Buying an apartment with a mortgage in shared ownership

○ Shares in an apartment.

Property owned by two or more persons belongs to them under the right of common ownership. Common property arises when two or more persons acquire property that cannot be divided without changing its purpose (indivisible things) or is not subject to division by law. Common ownership of divisible property arises in cases provided for by law or agreement (Article 244 of the Civil Code of the Russian Federation).

Most often, common ownership occurs when property is acquired by several persons. But there are other ways this type of ownership can arise:

• Privatization for two or more persons.
• Transfer of real estate to several persons by inheritance.
• When purchasing an apartment while you are legally married.

The peculiarity of a transaction with an apartment in common ownership is that its sale by one person is impossible without the consent of the other.

Is it possible to transfer ownership of an apartment to another person with a mortgage?

Perhaps there is another property against which you can get a new loan for your mother. The bank should not suspect that you are the real lender, and not your mother. Is it possible to sell an apartment if it has a mortgage? read.

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Registration is carried out only with the consent of the apartment owners (registration does not exist now) or by court decision. Another thing is that the child has the right to a share of the father’s property as a first-degree heir.

○ Buying an apartment in parts.

If the common property is divisible, you can buy the apartment in parts. To do this, you need to conclude two different agreements with two owners, who will be independent of each other. For each transaction you need:

• Check all seller documentation.
• Obtain the consent of the second owner for the sale.
• Conclude a purchase and sale agreement.
• Complete state registration of transfer of ownership.

It is advisable to make these transactions at the same time to be sure that the apartment will belong to you entirely. Because if suddenly the second owner changes his mind about selling his part, you will not be able to fully manage the purchased apartment (for example, rent it out). All actions will require the consent of the co-owner.

General scheme for obtaining a shared mortgage

Is it possible to take out a mortgage for a share in an apartment? The ability to get a mortgage to purchase a share of an apartment or house depends on many circumstances. When making a decision, the bank will take into account certain features of the future operation.

1. The purchase and sale agreement is carried out between the closest relatives. In this case, the bank will suspect the fictitious nature of the transaction and an attempt to cash out the funds.
2. Buying out a share of an apartment from a former spouse after a divorce. Here, the main role in the bank’s decision will be played by the period of time that has passed since the divorce, as well as the presence of a new marriage on each of the parties.

To obtain such a loan, you must prove to the bank that such an operation is not imaginary in nature, but is intended to regulate monetary and property relations between relatives or former spouses.

1. A potential borrower wants to purchase a share of housing to which he previously did not have any rights.
2. A potential borrower wants to purchase a share in real estate where he already owns some part, but after the transaction the object will not become his full ownership.

Banks extremely rarely agree to such transactions, so if the borrower fails to fulfill its obligations, it will be very difficult for the mortgagee to sell the collateral. The demand for such objects is very low. Even taking into account the fact that in case of forced sale through auction the price may be less than the market average, it will be very difficult to find a buyer.

To solve this problem, it is better to try to get a consumer loan, but you need to understand that interest rates on an unsecured loan will be significantly higher than when applying for a mortgage.

If you own other real estate, then it is worth considering the option of registering it as collateral. After registering the mortgage agreement, the client will receive cash, which he can spend at his discretion, including settlement with the seller for the purchase of a share in the apartment. It makes sense to look for a bank that offers lower interest rates if you can document the intended use of the funds. After receiving the loan and signing the purchase and sale, it will be enough to provide the bank with a copy of the agreement.

A loan for the share of an apartment is issued only within the framework of one program, “Loan for the purchase of finished housing.” Secondary market real estate is suitable for registration.

Terms of issue:

1. The minimum loan amount is from 300,000 rubles.
2. The maximum amount is 85% of the value of the collateral.
3. The loan term is up to 30 years.
4. The down payment amount is at least 15%.
5. Interest rate - from 10.2%.
6. The object of collateral is the housing being financed or other real estate.

If the borrower is satisfied with the conditions put forward and meets the basic requirements of the bank, he can apply for a share of the apartment through a mortgage.

For a mortgage you must provide:

1. Passport of the Russian Federation with registration mark.
2. Second document (driver's license, SNILS, INN, international passport).
3. Certificate of marriage, birth of children.
4. Certificate in the bank form or 2-NDFL for the last six months.
5. A copy of the work record, certified by the employer.

After approval, it is necessary to present documents for the purchased housing, the security deposit provided, a certificate confirming the availability of a down payment and a real estate insurance contract.

There are currently no targeted preferential offers for the purchase of a share in an apartment. However, borrowers can take advantage of the “Young Family” program as part of a mortgage for the purchase of secondary housing.

