Which developers have mortgaged properties/land already sold to buyers

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
03/11/2009 12:05

After Ismet's post re which banks have lent money for mortgages to builders/developers on plots/properties that they knew were sold, it would be informative to have a list of which developers have actually taken out these mortgages. Particularly where the developers have breached their contracts by promising to keep the properties mortgage-free. Many people are now facing possible aucuion of their properties in this situation where the builder/developer has failed to pay the loans. In some cases, they have other land/assets that could be used instead.



Cont..

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
03/11/2009 12:06

I will start the board rolling. SEATERRA mortgaged Seaterra Reserve for £2million after purchasers had bought, and breached our contract and others by failing to keep it mortgage-free. There are 4 different companies involved in this mortgage, which IMHO are possible pheonix/sister companies, meaning any terms could've been agreed. See http://www.cyprus44.com/forums/12542.asp for more info.



Seaterra have not been willing to return our funds and this breach of contract is proceeding through a court case.



Sibel

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
03/11/2009 12:08

Which developers have mortgaged properties/land already sold to buyers?



I wish I knew. How can we find out?

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
03/11/2009 12:17

Hopefully following registration of contracts owners will now be aware whether their property/plots have been mortgaged and will post on here. Change won’t come unless we all collectively try to make positive changes for everyone and this in turn will improve the economy, construction and tourism sectors etc. This info needs to be in the public domain and we all need to stand up and say, “This is wrong. I’m not going to let it happen any more.” Nothing will ever happen by burying your heads in the sand or saying it’s not your problem. It’s everyone’s problem, but the government need to make the changes now to protect purchasers and stimulate the construction industry and in turn the economy. Short-sightedness will not get the TRNC anywhere. It's time to turn it around for the benefit of EVERYONE, and not just the greedy few who are dragging the TRNC down.

AlexF065


Joined: 07/09/2009
Posts: 271

Message Posted:
03/11/2009 12:43

yeah very true

the I am ok jack just will not get anyone anywhere

From reading these boards these are the opinions I have formed



I want a PTP before any of my money is exchanged

Before I pay any more than 50% of the cost of the home I intended to buy I would like sight of the deeds

Before I make the final payment i would like a search done to make sure there is No Debt from the developers on the property(this is done in the uk in the 2 weeks between exchange and completion)

I think there does need to be a seismic shift in the way developers sell properties 25% of the price should at the moment I think be withheld until all the roads,electricity,swimming pools ect are sorted if people are the first buyers

It does seem to myself a very funny way of going about things that the first buyers just suffer longest without what any person would consider a normal everyday amenity

What people have been through just to have a decent retirement is criminal and does the TRNC no good

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
03/11/2009 12:52

just a reminder, In the UK a 10% deposit is placed in a safe account and this and the balance of the money is not transferred to the Vendor until the Purchaser has an unencumbered (no mortgage on it) deed registered in their name. Perhaps this could be the basis of changes here? It's a "you don't get my money until I get what I paid for" system which is very common when selling items. Usually you would allow a bit of leeway but considering north Cyprus's record I don't think anything else is appropriate here.

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
03/11/2009 12:57

Hi Sibel,



Medview Homes mortgaged all our homes to the tune of 1.5 million after we had paid for them in full. We were never asked if this was alright and we only found out when registration started to take place in January 2008. However, Mr Ali Safa did say he would clear this mortgage by October 2009 we are still waiting to hear if this has been done. We do know he has been making regular payments and we are hopeful that he will keep his word. We realise we are some of the lucky owners but this should never have been allowed to happen in the first place as we have had two years of stress, waiting and wondering if our homes would end up in auction.



