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Mortgages & Financial Services

Abbey Estates work in conjunction with two reputable Companies specialising in independent financial Advice.  Our agent based in North Cyprus will be available to meet with you and discuss your requirements; they will take all relevant details whilst you are here and liaise with our UK based partners who will then source the most viable options for your consideration.

We have assisted many customers with re-mortgaging, equity release and financial succession planning allowing them to purchase their dream home safe in the knowledge that they do so with financial security.

Legal Advice

The conveyancing procedure although lengthy is quite straight forward, the independent legal firm working on behalf of the Purchasers ONLY is designed to ensure that your interests are protected as far as possible throughout the whole transaction. The first step will be an initial meeting with you to obtain information about the property you have chosen and any informal agreements you have made with the vendor regarding price, payment schedule and included items. This stage may also involve giving a power of attorney from you to the lawyer to ensure they can act on your behalf to sign documents if you are away from Northern Cyprus for long periods of time.

Your Legal firm will then prepare a Contract of Sale to safeguard your interests. The Contract of Sale will include all important terms such as plot number, plot size, price, payment schedule, completion date with penalty clauses for late completion and all floor plans and specifications will be attached to the contract to ensure that the vendor is bound to carry out the construction work in accordance with these. The contract will be sent to both the vendor and the purchaser for review. When both parties are happy the contract will be signed. You will be given the option to pay the stamp duty at this point. Under new regulations, the Tax Office are requesting to see a copy of the contract of sale prior to transfer of title with all stamp duty paid up. Stamp duty is payable at 0.5% of the contract price if paid within 1 month of the contract date. If it is not paid within this time, it increases until it becomes 1.5% if paid after 6 months. You will have the option to pay upfront or pay on transfer of title and pay a higher rate.

The legal firm will next conduct the necessary land registry searches on your behalf to ensure that the vendor is the registered freehold owner of the land and that there are no mortgages/charges, injunctions or other encumbrances on the property. They will also check that the building permission for the construction has been obtained. The lawyer will then make the application to the Council of Ministers for your permission to purchase. The permission process can take a long time to complete; the current estimation is around two years. However, this will not prevent you from moving into the property or leasing the property or possibly even selling the property as standard practice the lawyer will always try to negotiate with the vendor the insertion of a clause into the contract allowing you to sell the property before taking title to the property.

Note: It is now necessary for all foreign nationals to apply for a police clearance report before permission to purchase can be applied for. This can take a few weeks but it is best to be prepared before you arrive in North Cyprus. The following link will provide you with instructions and download form. Please visit the following link www.met.police.uk/dataprotection  

Whilst processing your purchase permit application, the Council of Ministers will take searches from the land registry, the military and the immigration authorities and provided that these are positive, the permission will be granted. In the unlikely event that your application for permission is refused, you will be able to nominate any other person to take title to the property on your behalf and hold the property on trust for you. Your lawyer can assist you with the drafting of the necessary trust deeds.

Once your purchase permission has been granted, your legal representative will then fill out all of the necessary land registry valuation forms for the valuation of the property. It is usually at this point that taxes will be payable. The taxes are calculated based on the land registry valuation and are currently at the following rates:

Land Registry Transfer Fee 6% (however, every purchaser has a once in a lifetime option to reduce this fee from 6% to 3%. At the time of transfer, they will ask you whether you wish to use your option and if you do, you will only pay 3%).

VAT 5%

Stamp Duty 1.5% (if this has not already been paid see above)

All above percentages are subject to change.

The taxes will be paid and the title deeds will be registered in your name. If you have left a power of attorney, all of this can be dealt with without you being required to travel to the TRNC. Your legal firm will then collect and keep the title deeds for you until you are ready to collect them.

 

 

 

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