly put mortgage holders at serious risk with UK assets.
Our mantra in our sister company – Bell & Company is always #KnowtheWorstAchievetheBest and it is so relevant with the Vulture Funds now buying up NPL’s in Cyprus
FINAL COMMENT – DOING NOTHING IS NOT AN OPTION HERE.