**Last-Minute Rush Pushes Mortgage-to-Rent Applications Past 4,200**
Cyprus' mortgage-to-rent scheme has seen a significant surge in applications, surpassing 4,200 as distressed borrowers rushed to apply before the deadline. The state-owned asset management company, Kedipes, reported receiving a total of 4,269 applications since the program's launch in December 2023. This increase in interest has prompted the government to extend the application deadline by an additional two months, now set for September 30.
Chara Papakyriacou, a spokeswoman for Kedipes, noted that the last-minute rush was particularly pronounced as the original July 31 deadline approached. In the final five days alone, over 300 applications were submitted. The latest application window, which opened in May, saw a total of 929 submissions, indicating a growing urgency among borrowers facing potential loss of their primary residences.
Despite the high number of applications, the processing of these requests has been slow. Currently, 1,211 homes have received approval, and 846 properties have formally entered the scheme. This means that approximately one in five applicants has successfully completed the required process. Additionally, there are 365 approved properties that are still awaiting the final steps for entry into the program.
The assessment process for each application is described as "time-consuming" by Papakyriacou. Each case necessitates a property valuation, eligibility checks, and procedures involving the land registry. This thorough evaluation is crucial, as around 30 to 35 percent of applications are rejected for not meeting the scheme's criteria.
For the 846 households that have been admitted into the program, their non-performing loans have been written off, allowing them to remain in their homes. Under the mortgage-to-rent scheme, ownership of the eligible property is transferred to Kedipes, while the former owners continue to reside there as tenants. This arrangement lasts for 14 years, or for the lifetime of beneficiaries aged over 65. Furthermore, beneficiaries or their first-degree relatives have the option to buy back the property after the first five years, before the 14-year period concludes. If this option is not exercised, ownership remains with Kedipes.
Eligibility for the scheme is partly determined by the value of the main residence, which must not exceed €250,000. A higher threshold of €300,000 is available for borrowers who were previously deemed eligible but found financially non-viable under the Estia or Oikia debt-relief schemes.
The financial implications of the scheme are significant. As of July, Kedipes reported that incorporating the first 800 homes had cost €97 million, with an additional cash reserve of €60 million maintained to support the initiative. Since that report, another 46 homes have formally entered the program.
Application forms for the mortgage-to-rent scheme are accessible online and through Kedipes' district offices. The extended submission period provides an additional opportunity for vulnerable borrowers to seek assistance in retaining their homes. As the deadline approaches, the government and Kedipes continue to encourage eligible individuals to take advantage of the program, which aims to provide stability for those facing financial difficulties.