Bank Mortgage Error/Title Deeds

Do you have a problem getting your Title Deeds?
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Peony
Posts: 3
Joined: 26 Mar 2022 12:48

Bank Mortgage Error/Title Deeds

Post by Peony »

Hi Nigel

We purchased our house in Cyprus in 2007 with a mortgage from the Marfin Popular Bank (Laiki) - now Bank of Cyprus. We took this mortgage out in Swiss Francs and in 2012, due to increase in interest rates, we were contacted by Laiki Bank to renegotiate the loan. We agreed to extend the term of the mortgage by 120 instalments to 2032. We signed documents arranged by Laiki Bank at the Cyprus High Commission in London on the 23/4/2012 with a new settlement date of 30/06/2032. We looked at our statements closely in 2020 when we were falling into arrears and realised that the maturity date stated 27/12/2024 which is eight years earlier than we renegotiated. We discovered we had been been significantly overpaying our mortgage and had been penalised for falling into arrears with charges and higher interest rates. After trying to communicate with them and finally escalating it to the CEO, we received acknowledgement of their error and readjustment of the loan term. We breathed a sigh of relief only to find out that they were stopping mortgages to non Cypriot residents and we would still need to find the repayment early. We have negotiated a 25% discount on the full repayment of the mortgage although it is possible that I could get citizenship, as my mother is Cypriot.

We just want to query whether it would be sensible however to repay the mortgage in full as we do not yet have the title deeds and there is no sign of getting them. The house is built on a double plot and as we understand it, the deeds can't be issued until the other house is built. There is no sign of this happening and the developer won't communicate with our lawyer. We obtained a search from the Land Registry in 2012 which shows the developer has two mortgages on the land but these were recorded after our sales contract. Sorry for the long post but I guess I'm asking
a. is 25% discount reasonable
b. by paying off the mortgage, is our security on the property lessened in any way
c. is there anything at all we can do to pursue our title deeds

We would be extremely grateful for your thoughts.
Peony
Posts: 3
Joined: 26 Mar 2022 12:48

Re: Bank Mortgage Error/Title Deeds

Post by Peony »

We would be very grateful if anyone has any suggestions please, we visit Cyprus next week so it would be good to have some ideas of anything we can do to try to be proactive?
Thank you in advance.
Nigel Howarth
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Posts: 2905
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
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Re: Bank Mortgage Error/Title Deeds

Post by Nigel Howarth »

Hi Peony and welcome to the forum.

Apologies for the delay - I didn't spot your first post.

Unfortunately Johnson's 'oven-ready' (half-baked) Brexit deal has affected the financial arrangements of many Brits. The Bank of Cyprus has demanded that many Brits repay their home loans and mortgages immediately. (I think the banks decision only applies to borrowers who are not resident in Cyprus.)

If you repay the outstanding amount it will not affect the security of your property - but you should apply for its Title Deed as explained in my article 'Applying for Title Deeds (update 17 May)'.

You may be able to find another bank prepared to take over your loan - the Hellenic Bank.

A 25% discount is not unreasonable.

Regard,
Nigel Howarth
Independent information & advice for Cyprus property buyers
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Peony
Posts: 3
Joined: 26 Mar 2022 12:48

Re: Bank Mortgage Error/Title Deeds

Post by Peony »

Thank you Nigel, much appreciated. We've been to see our lawyer in Cyprus who we hope will help us with the title deeds, your article is very helpful - thank you.
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