North Cyprus Law | End of Stealth Mortgages?

North Cyprus Law | End of Stealth Mortgages?WITHOUT PREJUDICE

It has been a very unusual month for the Kulaksiz 5 and their supporters. For the first time their joint efforts have yielded a real, and unless the expected Appeal by Akfinans Bank is successful, a lasting result that could change everything as far as ‘stealth’ mortgages are concerned. I can only imagine that every bank in the TRNC that have given out stealth mortgage on innocent purchasers properties must be biting their nails and lending their not inconsiderable support to Akfinans Bank Limited. If Akfinans lose the Appeal, the precedent will be set.

I know Koop Bank and Near East Bank will be waiting on this result as will other banks who have gone down the ‘stealth’ mortgage route. In the south of the island they call the same practice ‘toxic loans’ and they number in their thousands there too. The immediate reactions of the British Residents Society in north Cyprus was that the tide had turned in favour of property victims.¹

As at today, I personally have had no confirmation that my villa has been put back into its original state, that it is now on Kocan 7763 which of course means, like the rest of K5, back into the landowner’s name. For those who have not yet realised it, this will mean we will have to ‘persuade’ the landowner Yuksel Yilmaz to transfer title into the purchasers’ names. As the only member of K5 who does have Yuksel Yilmaz’s signature on my Contract, I still fail to see how the illegal transfer of my property into the name of a former Director of the bank, i.e. Mustafa Guner, prohibits our legal team from complying with the judgement given on the 4th December 2014. The Breach of Contract judgement given to me in November 2009 was cancelled by three High Court judges in exactly the same way the Repossession judgement given to Akfinans was cancelled on the 4th of this month and the status quo reinstated. Even if this were not so, I was informed that until either a court ordered it, or I received the £120,000 from the now cancelled Breach of Contract my villa remained as my possession.

Judge Usar refused to remove me from the case when asked to do so during the hearing when he refused the Interim Injunction, and since my Contract of Sale was admitted into evidence and indeed was used to question Richard Barclay during that hearing, I believe there is no LOGICAL reason why my villa was not transferred out of the name of Mustafa Guner and put back into the name of Yuksel YIlmaz.

If the Judge considered the action of the Bank in putting the villas into separate Kocans illegal, how can it be illegal for 8 of the petitioners and legal for one. It is a nonsense.

When a logical reason does not emerge, you then have to look for an illogical reason. Is Mustafa Guner a man of influence? To quote Sherlock Homes (Polly Marples is a huge fan)

“How often have I said to you that when you have eliminated the impossible, whatever remains, however improbable, must be the truth?”

So why am I being treated differently again? Telling me it is complicated just does not cut it.

Never give in never give up



Pauline Read

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5 comments to North Cyprus Law | End of Stealth Mortgages?

  • Polly Marples

    The truth will out, it always does and if I can give it a little shove…I will.

    Anyone know who Mustafa Guner really is?

  • Cyprus Sue

    It is complicated so much so that I can’t really understand what is and has happened. Was the same advocate representing all K5? Have you had in writing where you go from now and what will happen next? Do K5 now have access to their properties? What is the landowner going to do now, co-operate?
    What sort of a solution is this if the titles simply go back into the name of the landowner? Do you all still have to return to court to take further action against the landowner? Other than admitting that the bank acted fraudulentley what has been achieved? Prosecution for the bank? Transfer of deeds to those that paid the full amount and bought in good faith? Immediate use of property?

    Is there a further court date to put everything in order?

  • Polly Marples

    I will try to answer you Cyprus Sue.

    Yes, for this ongoing case they we are all represented by the same Advocate, although even this is complicated, since they started with Boysan Boyra with an assistant.

    Now the assistant has set up in partnership with two other advocates and seems to be doing all the in court work alone.

    Initially K5 were told by Boysan Boyra that no matter how long it took, the fee they paid in stages up front was it….there would be no more fees, although they would have to pay court fees. Now K5 are being asked for more money, regardless of the fact that the judge awarded significant costs to their advocate, who will share these with BOysan Boyra and not as you might expect to offset the cost of K5’s expenditure.

    7 0f the 9 K5 purchasers have always had access and use of their property. Pauline’s villa and the villa of Eva McCluskey are the two illegally repossessed but Pauline’s is the one that is used by the bank family and transferred into the name of Mustafa Guner which is a cynical ploy by the bank.

    My understanding is that 8 of the 9 properties have already been put back into the landowner’s name. The only one that has not is the villa of Pauline Read.

    The next step,if the bank appeals will be the Appeal. Sometimes they have as long as six months in which to make such an Appeal.

    “What sort of a solution is this if the titles simply go back into the name of the landowner? Do you all still have to return to court to take further action against the landowner”. Excellent question. I will tell you my view of this.

    Assuming K5 win the Appeal, the bank can then go back to the court and redo the case in which they won the Repossession Order that resulted in the Auction (this is what was cancelled on 4th Dec 14) Which means ANOTHER court case against the landowner and builder for non payment of the loan, but this time K5 will join in the case. This of course will go on for months, if not years and this can also result in an Appeal which could also take months for a date to be given.

    “Is there a further court date to put everything in order?” In my opinion there is the potential for several more cases and a LOT more money for the advocates in fees in this.

    Then if all goes well, the owners will be in a position to transfer title IF the landowner plays ball. Another big IF.

    As for Pauline, she has no access to her villa and no compensation and it looks as if the advocates acting for her are not going to comply in full with the judgment of the 4th when the judge said the mortgages were fraudulent and that the original Kocans should be reinstated.

    FINISHED…..not even nearly.

  • Cyprus Sue

    Thanks Polly, it really is difficult to understand it all. It sort of unravells bit by bit.

  • Polly Marples

    I suppose the real message is…victory depends on so many other factors…don’t put the champagne on ice for a few years yet.