Cyprus-Forum.com

[willipup]

Hi my husband and I brought a lovely brand new 2 bedroom apartment. We did this with a mortgage for the full amount (and by using the apartment and a percentage of our house as collatoral). We paid for the title deeds to be issued on our names when they come through too.

Thing is now after 2 months we are thinking to sell it. My mother is very ill and going and coming from the apartment to the house is just becoming too much - she is divorced from my dad and needs someone always with her. Is this possible to sell and if so what costs and things do I need to have in consideration? Will I need a Cancellation agreement with the developer and will I have to pay the Land registry anything?

Any information will be greatly appreciated.

[Feisty]

You probably will have to pay someone I'm afraid. You find that you pay in full but still don't own until you get the title deeds. I think having a mortgage may give you some protection as it often prevents the developer mortgaging your property again.
I don't know an awful lot more sorry.
I'd suggest you find a GOOD solicitor and make sure they do their job properly.

[pantheman]

Hi my husband and I brought a lovely brand new 2 bedroom apartment. We did this with a mortgage for the full amount (and by using the apartment and a percentage of our house as collatoral). We paid for the title deeds to be issued on our names when they come through too.

Thing is now after 2 months we are thinking to sell it. My mother is very ill and going and coming from the apartment to the house is just becoming too much - she is divorced from my dad and needs someone always with her. Is this possible to sell and if so what costs and things do I need to have in consideration? Will I need a Cancellation agreement with the developer and will I have to pay the Land registry anything?

Any information will be greatly appreciated.

I don't understand the meaning of " we paid for the title deeds to issued in our names..." When you purchase the apartment, you would have had a contract of sale. The names on this contract will be the names that will eventuall appear on the title deeds when you get them. As you don't have any title deeds you would not have paid the transfer fees yet so until you do you won't have to worry about paying the transfer fees.

You need to check your contract for any conditions regarding selling on, whether you are allowed to do it independently, or whether the developer will do it. If free to sell then you can market your property.

You will probably have to pay a cancellation charge to the developer, and the amount would depend on what is stated in the contract and whether you have put a cap to it. But it could be abything up to Cy£2000.

If you engage an estate agent, then you are looking at around 5% + VAT for his services.

You won't have to pay anything to the land registry.

Given you are selling so quick, then there maybe an early repayment penalty on your mortgage, you need to check this as well.

If you did engage a solicitor you will be looking to pay around Cy£1000 - Cy£1500 for his services.

Any outstanding utility bills or local municiple taxes that are due.

thats all.

good luck

P.S. What area are you in?

[annaka]

You also have to pay capital gains tax on the profit you make on the sale. I understand it is possible to claim back some of the VAT and and to take inflation into consideration when claiming. When paying commission to an agency it is a good idea to make sure they are properly registered as this can make a huge difference on how much you eventually pay. The solicitor charged my daughter 1% of the asking price when she sold her house recently.

regards, Annaka.

[Svetlana]

The Capital Gains Tax rate is 20% of the chargeable gain as adjusted for inflation, but certain lifetime exemptions apply to individuals for the disposal of their main residence. The first CYP10,000 of a gain is exempt. This exemption limit rises to CYP50,000 if the seller has lived in the property continuously for the previous five years. Further allowances are granted in relation to transfer fees, inflation and improvements made to the house, services of registered estate agents, but the total exemption cannot exceed a CYP50,000 limit. Capital Gains Tax does not apply to profits from the sale of overseas real estate by residents who were not resident when they purchased the asset.

Note that these are personal allowances. So if the property is owned in joint names, e.g. husband & wife, each owner is entitled to the exemption of CYP 10,000 or CYP 50,000.
Don’t forget that in addition to the personal CGT allowances you can also claim an Inflation Allowance.The indexation factor is based on the cost of the property if purchased after 01/01/80, using the Consumer Price Index (CPI) in the month preceding disposal and CPI in month of acquisition. Disposals of building sites use the 1980 valuation for CPI purposes.The data is below.Also you can deduct the following: Allowable expenses:-Land Transfer Fees
Stamp Duty
Estate Agent’s Commission - (but only if a licensed agent)
Professional Charges
Advertising
Capital Additions or Improvements - (receipts required and planning permission where necessary)

Indexation can be applied to the above expenses as well as the initial purchase price.

Additional allowable expenses:-

Immoveable Property Tax
Interest on Loan used for the Acquisition of the Property

These expenses cannot be indexed.


If you’re selling a property partly/fully furnished there is a perfectly legal way to reduce your CGT liability.

Have two contracts; one for the sale of the property and the other for the furniture, etc (this is known as a furniture agreement).

Have two contracts; one for the sale of the property and the other for the furniture, etc (this is known as a furniture agreement).For CGT purposes, the Department of Finance will only be interested in the gain you make from the sale of the property.

Lana