Cyprus Investment Villas - Purchasing With A Mortgage
If you're thinking of buying property, Cyprus has a lot to offer. Of course the wonderful climate is one of the first aspects that people think about, but there is also the mellow way of life, the warm sea to swim in, the healthy foods, the rustic landscape and the welcoming people.
There are direct flights from the UK to Cyprus and many 'mod cons' that people have grown used to in the UK are also available in Cyprus, such as air con and satellite TV so ex-pats can still get their weekly fix of Coronation Street!
Buying property in Cyprus could be a great investment, especially for those who want a holiday home or an investment property. However, you shouldn't forget that if you're buying an investment property in Cyprus for a rental income than look forward to long rental periods due to the all year round mild climates.
Loans and Mortgages - You can easily obtain a mortgage from local banks when you are buying property. Cyprus has a few banks to choose from however, it is advisable that you choose the bank that is already financing or backing a developers' project, since the bank has already concluded the project is worthy.
On the other hand, if you try another bank, independent of the developer, you will have to pay a bank guarantee which will be 1.5% to 1.8% of the value of the property annually until you get the title deeds.
Legal Procedures When Buying Property - The legal system in Cyprus is based primarily on the British system and safeguards the buyers' rights in many ways. For the buyers' protection, once the sales contract has been signed and a deposit paid, the Land Registry in Cyprus provides a simple and effective legal instrument called the 'Specific Performance'.
This procedure protects the purchaser's ownership rights until the title deeds are issued in their name. The contract cannot be withdrawn by anyone and therefore the property cannot be mortgaged, leased, sold or transferred. This status can only be changed by the purchaser.
To handle the legal issues an English speaking lawyer should be appointed and if you're buying a new build in Cyprus, ensure the lawyer is not concerned with any aspect of the property development so that conflict of interest does not arise. The fees of the lawyer are generally 1% of the property price.
