Buying a Home in Sterling: Budget and Instalments

Short answer: When you buy a home in sterling, build your budget with two columns: on the left, the date and amount of each payment in the contract currency; on the right, where the money to cover that payment will come from. If your income is in Turkish lira, the exchange rate decides the real weight of the instalments. So test the budget against at least two scenarios in which sterling strengthens, rather than a single rate, and set the difference aside as a separate currency buffer. Write the costs that sit outside the price, such as tax, fees, utility connections and furnishings, into the same schedule.

This article is for readers who are considering a home in Northern Cyprus with a sterling contract and who hold their income or savings in another currency. We explain which item is paid when, how to read an instalment schedule against exchange-rate scenarios, and how to build the budget table step by step. The example calculations are built in units rather than currency; in your own table, replace these units with the real amounts in your contract.

Why should you think about the budget in two currencies when buying in sterling?

The official currency of Northern Cyprus is the Turkish lira, but most home contracts are made in sterling. The figure written in the contract does not change over the term; what changes is the amount of your own money needed to meet it. If your salary, rental income or savings are in lira, every instalment date is in effect a currency purchase.

That is why the budget question splits into two parts. The first is how much sterling you will pay on which date under the contract; this part is fixed by the document. The second is which source of money and which exchange rate you will use to find that sterling; this part is uncertain and is managed with scenarios. A budget that mixes the two in one column grows without you noticing the currency movement.

Always pay in the currency written in the contract. If you have to pay in a different currency, the contract should state which bank's rate, and for which day, will be used. You can follow current rates on the TRNC Central Bank website. For ways of sending money and the steps for paying safely, see our money transfer guide.

Which items go into the budget, and when are they paid?

The price of the home is the largest item in the budget, but it is not the only one. The table below lists the items in the order they are paid. Rates may vary with the buyer's status; read the amounts from your own contract and from the relevant official bodies.

Ask separately, for each of these items, whether it is collected in sterling or in Turkish lira, and write the answer in your table. The rates of tax and fees, and a total cost calculation built in units, are in our cost of buying guide.

How do you read the instalment schedule against exchange-rate scenarios?

Here is an example. Say the contract price is 100 units. 35 units are paid at signing, then 1.875 units a month for 24 months during construction (45 units in total), and 20 units at handover. The part payable after signing is 65 units. Now let us calculate what these 65 units are worth in your income currency in three scenarios, taking the exchange-rate index on the signing day as 100.

The table is not an exchange-rate forecast; it only shows the mechanism. While the 65 units in the contract never change, the amount leaving your pocket in the third row is a quarter higher than the signing-day calculation. The 20-unit balance in the handover month is where this increase is felt most, because it falls at the end of the term and comes in one go.

Before signing, ask yourself this: if the third row happens, which source will cover the difference? If you have no answer, the term, the down payment or the type of home should be reconsidered. We explain the types of payment plan and how to compare a so-called "interest-free" plan in our instalment payment plan guide.

How do you calculate an exchange-rate buffer, and where do you keep it?

The buffer is the difference between the pessimistic scenario and the flat scenario. In the example above, this difference is 16.25 units. Write the buffer inside the budget, not outside it: it should stand as a separate line next to the contract price and should not be moved to any other spending while it is unused.

• If possible, hold the buffer in sterling. A buffer held in lira melts away with the same rate movement just when you need it.
• Convert instalment amounts into sterling gradually as income arrives, without waiting for the payment day. This stops you depending on the rate of a single day.
• As the handover month approaches, start saving the balance and the handover costs a few months ahead.
• If the term ends without the buffer being used, that money becomes a natural reserve for the expenses of the first year after handover.

We have discussed separately the logic of holding part of your savings in foreign currency and tying part to a home in our article on buying a home versus holding foreign currency. The documents required to open a foreign currency account in Northern Cyprus are in our bank account guide.

How does the payment method affect the budget?

