Guide to buying abroad in Cyprus

Overseas mortgages Cyprus is an island in the Mediterranean island with a population of about 750,000 with an area of 9.251 sq. km. The history of the island dates back over 10,000 years and includes some of europes cleanest beaches. It is the third largest island in the Med and is covered with citrus and olive groves and pine forested mountains.

Historical and Archaeologically valuable sites are only a few kilometres away from modern cities. The winters are mild and the summers hot and dry. Temperatures in Cyprus range from 10-13C in the winter and 26-29C in the summer months. There are over 300 sunny days a year in Cyprus with an average of 11 hours of sunshine in the summer going down to 6 hours in the Winter where the Troodos Mountain range provides good skiing conditions.

So with all that Cyprus has to offer it is not surprising that more and more people are choosing Cyprus as their main residence. It is not a legal requirement to hold a permanent residency permit in Cyprus, but once certain conditions are met these are fairly easy and straightforward to obtain. You will need to submit an application proving that you and your family are self supporting.

Overseas mortgages

When you've found a Cyprian Property

Once you have found a property and had an offer accepted it is normal to hand over a nominal deposit to reserve the property and unlike in the UK this is a legally binding process and therefore you will be free from ‘gazumpers’. Upon signing the contract and the offer being accepted you will need to pay a deposit of at least 20-30 per cent of the property's value. You must then exchange contracts no more than 30 days after paying the nominal deposit to reserve the property. You must pay stamp duty within 30 days of exchanging contracts. You can arrange for a Cypriot lawyer to exchange contracts on your behalf.

There are no self certification mortgages available in Cyprus and as such proof of income and a listing of all current outgoings must be provided to apply for a full status mortgage. These mortgages can be used for property purchase or construction purposes. Generally a deposit of 35% is required and the standard term for a mortgage in Cyprus is 10 years but must not go past your 65th Birthday. Cypriot lenders will require you to take out life cover and you will also be required to pay transfer fees to the Land Registry which are calculated depending on the property’s value. This can range from 3-5 per cent of the property price.

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Cypriot lenders assess your ability to service a loan by expecting that at least 33% of your annual income must cover your existing outgoings and your overseas mortgage repayments. When considering income a percentage of renatl income may be considered. Since the mortgages offered are full status if you are self employed the lenders will look at your payslips and what is actually credited to your personal bank each month.

As a general rule the outgoings the lenders consider are liabilities such as current mortgage/rent, personal loans & maintenance commitment.

It should be noted that non Cypriots and non residents of Cyprus require the permission of the Council of Ministers to purchase immovable property in Cyprus.

For more information click here where we detail lending criteria and buying in Cyprus.