Q.: We own a house and we are going to have it transferred on our own name in two ½ shares. We are aware that the transfer fees are paid on an increasing scale. Will the transfer fees be calculated separately thus having reduced transfer fees or as a total?
Larry & Phidis Good

A.: The transfer fees will be calculated on the ½ share thus saving transfer fees. Just to let you know, transfer fees are calculated on the acquisition price or the market value as at the date of the contract.

£0-£50.000 3%
£50.001-£100.000 5%
£101.000+ 8%

In your case and for the sake of an example, if your home is worth £300.000 you would have paid £20.000 in transfer fees. Because you are transferring in 2 half shares (i.e.£150.000 each) the individual transfer fee amount is £8.000. Or a total of £16.000 i.e. a saving of £4.000.

A.P. Loizou

Q.: We are building a house at Paralimni on a hill slope. Our engineer tells us that due to the soil nature, we have to use piling, but our friends tell us that this is a costly solution. What does one do in such cases Mr Loizou. Any alternative please?
Harry & Elis Manshion

A.: I find it difficult to adopt outright that Paralimni has either unstable soil of such a nature requiring piling. Having managed (and still do) several projects in the Paralimni area, permit me to have my doubts on the soil nature and this solution. Notwithstanding this the cost of piling is (as a very rough and indicative guide) approximately £15/sq.m. in addition to the ordinary cost (based on your home sq.meters). As for alternatives it is hard to say unless I have the soil investigation report.

A.P. Loizou

Q.: We came all the way from Hong Kong to take delivery of our home. On delivery the contractor has submitted to us a claim raising all sorts of monetary compensation and is refusing to let us have possession of the home until he is paid. This is sheer blackmail but do we have an alternative Mr Loizou?
Alexander & Leslie

A.: Provided you have done the job correctly, i.e. you have entered into a building contract with a supervising architect etc, the builder cannot refuse the handing over of the house. He has to submit his claim to the architect, should you have any claim you also submit the same to the architect, who will decide (each party can object on the architect’s decision to court). In the meantime however the house must be handed over to you subject to the reciprocal claims, snagging list etc.
If on the other hand you are dealing with a developer, you have to base your payments based on the terms of the sales contract. As such and as far as I know regarding the ordinary sales contract, you must settle prior to delivery. If no settlement can be reached and as a suggestion, you can deposit the claimed amounts with a mutual acceptable solicitor, pending the architect’s decision. If this is the case, it is a most difficult situation, which the developer has taken advantage of you. Alternatively use a qualified Q.S. to look into the developer’s claim and take it from there. Don’t forget you can raise counter claims such as if delay in delivery, if bad workmanship etc.

A.P. Loizou

Q.: I was told that my pension will be taxed at the Cyprus rate of 5% instead of the 22% taxation in the U.K. Yet when I claimed this, I was turned down. Did I do something wrong Mr Loizou since this was one of the reasons of buying property and living here.
L. Loullis

A.: If you are a Cyprus permanent resident and provided you have submitted your claim professionally, I cannot see why you were refused. A permanent resident means a person who lives in Cyprus in excess of 183 days p.a. If you have bought a house but you do not meet the length of stay criteria, you will be taxed in UK, as you are permanent of UK and not Cyprus.
Please also note that the Cyprus tax system provides you with two ways to tax your pension, which can be private or State pension. One way is that pensions, over £2.000 / year are taxed at 5% or be taxed through the normal tax system where for 2008 you are allowed (£11412.84) €19500 tax free on your income but the balance is charged at the normal rates which are:
€0- €19500 0%
€19501 - €28000 20%
€28001 - €36300 25%
€36301 + 30%
A.P. Loizou

Q.: We have a plot of land classed not as a building site, but as a field. It has an extent of approximately 2.100 sq.mts. and the planning Authority is demanding from us to ceed to the benefit of the public 15% of our site for “public green” area and all this with compensation. We are now wondering whether it is worth proceeding for the development of our home – Any way out Mr Loizou?
Paris & Helena

A.: Surely you are not Paris & Eleni of Troe, from the ancient mythical stories!! Jokes apart, if your plot is of a size less than 2.500 sq.mts., the planning authority will most unlikely ask for a public green. You must check this with your architect since I find it very strange. With respect to compensation, bear in mind that the planning authority might ask to ceed part of your holding amounting up to 40% without payment of any compensation (notwithstanding the above you can sue the Government for the loss and even end up to the European Court – a recent decision on this subject by the European court is most helpful for such cases).

