Defaulting on mortgage on property abroad

hutchinsonp005

Hello there

If I have property abroad (holiday home) and if the worst comes to the very worst (and I mean very worst) and I cannot pay the mortgage over there, do the lawyers in Cyprus have any legal recourse against any of my property in the UK?

I've been told that they could try and get their hands on my property in the UK to make me pay.... if the worst came to the worst, I'd like to just hand the keys back and let them have it. One of the properties actually still hasn't been completed yet and is way over schedule.

Thanks in advance

theartfullodger

I would hope they would have legal recourse...

One wouldn't like the idea that people could leave one's own country to avoid debts here. I've successfully pursued people who left here & am pleased to report they are having to pay me, notwithstanding being in a different legal jurisdiction. Took time & money but it was a matter of principle.

I'm sure you wouldn't like the Cypriot property developers to be able to take money off honest English punters and then run off with the loot with no legal recourse.. ??

Anyway, you'd do the decent thing and not want to be seen by some as a cheat?? I know you wouldn't be a cheat but people do think things..

Cheers!

Lodger

N79

hutchinsonp005 wrote: »

Hello there

If I have property abroad (holiday home) and if the worst comes to the very worst (and I mean very worst) and I cannot pay the mortgage over there, do the lawyers in Cyprus have any legal recourse against any of my property in the UK?

I've been told that they could try and get their hands on my property in the UK to make me pay.... if the worst came to the worst, I'd like to just hand the keys back and let them have it. One of the properties actually still hasn't been completed yet and is way over schedule.

Thanks in advance

Northern Cyprus or Cyprus?

hutchinsonp005

Cyprus, not northern Cyprus. Paphos District. It's not a case of escaping to dodge insolvency. The situation is about a UK domiciled person who simply has a holiday home. If mortgage payments were missed, yes they could reposses the Cyrpus property but could they then come after UK assets for balance? As I said, the property's not even finished yet!

N79

Then yes, if they get a judgement in a Cypriot court then they could apply to exercise that judgement in the UK. At present they will need to use a UK court to enforce the judgement (note the UK court will not rehear the case). I suspect that it will not be long before they do not even have to get the leave of a UK court to do so. People usually do not bother doing this for small debts as it can be expensive but for large amounts....

Since I know nothing about Cypriot law I have no idea what penalties you are liable for but yes, they can come after your UK assets.

SouthCoast

I would expect that any residual property debts in Cypus would be sold to a UK based debt collection company.

hutchinsonp005

No it's a mate of mine.

He owns two properties, one hasn't been finished and is 9 months overdue for completion.

He's not looking to default at all but he's a worrier! His Solicitor in Cyrpus just said that any Cypriat debts would be enforced against UK property. But apparently this Solicitor has given them incorrect advice in the past....

Thanks all for your continuing help...