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Alex J.
Alex J., Solicitor
Category: Law
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Experience:  Solicitors 2 years plus PQE
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I bought a property in Cyprus some 9 years ago. The property

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I bought a property in Cyprus some 9 years ago. The property values collapsed and to make it worse ,at the time the mortgage offered was in CHF and sadly I took it up. Cyprus has been in chaos and I was so distressed i stopped paying. they have been threatening to sue me etc for years but have done nothing. they have now come back and offered a restructure. the loan was originally 246k euros worth of CHF which was 386 chf .the loan now has built up to 443k chf. They have come back and tried to cut a deal as follows:As stated below the Bank in case of refinancing your loan is willing to offer the discount amount of CHF 90.000 (subject to Bank’s final approval).
Please note that the discount amount will be granted to you with a form of a loan.
The above proposal provides the below in GBP:
1)New Main Loan: GBP 255.000(first Loan)
2)Discount Loan: GBP 64.500
The discount loan will be gradually discounted (20% every year) over a period of 5 years, provided that the first loan will be serviced according to the new loan agreed debt repayment schedule.
The discount loan will be interest free and it will not bear any installments.
3)The sum of the 1)Main Loan and 2)Discount Loan will settle the existing CHF loan.
4)Total Interest Rate of first loan: 3 Months Libor plus Bank’s Margin (Margin at 2.50%). The 3M Libor rate today is 0.5863% .
5)New Monthly Installment until the full settlement: APPROX. GBP 2926 based to duration Until November2024(Maximum duration we can offer)
We wish to clarify that the above amounts provided is an approximately repayment illustration based to today’s rate of ex-change and balance of the loan.
The above figures will be recalculated prior signatures on the new loan agreements.
Can they sue me if I don't pay and succeed ,what is my legal standing if any ?

Hi, Thank you for your question and welcome. Is the bank based in Cyprus? Is the loan facility under Cypriot law? Kind regards AJ

Customer: replied 1 year ago.

Thank you. Technically they have been making regular demands so they could sue you to recover the original facility. However they are willing to negotiate, therefore are the aware of your financial means? Do they believe you have assets to pay? Kind regards AJ

Customer: replied 1 year ago.
at the moment they have no information ,if i go to the next stage they ill have my info so i'm contemplating whether its worth pushing it to the limit as the CHF mortgage was really a con or trying to negotiate lower.
however im keen to know the procedure for them suing me and how far they can go?

Hi, Thank you. If they have taken a cut on the loan this, they will probably negotiate further, but if they do at some point they are likely to ask you to disclose your financial affairs and income before any further cut is made. The procedure for bringing a civil claim is very similar to England, you will be served with a writ to which you will have 14 days to respond. They will have to send you notice before commencing action and issuing the claim. Kind regards AJ

Customer: replied 1 year ago.
if under cyprus law and this is southern cyprus ,is it easy to sue?

Hi Thank you. It is easy to sue in the sense that there is a procedure in place to do - but that does not mean it might not take a long time if there are a back log of cases. Also do you have any assets in Cyprus, if the answer is no they may not think it is worth while spending time and money investigating your assets.

Customer: replied 1 year ago.
can they seize UK assets ?

Hi, Thank you. They potentially could, but it would be extremely expensive. They would need a final order with no right of appeal and then they would likely have to seek permission to enforce the order in England. They would also have to actually know that you own property in the UK in the first place, otherwise they would be conducting a fishing exercise for your assets - which seems unlikely if they are already willing to write part of it off. Kind regards AJ

Customer: replied 1 year ago.
may i ask what ur advice is ?
Customer: replied 1 year ago.
the property is worth 60k at best and i would a loan for 255 unless i can get it down

Hi, Thank you. I would think it may be worth trying to negotiate further. Whether the bank sues you or not is their prerogative, so it is difficult to say whether they will or wont. I would try and negotiate but just be prepared that they may ask to see details of your financial affairs. They have waited a long time to enforce this, and the offer they have made is their first offer, so they must be willing to negotiate further.

Customer: replied 1 year ago.
ok thank you i i will revert

Thank you. I would be most grateful if you would rate my answer in the mean time. I look forward to hearing from you. Kind regards AJ

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Customer: replied 1 year ago.
they say the offer is the offer and is only open for a short period of time ,so not sure what to do .

Hi, Thank you. How long have you got to accept it? Have you made a written proposal as a counter offer - if you make such a proposal it should be done by reference to your affordability i.e what you can service monthly. Kind regards AJ

Customer: replied 1 year ago.
Customer: replied 1 year ago.
they gave me 7 days and tell me there is no further room for negotiation.I have said that i cant afford their terms please revisit .But i'm not hopeful?

Hi, Thank you. Your options are to accept the deal or risk being sued (again this is subject to the caveasts discussed above). The only other way to get a bank to negotiate is to disclose to them your financial means and provide information on your affordability. Ultimately could you afford the new deal? Do you believe you were missold the product.

Customer: replied 1 year ago.
i can afford the deal ,but yes i was miss-sold the whole deal ,but but at the end of the day i signed the documents.

Hi, Thank you. Do you have a regulator for the banks in Cyprus? Kind regards AJ

Customer: replied 1 year ago.
the Cyprus Securities and Exchange Commission, (Greek: Επιτροπή Κεφαλαιαγοράς) better known as CySEC, is the financial regulatory agency of Cyprus. As an EU member state, CySEC's financial regulations and operations comply with the European MiFID financial harmonization law. Notably a significant number of overseas retail forex brokers and binary options brokers have obtained registration from CySEC

Hi, Thank you. If you have 7 days, why dont you try and make a counter offer in writing, see if you can escalate the matter to a decision maker. If you cannot then either accept the offer or risk being sued, but either way make a complaint to the regulator on the basis that you were mis sold the product?

Customer: replied 1 year ago.
ok I will thank you

If I can assist any further please let me know. Kind regards AJ

Customer: replied 1 year ago.
i will