![](\"http:\/\/ch.jfdi.cc\/wp-content\/uploads\/2024\/01\/bill-to-halt-auctions-for-mortgage-to-rent-applicants-passed.jpg\")
<\/p>\n<\/p>\n
By a unanimous vote the House on Thursday passed legislation that provides for halting the auctioning off of properties where the mortgage debtor has applied for the \u2018Mortgage to Rent\u2019 scheme.<\/p>\n
It concerns auctions on first dwellings.<\/p>\n
And under an amendment that also passed, suspending these auctions was expanded to include debtors who applied to the \u2018Mortgage to Rent\u2019 but were turned down. If an individual has appealed their rejection, and for as long as the appeals process is ongoing in court, they are likewise protected from having their property auctioned off.<\/p>\n
Tabled by a group of Akel MPs, the legislation aimed to amend the main foreclosures law, affording additional legal recourse to debtors so that they\u2019re able to set aside the sale of a mortgaged property.<\/p>\n
Speaking on the House floor, Akel MP Andreas Pashiourtidis said this gives extra protection to people at risk of losing their homes. Even though banks have given verbal assurances not to foreclose on properties, he said, anecdotal evidence suggests otherwise.<\/p>\n
Under a mortgage-to-rent scheme, intended to help homeowners at risk of losing their property due to mortgage arrears, a person voluntarily surrenders ownership of their home for five years to their lender. An entity \u2013\u00a0in this case the state-owned asset management company Kedipes \u2013 buys the home from the lender and becomes the landlord. During that time, the borrower no longer owns their home but will continue living in it as a tenant.<\/p>\n
Furthermore, the scheme stipulates that applicants who meet the basic criteria \u2013 provided they have a title deed \u2013 will transfer the title to Kedipes, which at the same time will sign a 14-year rental contract with the individual concerned.<\/p>\n
Moreover, under this plan, the state will cover the rent for a period of 14 years, with an option for the previous owner to re-acquire the property after five years.<\/p>\n
This gives the tenant, meaning the previous owner, or a first-degree relative, the right to repurchase the residence.<\/p>\n
Also eligible are borrowers with a primary residence valued up to \u20ac350,000 which was previously considered non-viable for inclusion in other housing schemes, such as the \u2018Oikia\u2019 initiative, as well as individuals whose participation in such housing schemes has expired or ceased.<\/p>\n
The \u2018Mortgage to Rent\u2019 scheme was launched in early December 2023. At the time of the rollout, Kedipes \u2013 in charge of implementing the scheme \u2013 said hundreds of people called to inquire about it.<\/p>\n
Follow the
\nCyprus Mail on Google News<\/p>\n","protected":false},"excerpt":{"rendered":"
The House unanimously passed legislation to halt property auctions for mortgage debtors who have applied for the ‘Mortgage to Rent’ scheme. This applies to first dwellings and includes those who were rejected from the scheme but have appealed the decision. The legislation amends the main foreclosures law, providing additional legal protection for debtors. The ‘Mortgage to Rent’ scheme allows homeowners to surrender their home to their lender and rent it from the state-owned asset management company Kedipes for five years, with the state covering the rent for 14 years and an option for the former owner to buy back the property after five years. The scheme is available to borrowers with a primary residence valued up to \u20ac350,000 and was launched in early December 2023.<\/p>\n","protected":false},"author":3,"featured_media":2337,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[3,515,516,250,185,517,120,284],"class_list":["post-2336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cyprus","tag-cyprus","tag-cyprus-housing","tag-foreclosures","tag-google","tag-main","tag-mortgage-to-rent-scheme","tag-picks4","tag-property"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\n