Where can I get a loan secured by a share of an apartment? What determines the amount of a loan secured by a share in an apartment? How to urgently apply for a loan secured by a share in an apartment?
Owners of real estate shares have the legal right to sell, donate, exchange and pledge their property. Securing a room as collateral increases the likelihood of a positive response from the lender and improves overall lending conditions.
But such transactions have a lot of legal nuances that the average borrower has no idea about. This article will answer all questions on the topic of loans secured by a share in an apartment and teach you how to manage your property wisely.
Denis Kuderin is with you, financial expert of HeatherBober magazine. I will tell you how to quickly, profitably and correctly apply for a loan secured by shared ownership, and I will explain what requirements credit companies impose on such properties.
We take the best places and read to the end - in the final you will find an overview of reliable banks with favorable lending conditions, plus tips on how to speed up the process of obtaining a loan.
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Loan secured by a share in an apartment - conditions and features of obtaining
Until recently, a share in an apartment was considered property with low liquidity. Banks and other credit institutions were not interested in such property as collateral.
But a few years ago the situation began to change. Financial companies responded to demand from the population with a counter offer. Now shares (rooms) are accepted as collateral not only by pawnshops and microfinance organizations, but also by quite reputable banking institutions.
To become a full-fledged collateral, the share in the apartment must be allocated. If you don't know what this means, I'll explain.
An allocated share is a share for which the order of use is officially (documented) determined. In other words, this is a specific room assigned to the owner. Or several rooms.
It will be problematic to register an unallocated share, that is, an abstract part of a specific property, as collateral.
It will be extremely difficult for a bank or other credit institution to seize such property and sell it if the borrower fails to fulfill its debt obligations. Lenders are interested in firm guarantees of the liquidity of the collateral.
If you do not know whether your share has been allocated or not, make a request to Rosreestr for the property you are interested in and receive documentary information about your rights as the owner. The service is paid - don’t say later that I didn’t warn you.
Banks have stricter requirements for rooms than for apartments.
Financial companies pay attention to the following parameters:
- the property is in demand in the housing market;
- there are no encumbrances or liens on the room;
- the share is officially owned by the client;
- the object is located in the coverage area of the banking product;
- the room is suitable for living in - there are all necessary communications;
- the building itself is not in disrepair and is not subject to demolition.
Be prepared in advance for the fact that the loan amount secured by shared ownership will always be less than the real market price of the property . It is unlikely that you will get more than 50-60% of the cost.
Banking requirements for borrowers are standard - passport, second document, registration, income certificate, copy of work book or employment contract. Companies that do not have bank status are more loyal - 2-3 documents are enough for them, but the rates and terms of lending in such companies are completely different.
Pawnshops, microfinance organizations, investment and brokerage companies are not interested in credit history, do not waste time checking solvency, evaluate the property at their own expense, take almost any room as collateral, and generally promise clients a heavenly life.
But such conditions seem too attractive to me. The fact is that some of these companies make money not on loan interest, but on the mistakes of borrowers and their financial illiteracy.
If the loan terms are too good, check the status of the institution
Having taken a room as collateral for half or even a third of its real price , they wait for the client to delay, then impose fines and create other obstacles to the successful purchase of the property. The property is eventually transferred to the lending company, after which the company successfully sells it at full price.
Therefore, before dealing with such institutions, I advise you to check their status through all possible channels. A professional lawyer will help you understand how your potential partners earn money – whether they live honestly from interest or are engaged in cunning taking of real estate from the population.
Read the related article on the topic “Loan secured by a share in an apartment.”
Common ownership of property - what is it?
Apartments can be owned not only by a single person, but also in common ownership . For example, several heirs did not renounce their shares in favor of one person, but registered ownership for all of them.
In this case, common property is of two types:
- joint;
- shared
Joint ownership of an apartment means that the owners have the same rights to housing, that is, their shares are not determined in percentage or numerical terms . Joint ownership, in this case, can be registered as for two owners, and they both have certificates in hand, or maybe for one.
This often happens when an apartment is purchased during marriage . Even if the certificate is issued only for the husband or wife, the apartment is considered shared.
Common shared ownership is a type of ownership where the shares are physically defined. In the certificate for the apartment they are indicated in fractional terms, for example ½ or 234/6547 shares in the right.
