In the article, we consider whether it is possible to rent a mortgage apartment.
Currently, more and more real estate is acquired through mortgage lending. The main advantage of this method is based on the fact that a favorable loan for a long time becomes available for the future owner of a dwelling. The specificity of the mortgage agreement lies in the fact that a real estate object becomes a pledge in it, due to which the lender's financial risks are minimized.
Quick loan repayment
Many future owners seek to repay the loan as quickly as possible. That is why, in order to receive additional funds, they often rent their acquired housing, in connection with which the question of which banks are allowed to rent a mortgage apartment remains relevant.
In fact, this problem is not always simple. This is due to the fact that the lender in the contract has the right to set his own terms. That is why it often provides for a point where specific issues are fixed regarding the rental of premises as collateral. That is, the creditor bank decides whether it is possible to rent a mortgage apartment.
Legislation in force
First of all, when asking a question about lawfulness, you need to carefully read the Federal Law on Mortgages. It is worth noting that such opportunities are directly provided for in it. The provisions of the legal document indicate that the borrower - the future owner of the property - has the following rights:
- take a mortgage apartment for your own residence;
- receive income from mortgage real estate.
An important additional condition that the future owner is obliged to provide is that the lease term should be no more than the actual time provided for securing loan obligations. The Federal Law also focuses on the fact that the rental of housing is carried out only in strict accordance with its purpose. Thus, the premises cannot be used as an office.
Is it possible to rent a mortgage apartment: mortgage conditions
The main features of a loan for the purchase of real estate are regulated by Federal Law N 102- dated July 16, 1998 “On Mortgage (Real Estate Mortgage)”. In article 29, the borrower is not forbidden to dispose of property acquired in a mortgage. A credit institution may impose a restriction on this right. Therefore, if a person intends to rent out a mortgage apartment of Sberbank, for example, for rent, he needs to consult a bank about this.
Any credit institution sets its own conditions regarding the possibility of leasing collateral:
- The bank allows you to lease mortgage housing. Bank authorization is recorded in the mortgage agreement. Mandatory conditions for the client are also indicated here. The bank must be notified of its intention by entering into a formal agreement with the tenant.
- The Bank forbids the client to lease collateral. This condition is a separate clause in the mortgage agreement. In addition, the agreement defines the consequences of violating such a rule.
- A credit institution does not regulate the problem of renting property as collateral. The borrower has the right to dispose of his property independently, without notifying the bank. That is, he can rent a mortgage apartment.
Bank may not approve
It should be noted that the client’s intention to pay a mortgage loan only with income from rental housing can adversely affect the banking decision on approval of the loan.
If the premises are in a mortgage, the rental of such housing can be allowed by the bank only if an official lease is concluded. It is better to conclude an agreement for a year, further extending the document. The contract in this case should not be registered.
Advantages
Is it possible to rent a mortgage apartment? This is not an idle question.
If you correctly approach the issue, then the purchase of housing for rental purposes can significantly improve the financial situation. Therefore, it is important to take into account all the subtleties of such a procedure, to study both its advantages and possible difficulties.
Advantages of buying a property to rent a mortgage:
- Additional income. The proceeds from the lease can be used to pay off the monthly mortgage payment and pay utility bills.
- Quick loan repayment. If the mortgage payment is the same with the amount of the lease, the tenant will actually make a loan payment without affecting its own budget.
- Collateral housing must be insured. If tenants have caused real estate significant damage, insurance allows you to guarantee the repayment of customer debt to a credit institution.
But, of course, it is not always advantageous to rent a mortgage apartment.
disadvantages
Disadvantages are also available:
- Such a scheme is applicable only to borrowers who have a separate living space.
- Lack of guarantees of liability and cleanliness of tenants. After the lease expires, in most cases, housing needs major repairs.
- Possibility of late payment. If a person does not have his own funds to make monthly payments to the bank, you can not rely only on rental income. Housing may be unclaimed for several months, or unscrupulous tenants will not pay rent on time. Due to such factors, a late payment will be formed on the mortgage. This will entail the imposition of fines, which can lead to confiscation of real estate.
- If the property was damaged, the bank will take back the collateral property as compensation.
Is it possible to rent a mortgage apartment, it is important to find out in advance before applying for a loan.
How beneficial is it?
You can determine the benefits of renting mortgage housing if you analyze in detail market trends and possible risks.
