Any advice would help

Have you bought 'off-plan' and having problems?
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IanB
Posts: 3
Joined: 03 May 2011 11:01

Any advice would help

Post by IanB » 13 May 2011 20:24

Hello there.
My wife and I bought an apartment off plan (Tersefanou Village) in 2008 as an investment, after a years delay it is finished.
We were advised to take out a Swiss franc mortgage but this has proven to be poor advice.
We were told that a management company was set up to be managing the rental of the property, when we contacted the investment company (Domus Island) they informed me that the management company went into voluntary liquidation, six months previously.
We were told that the new PGA golf course was to be finished around the same time as the apartment, this is obviously nowhere near completion.
And finally the bank haven't paid the final payment to the developers, who won't furnish the apartment until they have recieved it, even though the bank are asking us for mortgage instalments starting from the beginning of this month.

I understand that some of these issues are out of the control of the investment company or the bank but we now have a property with negative equity which we can't rent out and a higher mortgage than we ever imagined.

Could anyone give us some advice as to what would be the best option would be. We don't want to cut our losses and walk away but it seems we may have to look at this.

Thanks in advance.



Mark1
Posts: 5
Joined: 13 May 2011 00:36

Re: Any advice would help

Post by Mark1 » 13 May 2011 23:42

Hi Ian, we have had a similar experience with our apartment in Anafotia, but only in as much as the Management Company (OSK) went into administration and similarly we are in a negative equity situation. We havent had the same issues with the bank, may I ask what your solicitors are suggesting and doing about this?

Once you have this sorted out I would suggest you hang in there, advertise your property competitively even if its not breaking even and consider a longer term let, non holiday, until the market recovers. The GC still appears a long way off breaking ground from what I hear but will eventually happen at which point you will be in a much healthier position.

Good Luck, Mark :-)



Nigel Howarth
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Posts: 2275
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
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Re: Any advice would help

Post by Nigel Howarth » 14 May 2011 10:07

Hi IanB,

There are a number of questions here:

The mortgage - I wrote an article some time ago about this see http://www.news.cyprus-property-buyers. ... /id=001361

If you took advice about your mortgage in the UK, you may have a claim against your financial adviser if you consider that the mortgage was mis-sold. You need to check with Financial Services Authority (FSA) to see if they are registered. If he/she is registered he may complain to the FSA and make a claim against him/her. If you are successful but the advisor is unable to meet the claim the Financial Services Compensation Scheme (FSCS) may be able to assist.

Golf course - a 'Larnaca Golf Property Action Group' has been established. You can contact them via their website at http://www.larnacagolf.info/

Do you know why the bank hasn't paid the final instalment to the developer? Has the property been completed?

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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alba
Posts: 5
Joined: 12 Apr 2012 17:53

Re: Any advice would help

Post by alba » 13 Apr 2012 14:25

Oh wow.. the whole issue is weird and what I really wonder is why you haven't got a message from the company before they went int voluntary liquidation! I mean this is not a surprising and sudden happening normally. Don't you agree?
But I really hope that the Larnaca Golf Property Action Group could help you and that the house can be soon get furnished.



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