Is it safe to buy in real estate in North Cyprus?
Another source of misunderstanding is that property markets in other countries, such as the Middle East, Scandinavia, the United Kingdom, and mainland Europe, operate in quite different ways and have a very different history from those in North Cyprus.
We like addressing our clients’ property worries and assuaging their legal, practical, and other concerns, as well as dispelling these prevalent myths about the safety of the North Cyprus property market. We further propose that people with concerns touch with or email a skilled North Cyprus Lawyer for reassurance if necessary.
The top 5 Common Misconceptions regarding Buying a Property in North Cyprus are listed below. None of these statements are correct!
- buying a property in North Cyprus can take up to two months.
- In North Cyprus, villas are always more expensive than apartments.
- Foreign buyer bank mortgages are available on all North Cyprus properties.
- Non-Cypriot lawyers from outside North Cyprus can be employed to purchase properties in North Cyprus.
- Title Deeds in North Cyprus are dangerous or difficult to get.
Misconception 1: buying a new, key-ready property in North Cyprus can take up to two months
It can take up to two months in the UK and several other countries between putting an offer on a home to “completion” on a property. It’s a common misperception that it would take the same amount of time in North Cyprus. However, because the majority of transactions to international buyers are still “cash sales,” it can take as little as two or three weeks. Many sales in North Cyprus are of brand new properties with 5-year structural warranties, which means property surveys are less usual — saving time as well. Furthermore, in other nations where bank mortgages are commonly arranged as part of the sale, the time period is obviously extended.
True: purchase purchases in North Cyprus, whether through a developer loan or cash, may typically be completed swiftly. The majority of sales in North Cyprus are either cash sales or non-status developer mortgages, both of which are quite simple to arrange. The keys can be handed over once the money has been transferred (either the whole sale price or an agreed-upon deposit) and the contract has been signed and ideally recorded at the land registration. Unlike the UK, there is no two-stage process (exchange and completion) — instead, the money is released to the seller on the same day as the contract is signed. Sales using the new 50% bank mortgages (on a limited number of homes) take longer to finalize.
Misconception 2: In North Cyprus, villas are always more expensive than apartments.
In the past, apartments in North Cyprus were often more cheap than villas. However, this is no longer the case. Although the top end of the villa range does cost more than the top end of the apartment range, the price lines are blurred at the lower price range end of the market.
True: 2 bedroom townhouses or smaller bungalows in the cyprus-properties category can be far less expensive than some of the more opulent seaside flats with year-round amenities! With some townhouse and semi-detached villa pricing (many with payment plans/mortgages) being really cheap, you should inquire about what you truly desire rather than what you believe you can afford.
Misconception 3: All North Cyprus houses are eligible for bank mortgages for foreign buyers.
Many would-be Cyprus property owners are astonished to learn that, unlike Spain and Italy, not all homes in North Cyprus are suitable for bank mortgages for foreign buyers.
True: However, there is some positive news: new 10-year, 50% bank mortgages are now available to overseas buyers, albeit only on certain houses. Banks will consider loans for North Cyprus properties having individual (not joint) title deeds that are ready to transfer.
Even though they are still excellent assets, brand new properties that are awaiting their deeds or older properties with an interim shared deed are not bank mortgageable. However, with a “developer loan,” cyprus-properties will purchase buyers in purchasing new homes when they are available.
One element that has kept prices so low, avoided boom and bust, and sheltered North Cyprus from the repercussions of the global recession is the lack of bank mortgages for international buyers until recently in North Cyprus.
Developer Loans are an alternative to bank mortgages in North Cyprus
So, how can a foreign buyer or investor buy a home if they don’t have all of the necessary funds? There are two primary options: many people will remortgage their home in their native country to free up funds, which they will then use to purchase property in North Cyprus. Many other countries have cheaper interest rates, so this could be a smart option.
The second alternative is to use one of the non-status “low deposit developer mortgages or payment plans” with interest, which companies like cyprus-properties are increasingly persuading developers to offer to their clients. These include the buyer borrowing money from the firm that constructs the property and repaying it over a period of up to 12 years. The interest rate, minimum deposit percentage, and time period for complete payment vary by developer. Deposits start at 25% with payments spread out over up to 12 years in the cyprus-properties Long Term Payment/Mortgage Range. For further information, please contact our NCI offices.
Misconception 4: I don’t need a lawyer in North Cyprus since I can handle the purchase of a property in North Cyprus with my own lawyer at home
North Cyprus was once a British colony, and the island retains a distinct “ex-colonial, British flavor.” Cars drive on the left, plugs are the same, English is commonly spoken, and the British pound is accepted in stores. As a result, some people may believe that the legal system is the same in both countries, and that British or UK-based lawyers can be employed for property transactions, although this is a misunderstanding. North Cyprus has its own legal and political system.
Lawyers in North Cyprus who are recommended
True: To buy a North Cyprus property safely, you need see a fully certified North Cyprus Lawyer during your stay and set up a power of attorney (POA) – which is free to set up – so that if you wish to buy after you have gone home, you will be allowed to do so. Important responsibilities such as registering your contract of sale at the land registry, liaising with the property owner to confirm the property is safe to purchase and draw out the contract, signing the contract on your behalf, and other matters will require the services of a North Cyprus educated lawyer. Many North Cyprus lawyers have received their education in the United Kingdom; see our list of recommended lawyers.
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