What determines the amount of a loan secured by a share in an apartment - 3 main factors
A little warning. Bank loans can be targeted or non-targeted. The first option is preferable, and more money is issued for targeted loans. But in this case, you must provide the bank with evidence that the funds will be spent for their intended purpose.
This type of loan is worth taking out if you really intend to spend money on building or purchasing a new home. The ideal situation is when you take out a loan to purchase the remaining part of the apartment.
MFOs and pawnshops are not interested in your goals. But you shouldn’t count on particularly large loan amounts from such institutions.
The main indicator influencing the loan amount is the market value of the property . This parameter, in turn, is influenced by several factors. Let's look at the main ones.
Factor 1. The area of the share and its ratio to other premises
In Moscow, rooms can cost a million, or 2-3, or even 5. If the room is bright, renovated, with an isolated entrance, there will always be people willing to take such a room as collateral.
The amount of the deposit directly depends on the area of the share and its ratio to other rooms in the apartment. It is advisable that the area be no less than the other shares, and better if it is the largest room in the apartment.
It will not be possible to mortgage a room if it is located:
- in a communal apartment;
- in a wooden house or building with a wooden foundation;
- in a dilapidated building requiring major repairs or demolition;
- in a house built before 1975, if the case occurs in the capital.
A negative factor is the presence of minors among the owners or registered residents of the apartment. And in general, the more shareholders in the apartment, the worse it is.
Factor 2. Technical condition of the share and the presence of communications in the apartment
If the heating in the apartment does not work, the electrical wiring is in an emergency or non-working condition, and the room itself requires urgent repairs, such an object is unlikely to be of interest to a serious organization.
Factor 3. Location of the apartment
Poor location away from transport links and infrastructure also plays a role. If the room is located in a residential area on the outskirts of the city, there will be corresponding demand for it, or rather, none.
Can I sell or pledge my share in the apartment to the Bank?
12.1. Can I sell or pledge my share in the apartment to the Bank?
You can, if the bank agrees to take a share, the law does not prohibit it.
13.1. Yes, you can dispose of your shares. But the remaining owners have the right of first refusal to purchase your shares.
14. Heirs, bank and ex-wife!
Such a thing: 1999, first marriage, 2003, purchase of an apartment. 2007 divorce, 2010 - second marriage, 2012 consumer loan was taken out on the security of an apartment purchased in 2003. In 2014, the borrower dies. In 2016, the first spouse wins 1/2 of the mortgaged apartment and tries to get rid of the share of the loan, which applies to 1/2 of the apartment. Can the court release her from paying her obligations?
14.1. It is unknown, it depends on specific circumstances, in particular, on the agreements on the procedure for repaying the loan.
15.1. You can find out by receiving an extract from the Unified State Register of State Registers, all the information is there.
15.2. Get an extract from the Unified State Register from Rosreestr.
15.3. Take an extract from the Unified State Register of Taxes and Taxes from the MFC for 200 rubles and you will find out everything. You cannot mortgage an apartment without consent.
16.1. Legal entities, banks, individuals can act as pledge holders. However, keep in mind that bail comes with consequences.
17.1. Possession, use, and disposal of common shared property is possible by agreement with other owners.
18.1. Contest the pledge agreement, since the consent of the co-owners is necessary.
19.1. No, of course, this is illegal and violates the rights of the owner, such a pledge is invalid.
20.1. With the consent of the co-owner, you can pledge the share to the bank. Good deal.
21.1. They can’t take it, it doesn’t belong to him.
21.2. No, they cannot take the apartment. He couldn't pawn it.
How to get a loan secured by a share in an apartment - 5 main steps
There are a fair number of owners of shared property in the Russian Federation, but only some banks work with such collateral. Other financial companies are more willing to make contact, but interaction with such organizations is always a risky and unpredictable undertaking.
To avoid mistakes and apply for a loan legally , use the expert step-by-step guide.
Stage 1. Selecting a company and submitting an application
Finding a good deal in banks is not an easy task, but it is quite feasible, especially for people living in big cities. Out of dozens of banks, there will probably be 2-3 institutions that will consider your option and make a positive decision on issuing a loan.
Use the search and comparison services for banking offers - Banki.ru and Sravni.ru. These resources save time and at the same time contain reviews from real users about the quality of service and current promotions in banks.
