bulletEDITOR'S PICKS

 

‘The regulatory train has left the station’: FLinks 2014

From Life Sep 25 2014 @ 14:57

Senior asset management figures have said adapting to pension changes, finding alternative...
view article

FCA urges EEA investors to register mis-selling complaints

From Products Sep 24 2014 @ 11:16

In a highly unusual step, the Financial Conduct Authority has issued a statement urging...
view article


bulletRELATED ARTICLES

 

bulletNEWS

 

LATEST NEWS

RBC GAM launches Asia Ex-Japan fund

RBC GAM launches Asia Ex-Japan fundA new fund has been launched by RBC Global Asset Management (RBC GAM) to give...
view article

iFS signs 'first of its kind' deal with...

From Asia Oct 1 2014 @ 11:01

First Names Group acquires Jersey trust...

From United Kingdom Oct 1 2014 @ 10:30

MORE FROM Asia

LATEST NEWS

Brooklands Pensions adds Gibraltar QROPS to international range

Brooklands Pensions adds Gibraltar QROPS to international rangeBrooklands Pensions has launched a Gibraltar QROPS which includes a lite option.
view article

Montreux launches Isle of Man domiciled...

From Products Sep 30 2014 @ 17:40

HMRC to extract tax debt from wages in...

From Tax & Regulation Sep 30 2014 @ 17:15

MORE FROM Retirement

LATEST NEWS

Kames eyes European expansion with development hire

Kames eyes European expansion with development hireKames has appointed a business development manager for its European sales team to...
view article

Sanlam and Four Capital form joint venture

From United Kingdom Sep 30 2014 @ 12:34

SPDR to switch domicile on 13 ETFs, cuts...

From Products Sep 30 2014 @ 11:50

MORE FROM People



British buyers of Cyprus homes to sue banks, advisers

From Europe Jan 14 2013 BY: Helen Burggraf , Contributing Editor , International Adviser

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


UK buyers of Cyprus property, in London in November

UK buyers of Cyprus property, in London in November

Almost 800 UK property buyers who claim that they were mis-sold properties in Cyprus are at last taking action in High Court in London.

The buyers, who mainly bought the properties as investments during the height of the island's recent and now-ended property boom, are suing Athens-based Alpha Bank, property developer Alpha Panareti, as well as a number of financial advisers, according to the Sunday Times.

As reported, the High Court ruled in November that the buyers could have their cases heard and decided in a British court rather than in Cyprus in certain circumstances, paving the way for the case to proceed.

That case involved buyers who are keen to take legal action against Alpha Panareti Limited, headed up by entrepreneur Andreas Ioannou,  and Roseberry Overseas Property Limited.

According to The Times, a similar hearing, to determine whether those with grievances against Alpha Bank – Greece’s second largest bank – will take place in February.

“The linked cases could come to trial in October,” the Times reported yesterday.

It said the law firm involved in the case, representing the investors, is the London-based Highgate Hill firm, and it quoted a senior partner at the firm, Katherine Alexander-Theodotou, as saying that two clients "had committed suicide because of the stress" of their failed Cyprus property investments.

Alpha Bank and Alpha Panareti did not immediately respond to International Adviser's requests for comment. However, The Times reported that Alpha Bank, though declining comment, was understood to be planning to "fight the claim vigorously". It said Alpha Panareti and Ioannou also rejected the claims against them.

Swiss franc mortgages

The matter of the UK investors who lost money in their Cyprus property investments has been rumbling along for years, fuelled by the sheer number of individuals involved – some estimates range above 1,000 – and the amounts of money they allege they have lost (£20m is the Sunday Times's figure for those seeking to sue in High Court).

Lawyers, politicians and a number of crusading newspapers have become involved, including The Times and Sunday Times; the Cyprus-based Cyprus Property News; and the Northern Echo, a newspaper in County Durham, where a number of the investors caught up in the saga live. 

A common element of many of the claims against the banks, developers and advisers is that the mortages were taken out in Swiss francs – often, the investors allege, without their knowledge. As the Cyprus property market collapsed and the value of the Swiss currency soared, the investors found their investments worth far less than they had paid. 

Eventually the banks started issuing writs and termination notices on those who had defaulted on their mortgage repayments, and investors responded by hiring lawyers, contacting their members of Parliament and the European Parliament, and demonstrating outside the offices of Alpha Bank in London.

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


COMMENTS


Have your say

(Be the first to) Have your say!

Please sign in or register here to leave a comment. Registration is free and only takes a few moments.






Share us on Twitter

SHARE US ON TWITTER
Join the community

Join us on Linked In

SHARE ON LINKED IN
Inform your colleagues

Switch to our mobile site

SWITCH TO MOBILE SITE
News on the go

Back tot he top of the page

BACK TO TOP OF PAGE
Just click here...