Often, housing purchased by a military personnel under the military mortgage program is located in another region. This is often explained by the desire to move to another area after leaving the army. To prevent the mortgaged apartment from standing idle, many decide to rent it out. In this article we will figure out whether it is possible to rent out real estate purchased with a military mortgage, and how to do it correctly.
In what case can a military man use rental housing?
Persons liable for military service have the right to compensation for renting premises if the commander of a unit (unit) is unable to provide his subordinate with official housing (what is the procedure for drawing up, concluding and terminating a rental agreement for official residential premises?). Officers are forced to enter into lease agreements with apartment owners who rent them out.
This is legally provided for by the following regulations:
- Article 2 of Federal Law 76 of 1998 “On the status of military personnel”;
- by resolution No. 909 of 2004 and No. 989 of 2015;
- by order No. 235 of 2005;
- by order No. 1280 of 2010;
- by order No. 303 of 2000;
- by order No. 157n of 2010.
Who is given a military mortgage?
Such government support applies only to those military personnel who serve under contract. Here is who is entitled to a military mortgage without fail:
- Professional military personnel who received their first officer rank after 01/01/2005.
- Midshipmen and warrant officers who entered military service after 01/01/2005 and served 3 years under the contract system.
- Reserve officers called back to military service.
- Contract servicemen who received the rank of officer after 01/01/2008.
- To soldiers and sailors, sergeants and foremen, whose military career began after 01/01/2020 and who served for at least 3 years.
Other categories need to submit a report to be included in the register of NIS participants on a voluntary basis. As soon as a special account is opened for them, after 3 years of service, a military mortgage will become available, including savings funds.
The following can participate voluntarily:
- Soldiers and sailors, sergeants and foremen who entered into a contract for the second time after 01/01/2005.
- Midshipmen and warrant officers who have more than 3 years of military experience as of 01/01/2005.
- The remaining categories are designated in Article 9 of the Federal Law of August 20, 2004 No. 117-FZ.
Mortgages for military personnel, regardless of their length of service, status and ranks, are available to everyone only after a 3-year period from the date of the first payment on the NIS. The state transfers the same amount to each participant to a special account.
Parties to the rental and sublease agreement
If a serviceman, in the case of renting residential premises, intends to reimburse part of the money spent at the expense of the state, he needs to enter into an official agreement. Executed between the owner and the tenant. Legal entities, individuals and municipal authorities can act as the owner.
The definition of lease or lease is located in the Civil Code (Chapter 34 and accordingly): under a lease (property lease) agreement, the lessor (lessor) undertakes to provide the lessee (tenant) with property for a fee for temporary possession and use.
When the residential premises belong to the city, the tenant, on the basis of a social tenancy agreement and with the written consent of the landlord (the relevant government bodies), enters into a sublease agreement with the tenant.
Read about who the lodger, tenant and tenant are, what rights and responsibilities they have, here.
If the military man retired
If a serviceman did not serve the required 20 years and terminated his army contract earlier, then he will have to return the funds paid by the state for the military mortgage and continue to repay the loan on his own.
They give 10 years to return money through the NIS, so the borrower bears a double financial burden - to continue to pay off the mortgage and return the funds to the state. The following cases are exceptions:
- military service - more than 20 years;
- dismissal from the army after 10 or more years of service;
- resignation due to health reasons;
- resignation for family reasons.
In the above cases, the state does not need to return anything, but if at the time of dismissal the mortgage continues, then the borrower closes it himself and pays off the bank.
If, after 20 years of military service, a serviceman has not used the accumulated amount from the NIS, he will be given these funds, and he has the right to dispose of them at his own discretion.
How to remove an encumbrance
Although real estate purchased under a military mortgage belongs to a serviceman, it is encumbered with collateral. This means that until the encumbrance is lifted, it cannot be sold, donated, transferred for temporary use, remodeled, or other manipulations.
