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Primary residence protection scheme

The Cyprus Land Development Organisation is to manage a scheme aimed at protecting the primary residence or the business premises of small debtors from repossession by the banks.

Primary residence protectionEARLIER today, the Cabinet approved a scheme aimed at protecting the primary residence or business premises of crisis-stricken debtors against repossession by the banks.

The scheme, which will be managed by the state-owned Cyprus Land Development Corporation (CLDC), will subsidise the interest on mortgages in default by up to 4% for a period of up to four years.

Small debtors wishing to take advantage of the scheme must own a residence or business premises worth no more than €250,000. The debtor must have exhausted all other avenues available, including applying for a restructuring of their debt and the process of mediation by the financial services commissioner and the insolvency authority.

Interior Minister Socrates Hasikos said that the scheme offers adequate protection for vulnerable groups against property repossession. He said that the scheme will be applied for two years initially, with a possible extension for a further two years.

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  • graham jones on 2015/06/08 at 11:26 am – Assuming MPs vote the scheme through Parliament, it will be managed by the Cyprus Land Development Corporation – their phone number is 22 427000.

    Eligible are people who have received a housing loan by mortgaging their primary home, as well as businesses – with an annual turnover of up to €250,000 and up to four employees – which have likewise mortgaged their primary residence. The mortgage in question was granted to the owner of the residence or his/her spouse.

    It concerns only housing loans concluded for the construction or purchase of a primary residence, and business loans taken out to grow a business.

    To qualify, a person must meet a number of conditions, such as having exhausted the debt restructuring procedures under the Central Bank’s Directive on Arrears Management of 2015, as well as the mediation procedures under the financial ombudsman.

    Finally, applicants must have beforehand taken recourse with an insolvency practitioner, who will give the green light for a person to be eligible to apply for the CLDC scheme.

    Applicants must have resided permanently in the mortgaged residence for at least five years, they must be a permanent resident of the Republic or have resided here legally over the last 10 years.

    The definition of primary residence includes a residence under lease and occupied by a tenant for at least six months per year.

    The scheme covers residences of a market value of €250,000 or less (plus VAT), and the outstanding loan amount cannot exceed €300,000.

  • graham jones says:

    Good morning Nigel re; “Primary residence protection scheme”. How do you apply for this facility ?

    Thank you very much.

  • @demetri on 2015/06/07 at 8:05 pm – No news from Hasikos yet.

  • demetri says:

    Nigel slightly off topic but any news from hasikos? what happens to buyers whose acquisiton of deeds has hit more than one brick wall?
    i.e

    1.building infringement by developer preventing certificate of final completion hence division of plot and ultimately title deeds

    2.developer vanishing after this news and nobody even authorities can find him

    3.developer in all likelihood not being able to pay the CGT or IPT on the combined properties

    Is the buyer liable to pay all the developers debts as it stands? if they ever want to see deeds?

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