Nicosia, Cyprus. Cyprus has extended the deadline for applications to its mortgage-to-rent scheme until September 30 after a last-minute increase brought the total number of applications to 4,269.
The extension gives vulnerable borrowers facing the possible loss of their main residence a further opportunity to apply.
Application increase
State-owned asset management company Kedipes has received 4,269 applications since the scheme opened in December 2023, spokeswoman Chara Papakyriacou told the Cyprus News Agency on Wednesday.
More than 300 applications were submitted during the final five days before the July 31 deadline. A total of 929 applications were filed during the latest application window, which opened in May.
Approvals and assessments
So far, 1,211 properties have been approved, while 846 households have formally entered the scheme. A further 365 approved properties are awaiting completion of the final procedures.
Papakyriacou said the assessment process remained time-consuming because each case requires a property valuation, eligibility checks and procedures involving the land registry.
Around 30 to 35 per cent of applications are rejected because they do not meet the scheme’s criteria.
Scheme terms
For the 846 households admitted to the scheme, the secured non-performing loan has been written off and beneficiaries have remained in their homes.
Under the mortgage-to-rent scheme, ownership of an eligible home transfers to Kedipes, while the former owner remains in the property as a tenant. The arrangement lasts for 14 years, or for life for beneficiaries aged over 65.
Beneficiaries or their first-degree relatives may buy back the property after the first five years and before the end of the 14-year period. If the option is not exercised, ownership remains with Kedipes.
Eligibility criteria
The value of the applicant’s main residence must not exceed €250,000.
A €300,000 ceiling applies to borrowers previously found eligible but financially non-viable under the Estia or Oikia debt-relief schemes.