In this case, the pledgeholders are the state represented by Rosvoenipoteka and the bank. The encumbrance to the state will be automatically lifted after 20 years of military service, and to the bank, as soon as the debt can be fully repaid (it does not matter who pays off - the state or the serviceman himself).
In the first case, it is enough to write an application, but if you do not wait 20 years, then you need to pay off the TLC. "Rosvoenipoteka" informs Rosreestr about the removal of the encumbrance. To remove the encumbrances against the bank, you need to pay off the debt.
The bank will also inform Rosreestr, and the serviceman will become the full owner of the property acquired under a military mortgage, and he has the right to dispose of it without restrictions.
But if debt obligations to the bank are fulfilled, funds from savings contributions are returned to the state, nothing prevents you from taking out a military loan for the second time and buying more housing.
The right to participate in the NIS is not taken away from such a serviceman; it continues to be valid, and while the military contract is maintained, the special account is replenished with targeted funds from the state budget.
Conditions and benefits for renting residential premises
Main conditions:
- the owner has ownership rights to the apartment;
- so that no minor children are registered in the apartment, since the consent of the guardianship authorities is required to conclude an agreement.
The amount paid will not cover all the funds spent, since the Ministry of Defense of the Russian Federation sets it based on the region of residence.
- In Moscow and St. Petersburg it is 15 thousand rubles for a single person, but it changes if there are additional family members.
- In other regions, the payment is within 3,600 rubles.
- In the village - within 2700 rubles.
As practice shows, military personnel pay 30% or more of their salary, but in some regions the percentage increases to 80.
The compensation paid is calculated based on the region of residence, family composition and the amount of payments provided for this region.
The surcharge will be increased by 50% if the family consists of three people.
Requirements for the contract
For an individual, a rental agreement (Article 671 of the Civil Code of the Russian Federation) for a certain period is usually used.
The grounds for payment of compensation are:
- copies of identification documents of all family members;
- rental agreement;
- statement of enrollment in the military unit;
- report addressed to the commander;
- certificate of family composition.
Payment may not be made if the person liable for military service is not in line for service housing or refuses it for unknown reasons.
Additional payment for rent of premises is carried out on the basis of:
- Additions in accordance with Order 235 of the RF Ministry of Defense.
- PP as amended on September 18, 2015.
Contents of the document
The lease agreement is concluded in writing. It should reflect the following basic data:
- date of conclusion of the contract;
- passport details of the owner and tenant;
- document confirming ownership with a copy attached;
- address;
- total and living area of the premises;
- term of the contract;
- monthly payment amount;
- calculated number.
We do not recommend completing the documents yourself. Save time - contact our lawyers by phone:
8 (800) 302-76-94
Terms of imprisonment
The term of the lease agreement can be any, from one month to infinity. And hiring is for a maximum of 5 years. If the contract does not specify a term, it is considered to be concluded for 5 years. Read about how to properly rent and rent out an apartment for a long period of time here.
Payment order
The serviceman pays for the rent of the premises independently from his own funds, then monetary compensation is received along with his allowance every month to the serviceman’s personal account. If for some reason compensation has not been received, you must contact the financial authorities assigned in accordance with the established procedure to the military unit in writing or by telephone.
Is registration required?
At this point in time, registration of lease agreements by military personnel and members of their families is not provided, provided that it is concluded for a period of less than 12 months. If necessary, you can apply for registration to specialized organizations (Rosreestr, MFC), the preparation of the necessary documents requires a certain period of time from 7 to 14 working days.
Upon formalization of the contract, the owner will be required to pay income tax at the end of the year.
What kind of real estate can be bought with a military mortgage?
Military personnel have a fairly wide choice when purchasing housing using funds accumulated under the NIS. The terms of a military mortgage allow you to purchase the following objects:
- Apartment in a “new building”. A mandatory condition is the participation of the developer together with partner banks in the Military Mortgage program. You can find them on the website rosvoenipoteka.ru. If a potential seller is not on the list of accredited sellers, you can initiate the question of adding him through a bank or military mission.
