To
purchase a Freehold title property, there are a number of checks
carried out by the Ministry of Interior. This will inevitably mean
the sale will take approximately 4-8 months to be completed. The process for buying any freehold property is as follows:
1. Secure property and agree price.
2. Contract drawn up by solicitor, setting down the terms of sale,
i.e. price, timescale, vendor, purchaser and any special conditions.
3. Vendor and purchaser sign.
4. Purchaser provides 10-20% deposit.
5. Solicitor applies for a Purchase Permit from the Council of
Ministers, (takes 4 to 8 months).
6. As soon as purchase permit is received, remaining balance due
from purchaser.
7. Purchaser pays balance and vendor signs title deed into name of
purchaser.
8. Sale completed. The costs involved are as follows:
Solicitors cost, including; drawing up of contract, power of
attorney, purchase permit application and seeing sale through to
completion = £1,000
There are also leasehold properties owned by the Ministry of
Tourism, who grant
long-term leases of 49 years. Process for buying a leasehold property is as follows:
The process to purchase is much the same as freehold purchases,
however, instead of an application going to the Ministry of
Interior, you must apply either directly or via a solicitor to the
Ministry of Tourism, who grant the lease.
At the time of application a deposit of 10-20% must be paid and held
on behalf of the vendor. Once application is accepted the sale can
proceed to a completion at a convenient time for vendor and
purchaser and then the lease is transferred into name of the buyer.
1- Secure property and price.
2- Contract drawn up by solicitor agreeing terms & conditions.
3- Vendor & purchaser sign.
4- Vendor applies to Tourism Office to transfer lease.
5- Purchaser applies to take over lease. (May include personal
interview)
6- Once Purchaser application is approved, 10-25% deposit
transferred.
7- On completion, remaining balance paid over to vendor and lease
transferred.
8- Sale completed…
Freehold Property
The usual procedure for buying a freehold property is first to
choose a property and make sure you are happy with it. Once a price
has been agreed upon, contracts will then be drawn up, either by our
solicitor or any solicitor of your choice. You, the vendor and the
solicitor will agree upon the terms of sale; price, timescale,
purchaser and vendor details and any other relevant conditions
including the payment plan for new-build properties. The contracts
are then signed by the vendor and the purchaser. On signing the
contract, the purchaser pays the agreed deposit (usually between 10%
and 25%) and the purchase permit is applied for from the Council of
Ministers. It can take between four and nine months before the
application is processed. The stage payments then continue as per
contract until the permission is granted by the Council of
Ministers, and then the remaining balance is paid to the vendor. The
vendor will then sign the title deed into the name of the purchaser
and stamp duty will be paid. This is known as transfer of title
deeds. The sale is then complete.
Land Purchase/Own Build
For the client who wishes to purchase land and build a house or
villa, the laws are outlined below:
a) Outside the Municipal boundaries, there are restrictions on the
area that one can build on (20% of the land area), and a height
restriction of two storeys.
b) There are good architects and engineers who will plan and design
your villa at reasonable rates. Our sister company Osin Construction
can help with planning, designing and building. Once the plans have
been lodged with the District Office, work may commence.
c) Land in Northern Cyprus is measured in dönüms. 1 dönüm consists
of 4 evleks. 1 evlek = 3600 ft², 1 dönüm = 1388 m² or 14400 ft², 3
dönüms = 1 acre. Building costs vary, dependent upon finishing, from
£250 per m² upwards. Most buildings are constructed in the
reinforced concrete frame system that is familiar in the
Mediterranean countries. Buildings tend to be over-specified, but
this can only be an advantage to the buyer. Materials are readily
available from Turkey, Spain, Italy, Germany and UK. Osin
Construction are very highly regarded and quotes are available upon
demand.
Approximate Costs
Buying properties in northern cyprus..
In addition to the purchase price of actual property, other costs
you are likely to incur when purchasing a new build are as follows:
• Solicitor's fee: £1000
• Deposit: 10% - 25% of purchase price (in most cases) followed by
stage payment - dependent on development.
• Stamp duty: 6%
• VAT: 5% Approximate
• Approximate for electricity and water connection: £200 - £600
• Water charges can vary considerably, depending on size and
location of property, and whether usage is general or excessive for
pool and irrigation system etc. but a standard charge (i.e. not
exceeding allocation) £10 bi-monthly.
Note: Electricity bills, which are payable monthly, average out at
between £10-£40 pounds per month depending on usage.
A foreigner coming to Northern Cyprus to live and/or work must apply
for a temporary visitors permit from Lefkosa, which involves the
completion of a form and the supply of three or four passport size
photographs. A full permanent resident's permit is not usually
issued until the recipient has been in residence in the TRNC for
five years. For retired persons, the residents permit is all that is
required. Retired persons may bring into the country a full
household of furniture. These are virtually tax free - a nominal 2 -
3% tax is levied.
