Cyprus Villa Homes - Purchasing with a Mortgage

The real hot spot at present for some amazing property investment bargains is Cyprus. You will soon fall in love with the really mild winters and cherish the really relaxed way of life that the island beholds. You will also enjoy the crystal blue waters, the Mediterranean diet, the magnificent landscapes and chatting with the local Cypriots.

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 - Local Banks in Cyprus are very open to giving mortgages to foreign investors so it is probably the best option for buying property there. One tip if buying a new build would be to choose the same bank that is financing the new development project.

The alternative would be to use a different bank but this would then include a bank guarantee payment that is equivalent to a 1.5% to 1.8% of the property value annually up until you sign the final 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 The contract cannot be withdrawn by anyone and therefore the property cannot be mortgaged, leased, sold or transferred.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.