The terms of participation:

• for two people there is 42 m2 of apartment area, and for three people there is 18 m2 each;
• the living space violates established sanitary and technical standards;
• the family lives in the same room with a sick person who, by law, must live separately;
• age of participants up to 35 years.

A mortgage loan for a share of an apartment in Sberbank is issued only if the conditions of the law are met. The applicant can count on a subsidy of up to 40% of the cost of housing. The amount of the benefit is determined individually.

Real estate can only be sold upon receipt of the official consent of Sberbank. To do this, you must submit a written application to the bank branch, indicating the objective reasons for the sale of the collateral.

First of all, many banks are wary of issuing such loans, since they consider a share in a building to be property, the liquidity of which must be confirmed. Thus, if you decide to take out part of the house on a mortgage, you will have to spend time coordinating the construction with the lender.

The second point that must be kept in mind is that citizens who have a share in the house adjacent to yours have the right of first refusal. This means that if you decide to sell your share in the house, you will first be obliged to offer to buy it to other co-owners. And only then, if they all refuse, can you sell your part to anyone who wants it, but not for less than the amount they offered to their co-owners. This rule applies both in cases where the mortgage on part of a residential building has not yet been repaid, and after full payment of the loan.

○ Consent of the owner.

The absence of objections from the other owner is a key requirement for the validity of the transaction. It must not only be received, but also compiled correctly. The legislator does not provide for a strict form for drawing up the document. But there are certain data requirements that must be specified in it. So, indicate in the document:

• The name of the subject of the purchase and sale transaction with its full description (address, technical characteristics).
• Full name, passport and contact information of each owner.
• Details of the document confirming the fact of joint ownership (marriage certificate, will, purchase and sale/donation agreement, etc.).
• The fact that there are no objections to the sale of the apartment.
• Period of validity of this agreement.
• Date, signature.

In addition to the information listed, you can also indicate the buyer’s details, if by the time the document is issued it has already been found. Consent to sell must be certified by a notary.

Is it possible to get a loan to purchase wooden housing?

Not all banks are willing to lend to real estate built of wood. This is understandable, because such structures are less durable and have a high level of fire hazard. For a credit institution this is an additional risk.

Compared to the terms of a mortgage for capital buildings, a loan for a wooden house is issued for a shorter period, and the down payment for such a loan is usually higher.

Financial institutions providing loans for the purchase of wooden houses have the following requirements for the subject of the transaction:

1. The house must be strong and durable, have a solid foundation. There must be no defects in the design. His age cannot exceed fifteen years. Lending is subject to real estate that is equipped with utilities and is fully ready for living at any time of the year.
2. A properly registered land plot. Ideally, it should be classified as land for individual housing construction.
3. Insurance of collateral property. For an insurance company, a wooden house as an insurance object also has an increased risk. Therefore, the cost of such insurance will be more expensive.

○ Risk factors.

If you decide to buy an apartment with several owners, be prepared for certain difficulties. First of all, this is the need to establish the fact of joint ownership. Because the main risk is the seller’s concealment of this circumstance. To verify the number of owners, you need to order an extract from the Unified State Register, which will indicate all legal owners of the property, as well as the presence of encumbrances on it. In addition, difficulties may arise during the purchase if the second owner:

• Unavailable (stays abroad or in prison).
• Is incompetent (as evidenced by a corresponding certificate).

Which mortgage to choose in shared or common ownership

27,500 rubles, i.e. We need another co-borrower with an income of at least 15,000 rubles. As such we want to take an acquaintance (not a relative). The important thing is that we want to register the apartment as joint ownership without allocating shares. This is necessary to obtain a normal tax deduction at my place of work (calculation shows that almost the entire possible tax deduction will be used). Questions: 1) is it possible in this case to register the apartment as joint ownership (when the first co-borrower is the spouse, and the second is not a relative)? Or in this case it is necessary to register it as individual property - in my name. 2) Are there any legal claims to a share of the property in the future on the part of a second borrower (not a relative)? In other words, can he make demands for the allocation of a share of the property, before or after the end of the mortgage loan payment.

○ Apartment in common ownership of spouses.

If you are going to buy housing, which is the joint property of spouses, it is necessary for each of them to participate in the transaction. In this case, a tripartite agreement is signed, where the husband and wife act as the seller. The purchase and sale agreement is concluded in simple written form according to the standard scheme, but it is necessary that it be signed by both spouses. It is also possible to conclude a transaction with only one of the spouses, provided that the second has provided written consent to the sale, certified by a notary. Regardless of how exactly the transaction will be drawn up, you must control the participation of each spouse in it.

