- What is generally considered a redevelopment?
- How to remodel a mortgaged apartment in a new building
- How to buy a remodeled apartment with a mortgage
- What is written about redevelopment in the mortgage agreement?
- What documents will be needed for redevelopment in a mortgaged apartment?
- Where to get a redevelopment project
- How to obtain bank consent
- What happens if you don’t approve the redevelopment
- How APM-1 will help
A mortgage is the most affordable option for purchasing housing in Moscow if you have an official income and no problems with loans. There is an opinion that it is impossible to remodel an apartment that is pledged to the bank. This opinion is wrong. The law does not prohibit redevelopment in a mortgaged apartment.
Even if you have to make mortgage payments for many years, you can still make repairs to it and agree on redevelopment. However, you should definitely check what is written in the mortgage agreement. We'll tell you what rules you need to follow so that there are no problems with redevelopment and mortgages.
What is generally considered a redevelopment?
Redevelopment is a change in the layout of the apartment as a result of renovation. For example, this is moving or demolishing walls, widening doorways, combining a bathroom, demolishing window sill blocks. In everyday life, renovation work is also called redevelopment - this is the installation and transfer of plumbing, slabs, and pipelines. The approval procedure for both redevelopment and reconstruction is the same.
In Art. 25 of the RF Housing Code states that redevelopment is considered to be changes to an apartment related to its technical characteristics. That is, if cosmetic repairs are carried out in a residential area - new wallpaper is glued, linoleum is changed, walls are painted, plumbing, windows and doors are changed, furniture is rearranged - this is not a redevelopment. This is a normal repair. After all, the areas and boundaries of the rooms will remain unchanged, and this does not need to be recorded in the BTI plan.
Only those redevelopments that are reflected in the technical plan of the apartment are approved. These include:
- increasing the area of rooms at the expense of other premises
- changing the boundaries of the bathroom, combining or dividing
- installation of an additional toilet, shower or bathroom
- construction of openings in ceilings, interior partitions, inter-apartment and load-bearing walls
- combining a balcony or loggia with a room, installing a glass partition
- laying openings in load-bearing walls and ceilings
- cutting new openings in load-bearing walls
- organization of additional premises - dressing rooms, built-in wardrobes, storage rooms, or their dismantling
- installation of electric stoves in kitchens instead of gas ones
- creating a kitchen niche or moving the kitchen to another part of the apartment
Such types of work are carried out according to a special project with a technical conclusion on the potential possibility of their implementation. Only a design bureau that has SRO approval, such as Architectural and Design Workshop No. 1, can develop a redevelopment project.
If the redevelopment involves working with load-bearing walls or the house has wooden or mixed floors, a technical conclusion for the project is prepared by the author of the house project in your series. This could be a design institute, a small organization or a State Budgetary Institution “Expert Center”. The management company can tell you where to go.
How to coordinate redevelopment in a new building - detailed instructions
What redevelopments are unacceptable
If redevelopment work does not comply with sanitary and construction standards, it will not be approved and cannot be carried out. For example, the following are prohibited:
- combining the kitchen, in which gas equipment is installed, with the living room
- glazing of a balcony equipped with a fire escape
- installation of fireplaces in panel houses
- moving the bathroom to another part of the apartment, located above the living rooms of the neighbors below
- expansion of the bathroom at the expense of the kitchen or living room - except for apartments on the ground floor
- moving the heating radiator to the loggia
- demolition of load-bearing partitions to combine the loggia with the room
- sealing gas pipes into a niche, wall or box
In detail: do's and don'ts when remodeling
What changes can be made
There are a number of changes that an apartment owner can make without involving a lender or government agencies. In other words, the specified list of finishing works can be carried out without drawing up a separate project:
- Work to change the appearance of a living space - painting structures, gluing wallpaper or applying plaster.
- Replacement of products that are not in good condition. This list of works includes the replacement of window and door structures, installation of furniture or plumbing products.
- Electrical work - moving or installing sockets, laying wiring.
How to remodel a mortgaged apartment in a new building
Redevelopment in mortgaged apartments must be approved. The procedure is the same as for apartments without a deposit. There are no restrictions in this regard in the law. However, the bank may set such restrictions.
In a new apartment, redevelopment can be done only if the bank does not object and has given written consent. Check that there are no prohibitions on redevelopment in the mortgage agreement.
When purchasing an apartment with an “open” layout, keep in mind that any relocation of partitions in comparison with the original project will still have to be approved. Even if there are actually no partitions in the apartments. Wet, residential and non-residential areas are still demarcated.
Redevelopment in a new building with an open plan
Housing problem
Agree, not everyone can boast of their own home. Since there are no wealthy parents or the inheritance of a rich grandmother, there is little choice. Either rent a house or start saving money. A small but personal apartment, a plot of land with a cute house - tempting offers are flying from everywhere. And it doesn’t matter how old you are, at any age your wishes should come true. Couldn't save up funds? This is also not a problem. The housing issue can be solved in an elementary way; you just need to understand the intricacies of lending and understand how to make your dream come true.
