In modern Russia, few people can purchase housing without loans. The most common type of lending for the purchase of a home or share in an apartment is a mortgage. In this article, we will look in detail at the terms of a mortgage for a share in an apartment, for which share a mortgage loan is given, and for which share no bank will issue it. We will also tell you which 6 largest banks you can get a shared mortgage from and what conditions apply to them.
Types of shared ownership in Russia
The concept of shared ownership is defined in the Civil Code of the Russian Federation and implies the legally arisen right of two or more persons to property.
Depending on the circumstances, shared ownership is of 2 types:
1. Real estate is the common property of several persons
Common ownership is formed when an apartment is jointly owned by several people. The shares of each owner in this owner option are expressed as a percentage. For example, each spouse owns 1/2 of the apartment.
Common property includes property that was acquired jointly by spouses after registration of marriage, with the exception of cases where one of the spouses received as a gift or inherited this or that property.
2. Each share in real estate is private property
When property is divided into shares belonging to several owners, the property becomes shared. In this case, the shares can be equal or different. The distribution of shares depends on the agreement between the owners when purchasing housing, or on the personal contribution to the property of each of them. In this case, the size of the share is expressed in square meters and is clearly defined in the documents.
The simplest example is a communal apartment, when each owner can only use his part of the apartment. This may also be the inheritance of shares in an apartment by relatives of different orders, the acquisition of shares of different values, etc.
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.
Features of shared mortgage
Banks are wary of issuing mortgages for the purchase of a share in property. Each individual request is considered individually. The bank makes a positive or negative decision after a thorough analysis of the situation proposed by the client.
Expert opinion
Alexander Nikolaevich Grigoriev
Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.
The liquidity of real estate shares is very low. It is difficult to sell, so banks do not want to accept such property as collateral. If you plan to buy a room in a communal apartment with a mortgage, the bank will take into account the year of construction, the dilapidation, and the state of disrepair of the building. In most cases, such housing is in disrepair, so banks do not issue a mortgage on it.
There are 4 common options when a borrower applies for a mortgage to purchase a share. In one case, the bank will most likely approve the loan, in the other, it will refuse. Let's figure out why this happens.
Mortgage for the last share
The easiest situation for a bank is to approve a mortgage for the last share. After purchasing the last share, the client becomes the full owner of the property, and the bank receives as collateral all the property in which the applicant acquired a share. If the borrower stops paying the mortgage, he will no longer put up for auction a share in the apartment, but its entire part. In this situation, the bank risks practically nothing and in most cases approves the mortgage.
When applying for a mortgage for the last share, banks soften the conditions so much that they offer a loan without guarantors and a down payment. The mortgage can be issued for a term of up to 25 years. In this case, not the purchased share, but the entire apartment will become collateral for the bank.
Mortgage loan for two people
When applying for a mortgage for two, you should consider the concept of a “co-borrower”. This is a person who assumes equal obligations with the applicant. Accordingly, the bank imposes the same solvency requirements on the co-borrower as on the main borrower.
If spouses take out a mortgage, then one of them will necessarily be a co-borrower. An exception is the situation when a marriage contract is concluded between spouses, which stipulates the conditions for one of them to renounce the right of ownership of the acquired share in the apartment.
Buying a share from relatives
Banks consider this type of mortgage to be a risk group. They rarely approve of transactions between close relatives and ex-spouses. Such transactions raise suspicion.
Expert opinion
Alexander Nikolaevich Grigoriev
Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.
After receiving the money, the relative returns it back to the borrower, who pays off the mortgage with these funds. Such actions often pursue one goal - to temporarily solve financial problems, pay off another loan, or close an overdue loan. The mortgage begins to be repaid, payments are made on time, but disagreements may arise between the parties to the transaction. This may result in delays or complete non-payment of the loan. This scheme is considered fraudulent.
Buying a room in a communal apartment
A separate situation is taking out a mortgage to purchase a room in a communal apartment. Although such a room is a separate object in shared property, it still falls under the strict conditions of shared lending.
Get a simple cash loan
Often the simplest solution to the issue is to issue a simple consumer loan in cash. This is a non-targeted loan; the borrower spends the money at will without reporting. That is, the funds received can easily be used to purchase a share.
Since we are talking about a decent amount, you will need to collect certificates from work. The maximum term of the agreement is 5 years, and the borrower must be solvent enough to repay this loan.
Consumer loans are issued in 2-3 days. You immediately receive money and can give it away to purchase a share. But an important point is that cash loans are always more expensive than mortgages. If a mortgage can be issued at 8-9%, then a loan can be issued at 15-18%.
List of documents that need to be submitted to the bank
Documents may vary from bank to bank, but the basic package remains the same:
- Photocopy and original passport.
- Spouse's passport, children's birth certificates.
- Certificate of income from place of work, or certificate 2-NDFL.
- A photocopy of the work record certified by the employer.
- SNILS.
