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Cyprus Housing Grants for all

Nigel Howarth
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The Cyprus Government has published its 2007 housing grants plan which covers locals, as well as all E.U. members. The plan covers large families (in excess of 3 children) and invalid people with no locational limits. It also refers to grants which are earmarked for certain small village communities all over Cyprus (e.g. for Paphos, it covers around 84 villages, including Ayia Varvara, Amargeti, Armou, Anarita, Goudi, Droushia, Neo Chorio, Tsada, Argaka etc), including villages which are already quite popular by the foreign market.

In order for someone to be eligible for the grants the applicant must:

• Have no other owned residence.
• There are no income criteria regarding people who wish to be located in the village communities earmarked, but in case of large families/invalid people there are, in the event that they buy/build a house outside the stipulated villages.
• The applicant must be less than 70 years old and in any case he must be able to repay the grant before he/she is 70 years old.
• A building permit must be in hand on the application date.
• The applicant must have received no other Governmental assistance for housing purposes.
• The maximum house extent is set at 230 sq.mts.
• The building works must have reached no more than the building’s frame/roof prior to application date.
• Foreign/E.U. members must be permanent residents in the Republic for at least 5 years.
• Single persons can also apply if they are over 35 years old.

The scheme suggests:
(i) A grant of up to £8.000 for the building/buying an apartment/house.
(ii) A loan of up to £48.000 with the 65% of the base interest charge subsidized depending on the family composition.
(iii) A grant of £4.000 and a loan of up to £6.000 for the maintenance/ extension/improvement of a house/flat.

In addition there are special provisions for co-habitation of families, i.e. parents with children. This assistance is offered to those who:

(i) Have no other house or are not in a financial position to cover the cost themselves.
(ii) The total annual income does not exceed £3.500 (one person) or £5.500 (2 persons).
(iii) A building permit is secured.

In these cases the assistance refers to:
(a) £5.000 for the construction of an added bedroom/bathroom.
(b) £7.500 as above plus a kitchen.
(c) £4.000 for improvement/repair.

An alternative to the financial help, the Governmental offers division of building plots and it covers the whole island, other than the Municipal areas.

• Those eligible are Cypriot citizens or E.U. members permanent residents (5 years continuous living in the island).
• The applicant must have a family.
• The applicant/his family must not have other residence or land within development areas or land close to them. He must be a “local” either by birth or by staying in the local community for at least 3 years (these categories will have a second priority).
• Must be permanent residents in the locality.
• Less than 50 years old.
• The income for a two persons family must be less than £9.620 p.a., for a 3 persons family, less than £10.150 and for a 4 persons family £11.770 etc.

The plots are offered for sale at market price less 25% and the applicant must pay 25% on signing, plus 10 yearly installments with interest 65% subsidized by the base rate.

Returning Cypriots from abroad to live here permanently, are also entitled for a rental subsidy for a period of 1 years (no financial criteria).

(More information on Government tel. 22871837).

We feel that the financial assistance provided by the State and in addition to those for energy saving, for preserved buildings etc, is quite a considerable assistance for everybody to consider. Time and patience is required however, since the Governmental red tape being what it is, will test your nerves but the financial help will be forthcoming.

By Antonis Loizou, FRICS
Antonis Loizou & Associates Ltd
Chartered Surveyors
Property Valuers – Project Managers

www.aloizou.com.cy
www.aloizou.ro

[email protected]

New Group Helps Cyprus Property Buyers & Overseas Investors

Nigel Howarth
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A Cyprus property buyers’ action group has recently been established to help Cyprus property buyers. It is a pressure group dedicated to creating awareness within the industry and the Cyprus Government of the problems some buyers face as a result of buying property in Cyprus and lobbying for change.

Hopefully the Cypriot authorities will work with the group to make property purchase and ownership a delight for nationals, residents, and overseas investors.

If you have bought property in Cyprus and have problems or concerns regarding your purchase, the Cyprus Property Action Group wants to hear from you.

Visit their website at http://www.cyprus-property-action-group.net to register your problem or show your support for the work they are doing.

Apartment Pools Blur Lines between Public and Private

Nigel Howarth
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THE INTERIOR Ministry yesterday said they are in the process of drafting a slight change to the law governing public swimming pools on the island.

Residents of a Larnaca apartment complex contacted the Mail after the developer in charge of their building threatened to close down their pool unless it was registered to only one person.

Warren Overton said that SS Georgiou Developers sent them a letter stating that the pool can only continue to operate with the following conditions:

Issue of an operating licence; employment of a lifeguard; testing and changing the water every three months and the building of showers and toilets.

According to the letter, Georgiou’s expenses “will come to £7,500 approximately and for this reason we will have to raise the amount of the communal charges”.

“The only alternative solution you have is to write the ownership of the swimming pool to one of the flat owners. That person will give his written consent that everybody will use the swimming pool. The reason that we have to do this is to prevent the swimming pool to be considered as public.”

The letter went on to say that if there is no interest from anybody by next Friday, the swimming pool will be closed with immediate notice.

Patrick Hogan, another resident of the complex, in the Mackenzie area, described the new regulations as, “pretty draconian”. He said that he bought his apartment four years ago on the basis of it having a swimming pool.

Commenting on the situation, Georgiou explained: “This is the law and I am following it as I do not have any choice.”

George Antoniades, who is in charge of the Interior Ministry’s Local Authorities Directorate said swimming pools belonging to apartment complexes are classified as public and not private as several people use them.

He added that the main concern is over the issuing of operating licences. “For one to be granted, final approval must be given either by the relevant municipality or from a District Officer.”

According to Antoniades, licences are often refused due to problems with the apartment complex not relating to the pool itself.

“Therefore we are proposing a change in the law to make it easier to obtain the operating licence. Exact details will be announced soon.”

He added that according to the law, each public swimming pool must not be left unattended while it is being used.

The Ministry’s proposal is due to go before the Attorney-general within the next few weeks.

31st May 2007 By Leo Leonidou

Copyright © Cyprus Mail 2007

Remand for Man who Sold House that Wasn’t His

Nigel Howarth
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POLICE yesterday issued a four-day remand for 40-year-old Pavlos Kyriacou from Limassol after he tried to sell a house that did not belong to him to a British citizen.

Kyriacou agreed to selling the property to the man in July 2005 for the total sum of £110,000.

According to reports, the British man gave Kyriacou a down-payment of £60,000 through his lawyer, but became increasingly suspicious when the 40-year-old did not respond to any of his calls.

The man then decided to take matters into his own hands and came to Cyprus where he discovered that the house did not belong to Kyriacou but to a 50-year-old Nicosia citizen.

He then reported the case to the police who arrested Kyriacou.

Copyright © Cyprus Mail 2007

Living in a Cyprus Property with no Title Deeds

Nigel Howarth
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I’ve heard that some people are being taken to court for living in houses without Title Deeds.I’m confused; is this true? If it is true, what can I do to stop this happening to me? I don’t have my Title Deed and I’ve been waiting for over 12 years now.

Answer

The situation to which you refer was widely reported in the Cyprus press in February 2007.

It concerns the residents of 22 properties in Paphos built by St. Paul’s Church over ten years ago. As the case is still being heard by the Court, I shall not comment on it further.

But this is the way that the system is supposed to work:

  • When a property or development has been finished, the developer advises the authority, who then visits and inspects the development to ensure that conforms to the Town Planning permissions and Building Permits issued for its construction.
  • Once the inspectors are satisfied that everything is in order, they issue a ‘Certificate of Final Approval’. This Certificate, along with some other paperwork, then goes to the Land Registry so that Title Deeds for the individual properties may be issued.

Although it is legal to occupy property for which a Title Deed has yet to be issued, it is illegal is to occupy a building for which a Certificate of Final Approval has not been issued. As this Certificate is required by the Land Registry before a Title Deed for the property in question can be issued, this may be where the confusion arises.

The only way of ensuring that this will not happen to you is to avoid breaking the law. I.e. do not occupy a property until its ‘Certificate of Final Approval’ has been issued.

Unfortunately, due to various ‘problems’ that delay the issue of Certificates of Final Approval, you may have to wait many years before you can legally occupy a property you have bought!

On a slightly more positive note, the enforcement of this law (Article 10 of the Streets and Buildings Regulations Law, Cap. 96) is erratic and inconsistent.

But be in no doubt – if you occupy a property without its Certificate of Final Approval, you are breaking the law.

Choosing your Cyprus Lawyer

Nigel Howarth
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Many people buying property in Cyprus, particularly those buying from a property development company, make the fundamental mistake of taking legal advice from a lawyer who has been introduced to them by the property developer.

If you use a law firm or lawyer recommended to you by the vendor, then how can that lawyer give you independent legal advice. Whose side is the lawyer going to be on? Will that lawyer be able to represent your best interests?

Any lawyer recommended by a developer, may well be the developers own lawyer and dependant on the developer for new clients. This lawyer cannot have the interests of buyers at heart.

The only people legally qualified and permitted to give legal advice in Cyprus are lawyers, so don’t take legal advice from anyone else. Don’t pick a conveyancing lawyer at random, but engage one who has been highly recommended by someone you can trust. Before engaging him or her, check that they’re a member of the Cyprus Bar Association or you can give them a call on 22 779156 or download their list of practicing lawyers from their website.

All Cypriot conveyancing solicitors speak English. Many are accustomed to dealing with foreign home buyers and understand the many problems with buying property in Cyprus that must be avoided.

Unlike the UK, lawyers practicing in Cyprus are not required to have Professional Indemnity Insurance. As a consequence, if you suffer a loss as the result of advice given to you buy a lawyer without insurance, your only redress is through the Court; this could be a lengthy and expensive exercise with no guarantee of success. For your own protection and peace of mind, I strongly recommend that you only deal with law firms that have an adequate level of  Professional Indemnity Insurance cover.

Note: In the UK, each law firm which is not a corporate body is required to secure professional indemnity insurance to a limit of indemnity of £2,000,000 any one claim. Most corporate bodies, such as Limited Liability Partnerships, are required to obtain such insurance to a limit of indemnity of £3,000,000 any one claim.

You may come under a great deal of pressure to pay a ‘reservation’ fee for a property. This is fine provided the money is held by a lawyer or reputable agent and will be returned to you in the event that there are undisclosed problems with the property.

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