For rent, one-room apartments are the most profitable option. It is necessary that the mortgage be equal to the price of the apartment, and then the rental fee will be able to cover the loan amount. Rent one-bedroom apartments is beneficial for those who do not have other housing. If you place tenants in the next room, you can earn income and control the safety of living space. Three-room apartments are especially profitable to rent in rooms.
For lending, it is better to choose a bank that allows you to rent a mortgage apartment.
The most profitable option is the delivery of one apartment and the purchase of another mortgage. Profits received from the lease can be sent to cover the mortgage monthly payment. Mortgage in this case does not affect the client’s budget.
It is important that for further rental housing should focus on cost-effective options. Secondary apartments near stops and the metro, with developed infrastructure, become the most liquid for tenants.
What credit institutions are allowed to rent a mortgage apartment?
Sberbank, Alfa-Bank, Svyazbank, VTB 24 and other large financial institutions allow you to lease mortgage real estate if you have obtained the consent of the bank and a lease has been drawn up.
Rent an apartment purchased with a military mortgage
An important issue is also renting out an apartment if it was purchased on a military mortgage. This problem is also relevant because a soldier is buying property on the military mortgage in the city in which he intends to live only after his retirement. When he acquires housing in this way, he continues his service in another region. Of course, to cover the amount of utility bills, people often seek to rent an apartment.
In this case, the question is due to the fact that in accordance with the law “On the Status of Military Personnel” a citizen does not have the right to engage in commercial activities. That is why you need to understand whether the transfer of residential premises for rent is an enterprise.
Entrepreneurship is defined in the Civil Code of our country. It indicates that it means activities that are carried out at your own risk, involves the receipt of income and needs to be registered in accordance with the current procedure by law.
On the other hand, article 608 indicates that registration is not required for the owner of the property renting it out.
Finally, it should be noted that the RF Ministry of Duties and Taxes by letter of July 6, 2004 No. 04-3-01 / 398 clarifies that operations related to the leasing of own residential real estate are not entrepreneurial activities.
Given all of the above, it can be said that an apartment purchased under a military mortgage, by law, can be rented out. Such activity is not commercial and the law “On the status of military personnel” does not contradict.
Why can not I rent a mortgage apartment?
Far from always, credit organizations welcome the borrower's desire to return the acquired property. The main reason - housing is the subject of collateral. When a borrower is unable to fulfill loan obligations, property is seized and sold by the bank. The credit institution takes into account that tenants do not always take care of the property being leased. Due to the spoiled apartment, its cost will eventually be reduced.
Another reason: when a borrower plans to pay a mortgage only by earning income from renting an apartment, it means that he does not have sufficient solvency. This is also a risk for the bank and a reason to refuse to grant a loan.
If the creditor forbids
If the lender prohibits renting out collateral, he reserves the right to himself regarding the verification of the fulfillment of the conditions of the concluded contract, the intended use and maintenance of the property. Checks can be spontaneous. The maximum number of visits by bank employees should not be more than twice a year. If unauthorized persons are found in the apartment who are not specified in the contract, the bank has the authority to impose sanctions on the borrower. A warning is issued from the bank. The borrower will have to pay a fine.
Termination of an agreement
If a repeated violation occurs, the bank has the right to terminate the mortgage agreement. In this case, you need to pay off the full amount of the debt, otherwise the collateral will be confiscated.
All the consequences, prohibitions and conditions must be prescribed in the mortgage agreement.
It is important to note that the bank may pay attention to the borrower if a monthly payment is made late. Usually bona fide payers are not checked.
How to rent a mortgage apartment correctly?
Legal advice
Clients ask lawyers if it is worth buying an apartment on a mortgage for further rental purposes.
There is no single answer. It is necessary to study the real estate market and realize how liquidly purchased housing is and whether it is in demand among tenants. With a rent that is equal to or greater than mortgage payments, rent, of course, will bring profit to the client.
Is it possible to rent a mortgage apartment of Sberbank to military personnel?
Yes. The legislation does not consider the rental of real estate as entrepreneurial activity, respectively, it is available to the military. You must obtain the approval of the bank, and with tenants to conclude a formal agreement. Rental income is taxed at 13%.
If a person took a mortgage, but the apartment is not rented on time, what can I do?
In a situation where the mortgage is paid, but the deadlines for the delivery of the house are delayed, it is necessary to file a lawsuit in the court with the developer regarding compensation for losses. When the deadline is set aside for an indefinite period, you can terminate the equity agreement with the developer, as well as reimburse the paid financial resources.
We examined whether it is possible to rent a mortgage apartment.