29.08.2024
Cyprus Company Asset Management Company Ltd ( KEDIPES ) has received more than 2,500 applications for the rent-to-own scheme, with a deadline of September 6. The scheme, which was launched in December last year, is the government’s fourth initiative aimed at protecting vulnerable debtors and preserving their primary residential property.
According to data provided by KEDIPES , 2,525 applications have been submitted so far and are being processed according to the established criteria. A preliminary assessment shows that about 1,700 applications meet the program requirements, including criteria related to the borrower and his credit obligations. Some of the applications are already in the final stage, which includes a technical assessment of the property and determination of its value.
The first permits have already been received and the process of transferring ownership of KEDIPES through the Land Department has begun. Some applicants have been sent letters of refusal and some 375 appeals have been filed under the procedure.
The Rent to Own program is seen as one of the most favorable solutions to protect vulnerable households from the risk of their primary residential property being sold at auction. Under the program, the borrower becomes a tenant of his or her property for up to 14 years, or for life if the borrower is over 65. The debt for the residential property is fully repaid, and the rent payments are covered by the state.
After the first five years of the lease, the tenant or his first-degree relative may purchase the property at a “particularly attractive price” that takes into account changes in value, expenses and rent. If the purchase is not made, the ownership remains with KEDIPES .
The estimated cost of the project was approximately 200 million euros.
