Pros and cons of shared construction with a mortgage

Types of shared ownership

Many people often confuse the concepts of shared and joint ownership. In the first case, one should understand the distribution of shares in proportional or unequal parts. In the second, there is no division of the property into parts - it belongs to both residents with equal rights.

When wondering whether it is possible to take out a mortgage on a share in an apartment, citizens often mean the situation after a divorce or when spouses live together, when the home belongs to only one of them (under a gift agreement, by inheritance, etc.). In this case, the bank will definitely refuse lending: there are fraudulent actions, as a result of which the client may not become the full owner; accordingly, the financial institution will not receive a guarantee of loan repayment in the form of collateral for the living space until the last payment is made.

The above does not mean that lenders in all cases refuse a mortgage on a share in an apartment. Several points are important here:

• Will the borrower be able to obtain ownership of the home after paying the full amount?
• Who owns the property? If the owners are close relatives of potential borrowers, some banks reject applications due to high risks for themselves.

To obtain a mortgage loan for a share in an apartment, you need to familiarize yourself with the list of banks that deal with such loans, as well as study their conditions. Most often, standard interest rates are set for clients (from 6 to 13%), but they can take advantage of government programs in order to reduce the amount of overpayment or monthly payments.

Features of shared lending

By purchasing an entire apartment with a mortgage, borrowers subsequently become its full owners. With shared lending, everything is different: for example, after purchasing rooms in communal apartments, citizens take out only part of the total living space for themselves. Subsequently, if the client systematically fails to pay the debt, the client loses the property: until the loan agreement is closed, it is pledged to the bank and is a guarantor of the fulfillment of contractual obligations.

Withdrawal of a share is carried out only by a court decision by bailiffs. After this, the financial institution has the right to put the living space up for sale, and the consent of other shared owners is not required.

When applying for a housing loan for a share in an apartment, banks usually put forward the following requirements:

• Age: from 21 years.
• Good credit history.
• Solvency: When calculating monthly payments, the client’s income will be taken into account, and their amount should not exceed 45% of the salary.
• Providing a down payment. The minimum is 10%, but some financial companies do not require it, in which case higher interest rates are possible.
• Work experience at last place: 6 months.
• Russian citizenship or residence.
• Sometimes registration is required in the locality where you plan to purchase real estate.
• Providing written and notarized consent from other owners (executed and paid by the seller).

Important! The legislation does not limit banks in establishing requirements, and they themselves have the right to independently decide on what conditions to issue loans.

In addition to the above, financial institutions pay attention to other nuances:

• The building in which the apartment is located should not be considered unsafe. 100% refusal to satisfy the client's request is guaranteed.
• The property must be on the balance sheet of the housing stock.
• The living space must be equipped with water, gas and electricity supply systems.
• It is not allowed to have encumbrances or keep the apartment as collateral.

The lender can independently establish requirements for the premises to be mortgaged. Most often, this is compliance with the area standards per person for living; the absence of other citizens entitled to it; location in a multi-storey building; placement of housing on any floors except the first and last.

Shared mortgage for two

If people live in a civil marriage, they can take out a mortgage for two, where one of them will act as a borrower and the second as a co-borrower. After registering an extract from the IGRP, each of them will own ½ share.

What requirements are established for co-borrowers:

• Official income confirmed by certificates from the employer.
• Age more than 21 years at the date of loan registration and no more than 60-70 at the time of repayment. The criteria depend individually on the bank.
• Registration in the territory where the lender's office is located.

The presence of family ties does not matter here. Unlike guarantors, a co-borrower can claim a share in the mortgage property and also receive a tax deduction. The latter is possible only if he is officially married to the main borrower.

How to get a tax deduction

Citizens of the Russian Federation have the right to count on acquiring a property deduction if they purchase real estate on the basis of a property management agreement.

In this case, the right to the object appears from the moment the shareholder concludes the transfer and acceptance certificate.

In such conditions, the taxpayer undertakes to submit an application to the district department of the Federal Tax Service to receive a property tax deduction from the moment the transfer deed is concluded.

To submit an application for termination of a share participation agreement, see here.

To receive a tax deduction, you must present the following documents:

— Payment orders: statements from a banking organization confirming the transfer of funds to the developer’s account from the shareholder’s account;

— Certificate of acceptance and transfer of living space;

— A share participation agreement for the construction of a residential building or an agreement for the assignment of the right to claim.

Video: Buying an apartment under an equity participation agreement:

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Buying out the second share of the apartment

If a citizen was married and owns part of the apartment, and the second share belongs to the ex-wife who wants to sell her share, he is the primary buyer. She is obliged to notify the other owner of her intention to sell half of the living space in writing. He, in turn, can buy it out by taking out a mortgage.

In such a situation, a loan for the last share is issued by Sberbank, but on the condition that the entire living space as a result of the transaction will belong either entirely to the borrower, or 50/50 to him and his new wife.

What conditions are offered:

The greatest importance when purchasing the last share in an apartment is given to the date of divorce and the conclusion of a new marriage: the longer there is no relationship between the former spouses, the more likely it is that the borrower’s application will be approved.

What is collateral under the DDU and until when?

If in a normal situation the acquired object serves as collateral for the loan, then in this case such an object does not yet exist . Therefore, the agreement for participation in shared construction with a mortgage provides for a different type of collateral. It is designated in federal legislation, and this is the right of claim that arose at the time of registration of the pledge in the Unified State Register of Real Estate . The condition for the emergence of rights of claim is specified in the agreement on participation in construction.

The contract must include the following information:

• what are the pledged rights of claim formed from;
• characteristics of the object and its assessment;
• term of transfer of real estate;
• the amount of obligations that the loan covers.

If this information is not specified in the agreement, it is impossible to identify the subject of lending.

Recommended article: Ways to get a mortgage while on maternity leave

The termination of the pledge of rights of claim occurs simultaneously with the commissioning of housing. At this moment, the borrower has ownership rights and the mortgage of the apartment itself must be registered on the basis of the mortgage.

Buying out shares from close relatives

Close relatives mean parents, children, sisters, brothers, grandparents. Despite the fact that there is no direct prohibition on purchasing part of the property with a mortgage from relatives with a mortgage, banks are reluctant to make concessions.

There is an explanation for this: clients receive a targeted loan, enter into a fictitious purchase and sale agreement with their relatives, the money is transferred to the account and subsequently spent on other needs.

Each lender sets individual requirements in this situation, but in general the following criteria apply:

• A passport and Russian citizenship is required.
• It is necessary to provide certificates of income, including additional ones (if any).
• If the client plans to buy part of the living space where he has already registered a share, he will have to provide a Certificate of Ownership or an extract from the Unified State Register.
• To confirm the fact of purchasing a specific number of square meters, a preliminary purchase and sale agreement may be useful.

In some cases, financial institutions require military ID cards from men, but even providing the maximum package of documents and a high level of income does not guarantee approval of the application. The best option is to take out a loan to purchase a share, leaving existing real estate as collateral.

Ways to purchase housing in a new building

There are several ways to purchase housing on the primary market with a mortgage. The choice of a specific method depends primarily on the degree of readiness of the residential building.

Under a share participation agreement from the developer

If the buyer considers selling him an apartment in a building under construction as an option, the developer gives him the opportunity to draw up an equity participation agreement (DPA). The main feature of this type of transaction is that the buyer does not receive an apartment, but the right to claim it. This means that ownership will be registered only after completion of construction and delivery of the house.

Upon assignment of rights under the DDU

Shareholders of a house under construction can sell their rights to future real estate. In this case, a purchase and sale agreement cannot be concluded either; instead, a cession (assignment of rights) is drawn up. As a result of the assignment, the buyer receives the status of a shareholder in the construction of a residential building.

You will learn more about the nuances of assigning rights to a mortgaged apartment in this material.

If the house has already been put into operation

The owner in such a purchase and sale is a construction company accredited by the bank. Required documents to obtain a loan are:

• building permit;
• documents on putting the house into operation;
• certificate of registration of ownership of land under an apartment building;
• compulsory insurance of risks of property loss;
• certificate of property appraisal examination.

Most often, the company itself collects a complete package of documents for real estate. The borrower will be required to provide a standard package of documents confirming their income level.

Is it possible to sell a share of an apartment with a mortgage?

Until the housing loan is fully repaid, the apartment is pledged to the bank. The borrower can only live in it or rent it out. Other actions (donation, sale) must be performed only with the written permission of the creditor, even if the debtor sells only part of the common property - until the loan is closed, it is completely encumbered.

If there is a need to sell part of the mortgaged apartment, there are three options:

• Visit the bank and notify it in writing of your desire to sell the share. We'll have to wait for the official response. After receiving it (if approved), the buyer pays the balance of the debt, and the seller receives a certificate of no debt from the lender.
• Both parties go to the bank and re-issue the loan agreement to the buyer. From then on, debt obligations were assigned to him.
• One cell is opened in the name of the buyer for depositing the total amount, and the second for transferring funds to compensate for the difference between the real and mortgage prices of housing. Bank employees submit a notification to Rosreestr about the removal of the encumbrance, and the mortgage is transferred to the former owner.

If none of the schemes have been approved by the lender, you will have to wait for repayments to be made.

Buying a share of an apartment for a child with a mortgage

Almost all transactions involving minors are carried out with the permission of the guardianship authorities. If parents want to take out a mortgage on part of the home and register it for the child, this can be done, but provided that the area of ​​the property complies with established standards and the level of residence of the minor will not be reduced compared to the previous place of residence.

An example when the guardianship authorities do not approve the transaction:

The family lives in an apartment of 100 square meters. m., of which 50 sq. m. belong to the daughter. When selling real estate, they must provide the trusteeship commission with a new home for evaluation. Only after this can the property be sold. The area of ​​other housing is 37 square meters. m. (one-room apartment). The deal is impossible because the living conditions of the minor will be significantly worsened.

Registration of a share participation agreement

Another advantage of DDU is that it protects against double sales. Since the house is still under construction, a person cannot immediately move into the purchased apartment. In the meantime, it exists only on paper; theoretically, it can be sold a second or third time.

DDU protects against this. The agreement must be registered with Rosreestr. And if the developer brings another document for the same apartment, the contract will not be registered, that is, it will not be possible to complete a dubious, to put it mildly, deal.

Below we will tell you how the registration process itself goes.

Preparation of documents

According to the head of the legal department of the Construction Holding Company, Olga Tataurova, the package of documents for the DDU depends on the specific situation. In any case, you will need a passport, but here are the following options:

• if the shareholder is married and enters into an agreement for himself, then the consent of the spouse;
• if two spouses enter into a marriage certificate or marriage contract;
• if children are involved in the purchase, then the children’s birth certificates (passports);
• if maternity capital is used, then a certificate for inclusion in the DDU, the conclusion of the guardianship authority;
• if social benefits, then certificates or other documents depending on the program.

Signing an agreement with the developer

First of all, ask the developer for a project of a preschool building. This is a document that the company itself offers its customers to sign. Already from this preliminary version, the article can make a lot clear. The DDU, even its draft, must include the following points:

• building address of the house;
• cadastral number of the site on which construction is taking place;
• floor and number of the apartment you are buying;
• total housing area, layout, ceiling height;
• date of completion of the house.

If they are not there, or they raise questions and misunderstandings in you, this is a reason to be wary. If everything is in order and you are ready to buy an apartment in this building, draw up this agreement with the developer’s manager. It is not necessary to sign it immediately. In general, you don’t need to sign anything without reading it. Moreover, a document about probably the main purchase in your life. You can take a couple of days to thoroughly explore everything. Compare the final document with the draft. It would be a good idea to show it to a third-party lawyer. And most importantly, remember that the contract that the manager of the development company puts before you is not some kind of indisputable axiom. If you don't like something, tell the manager about it. You are not required to agree to the seller's terms.

Suggest your own wording if you are not satisfied with the ready-made ones. It is better to work them out with a lawyer.

Often the stumbling block here is the issue of compensation. It is not always possible to build exactly what was sold at the boiler stage. This does not mean that the house is of poor quality, it’s just that the wall was placed almost there, and now you have one apartment larger and another smaller. If you accidentally find yourself in possession of a couple of extra squares, the developer will certainly want to get money from you for them - and will include a corresponding clause in the contract. But if your apartment turns out to be slightly smaller than planned, the builders must pay - return the money for the lost space. Developer managers sometimes “forget” about this when drawing up an agreement.

— As a rule, the signing of the DDU takes place at the developer’s office, and immediately after that the company’s employees submit it for registration with Rosreestr. To do this, the future shareholder will be asked to issue a power of attorney to submit documents. It is important here that the power of attorney does not include the right to alienate real estate,” warns director Svetlana Pankova.

