Posts Tagged ‘Swiss Franc’
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.
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.
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.
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.
CORONAVIRUS – NO TRAVEL, NO PROBLEM – WE HAVE THE SOLUTION FOR YOU.
The world continues to be an uncertain place. In the UK the Government has announced its stepped plan to restore normality in the midst of Coronavirus – travel restrictions. We can help you get rid of your overseas property – without visiting Spain.
One thing that has hit the headlines is a 2-week self-isolation for those returning from abroad, bar France.
This is clearly detrimental for those looking to get rid of property overseas, especially during this period. No one wants to self-isolate for 2 weeks having been on lockdown for some time.
EU Property Solutions legal process allows you to get rid of your overseas property without visiting Spain. Here is how:
- You swear a Power of Attorney allowing our Legal Team in Spain to represent you and sign documentation in the country on your behalf. This is arguably the most you will travel – to a local notary to have this document sworn.
- We will arrange access for a Lender Valuation. Just give us the keys or tell us your keyholder’s details.
- We will communicate with the Lender on your behalf. Including any face to face requirements.
- We will sign the Legal Paperwork and conclude the case on your behalf.
Trust is key in this process. Trust us to do right by you and we need to trust you will cooperate to get the desired conclusion.
If your Spanish property is detrimental, especially now during this pandemic ~ respond. Allow EU Property Solutions to resolve the matter on your behalf from the safety of your home.
EU Property Solutions have options and plans for every eventuality. We ensure we will protect you, your income, your home, pensions, and other assets – from any potential or ensuing legal threat.