Advice to bank clients

1. When the borrower is the sole owner of the entire property and there is no shared ownership. It is clear that the bank takes into account the share of property as collateral if the property is officially “divided” into shares between the owners, and this fact is recorded in the Unified State Register;
2. When a share in the ownership of the common property of a residential building is pledged, but the apartment itself in this residential building is not registered as a mortgage;
3. If ownership of a land plot is registered as collateral, which is not allocated in kind from lands that are in common and shared ownership.

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But! According to the law, one of the co-owners has the right to perform all these “tricks” only after written notification and consent of the other “partners” of his intentions. For example, he can sell his share only after the other co-owners of the property refuse this purchase - after all, they have the primary right to buy out this share.

○ A special type of shared ownership is a communal apartment.

Buying a room in a communal apartment has a fundamental difference from other transactions with shared ownership:

1. Here the shares are specifically determined by the number of meters, whereas with joint ownership the division into shares is conditional.
2. Neighbors play an important role in the transaction because they have the right of first refusal. That is, they must document their refusal to purchase the room so that it can be sold to a third party.

Otherwise, buying a room is no different from buying an apartment. Here you also need to make sure:

• Competence of the seller's actions.
• No encumbrances on the living space.
• Lack of registered minors and citizens serving sentences.
• The seller’s legal capacity (obtain a certificate stating that he is not registered with a psychiatrist or neurologist).

Shared participation in a mortgage, shared ownership

When applying for a shared mortgage, some financial institutions also insist on providing additional security for the loan until the day the borrower registers ownership of the apartment. For example, a Gazprombank client will additionally need a guarantee from two individuals to attract a housing loan.

According to the terms of the loan agreement under which the mortgage is issued, shared ownership (real estate) must act as collateral for the loan. But since the residential property is not yet completed at the time of drawing up the loan agreement, the client’s property rights become collateral for the loan.

○ Purchasing an apartment in a building under construction.

If you buy an apartment in an unfinished new building from an individual, you should know that until the house is delivered, he will not be its owner. Therefore, you can purchase living space under an assignment agreement. But this requires the consent of the developer, who continues to have rights to the apartment being sold. If the seller has paid his share in full, the developer only needs to be notified of the transaction. And if he still has obligations to him, the company must agree to the transfer of ownership and sign it. Another type of shared ownership in a house under construction is a residents' association and the developer. In this case, you enter into a partnership and pay share contributions in the agreed amount and within the specified time frame. You will become the owner only after you have paid the entire amount of funds and the house has been successfully put into operation. Thus, if you want to buy an apartment that is owned by two or more persons, be prepared for the fact that you will have to do additional checks and obtain additional documents.

We analyze a mortgage loan for the share of an apartment and current offers from banks

With almost one hundred percent probability, banks will provide mortgage funds if you want to buy out the last share, but if you just want to get your own corner, you will most likely have to take out a consumer loan or borrow money.

Welcome! The topic of our meeting today is shared mortgage, namely a mortgage loan for the share of an apartment. Buying and selling shared property has always been difficult both for citizens of our country and for financial organizations. But due to financial problems, purchasing part of the housing remains the only chance to get your own roof over your head. Sometimes even the cost of individual square meters is beyond our means and we have to turn to banks for help. So, let's figure out how relevant is a mortgage for a share in an apartment or house, and how much will you have to pay for using this type of loan?

Sberbank conditions

A financial institution provides a mortgage to buy out a share in an apartment on the same terms as secondary housing:

• The interest rate on the loan is from 12.5%.
• The down payment is from 20%.
• The loan term is up to 30 years.

The exact interest rate depends on the size of the down payment, the terms of the loan, as well as the availability of life and health insurance of the borrower.

The bank's position regarding the repurchase of shares in apartments is quite complex. It is worth understanding that if after the purchase the entire property does not become the property of the borrower, the bank will most likely refuse the loan. A share in an apartment not only has a lower value, but is also less liquid. If the bank forecloses on the share and puts it up for auction, there is no guarantee that there will be buyers for it at the right price.

Where to go?

Which banks provide a mortgage for a share in an apartment?

Sberbank

​One of the banks that is ready to lend for the purchase of a share of housing is Sberbank . But you can get a loan only on the condition that after the transaction the entire apartment will belong to the borrower, or the second part remains the property of the spouse. Sberbank only issues all real estate as collateral. The bank currently offers the following conditions:

• The loan amount is from 300 thousand to 15 million rubles, and its size cannot exceed 80% of the value of the property.
• Interest rate from 12% per annum.
• The loan term is up to 30 years.

Sberbank allows the involvement of co-borrowers. The situation is especially welcome when the borrower’s spouse acts as a borrower. The property may be jointly owned.

