Saving my house and assets from Cyprus Bank

db0070

Hi,
Bought a house in Cyprus in 2007 and due to market conditions, cannot sell it or rent or pay the mortgage. Now Emporiki Bank wants to start proceedings and I fear for my home and my other buy to lets here in the UK.

I am willing to loose the 30K deposit I paid in the Cyprus house and walk away, but Cyprus bank is sure to come after my assets in the UK.

Now while I try to negotiate with the bank, I want to know how I can protect my assets in the UK.

Is it possible to sell my house to a suitable trusted family member who buys on a buy to let basis at the price of the current mortgage, which is well below the current value of the house? (The house is worth 375K and has mortgage of £200K). I can then have a Tenancy agreement in place to rent it back to me at a rental of the mortgage payment.

Could I then sell my 6 buy to lets in the same way?
Or is there another way to protect my assets.

harrys_dad

How much is your Cyprus house worth? How much do you owe on the mortgage? In some countries, such as the US, if you are in negative equity and simply hand the keys back that is the end of the matter. In the UK it is different and you still owe the debt. What is the law in Cyprus? Do you live in Cyprus or was it a speculative investment? Why can't you let the house out?

What you are describing above sounds very like fraud to me, to avoid paying your debts, but I am not a lawyer.

[Deleted User]

theartfullodger is right, you owe them money and you either have to pay or declare yourself bankrupt. No wriggling out of it.

Yorkie1

I believe that sale and rent back is now illegal unless licensed, or something along those lines - so the basis of your plan wouldn't work anyway.

db0070

Mortgage in Cyprus is about 190,000 euro
The house now is probably 50,000 euro if that.
Have tried to rent it and sell it but no success.
How is it fraud if I legally sell my property to someone at a low price?
Is it the rent back issue?

db0070

Gambling in property? Property is one of the safest investments, long term. Any economical crash will hurt most people, especially those who buy at the peak. While I accept my fault, the bank I believe should also accept responsibility for creating such an economic situation - in my opinion.

DTDfanBoy

So you currently have seven buy to lets but can't afford the mortgage payments when only one property isn't let :eek:

I can't see this ending well for you, and to be perfectly frank when you make comments like this


"Gambling in property? Property is one of the safest investments, long term. Any economical crash will hurt most people, especially those who buy at the peak. While I accept my fault, the bank I believe should also accept responsibility for creating such an economic situation - in my opinion."

you deserve everything that is coming your way

jacques_chirac

db0070 wrote: »

Gambling in property? Property is one of the safest investments, long term. Any economical crash will hurt most people, especially those who buy at the peak. While I accept my fault, the bank I believe should also accept responsibility for creating such an economic situation - in my opinion.

If you are looking at long term investment, you will be aware that you take the losses as well as the gains, yes?

Contact the bank and arrange to repay what you owe. If you have equity in your UK properties you might consider remortgaging here to fund this.

Johnnytwostep

Call me psychic but the next thread will be along the lines of 'I was miss-sold and want to get out of paying my dues'

theartfullodger

Gambling in property really safe eh? Suggest you re-read your 1st post.

dotdash79

ste4321 wrote: »

I'm sure there is also something in property law that means you cannot sell a property at vastly below market value, otherwise there would be people doing this all over to avoid tax liabilities.... Time for a rethink!:(

HMRC would be at the front of the queue regarding CGT. At best you would be massively fined, at worst you would be looking at time inside.