The same sterling arrives at a different cost when sent by different routes. Open a separate line in the budget for the transfer and ask your bank for these three items in writing:

1. The exchange-rate spread: the difference between the bank's foreign currency selling rate and the market rate. For large amounts, asking the branch for a special rate can make a difference.
2. Transfer and intermediary bank charges: on an international transfer you can choose who bears the costs; choose this option knowingly so that the full amount reaches the seller.
3. If you are sending from Türkiye, the tax applied to individual foreign currency purchases: ask your bank for the rate before the transaction.

Send the transfer to the account of the company named in the contract, writing the unit number in the reference. Do not act on a message saying "our account has changed" without verifying it by calling a phone number you already know; we describe this type of fraud in our article on IBAN change fraud.

What stays in the budget after handover?

When you receive the keys, the budget does not end; it simply changes shape. Regular costs take the place of instalments, and some of these may also be linked to foreign currency.

• Maintenance (service) charge: its amount and how it increases are set by the management plan. Check when the charge starts and what it covers in our maintenance charge guide.
• Electricity, water and internet accounts; their fixed charges continue even in months when you do not use the home.
• Home insurance and annual property tax.
• Furniture and white goods; depending on whether they are included at handover, this can be one of the biggest items of the first year.

Writing these items into the budget for the last six months before handover reduces the pressure of the balance, VAT and connection procedures all arriving in the handover month.

In a project still under construction, such as Seafront Resort, which we are developing in Iskele, payments are spread over the construction period and most of your budgeting happens during the payment term. You can ask for the current payment options in writing from the Seafront Resort page or from our sales team, and build your own exchange-rate scenarios on top of that schedule.

How do you build your budget table step by step?

A spreadsheet and the payment plan annex of your contract are enough. Follow this order:

1. List every payment in the contract month by month, one under the other, with date, amount and currency in separate columns.
2. Place the stamp duty, fee, VAT, lawyer and connection items in the month in which they will be paid.
3. Next to each row, write the source that will cover that payment: salary, savings, an asset to be sold. Rows with no source are the months in which you should give priority to building up foreign currency savings.
4. For rows whose source is in another currency, open three rate columns: flat, medium and pessimistic.
5. Write the total difference between the pessimistic column and the flat column into the buffer line.
6. Add the expenses of the first twelve months after handover below the table.
7. Update the table every quarter with the actual rate and note how much of the buffer has been used.

Keep this table with you when talking to the sales team or your lawyer: you can discuss in concrete figures which payment is tied to which stage, what happens in case of delay, and how changing the term affects the buffer.

Frequently asked questions

How do you calculate the Turkish lira equivalent of instalments when buying in sterling?

You multiply the sterling amount of each instalment in the contract by the rate on the payment day. When budgeting, use at least three scenarios instead of a single rate: the rate staying flat, rising moderately and rising markedly. The difference between the pessimistic and the flat scenario shows the size of the buffer you need to set aside.

What can I do about exchange-rate risk?

Convert instalments into sterling gradually as income arrives, without waiting for the payment day, and build them up in a foreign currency account. If you have savings, a larger down payment lets you buy more of the sterling you need earlier. Before signing, test your budget against a scenario in which sterling strengthens markedly.

Are taxes and fees also paid in sterling?

This can vary from item to item and depends on the practice of the institution. Ask your lawyer and the relevant office in which currency and at which rate stamp duty, the title deed fee and VAT will be collected, and write the answer next to each item in your budget table.

Which items are most often forgotten in the budget?

Transfer costs, the balance and VAT that arrive together in the handover month, the electricity and water connection, furnishings, and the maintenance charge that starts after handover. These items look small next to the price of the home, but they strain cash flow when they fall in the same month.

Can I send the payment in Turkish lira?

You can, but if the contract is in sterling, the money must be converted into sterling and reach the seller in that currency. If you pay in a different currency, have the contract state which bank's rate, and for which day, will be used; otherwise the exchange difference becomes open to dispute.

If you would like to read the payment schedule of one of our projects together with your own exchange-rate scenarios, you can write to us through our contact page; we share the schedule and the handover items in writing.

This article is for general information only and is not legal, tax or financial advice, and it contains no exchange-rate forecast. Last updated: November 2026.