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Alice H
Alice H, Solicitor/Partner
Category: Law
Satisfied Customers: 2850
Experience:  Partner in national law firm
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I have a property in cyprus and am in arrears on the mortgage

Customer Question

I have a property in cyprus and am in arrears on the mortgage which is secured on the property. would it be possible for the bank to force me to sell my home in the uk in order to pay them, when they are refusing to reposess the property the loan is secured on. I do not have enough income to pay them.
Submitted: 2 years ago.
Category: Law
Expert:  Alice H replied 2 years ago.
Alex Hughes : My name is***** and I'm happy to help with your question today. I need to ask you some preliminary questions to be able to help you.
Alex Hughes : Has the Cypriot Bank commenced proceedings against you in Cyprus?
JACUSTOMER-i441zj94- :

no

JACUSTOMER-i441zj94- :

but they have sent threatening letters fromdebt collectors in the uk

Alex Hughes : If the Cypriot Bank commences legal proceedings against you and obtains a judgment then it could apply to enforce that judgment in the UK. This is based on the fact that Cyprus is a member of the EU and all EU enforcement powers are available plus the Foreigh Judgments (Reciprocal Enforcement) Law 1935 applies. However, enforcement cannot commence until they actually obtain a judgment against you in Cyprus first.
Alex Hughes : So they cannot force
Alex Hughes : So they cannot force you to sell your UK house but if they Cypriot Bank gets judgment they could try and enforce in the UK.
JACUSTOMER-i441zj94- :

ok but enforce what ?

JACUSTOMER-i441zj94- :

after all the property in cyprus is the security for the loan

Alex Hughes : Enforce the judgement by sending bailiffs, getting money from your bank, money from your house in the UK.
Alex Hughes : If the house in Cyprus is repossessed and it covers the debt then you're fine. If not they could come after you in the UK for any balance.
JACUSTOMER-i441zj94- :

is it very likely that they would do that

Alex Hughes : Difficult to say. Depends on the balance outstanding. Enforcing foreign judgments in the UK is becoming more popular in this technological age which means that people find it very difficult now to avoid debts which arise in another jurisdiction. If the balance is sizeable then if I were they're lawyer I would advise taking steps to recover any balance from you in the UK.
JACUSTOMER-i441zj94- :

ok, but they would need to repossess the cyprus property first

Alex Hughes : Yes, they would have to commence legal proceedings in Cyprus first - that's where the mortgaged property is. Once the property is repossessed/sold they could then look at alternative ways of collecting any balance due. Asks the debt did not arise in the UK then proceedings cannot be commenced in the UK despite what the debt collectors might be telling you.
JACUSTOMER-i441zj94- :

ok many thanks

Alex Hughes : My pleasure. Have a good evening.
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