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Submitted by: Cleo Lucas
I recently interviewed Lorna Waddell from Conti Financial one of the UK’s leading international mortgage firms. Lorna had the following comments on the current property market, trends and lending.
Interviewer: How have landing and Cypriot property sales been affected by the global credit crunch and economic slowdown?
Conti: Whilst the credit crunch has led to a decrease in demand from the UK and other European markets, demand from markets such as Iran and some Eastern European countries has actually increased.
Interviewer: Has lending become more difficult for those trying to get financing in Cyprus?
Conti: Due to the exposure of some of the lenders, underwriting has become more restricted and some lenders have been finding ways of declining applications so as not to lend.
Interviewer: Are interest rates trending up or down?
Conti: Financial institutions have tried to attract cash flow by raising interest rates on deposit accounts, but this in turn has seen interest rates on lending increase considerably, compared with the same time last year.
Interviewer: How do you see the future of lending in southern Cyprus and volume of property sales? Do you foresee a continued downturn or a quick rebound?
Conti: We expect lending in southern Cyprus to start bouncing back and we’re positive about the future. We don’t expect to see the same underwriting of the last year. Some lenders have already started to release funds into the market as many developers continue to see their projects through.
Interviewer: Is there still a strong level of interest/ enquiries for home purchases in Cyprus even if they don’t complete?
Conti: Cyprus is still enjoying a high level of interest, compared with some other property destinations. It has predominantly attracted lifestyle buyers rather than the multiple purchase investor.
Interviewer: You reported on your website in January of this year about plans for a Disney theme park. Are there any updates on this, do you know if this project is something that is still moving ahead?
Conti: Unfortunately, it seems that the Disney theme park is not going ahead for now. The reasons for this have not yet been disclosed.
Interviewer: There have obviously been a number of articles in the news written regarding title deeds in Cyprus. I don’t think most people really understand what that means to people buying property in Cyprus now. What are the recent changes this year? How secure is it to buy property there now and be sure your rights and property are protected?
Conti: The government in Cyprus has said that it will start to issue some of the 130,000 title deeds that are still pending. It’s a very big issue and one which future buyers should approach with caution. They should ensure they’re buying from a reputable developer and should also always seek the advice of an independent solicitor. There is one way to help ensure that you receive title deeds and that is to pay the transfer tax (RETT) immediately. This means that the developer has to transfer the portion of land that your property sits on, meaning that you will eventually receive your title deeds. This also makes it easier to raise any finance against the property. Again, your lawyer can advise you about this.
Recent lending guidelines published on Conti’s website state that mortgage loans are available to 70% LTV for house purchases, remortgages, home improvements and construction. 80% LTV only available to residents or those living there at least 180 days per year. Minimum loan amounts are 100,000 Euros. Terms are available up to a maximum of 40 years depending on the type of mortgage being taken out. Mortgage loans in Cyprus are only available on a repayments basis. Published rates range from 3.70-6.75%. You can obtain more information by visiting their website at www.mortgagesoverseas.com.
About the Author: Cleo Lucas is the General Manager of Just Cyprus. You can read more articles and information relating to
property in Cyprus
at http://www.justcyprus.eu/
Source:
isnare.com
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