NORTHERN CYPRUS
You may have noticed that properties in the north of Cyprus are considerably cheaper than those in the unoccupied south of Cyprus. There are good reasons for this and buyers must be wary (see below) or risk losing their money.
At present we have no plans to offer for sale properties located in the north of Cyprus. However, negotiations are taking place that might result in the unification of the island at which time our policy might change. Even if there is a ‘solution’ it might be a while before we can venture into offering properties in the north of Cyprus.
For the benefit of those not acquainted with the Cyprus problem, we have set out below a résumé of the main issues that should concern you as an investor looking to spend a large amount of money, possibly your life savings, on a relocation, retirement or holiday home.
1. The northern part of Cyprus has been under occupation by the Turkish army since 1974. The self-styled Turkish Republic of Northern Cyprus (TRNC) is only recogised by Turkey.
2. Buyers might have difficulty in establishing that the vendor has legal title to the property being sold. In some cases fictitious title deeds have been issued. Buyers therefore run the real risk of losing all their money unless the deeds are genuine Republic of Cyprus deeds - as would be the case of properties in the north that were owned by Turkish Cypriots before the 1974 invasion.
3. Test case European Court of Human Rights rulings have established that the Greek Cypriot owners of properties in the north of Cyprus are still the legal owners. The Court awarded compensation to the plaintiffs for the loss of use of their properties and ordered they be allowed access to their properties.
4. IATA regulations currently prevent direct flights to the north of Cyprus.
5. There may be difficulties in obtaining buildings insurance cover from British insurance companies on property located in the north of Cyprus.
6. The UK state pension paid to retirees in Cyprus is, by virtue of the Reciprocal Social Services Agreement between UK and Cyprus, index linked. That means your UK state pension received in Cyprus will increase every time it is increased in the UK and by the same amount. You would also be eligible for winter fuel payments. This valuable benefit of an effectively index linked state pension, and other state benefits, would not be available if you retire to the occupied part of Cyprus i.e. Northern Cyprus. As an example of the effect of inflation on a frozen pension, somebody retiring to Northern Cyprus on a state pension of £200 a week would see that pension diminish in purchasing power to £110 a week after 20 years at an inflation rate of 3%.
A settlement plan proposed by the Secretary General of the UN was put to a referendum of both the Greek and Turkish Cypriots on 24 April, 2004. This plan was rejected by the Greek Cypriots.
We do not intend to offer properties in the north of Cyprus until the legal position regarding land ownership there has been clarified. | 
