Firm hosts SOS seminars for Cyprian buyers
Tens of thousands of UK buyers in Cyprus were poorly advised by lawyers acting under powers of attorney to take out low interest housing loans in Swiss francs when the currency was seen as stable – but many have since found their monthly mortgage repayments double as the currency has fluctuated drastically.
In addition a number of buyers have been prevented from obtaining their title deeds due to Cyprian developers having existing debts on the properties and/or the land at the time of purchase, which meant banks could take back the developer’s assets if they fell into default. Without title deeds the buyers lacked the rights for redress from the poor advice they received.
However, the Cyprus Parliament has enacted legislation that enables people who paid a full or large percentage of the purchase price to apply for their title deeds.
Due to the Swiss currency fluctuation some borrowers were unable to pay the inflated mortgages and slipped into default, resulting in UK debt collection companies and law firms, employed by Cyprus banks, to pursue them and their assets, including their homes in the UK.
The barristers from the Cyprus law firm Triantafyllides & Christoforou (TCA Law), appointed by Judicare, claimed that in many of the buyers’ cases the Power of Attorneys used to sign the loan agreements were not valid as they were not signed in strict accordance to the legal process. In most cases, paperwork was validated without a certifying officer present, making the loan agreement and any other documentation void.
Neil Heaney, chief executive of Judicare Group, said: “The seminars will explain in detail the circumstances surrounding these loans and the many legal failures of the parties instructed to protect the purchaser in the transactions.
“Depending on personal and individual situations, some scenarios may prove legal grounds with which to challenge the Cyprus banks towards the validity of loans and to seek the potential release from these dubious contracts.”
Some UK buyers have been offered early settlement agreements by Cypriot banks looking to find a ‘middle way’ solution acceptable to both sides, but Judicare is seeking full redress for buyers.
The seminars will be hosted on Saturday and Sunday 24 and 25 October at Birmingham City and at Arsenal football clubs.