When choosing a bank, consider first the company whose services you already use. Banks provide individual conditions and lower interest rates .
If you live in a small town and you couldn’t find a bank with the required program, look for potential partners among microfinance organizations, pawnshops and other financial companies with an impeccable reputation. Don’t be overly trusting, don’t take anyone’s word for it, check the organization on the website of the Tax Service and the Bank of Russia.
Stage 2. Real estate valuation
You have the right to evaluate the property yourself. To do this, find a competent appraiser and order the service at your own expense. You will have to shell out extra money, but you will get an objective idea of the price and a document confirming this.
If the appraisal is carried out by a lender, it is in his interests to underestimate the value in order to reduce his risks.
Example
You know that your room costs approximately 1 million rubles . A representative of the credit institution carried out an assessment and set a slightly different price - 700,000 rubles . But from this amount you will receive only 400 thousand according to the terms of the agreement (50-60%).
If for some reason you cannot pay the debt, the room will be seized and the debt will be paid off with the proceeds from the sale. It turns out that you lost your room for 40% of the real market price.
Stage 3. Collection of documents
I have already given a list of the borrower’s documents above.
You will definitely need real estate papers:
- a fresh extract from the Unified State Register of Real Estate – from 2020 it replaces the certificate of ownership;
- documents confirming that the property was acquired legally - purchased, inherited, privatized, donated;
- technical passport of the object - if you don’t have one, it will be made at the BTI;
- cadastral passport;
- certificate of absence of debts for utility services - debts should be closed in advance;
- extract from the house register;
- information about other owners and residents registered in the apartment - as well as the consent of other owners to manipulate the property.
If there is an assessment document, we attach it too. Banks will almost certainly require insurance for the property, but you have the right to choose the insurance company yourself.
Stage 4. Signing the contract
Each loan agreement secured by real estate is drawn up individually. There are no formal agreements . The document must be read before signing, preferably more than once.
The most important points of the agreement:
- final rate;
- the rights of the creditor and your rights;
- conditions for early closure of the loan;
- the presence of commissions for financial and banking transactions;
- conditions for calculating fines.
If any points seem dubious to you, you have the right to insist on their exclusion from the contract or changing the wording.
Large banks will not commit outright deception, but small credit companies with a dubious sign can easily concoct an agreement under which you not only will not receive money, but will also be left without a room.
And one more point: the loan agreement and the collateral agreement are different documents. And their purpose is also different. Check both agreements, preferably with the assistance of a professional lawyer. Lawyer, an online legal services service, can help you with this.
Stage 5. Receiving money and repaying the loan
Until you receive a transfer to your card or cash in your hands, do not relax.
In some microfinance organizations and pawnshops, they first issue an advance, then the rest of the amount. Make sure you get everything down to the ruble.
All you have to do is spend the money for its intended purpose and start paying it back according to the payment schedule. Be sure to keep payment documents that indicate when, for what and how much was paid. Avoid delays, use the safest and cheapest methods of transferring money.
Where to get a loan secured by a share in an apartment - review of the TOP 5 banks
Mortgaging a room is not the fastest and far from the only way to borrow money from a bank.
If you need a relatively small loan in the amount of 200-750 thousand rubles , then it is more profitable to order a credit card. Such products have a grace period of 50 days or more, during which interest on purchases and withdrawals is not charged.
Our expert review of the five best banks in the Russian Federation will help you choose a company.
1) Sovcombank
Sovcombank offers loans secured by an apartment and any other real estate. The list of objects includes rooms, houses, cottages with and without plots, non-residential and commercial premises. Regular clients and pensioners receive preferential lending conditions.
Conditions:
- amount from 300,000 to 3 million rubles ;
- terms from 5 to 10 years;
- the collateral must be within the product's coverage area;
- the client must have permanent registration;
- The client must have a landline home or work telephone.
Base rate – from 18.9% per annum.
2) VTB Bank of Moscow
VTB Bank of Moscow – consumer loans for all occasions at a rate of 13.9% per annum. The maximum amount is 3 million rubles . Fill out the application on the website, wait 15 minutes for a response, if the decision is positive, take the documents and go to the nearest branch to sign the contract.