How to buy a remodeled apartment with a mortgage
Banks deal only with approved redevelopments. It will not be possible to buy an apartment on the secondary market with unauthorized changes to the mortgage - the bank will not issue approval. And that's why
- Firstly, the market value of the apartment is significantly reduced.
- secondly, unapproved repairs can be completely dangerous for living. No one examined it and gave an opinion on the safety of the work.
However, the presence of an uncoordinated redevelopment can help to significantly reduce the cost of an apartment and purchase housing at a deep discount for cash. After this, you will need to legalize the redevelopment, since in the future you will not be able to sell such an apartment.
When prohibited
There are cases when the bank directly prohibits the redevelopment of an apartment in the mortgage.
The corresponding clause must also be in the loan agreement. For example, that any technical changes to the configuration of a residential premises are prohibited. In this case, contacting the bank for approval is pointless. The lender will still not issue permission to redevelop the apartment.
What to do? Wait for the mortgage loan to be fully repaid and the encumbrance on the apartment to be removed. After this, you can do redevelopment without any approval from the bank.
Also, the bank will refuse to transform an apartment if the work does not comply with SNiPs, SanPiN standards, GOST and other regulations. For the bank, this is like a red traffic light:
- Firstly, redevelopment with violations can harm people’s health and their property;
- Secondly, such alterations reduce the cost of the apartment - the bank will not be able to quickly sell housing with unauthorized changes.
For example, you cannot install a fireplace in a panel house, demolish a load-bearing wall, or move the kitchen into the living room. Also, you cannot place a bathroom above your neighbors’ living rooms (if this is not the first floor).
How to legalize redevelopment in an apartment if it has already been done independently
How to write an application for redevelopment of an apartment
What is written about redevelopment in the mortgage agreement?
Each bank prescribes its own rules about what can be done in an apartment that has a mortgage. This is stated in mortgage agreements.
Some directly state that making any changes related to the technical part of the living space is prohibited. This means that you will be able to redevelop the apartment only after you have paid off the mortgage and the housing has become your property from the bank’s collateral.
But more often redevelopment is allowed, since, subject to its approval, this is a procedure provided for by law.
Most often, the following bank requirements are met that must be met in order to approve redevelopment in a mortgaged apartment:
- it is necessary to obtain written consent from the bank
- the apartment needs to be revalued
- redevelopment must be agreed upon with authorized departments
- at least one year must pass after the conclusion of the mortgage agreement
Read the document carefully: you can deal with the issue of redevelopment only after you are absolutely sure that you do not violate the requirements of the credit institution. Otherwise, you face a fine and even loss of your apartment. Some banks have a clear condition - not to carry out redevelopment.
We negotiate with the insurance company
One of the main conditions for obtaining the bank's consent is the availability of permission to change the layout from insurers .
The fact is that the loan agreement and, accordingly, the insurance policy indicate one object with a specific value. After the alteration, the area, configuration of the insured object and its price may change.
The cost of the policy when concluding an insurance contract is calculated based on the technical characteristics of a particular object. With a modified layout, these characteristics will change, and the cost of insurance will change accordingly.
Therefore, insurers will need to make an expert assessment of the object, and this will entail additional costs for paying for the examination.
After the expert opinion is issued, you will most likely have to make an additional payment under the home collateral insurance agreement.
What documents will be needed for redevelopment in a mortgaged apartment?
To approve redevelopment of a mortgaged apartment, you need the same documents as for any regular redevelopment. In addition, the bank’s consent will be required, but it does not need to be submitted to the Moscow Housing Inspectorate.
Documents for approval of redevelopment in a mortgaged apartment
- Technical report and redevelopment project
- Consent of all owners or all family members of the tenant
- Documents for an apartment in a new building
- Documents for other apartments, if information about them is not in the Unified State Register of Real Estate
- Technical passport with the current apartment plan - if it is not in the MosgorBTI database
- Power of attorney for a representative - if he sends an application
What documents are needed to redevelop an apartment?
The bank's consent will be needed later when you make changes to the information about the apartment in the Unified State Register of Real Estate. This is done through Rosreestr when selling or donating an apartment. In addition, this consent is necessary for your peace of mind - that the bank does not recognize the actions as illegal and will not change the terms of the agreement.
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What are the consequences of illegally changing the configuration of a mortgage premises?
The borrower should remember the consequences of illegal redevelopment of mortgage housing. This includes the following:
- The bank may terminate the loan agreement and demand repayment of the entire amount of the mortgage loan.
- The lender can force the borrower to return the apartment to its original appearance.
- Even if the borrower manages to hide the fact of illegal redevelopment, in the future he will still face a number of problems (difficulties in selling such an apartment, paying a fine, consequences provided for in Article 29 of the RF Housing Code).