Registration of the agreement in Rosreestr

Large developers often take on this stage themselves. The shareholder will be asked for a power of attorney to register the DDU (it must be issued in advance by a notary). After 5 days, the developer’s representative will receive the finished DDU, and the shareholder will be given a copy of it.

But again, it is your right whether to agree to this option or not. If you have time and don’t want unnecessary worries, you can do everything yourself. To do this, the shareholder, together with the developer’s representative, goes to the MFC or Rosreestr branch.

There they will check to see if this apartment already has an owner, and if everything is in order, the contract will be registered. After this, you are officially the owner of the property, even if it is still at the excavation stage.

You need to pay a fee to register a DDU. For individuals it is 500 rubles.

How to properly apply for a shared mortgage?

The procedure for acquiring a share of real estate with a mortgage on the part of the borrower looks like this:

1. He is looking for suitable housing and negotiates with the seller. If he agrees to wait for the application to be approved and the money transferred, he moves on to the next step.
2. Submits the application form to the bank, attaching a set of documents to it. It is very important here to choose a suitable financial institution that deals specifically with mortgage lending for the purchase of a share of a home.
3. Waiting for a response. If a positive decision is given in advance, it awaits the assessment of the bank expert. He must inspect the condition of the apartment and whether the area really corresponds to the stated parameters in the documents.
4. If the application is finally approved, he enters into a purchase and sale agreement with the seller and provides it to the lender, making a down payment. He transfers the finances to the former owner to the current account.
5. Finally, the client registers ownership of the property through the MFC or Rosreestr.

Knowing how to properly apply for a shared mortgage is not enough: providing a complete list of documents is important. What does this include:

• Passport and income certificate.
• Extract from IGRP or Certificate of ownership.
• A certified copy of the work record.
• Tax return (for individual entrepreneurs and LLCs).
• Technical documentation for the property.

How are shares distributed between co-borrowers?

It all depends on the size of the mortgage payments. If they are the same, then the property will be divided in half, unless other conditions are specified in the contract. Co-borrowers have the right to independently agree on the division of parts, even if only one of them will actually repay the debt.

For example:

A man and woman live in a civil marriage. They decided to take out a mortgage, becoming co-borrowers. By joint decision, the apartment was divided in half, but most of the money for monthly payments and the down payment is transferred by only one party in accordance with the agreement.

What responsibilities and rights do the parties have?

An apartment building, ready for use, must be handed over by the developer within a clear deadline according to the agreement.

The living space is transferred on the basis of a document - a transfer and acceptance certificate, which is certified by both the equity holder and the developer.

The shareholder undertakes to accept the residential building in accordance with the terms of the agreement.

In addition, he has the right to terminate the document provided that the developer does not fulfill his obligations.

According to the provisions of the agreement, the developer’s obligations are defined as fulfilled from the moment the parties enter into the transfer and acceptance certificate or any other document prescribed by the agreement.

This situation is presupposed by the provisions of Art. No. 12 Federal Law “On participation in shared construction of apartment buildings and other real estate, as well as on amendments to certain Russian regulatory documents.”

The management agreement assumes the following responsibilities:

Which banks issue: overview of offers

At the moment, only a small number of financial institutions are engaged in issuing loans for the purchase of part of the living space or the purchase of a home using the security of an existing share. They all differ in terms of interest rates, maximum amounts and requirements for borrowers and real estate.

Which banks give a mortgage against or for a share in an apartment:

The nuances of a mortgage for housing under construction

The purchase of such real estate is attractive because its cost is lower than the cost of finished housing; the difference can reach up to 30%. There are a number of nuances in a mortgage for shared construction. The main one is the possible risk. It is possible that the building will never be completed - therefore, there will be no apartment. Therefore, the first thing you should pay attention to is the developer. The developer must be reliable.

The company constructing the building:

• all contracts must be executed;
• all permits must be obtained;
• construction must already be underway at the time the loan is taken out.

Banks need to be absolutely sure that construction will be completed. And the above points are one of the main guarantees of this. Otherwise, problems may arise with obtaining a mortgage for shared construction. No bank wants to lose money.