The list of beneficiaries includes doctors, teachers, tax and law enforcement officials, and working pensioners.
3) Tinkoff Bank
Tinkoff Bank offers to take out a loan quickly and without leaving your home. Order a credit card with a limit of 300,000 rubles and receive it by courier on the day you apply.
Grace period – 55 days. For every purchase - cashback up to 30% in points. Issue and delivery are free. Annual maintenance – 590 rubles . The base rate is 19.9% per year.
4) Alfa-Bank
Alfa-Bank – special lending conditions for salary clients and persons who already have a current account. Consumer loans up to 3 million and above, as well as mortgage loans secured by existing housing. Mortgage rate – from 9.2%.
Several types of credit cards are available with a limit from 300,000 rubles to 1 million . To receive one, fill out an application on the Alpha website, wait for a response and receive the card at the nearest branch. This bank has record terms for preferential lending - from 60 to 100 days.
5) Renaissance Credit
Renaissance Credit – cash loans up to 750,000 rubles under 4 lending programs. There is a universal rule - the more documents, the more favorable the conditions.
If you need money quickly, get a credit card with a limit of 200,000 . and a grace period of 50 days. Get it same day at the branch closest to your home. The base rate is 24.9% per annum.
Comparison table of bank offers:
| № | Bank | Rate, % per annum | Maximum loan amount |
| 1 | 18.9 for a loan secured by real estate | Up to 30 million, but not more than 60% of the value of the collateral | |
| 2 | From 13.9 | Up to 3 million | |
| 3 | 19.9 by card, 14.9 by cash loan | Up to 300,000 on a card, up to 1 million on a cash loan | |
| 4 | 23.99 for a credit card, from 9.2 for mortgage loans | Up to 1 million on card and up to 5 million in cash | |
| 5 | 24.9 on a card, from 14.9 on a regular loan | Up to 200 thousand on a card, up to 750 on a cash loan |
What to do if you can’t get a mortgage for part of the property?
For many reasons, it is not possible to purchase a share in an apartment or house with a mortgage: either the down payment is not enough, or one of the co-owners does not agree with the provision of housing as collateral.
To purchase a room, it is possible to obtain a consumer loan, both with and without collateral.
In this case, there are alternative ways to get the desired squares.
- You can take out a consumer loan , but along with this, it is worth noting that the interest on the loan will be much higher and instead of a sales agreement, a gift agreement is drawn up.
- In addition, using the same scenario, you can apply for a mortgage secured by existing real estate. But in this case, banks very rarely approve loans, since inferior real estate is not profitable in the event of bankruptcy of the borrower.
When purchasing a share in an apartment using consumer loan funds, a gift agreement is drawn up, not a sales agreement.
Having studied the information provided, we can conclude that even those who do not have the opportunity to receive the entire property have a great chance of getting a loan to receive part of it. But this requires some effort.
How to urgently apply for a loan secured by a share in an apartment - 4 useful tips
The presence of collateral in itself speeds up the receipt of a response from the bank.
And expert advice will help you get a loan on more favorable terms.
Tip 1. Use the services of brokers
A professional credit broker knows EVERYTHING about profitable loans in your region. He is aware of the conditions in a particular institution and has established contacts with bank employees.
Such a specialist will find the most profitable option for you out of all possible, and, if necessary, will help you get a loan with bad “credit karma”.
The question is how to find an honest and truly helpful broker? A qualified specialist is looked for like a good doctor - based on recommendations. If this method is not available to you, focus on ratings, company status, and reviews on independent resources.
Tip 2. Take a private loan
Advice for those who have already been rejected by banks and other financial companies. A private lender does not care about your credit history; he will not require a bunch of documents to confirm your solvency. At the same time, the private owner issues money almost instantly.
Cons: risk of contacting a scammer, high interest rates.
Tip 3. Calculate loan terms using a loan calculator
If you want to save time, use loan calculators that are available on the website of any self-respecting bank and microfinance organization. This way you will immediately understand what awaits you and quickly select the most profitable option.
Tip 4: Consult with investors
Professional investors invest their funds only in profitable projects. But if necessary, they will help you choose an individual lending program that will speed up the loan process.
Investment companies, like private traders, are not interested in your credit history. Their guarantee is the property itself, which you do not want to lose.
A short video to help:
