Cypriot Bank Claim settled – UK property Charging Orders removed

We were engaged by UK-based clients following the reemergence of a historical issue related to a housing loan in Cyprus. The clients had not travelled to Cyprus in many years and were unfamiliar with the local legal framework and how it could impact their legal responsibilities here in the UK.

After previously defaulting on their Cypriot housing loan, and many years of worry and anxiety that their Bank in Cyprus would legally pursue them in the UK, and the fear they may one day lose their property in the UK as a result, we have reached another full and final settlement with the Bank in Cyprus and with it, all threats to our clients future have been removed.

It is a frequent story we hear from our clients who believe, for whatever reason, that having “handed back” their property in Cyprus to the Bank, their liabilities to the Bank in Cyprus would be ended. The example below demonstrates this is simply not the case.

Case Study

This particular case involved a purchase of an off-plan property in Cyprus and the taking out of a mortgage on the property with a Cyprus Bank. Over 7 years after leaving the property in Cyprus and having received no communication from their Bank in Cyprus, the clients were suddenly “served” at their UK residence with documents from a UK firm of Solicitors. The documents confirmed, amongst other things, that an application had been made by the UK Solicitors (acting for the Bank in Cyprus) to the High Court in the UK to seek to register a Charging Order on their UK property for an amount in excess of £214,000. This debt existed as a result of a Judgement previously obtained by the Cyprus Bank against them in a District Court in Cyprus for the non-payment of their housing Loan.

The Bank in Cyprus were now seeking the Enforcement of their Cypriot Judgement here in the UK.

Clearly, the receipt of the documents at their UK residence suddenly made the situation very real. After some extremely confused and anxious initial conversations with the client, we explained to them how the process worked and how the Bank was within its legal rights to seek the Enforcement of their Judgement: and regrettably the legal documents should now not be ignored. We received a formal instruction to handle the matter for the client and to seek some form of solution with the Bank in Cyprus.

After studying the documentation provided to the client and discussing with the clients the history of the case, we applied to the Court in Cyprus for a copy of the Court file and the copy of the Judgement that was issued against the clients back in 2016. Following further conversations with the clients, we discovered, within the file documents, a procedural error on behalf of the Bank in the original “service” of the Lawsuit to the clients in the UK from the Cyprus Court. As a result, we proceeded with our own application in the Court in Cyprus to look to “set aside” the underlying Judgement of the Cyprus Court.

Following applications in Cyprus and subsequent negotiations with the Bank in Cyprus, we were able to reach in a short period a position for the Settlement of the entire case. The clients would pay to the Bank in Cyprus a percentage of the debt (circa 25%), the Judgement in Cyprus would be extinguished, and the Charging Orders on their UK property were withdrawn.

With the legal settlement in place, the clients can now finally look forward to a future free from threats.

Outcome

This matter was handled seamlessly from start to finish, enabling our client to step back from the situation and all related obligations, leaving us to handle the entire issue.

This case exemplifies our firm’s ability to provide comprehensive, cross-border support in problematic foreign Bank debts — combining deep local legal knowledge with a practical, client-focused approach.

How can Judicare help with mortgage problems in Cyprus?

We have been helping individuals to find the correct solution with regards to their problematic mortgages in Cyprus for well over a decade. Over the years our team of experts have acquired the knowledge, skills, and experience in finding the optimum solutions for our clients. So, if you are facing problems with your mortgage in Cyprus our specialist Solicitors can help you explore your options, including negotiating full and final settlements or variations to the mortgage debts.

Below are just some of the reasons why our clients instruct us:

• Our legal team have decades of combined experience of handling Mortgage problems in Cyprus.
• We are regulated by the Solicitors Regulation Authority (SRA) and as such we carry professional Indemnity Insurance giving you vital protections and redress in the unlikely scenario something goes wrong.
• We have successfully negotiated over €60million of foreign Bank debt being written off for our clients.
• Using a Claims Management Company (CMC) or a so called “advisory firm” providing foreign property debt solutions across the EU can be risky, as there are no safeguards or any regulatory redress for clients if something goes wrong.

If you have received a letter or a Writ of Summons from a Bank in Cyprus, or have fears you may soon receive one, or would simply like more information on our fixed fee approach a member of our team will be happy to take your call on a confidential basis at 01438 840258 or via email to admin@judicaregroup.com

We can also arrange a free no obligation teleconference via Zoom/Skype.

Getting in touch will allow us to understand your individual circumstances and discuss with you your concerns and objectives. Working with you we can then decide upon the correct strategy to approach and find the solution which is right for you.