- Consent of the spouse to carry out the transaction.
The seller of the share must submit the following documents to the bank:
- Confirmation of ownership of the purchased share in the apartment.
- Extract from the Unified State Register of Real Estate.
- Technical data sheet with explanation.
- House book or extract from it.
- Consent of co-owners to sell shares.
- Spouse's consent.
- Estimation of the value of the share made in the current year.
Donation agreement
The document must contain information about:
- locality and date of signing;
- Full name, passport data, addresses of the parties;
- details of the credit institution that issued the loan;
- the creditor's permission to transfer the share as a gift;
- address, building, building, floor, area, technical characteristics of the mortgaged living space;
- title documents for housing, indicating that it is the subject of a pledge;
- voluntary and gratuitous alienation of shares;
- rights and obligations of the parties;
- pledge;
- the person on whom the costs are assigned;
- number of copies of the document;
- signatures and names of the parties.
The agreement is drawn up in 4 copies - for each of the parties, the banking organization and Rosreestr.
Step-by-step scheme for obtaining a mortgage for a share
- Contact the bank with a mortgage application and the necessary package of documents. Banks consider applications differently, but on average the decision-making procedure does not exceed 5 banking days.
- The co-owners of the apartment write a waiver of the pre-emptive right to purchase the share. You will also need to confirm the fact that there is no relationship between them and the potential borrower.
- The seller must provide the bank with a certificate of ownership or an extract from the Unified State Register of Real Estate. He must also have with him an extract from the house register, the spouse’s permission to sell the share, and other documents from the list above.
- Conduct an assessment of housing for compliance with operating requirements. The bank is not interested in lending for the purchase of a share in dilapidated and dilapidated housing, as well as in an apartment regarding which there are pending legal disputes. They will not give a mortgage for a share if encumbrances are placed on the apartment.
- Having received a positive decision, go to the bank to conclude a mortgage agreement.
- Conclude a purchase and sale agreement and register it with the territorial office of Rosreestr.
It should be noted that banks often refuse to cooperate with the borrower on the basis of a power of attorney from the seller, without having the opportunity to personally communicate with him. Therefore, in order to avoid refusal of a mortgage, it is better to carry out all procedures personally with the seller without the presence of third parties.
Reasons for refusal
Most likely, the borrower will be refused to transfer the share as a gift if:
- he committed violations of the payment schedule;
- Most of the loan has not been repaid;
- the loan agreement contains a condition prohibiting the alienation of part of the living space;
- he has a difficult financial situation (medical expenses, loss of ability to work, dismissal);
- he often changed his place of residence.
In this case, the share can be donated only after the loan has been repaid. You should not try to donate a share without informing the credit institution - the bank may demand that the agreement be invalidated, repay the loan early, or sell the home.
Underwater rocks
Any bank is interested in justifying its risks by obtaining ownership of the entire property, and not a share in it. This is not beneficial for banks, since it will be problematic to sell the share without taking into account the interests of the remaining co-owners.
Therefore, when contacting a bank to apply for a shared mortgage, you should consider several important aspects:
- How many apartment owners are there on the day the application is submitted to the bank?
- How many co-owners will remain after the client buys out the share or shares.
Why do banks primarily pay attention to the number of shares and their owners? This happens for one reason: the bank analyzes the situation for the future.
If the client does not have a single share in the apartment in question, and there are two or more co-owners, then the bank will take big risks by approving a mortgage on such conditions. In case of failure to comply with the terms of the loan, only the client’s share will become the bank’s property. Subsequently, it will be difficult to implement it without the consent of the remaining co-owners and their written waivers of the right of first refusal.
Expert opinion
Alexander Nikolaevich Grigoriev
Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.
Finding buyers for a share in an apartment where there are several co-owners is not easy. Why should a bank burden itself with these bureaucratic obstacles because of a small stake in real estate? It’s easier to refuse a loan.
The second risky situation for the bank is concluding a transaction to purchase a share between close relatives or former relatives who have not registered their marriage with other persons. Such transactions are perceived by banks as suspicious and have a high probability of being rejected for mortgage lending.
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:
| Name | Deadlines | Interest rates (average) | Maximum amount | Down payment amount |
| Sberbank | Up to 30 years old | 11% | Up to 15,000,000. Increased limits may be established for Moscow and St. Petersburg | 10-30% |
| VTB 24 | From 9.1% | Up to 60,000,000 rub. | 10% | |
| Gazprombank | 45,000,000 rub. | From 15 to 20% | ||
| Russian Mortgage Bank | From 10.7% | Depends on the specific program (on average RUB 15-20,000,000) | From 25% | |
| Bank "Zenith" | From 6% | 8,000,000 rub. | 20% | |
| Transcapitalbank | 8.60% | 20,000,000 rub. Purchasing more expensive housing on credit is discussed individually | From 15 to 50% | |
| Deltacredit | 12.25% | Considered individually | From 10% |
