At one time it was common practice for people buying immovable property in Cyprus to take out or be encouraged By a Bank in Cyprus to take out a mortgage in Swiss Francs. In part, this was because at the time the exchange rate and interest rates worked in their favour. In fact, prior to Swiss Franc Mortgages the Banks in Cyprus (Alpha Bank, Bank of Cyprus, Laiki Bank, and Hellenic Bank) were also offering housing loans to borrowers in Japanese Yen (until the exchange rate and interest rates changed).
Whilst interest rates and exchange rates were favourable to all parties this was a good idea, unfortunately with three currencies involved (the property price in Cypriot Pounds, the mortgage in Swiss Francs and a borrower’s income in the currency of their home country) there was always a potential for something to go wrong. When it did, the combined effects have resulted in thousands of British purchasers of immovable property in Cyprus facing unmanageable financial burdens as a result of their Swiss Franc mortgages. In extreme cases the borrowers are now facing the very real prospect of their UK assets being placed at risk as they fail to maintain the Swiss Franc mortgage repayments.
A number of the Banks in Cyprus have recently proceeded to “sell off” these Non-Performing Loans (NPL’s) to so called “Vulture Funds”. This has been a common occurrence with Banks across the European Banking sector.
It’s important therefore when looking for a firm to represent your interests and to negotiate with a Cypriot Bank on your behalf, that you look to engage a specialist, experienced and regulated firm of Solicitors. Here at Judicare we have decades of combined experience in dealing with Banks in foreign jurisdictions, and as a specialist firm of Solicitors, we have been able to negotiate over €40million of foreign Bank debt being successfully written off for our clients.
As a leading law firm in this specialised area, our significant experience gives our clients the comfort and confidence we can finally allow them to be free of their Cypriot Bank debts and any threats to their future.
Below we address some of the most frequently asked questions from clients to these issues in Cyprus.
Why use Judicare for a Swiss Franc mortgage problem in Cyprus?
If you’re facing problems with your mortgage in Cyprus, our specialist Cypriot legal team can help you explore your options, including negotiating full and final settlements or variations to the mortgage with your Cypriot lender, taking steps to sell or rent out the property, and considering whether taking legal action (such as a mis selling or professional negligence claim) is viable.
Below are just some of the reasons our clients instruct us:
- Our legal teams have decades of combined experience of handling foreign mortgage issues in numerous jurisdictions including (but not limited to) Spain, Cyprus, France & Portugal.
- 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.
- Using any of the unregulated firms 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.
- We’re members of the Association of International Property Professionals and devote ourselves to promoting principles of good practice within the international property industry.
- We have successfully negotiated over £40m of foreign Bank debt being written off for our clients.
If you have been served with a Writ of Summons from Cyprus, or have fears you may soon receive a Writ from your Bank in Cyprus, 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 firstname.lastname@example.org
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.