CYPRUS: Take action quickly now if you are affected
AIPP member, Judicare Law , have informed us of a serious escalation in the ongoing saga adversely affecting thousands of British owners of a property in Cyprus.
The issue stems-back to 2006 and those buyers advised by their Cypriot Bank to fund their property purchase in Cyprus by taking-out a Housing Loan in the Swiss Franc denomination (CHF). This has seen big currency swings in values affecting all parties negatively, but help could be at hand, read-on to understand how to take action, if affected.
In recent days, those same purchasers will have most likely received a rather alarming, recorded-delivery letter from their Bank in Cyprus informing them that they (the Bank) are intending to sell their Loan / credit to a third party*. Also informing they have just 45 days in which to respond and submit an offer to the Bank to settle or buy the Credit Facility. The third party is likely to be buying the debt at a discount from the Cypriot bank but then also likely to be imposing harsher terms upon mortgage holders in order to recover the debt they have bought – at a profit, of course.
Whilst the receipt of this letter will be more than sufficient to cause an overwhelming sense of panic for the recipient and the threat of an impending legal action, it can also be viewed as an opportunity to be able to seek (and to reach) a settlement with their Bank in relation to their outstanding liabilities under their Loan(s).
Legal help is at hand, but you must take action now
Neil Heaney, Director of Judicare Law, acting on behalf of hundreds of British owners in Cyprus, is now discussing on a case-by-case basis with clients who have received these letters, outlining their options as follows:
- If Judicare are engaged to negotiate with the Bank on the client’s behalf, the sale of the loan procedure to the new entity cannot proceed until an offer to purchase has been processed.
- This is a good opportunity to negotiate a ‘full and final settlement of the loan’. We know the Bank will not dismiss offers out of hand, as they want to settle the matter themselves – potentially for a higher amount then the value they will realise selling the debt-on to a third party.
- If you would like to discuss your case or simply would like more information on the Judicare fixed fee approach a member of their team will be happy to take your call on a confidential basis at 01438 840258 or via email to admin@judicaregroup.com or perhaps via Zoom/Skype.
- Get a better foreign currency rate and experience: for property owners who need to send money to Cyprus to pay for property, mortgages and associated ownership costs, we recommend Clear Currency – our official foreign exchange partner, for the best price and ZERO fees.
*The Bank in Cyprus are able to do this as per the provisions of Section 18 of the Sale & Purchase of Credit Facilities and Related Matters Law of 2015, Law 169(1)/2015 and the Directive of the Central Bank of Cyprus entitled “The Procedure for the Notification to Borrowers and Guarantors of the Intention for the Sale of Credit Facilities Directive of 2016”.