- An apartment from the secondary real estate market. Banks have the same requirements for such housing as for civil lending. They often refuse to purchase real estate in old, worn-out houses and do not agree to transactions based on powers of attorney.
- Private house with a plot. The bank will give the go-ahead for such a transaction if it is possible to register in the house and register ownership of the land plot on which the property stands.
You can buy housing not only where you serve, but also in another region of the Russian Federation. A military mortgage excludes the purchase of a summer house and shared ownership. The acquisition of land for building a house is available only to those who have served for more than 20 years.
How to buy a home
Let’s assume that a serviceman will be charged a mortgage fee under the NIS from the beginning of 2021. In January 2021, he can already take advantage of savings from the state (over 800,000 rubles over 3 years), which means that a military mortgage will help him immediately pay off part of the cost of the chosen apartment.
Let's say we are talking about a two-room apartment in a new high-rise building worth 4.3 million rubles. Taking into account the accumulated amount for NIS, its price will be 3.5 million rubles. (minus 800 thousand rubles of savings). In the future (during the service), the state will pay the bank.
The procedure for obtaining a military mortgage
The algorithm for obtaining a military mortgage is as follows:
- Receive an NIS participant document. To receive it, you need to write a corresponding report to the head of the military unit.
- Look for housing while an extract from the NIS register is being prepared (its validity period is 6 months).
- Contact one of the program partner banks (a list of them is on the website rosvoenipoteka.ru).
- Fill out the form and get approval for a mortgage loan for military personnel from NIS funds.
- Wait until the bank reviews the real estate documents based on its requirements. If the property meets the criteria for collateral, the bank will offer to sign loan documentation and a preliminary home purchase agreement.
The banking organization sends the request and the entire collected package of documents to the Federal State Institution "Rosvoenipoteka". If we are talking about a purchase in a “new building”, the military department is given 30 working days to respond, if a mortgage is issued for a “secondary” building - 10 days.
Once the transaction is approved and confirmed, the state pays the bank monthly for the serviceman, and a CHL (targeted housing loan) agreement is concluded.
The initial payment is transferred to the bank - the resulting amount for the NIS, after which an agreement on the acquisition of property by the military personnel is drawn up.
The owner will have to insure the property and deal with the issue of its state registration and inclusion in Rosreestr.
Over the 13 years of the military mortgage lending program, the mechanism has been worked out, but despite this, the registration process can drag on for several months. The maximum period is limited by the period of validity of the CPH certificate - no more than 6 months.
If you are unable to cope with all matters and conclude an agreement with the bank within six months, you need to re-write a report to receive a certificate from the NIS register. When planning to purchase a home, it is better to look for suitable real estate in advance and work closely with the bank to verify it in order to speed up registration.
Does a person liable for military service have the right to rent out premises himself?
Yes, provided that the apartment is owned, but if it is a service apartment, then subletting is prohibited.
Is it possible to rent out property obtained with a mortgage?
The answer to this question depends on what requirements are specified in the mortgage agreement. If such a clause is not provided, then you will need to contact the bank for a decision.
The organization that provided the mortgage may not object to renting out the apartment. Because if a serviceman has left for another region of Russia to a new duty station, no one relieves him of his duties to monitor the safety of real estate.
Read about the legality of renting out an apartment taken on a mortgage here, about how to organize a business renting out apartments on a daily basis, read here, and you can see the penalties for illegally renting out an apartment in this material.
Pros and cons of deals
Positive points when subhiring:
- the ability to choose a territorial location;
- availability of initial repairs and equipment;
- a chance to rent an apartment of larger dimensions than office housing provides.
Negative points:
- you have to pay extra out of your own pocket;
- it is difficult to find an apartment that meets the family’s requirements;
- possible distance from the place of duty.
When making a decision to transfer or move to a new duty station, you must immediately check with the commander of the military unit about the availability or absence of official housing. If it is absent, you will need to pay money from your own pocket, which is unprofitable, since the salaries of contract military personnel are small. Think about this in advance.