Thus, it is quite possible to change the configuration of an apartment purchased with a mortgage. The main thing is to obtain permission from the lender to implement such changes and coordinate the redevelopment with local governments.
Where to get a redevelopment project
To obtain written consent from the bank that issued the mortgage, it is necessary to work out a project for future redevelopment. It will show you how the apartment will look after all the changes. Sometimes a sketch is enough instead of a project.
Redevelopment project. For a project, you need to contact a design bureau that has SRO approval. You should only contact professional companies, since an incorrectly drawn up redevelopment plan from a “private owner” can result in the bank refusing to renovate the apartment. And the Moscow Housing Inspectorate will not accept documents that are not accompanied by an extract on the organization’s membership in the SRO of designers.
This is what the floor plan of the apartment looks like before and after redevelopment - this is part of the redevelopment project. The redevelopment project does not indicate anywhere that the apartment is under mortgage. The Moscow Housing Inspectorate does not check this, so the project will be the same as for any other apartment.
To prepare a redevelopment project you will need at least:
- current apartment plan - it can be ordered from the BTI, this is part of the registration certificate
- documents for the apartment - extracts from the Unified State Register or certificates of ownership, contracts for an apartment in a new building
Redevelopment sketch. There are cases when a redevelopment project is not needed. These are simplified types of redevelopment - they are coordinated according to the sketch. This is possible if, during the redevelopment, wet areas are not moved - the bathroom, toilet and kitchen, load-bearing walls are not affected, the gas stove remains in the same place where it was, and does not change to an electric one. This was discussed in more detail in the article: which redevelopments do not require approval.
This is what the redevelopment sketch looks like. Compiled by a company that has SRO approval. The cost of the work is 5000 ₽. If you wish, you can compile it yourself for free if you have the skills to work with technical documents.
How to obtain bank consent
The bank's consent to redevelopment is a mandatory document that must be drawn up in writing. He confirms that the bank does not object to the redevelopment and it complies with the terms of the contract.
For the apartment owner, this is a guarantee that the bank will not raise the mortgage rate and force you to pay it off early. And also that after renovation the apartment can be sold, donated or rented out without any problems.
The letter of consent from the bank for redevelopment may indicate conditions that must be observed. For example, provide the bank with permission for redevelopment and register the changes in the Unified State Register within a certain period.
Let's consider what documents are needed to obtain the bank's consent.
Approval from the insurance company. First of all, before submitting documents to a credit institution, you must obtain approval from the insurance company that insures your apartment
It will be given based on the appraiser's conclusion. He must confirm that the value of the mortgaged apartment will not decrease after redevelopment. It is not recommended to underestimate or overestimate the cost of housing. If this is discovered, you will not receive consent for redevelopment.
Redevelopment project. Next, to obtain permission, the bank must provide a detailed redevelopment project with a mandatory indication of the changes you plan. This could be moving doorways, demolishing or building up walls, installing built-in cabinets, installing decorative plasterboard niches and podiums. It will also indicate the places where the plumbing is installed and other important points for coordinating the redevelopment.
Receipt for consideration. There is a fee for reviewing your request for consent by the bank. The cost varies from 2000 ₽ to 5000 ₽.
The time it takes for the bank to review your documents is always individual and depends on the redevelopment project and the specifics of the bank’s work.
Can the bank refuse redevelopment?
Maybe if the borrower is planning renovation work that will violate standard building codes. For example:
- will severely damage the load-bearing structures of the apartment
- will create a threat to the life of the homeowner and his neighbors with his repairs
- will entrust the development of a redevelopment project to an incompetent specialist who does not have special permission
- conceives a redevelopment on the lower floors of a panel house - this cannot always be agreed upon
In order for the redevelopment to be completed, you will have to either rework the project or contact a company that has all the necessary documents. And in some cases you will have to abandon this idea altogether.
Approval procedure
After receiving approval from the bank, the procedure for approving redevelopment is the same as for all other residential premises. You must contact the Moscow Housing Inspectorate with a complete package of documents. Now documents are submitted electronically through mos.ru.
Repair work can begin only after approval from the Moscow Housing Inspectorate. Keep in mind that they can only be produced by an organization that has SRO approval.
Upon completion of construction work, you must again contact the Moscow Housing Inspectorate, obtain an acceptance certificate for the completed redevelopment, and then visit the BTI to record the changes made to the apartment plan.
How to coordinate redevelopment - step-by-step instructions
- Draw up a redevelopment project with a detailed description of all changes
- Get consent from the bank and insurance company
- Complete an application and submit documents to the Moscow Housing Inspectorate - online at mos.ru
- Obtain permission for construction work on the project
- Renovate your apartment
- Call an inspector to rent out an apartment - also through the mos.ru portal
- Order a new registration certificate for the apartment from the BTI - based on the act of completed redevelopment
- Register changes made to the layout with the cadastral chamber
How to register redevelopment in Rosreestr
