Over 2,500 applications submitted for rent-to-buy scheme

Cyprus Asset Management Company Ltd (KEDIPES) has received over 2,500 applications so far for the rent-to-buy scheme, as the 6 September deadline for submission of applications fast approaches.

The scheme is the fourth announced by the government with the aim to protect vulnerable debtors by securing their primary residence. It was introduced last December.

Figures obtained by the Cyprus News Agency from KEDIPES, show that the exact number of applications has reached 2,525 applications and their assessment is underway, based on criteria.

According to KEDIPES figures, a preliminary assessment shows that approximately 1,700 applications are initially deemed eligible based on the borrower's eligibility and loan obligations.

According to the same figures, a large number of applications have already reached the final stage which is related to the eligibility of real estate (technical evaluation and value assessment).

The first approvals have also been given and their transfer to the ownership of KEDIPES, through the procedures of the Land Registry, is in progress.

A number of rejection letters have been sent, while around 375 objections have already been received based on the set procedure.

The scheme is viewed as the most favorable arrangement that ensures the housing of vulnerable households with protection against the possibility of auctioning their main residence, after the ownership of their main residence is granted, with the loan secured by this residence being paid off in full, while the rent is paid by the state.

Based on the plan, the owner of the residence becomes a tenant for a period of 14 years or for life in case of citizens over 65 years of age.

The tenant has the right to buy back the home after the first 5 years and before the end of 14 years at a "particularly attractive price", which will take into account parameters such as price changes, expenses and rent payments.

The repurchase can be done either by the beneficiary or by a 1st degree relative. In case of non-repurchase, ownership of the property remains with KEDIPES.

The estimated cost of the project was calculated at around €200 million.