Page 1 of 1

Hi people!!

Posted: 04 Nov 2009 23:23
by Mark64
Hi All

Having just bought a seafront property for significant sum just off Fig Tree Bay, and i'm worried sick. Is it really as bad as it seems in Cyprus? When I first paid my deposit just under two years ago everything seemed rosy. I fully understand the mechanics and effect of the global credit crisis but has the impact on Cyprus really been that severe?

The property i've bought is on land mortgaged by the developer an issue I wasn't aware of until it was too late. I am where I am and I hope the developers Giovanni Developers are in reasonable financial shape.

Any information or motivation would be much appreciated.

All the best

Mark.

Re: Hi people!!

Posted: 08 Nov 2009 16:57
by Nigel Howarth
Hi Mark & welcome to the forum.

I know it will be of little comfort to you, but many people here have bought property only to discover later that the developer has mortgaged the land on which it has been built.

Many of the lawyers here have close business relationships with the developers and fail to advise prospective buyers that the property they are thinking of buying is built on mortgaged land.

Furthermore, the banks do not advise those applying for mortgages that the property they are buying is already mortgaged and that if they proceed, they will become the ultimate guarantor for not only their mortgage, but the developers mortgage as well.

If everything does go pear-shaped and the developer goes bust and the bank forecloses and demands the property back, the only option available to you is to repay the developer's debt.

I know this is not what you wanted to hear, but as I said earlier, many, many people are in an identical situation. There's no chance of escape until the Cyprus Government enacts legislation to correct the mess successive governments have created.

Rgards,

Re: Hi people!!

Posted: 08 Nov 2009 23:05
by rollwithit
Hi Mark

I also bought from Giovani but I believe they are in a good financial position so dont worry too much. Contact your seller and you will get more information. From what I can see its common practice to mortgage the land but I am no expert on this so you need to get legal advice on this in order to clarify your situation.

rgds

Roll with it