The next nuance comes from the bank’s desire to reduce risks. The interest rate on the loan during construction and after its completion, according to the terms of the loan agreement, differs. While construction is not completed, interest may be twice as high as after completion of the project. To reduce risks, the transaction must be registered with Rosreestr.

An important point when purchasing housing under construction is the choice of developer. You should carefully study all documents and permits.

Advantages of participation in shared construction

Despite all the negative nuances, taking out a mortgage for shared construction has a number of significant advantages compared to purchasing finished housing:

• The total amount is significantly less. The cost difference can reach up to 30%.
• Buying an apartment in a new building is accompanied by a tax break.
• The apartment that the buyer purchases is completely new, therefore, there will be no legal problems with it.

Taken together, all these factors indicate certain risks, but also significant savings.

Housing loan at Sberbank

Few banks agree to issue a loan of this kind; as mentioned earlier, this is associated with possible risks. Sberbank can issue a mortgage for shared construction. In the field of mortgage lending, Sberbank is a leader, as a result of which it is a participant in government programs to provide citizens with affordable housing.

When applying for a mortgage for shared construction, you may need to pledge your existing property as collateral. A loan for a first home is provided to citizens with benefits, which include: young families, military personnel, people in queues for apartments, large families, as well as young teachers and scientists.

At the same time, for preferential categories of citizens the interest rate on the loan has been reduced and will be 11.4%, for others the rate will be 13%. Also, for preferential categories of citizens, the rate during the construction of the building will not change, for others it will increase by 1%.

Sberbank provides favorable conditions for mortgages for shared construction. The loan is issued for a period of up to 30 years, the down payment ranges from 15% and above. Maternity capital can be used as a down payment.

One of the main documents when applying for a mortgage is the agreement concluded with the developer

Terms of the mortgage agreement

The decisive factor is a reliable developer, who must be approved by the bank. Related to this is one important document that will be needed when applying for a loan - an agreement with the developer. It must be registered with Rosreestr. Without it, the transaction will not be completed under any circumstances.

The contract must indicate:

• Data about the facility under construction;
• Cost of housing, payment procedure and terms;
• Date of transfer of the apartment to the owner;
• Consent of spouse;
• Apartment plan.

The participant in shared construction must be aged 21-75 years, he will need to provide a certificate of income.

Another important condition will be the pledge of existing real estate. This will act as a guarantee for Sberbank or any other bank to preserve finances. A deposit can also be issued for housing purchased, but in this case there is a possibility of losing the apartment if the developer turns out to be unscrupulous.

Reasons for the cautious policy of banks in the field of shared mortgages

There are several reasons why financial institutions are wary of shared mortgage transactions:

• In most cases, clients buy them from relatives and, having received a targeted loan, spend them on their own needs. From a legal point of view, it is almost impossible to hold such borrowers accountable if they make monthly payments on time.
• If the borrower stops paying the mortgage and, according to the court, part of the property becomes the property of the bank to pay off the debt, it will be very problematic to sell it.
• The client can buy part of the living space received through a deed of gift, but subsequently another citizen who has the right to it will appear and challenge the deal in court. In this case, the home can be transferred to him, the lender will be left without mortgage security, and the borrower will be left without an apartment and with debts.

Refund of interest on shared ownership mortgage

Borrowers and co-borrowers can apply for a deduction to return interest paid on a mortgage loan if they are officially employed. Unlike tax deductions, where the maximum period for calculating the refund amount is 3 years, there are no restrictions here.

The deduction amount is 13%. How to get it:

1. Collect documents and contact the tax office.
2. The application is reviewed within three months, after which money is transferred to the current account.

If the tax office has no comments, funds can be transferred 30 calendar days from the date of application.

What documents will be needed:

• Certificate 2-NDFL and declaration 3-NDFL.
• Statement.
• A copy of the mortgage agreement.
• Bank certificate about payments made.

If the contract was executed before 01/01/2014, there are no restrictions on the maximum refund amount. If the mortgage was received after the specified date, you will be able to return no more than 390,000 rubles, because the maximum amount of overpayment and cost of housing for calculation is established - 3,000,000 rubles.

For example:

The apartment costs 12,000,000 rubles, of which 5,000,000 rubles. - overpayment of interest. If there were no restrictions, it would be possible to return 650,000 rubles, but they exist, so 3,000,000 rubles will be used as a base.