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Tycoon: I could have prevented £21m Mayfair repossession
Mira Bar-Hillel, Property Correspondent15.06.09
The multi-millionaire who lost his home in Britain's biggest house repossession today hit out at the way the property was taken from him and said he had been “humiliated”.
Real estate tycoon Cevdet Caner was forced to give up the property in Mayfair — which could sell for up to £21million —after his business collapsed.
Baliffs repossessed the house last week but Mr Caner has told the Standard he offered to repay the money he owed but his lenders refused.
Mr Caner, 35, bought the seven-bedroom house in Charles Street for £16million in July 2007 and spent £5million refurbishing the 11,250 sq ft property and an adjoining mews house.
But his Monaco-based property investment company Level One, which acquires low-cost homes and social housing in Germany, was hit badly by the slump and went into administration last year.
The house, which includes a swimming pool, was placed on the market last December but after a dispute with Mr Caner, the receiver was granted a repossession order last month.
Speaking from Monaco, Mr Caner, an Austrian citizen of Kurdish origin who moved out of the house two weeks ago, complained that the mortgage lender was acting unreasonably in forcing the sale of the house.
“The house was bought with a £16million mortgage. I have offered to repay this amount back — most recently, through my lawyers, three weeks ago, but the lenders refused,” he said.
“Instead they put the company into receivership, sent in bailiffs to repossess it and have now instructed agents to find a buyer. I can't understand why they are doing this, other than to humiliate me and damage my reputation.”
But Mr Caner might still avoid walking away from the home empty-handed.
He said: “Any price achieved above the £16million loan will have to be refunded to me. If the house sells for £21million or more, I will make a profit. If it sells for £16million, I will lose my £5million equity. But if they try to undersell it my lawyers and I will be keeping a very close eye.”
A spokeswoman for Hamptons International, joint agent for the sale with Sotheby's, said: “It is highly unusual for a property at the top end of the residential market like this to be repossessed.”
Jon Gershinson, the receiver, said: “It's a stunning property in one of the best sites in Mayfair.”
The value of the house far exceeds that of Britain's previous biggest repossession.
In September last year, Robert Bonnier, 38, had his £11million Holland Park home seized by banks.
Reader views (3)
to Hugh, he would have to pay stamp duty on the full cost of the house purchase plus any associated costs incurred with buying at auction.
- Si, London
If he bought it at 21 million he pays stamp duty of 4% = 840,000 tax so better to let someone else buy it and get your equity out of it without paying stamp duty?
- James Ritchie, Oyster Bay Cove, NY
So why doesn't he just go out and buy it then? If he is allowed to keep any profit from a sale (over 16 Million) then he simply cannot lose can he? He can outbid anyone and have the excess "profit" returned to him. All he needs to do is raise some cash...
- Hugh, Birmingham, UK
