Cyprus Property Forum for Buyers, Sellers & Investors

A friend bought an apartment off plan 6 years ago & took delivery 5 years ago. She has a mortgage with a Cypriot bank. Just this week the developer has asked her for thousands of Euros for a 'bank guarantee' - this was never mentioned when she applied for the mortgage. She is stunned. What advice do you have for her please.

Hello Jan and welcome to the forum,

As security, one of the things a bank may require on the first mortgage on a property is a bank guarantee provided by the vendor. If the property is already mortgaged in favour of the bank, then no bank guarantee is needed usually.

(So if the property was not mortgaged when your friend bought it, the developer would have provided a bank guarantee. But if the property was already mortgaged when she bought it, no bank guarantee would have been required).

I suggest that you friend speaks with the bank that loaned her the money to find out what's going on. And she needs to read through her contract of sale and her mortgage documents to see what she's required to pay.

Regards,