The butlers wife

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
03/11/2009 13:12

I hope I am not wrong, Sea Terra had originally 4 mortgages on the land, one of them belonging to the original owner of the land. Obviously the original owner wanted to secure himself and this is quite normal and thus nothing suspicious. Eventually this mortgage has been removed. So far so good. The suspicious part is that all the other three mortgages belong to foreign sounding name or names with outside connections as Sibel explained in the link she posted. If they owed 2 million pounds originally and they paid off one million, how come all three mortgages are still there? Personally this would make me uncomfortable if I had any investment on that plot and would certainly not pay another penny to them until they learn to be curtious and transparent to their buyers.

Just a hypothetical question: What will happen if Sea Terra suddenly packs up and leaves the country? Would the company with mortgages move in and try to auction off the land? Of course they would not do such a terrible thing but would that stop you worrying?

ismet

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
03/11/2009 16:49

Yes, you are correct Ismet. I do believe that one of these 4 companies could move in and auction off the land if the mortgages remain unpaid. If their intention was to repay the mortgages, why are they still there a year after the site is finished? With private companies involved any amount of interest could've been agreed, meaning the mortgages could now actually be astronomical due to the lack of transparency from Seaterra.



The Butler - hopefully your mortgages will be cleared as promised.

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
03/11/2009 16:52

I believe their objective on many sites with mortgages is for the mortgage comapnies/banks would be to extract extra funds from the current purchasers. It would be easier for them to do this than try and auction and sell houses in the current financial climate and the property problems that go with buying property here. I think they would weigh up how more a current owner would be prepared to pay to keep their property rather than chasing the developer. The banks etc are fully aware that people will not want to risk losing their homes and life savings. They know people have paid for their homes (sometimes in full) have paid for iron work, gardens, pools, furniture etc and will not want to walk away from this. I believe it is morally wrong for a developer to contractually sell property to someone and then to go and mortgage the land it stands on. A promise was made, and then broken, I believe this is fraud.

Mindy



Joined: 27/10/2008
Posts: 1210

Message Posted:
03/11/2009 18:30

We paid in fulll for our property, and only found out there was a charge when we tried to register it in 2008.

We have been informed that the Builder took out a loan against other sites belonging to him but we have been told our site has the charge over it to safeguard the banks interests. There has been a dispute between the bank and builder for over 18 months regarding interest owed on the loan, and we are in limbo. The builder is BOYUT.

Mindy



Joined: 27/10/2008
Posts: 1210

Message Posted:
04/11/2009 12:24

Can't this thread be made a sticky please...??

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
04/11/2009 18:23

Can we have some more input on this important subject? I know there are more than 3 developers!

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
08/11/2009 19:10

Another site involved with mortgages: http://www.cyprus44.com/forums/24973.asp

tanwg


Joined: 15/02/2009
Posts: 24

Message Posted:
09/11/2009 12:50

SERCEM state that they're in the process of releasing the mortgages on their developments. We still await the evidence and our title deeds!

Selin villas , properties purchased 2005, morgage raised on properties by Sercem August 2007.

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
19/11/2009 18:49

Please sign the petition to try and prevent this happening to others: http://www.cyprus44.com/forums/26384.asp

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
19/11/2009 18:51

Please sign the petition to try and prevent this happening to others: http://www.cyprus44.com/forums/26384.asp

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
19/11/2009 19:30

Hi All.



It is a lack of openness and transparency that lets these guys get away with it!



Tell the truth, and shame the devil! (as my long departed mother used to say)



"Dont was our dirty linen in public.."........."lets keep it between ourselves.".....Provides the refuge that these guys rely upon!



Honour. Openness, Transparency are the ways forward to defeat these crooks.



Use the laws of the TRNC. Times are changing. More and more buyers are getting awards for contractrual agreements.



Its time these "builders were held to account" and contractrual agreements are honoured.



wynyardman

Pipie


Joined: 05/01/2008
Posts: 5499

Message Posted:
19/11/2009 20:01

Sibel could we have petition as an ongoing sticky ?

sloan



Joined: 24/02/2009
Posts: 808

Message Posted:
19/11/2009 20:10

(Cyprus) Regency Construction



http://www.cyprus44.com/forums/3238.asp