The transaction follows a standard procedure: the client receives the money after registering the mortgage agreement.

Gazprombank

Gazprombank also provides a loan for the purchase of the last share in the apartment . The mortgage is issued under the following conditions:

• Loan amount up to 45 million rubles.
• Interest rate from 12% per annum.
• The loan term is up to 30 years.
• The amount of the down payment from the borrower’s personal funds is at least 15%.

Home insurance against the risk of damage or physical loss is mandatory. In some cases, the bank may require you to enter into a title insurance agreement.

It is worth noting that Gazprombank will not issue a loan if the housing falls into one of the following categories:

• the facility is in disrepair or is subject to major repairs;
• rooms in communal apartments;
• small families;
• houses with wooden external walls;
• "Khrushchev" if the house is located in Moscow or the Moscow region.

Russian Mortgage Bank

One of the few banks that provides a loan for the purchase of a room when, after the transaction, the property does not become the full property of the borrower, is the Russian Mortgage Bank . The loan “Not the last room” is issued under the following conditions:

• The loan amount is at least one million rubles.
• The borrower must pay at least 25% of the cost of the room at his own expense.
• The use of maternity capital is allowed, and the amount of the down payment may be reduced by the size of the certificate.
• Base rate – from 14.5% per annum. Its size for a specific borrower depends on the loan amount and down payment.
• The maximum term of the mortgage agreement is 25 years.

The Russian mortgage bank requires the conclusion of an insurance contract for real estate, life and health of the borrower and title risk. The borrower has the right to refuse to conclude the last two contracts, but the bank will then increase the interest rate on the loan.

Under this program, you can also get a loan to purchase a share of an apartment, when the borrower, after the transaction, becomes the owner of the entire property. In such a situation, the bank will reduce the rate by 0.5%.

Bank "Zenith"

A loan for the purchase of a share or a room in an apartment is provided by Zenit Bank . The conditions are as follows:

• Minimum loan amount: 800 thousand rubles for Moscow and the Moscow region, 270 thousand rubles for other regions.
• Maximum loan amount: 14 million rubles for Moscow and the Moscow region, 10.5 million rubles for other regions.
• The interest rate depends on the size of the down payment and the loan term: contribution 20-30%, rate 15%-15.5%;
• contribution 30-50%, rate 15.25-15.75%;
• contribution from 50%, rate 15-15.5%.

Transcapitalbank

If you want to buy a room in an apartment, you can contact Transcapitalbank . The mortgage is issued under the following conditions:

• Loan amount – from 500 thousand rubles.
• Down payment of at least 20% of the cost of the property.
• The maximum loan term is 25 years.

The bank allows up to 4 co-borrowers. In addition to the real estate insurance contract, for borrowers whose age exceeds 65 years, it is mandatory to conclude a life and health insurance contract.

Thus, despite the increased risk of such operations, there are many banks on the market with competitive conditions that are ready to provide a loan for the purchase of a share or a room in an apartment.

Are there any benefits for obtaining a mortgage on part of the property?

Sberbank can provide preferential lending options when applying for a loan for the purchase of part of the property. If borrowers meet existing requirements, they can also receive loans under preferential programs.

Young family . Under the terms of such a program, the borrower must fall within the age category of 21–35 years. The features of such a loan include reduced interest rates (from 8.9%) and requirements for the provision of documents confirming the client’s solvency. The loan term is designed for a maximum of 30 years, but a down payment is required:

• if there are children: at least 10% of the loan cost;
• childless couples: from 15%.

Under the terms of the preferential lending program, the client can receive a loan in the amount of 80% of the appraised value of the home. And salary clients can also take advantage of benefits when depositing the first amount (for them it will be 15%).

The large family . Families raising three or more children (minors) can take advantage of the preferential program. Such clients are provided with interest benefits, a reduced down payment (from 10%) and other bonuses .

Read on

A mortgage to buy out a share in an apartment in Sberbank of Russia is provided for those who want to buy not the entire living space, but, for example, a room, the conditions in which are suitable for living. According to the law, a residential premises can have several owners. However, they do not necessarily have to be blood relatives or be married.

A common reason for using a shared mortgage is divorce. Since the former spouses cannot use one living space for their needs, one of them tries to exchange their own rights for money. But since someone else can rarely immediately provide the required amount, a loan for partial purchase of residential premises comes into play.

Features of shared mortgage

Applications for this category of loans are scrutinized with the utmost care. So you will have to document your solvency. The application form must be filled out carefully to avoid mistakes.

The conditions for providing funds for the purchase of part of a property are almost identical to those that accompany the purchase of an entire home. They are as follows: