Can the bank actually do this?

deefadog

Thank you all for your comments!

I'll get figures ASAP.

The point i was making in retrospect is not with the bank, but with the investment company, they were the ones that was handling the whole deal for us. Yes we are not experts, but love Cyprus and wanted to invest in a property, we stayed in the first phase of the developments and they are really good and popular, so that was what we based this on, ok it was before the global down turn, but still optimistic, in for the long term obviously.

Mands

deefadog wrote: »

Thank you all for your comments!

I'll get figures ASAP.

The point i was making in retrospect is not with the bank, but with the investment company, they were the ones that was handling the whole deal for us.

You didn't respond to the question about what you planned to do with the second apartment but skimming previous posts it seems you are going to rent one or both out. Is that correct?

Did the investment company mention at any point that you would be breaking Cypriot law?

As a non-resident non-Cypriot owner you may only rent certain types of properties under particular conditions; long-term rentals to Cypriots or short-term rentals that are registered and approved by the Cyprus Tourism Organistation (CTO).

As far as I'm aware CTO will only register detached properties, not apartments. Those properties that are registered must pay a levy to the CTO annually. From memory it is 3% of expected, not actual, rental income.

There are lots of EU nationals, including plenty of Brits, who choose to rent without licencing so you certainly wouldn't be alone but clearly this would be an extra risk you'd be taking. At the moment the legislation isn't widely enforced but that could change at any time. When Spain started a clampdown they issued fines up to €30k.

Best of luck,
Mands

deefadog

Thanks Mands. The original idea 3.5/4 years ago was to sell both once complete and make a profit, but with global credit crunch coming in, plans had to change! so yes idea is to rent both for a few years, they will still be on the market to sell at any time.

We were told that 2 would be no problem, they are apartments within a complex if tha makes any difference? But this is another argument to pull out of one apartment, i'll go through paper work agaion to confirm!

Thanks

ILW

Have you actually signed a contract commiting to buy the properties?

Thrugelmir

deefadog wrote: »

Thanks Mands. The original idea 3.5/4 years ago was to sell both once complete and make a profit, but with global credit crunch coming in, plans had to change!

So now you want to back out of the deal......... :cool:

deefadog

ILW - Yes we signed last year, only now has the bank come back and told us this about not being able to lend us the full amount!

Thrugelmir - Not that i want to back out, can't afford to buy - did you not read the thread?

Thrugelmir

deefadog wrote: »

Thrugelmir - Not that i want to back out, can't afford to buy - did you not read the thread?

I assume you have equity in your UK residence which could be used to meet the shortfall.

ILW

deefadog wrote: »

ILW - Yes we signed last year, only now has the bank come back and told us this about not being able to lend us the full amount!

Thrugelmir - Not that i want to back out, can't afford to buy - did you not read the thread?

Are the developers going to allow you to break the contract?
If so I would suspect they will be after some pretty heavy compensation.

Trollfever

From another thread by the OP:

Rocky road ahead....

property.advert

You should have hedged the FX risk.