A.P. Loizou

Q.: I understand that notwithstanding the set floor numbers we could apply to have up to another 2 floors without going through the elongated procedure to secure a planning relaxation from the appropriate board. How do we go about it Mr Loizou?
Christa Mavrou

A.: The local Municipality, if it is a planning authority, can increase the storey by 1 (rarely 2) floors. In this case you have to keep to the same building density. You must submit the reasons that you wish to have an added floor (e.g. the site cannot accommodate a lower building which requires added coverage, better planning etc). The Governmental town planning offices views are sought as well. I will say that it is the norm for an added single floor in urban areas and always provided you have a good case. Applying to the Deviation Board is not only time consuming but you will acquire hart situation as well!! This Board takes 2-3 years to reach a decision and nobody knows if it has a certain policy on various matters.

A.P. Loizou

Q.:Please pass to Mr Antonis Loizou

Dear Mr Loizou,
From your writings in the Cyprus Mail, I believe that you would be interested in a situation that is occurring near me.
The dry river bed of the River Mesogi is situated between the boundaries of the municipalities of Mesogi and Mesa Chorio located to the north of Paphos. Over the last year the river bed has been filled in to create a builders yard which is steadily being extended upstream using construction waste.
I do not think the work can be covered by planning permission as I had thought that the infilling of river beds is not usually permitted since, while they may often remain dry for long periods, they constitute a means of safely channeling water away in the event of flash floods etc.
The expansion of commercial activities in this way, in addition to the noise/dust nuisance created in residential areas, leads also to the destruction of native flora, fauna, habitat and the natural environment.
I understand that the planning authorities in Paphos are aware of this situation but I do not know what action is being taken.
I would welcome any advice and/or comments you might have on the above.
Yours sincerely,
Peter Carr

A.: If it is indeed a river bed, then no one is allowed to invade the area and do anything. I take however what you say since it happens. I suggest you write to the District Officer about this, as well as to the local authority (Mesoyi/Mesa Chorio). If you are not happy with the answers, you can write to the Ombudswoman (she is good at her work) regarding the event. Her report will be a catalyst to the problem, which, I agree with you, it can become dangerous.

A.P. Loizou

Q.: Dear Mr Loizou,

Firstly I would like to thank you for your prompt reply (dated 24/9/2008) to my earlier query.
I have attached the district map I received from the land office. I enlarged the area in question so it would be a little more clearer, please note 563 (shaded area is my land). As you see the road goes through my property. I have to be totally honest and say I can only go by what I was told, but according to the land office there already was a road and what the Muhtar has done is taken a very large piece of my land.

If this copy is not clear I will immediately send you one by mail.

I look forward to your feedback.

Again I appreciate your time and assistance - thank you.

Best Regards
Sonia Louca


A.: It appears that the land taken is not considerable (as I have been able to ascertain from the plan). Since your land had a public access before the additional road did not help you much, unless this road is made up at the local authority’s expense. As things appear I suggest you use a solicitor in order to ascertain under what authority the local authority has carried out this road (e.g. compulsory acquisition order etc). He can take it on from there. Should you want us to inspect the site and investigate the matter and report to you, we can do it for the fee of €300.

A.P. Loizou

Q.: Dear Mr. Loizou,
In 1991 we purchased a small field of approximately 1 donum and subsequently built a house on it leaving approximately one third undeveloped. As we are non-Cypriots at that time we were unable to own more than one property. Can we now legally divide the one third from the developed plot and either sell or develop separately?
Thanking you for your advice and attention.
Regards, S and B. Potter


A.: If you are a E.U. citizen you are treated as a local. So if all the other planning/building parameters are there, go ahead.

A.P. Loizou

www.aloizou.com.cy

www.aloizou.ro

www.aloizou.ru

ala-HQ@aloizou.com.cy