How to get a loan secured by a share in an apartment - 5 stages of obtaining + 4 tips for urgent processing

Where can I get a loan secured by a share of an apartment? What determines the amount of a loan secured by a share in an apartment? How to urgently apply for a loan secured by a share in an apartment?

Owners of real estate shares have the legal right to sell, donate, exchange and pledge their property. Securing a room as collateral increases the likelihood of a positive response from the lender and improves overall lending conditions.

But such transactions have a lot of legal nuances that the average borrower has no idea about. This article will answer all questions on the topic of loans secured by a share in an apartment and teach you how to manage your property wisely.

Denis Kuderin is with you, financial expert of HeatherBober magazine. I will tell you how to quickly, profitably and correctly apply for a loan secured by shared ownership, and I will explain what requirements credit companies impose on such properties.

We take the best places and read to the end - in the final you will find an overview of reliable banks with favorable lending conditions, plus tips on how to speed up the process of obtaining a loan.

What is the difficulty?

Banks prefer to issue mortgages for “whole” properties. As a result of registration, they can easily place an encumbrance on the item of purchase and keep it as collateral until the loan is paid in full. It’s not so easy to do this with a share in its pure form, and banks won’t issue mortgages without collateral.

Difficulties:

1. The transaction of purchase and sale of a share itself. You need to negotiate with the other co-owners and sell, first offer the purchase to them. If they refuse, then look for other buyers. There is a risk that something will go wrong and the deal will be challenged.
2. It is impossible to accept a share as collateral. If suddenly the borrower stops paying, the bank will need to sell the collateral and cover losses. And selling a share is a complex process that requires obtaining consent from the co-owners.

Many banks simply refuse to issue mortgages for shares, since they do not need problematic transactions at all. It is easier for them to lend to ordinary apartments and houses, which become collateral. Fortunately, the queue of borrowers is only growing, so options with shares by banks are not interesting.

Procedure for obtaining a loan

The procedure for applying for a loan is very different from quick loans:

1. It is necessary to provide the lender with a minimum package of documents for real estate (extracts, title papers, etc.).
2. The lender reviews the application and makes a preliminary decision.
3. The size of the share in the apartment and its value are assessed.
4. Insurance is provided if necessary.
5. A loan agreement and a collateral agreement are signed.
6. Funds are transferred to the client's account or issued at the cash desk.
7. The encumbrance is registered and a statement with the encumbrance is issued to the client.

The entire procedure for receiving money takes from 3 to 14 days.

Loan repayment is made in any way convenient for the borrower, but. Considering large amounts, it is better to use a bank transfer using the details and be sure to save payment documents.

If we are talking about the last share in the apartment

It happens that after purchasing a share, the apartment will become the full property of one person. For example, you have ⅔ of an apartment, you buy the remaining ⅓, and the property becomes entirely yours.

The option of purchasing the last share is the most realistic. In this case, you can find several banks that will finance the transaction.

As a result of registration, there will be an entire apartment of one owner, and an encumbrance can be placed on this object without any problems. And this will no longer be a shared mortgage, but the most ordinary one. And many banks issue these.

Since this is a share, we will only talk about purchasing real estate on the secondary market. Here is a list of banks that you can contact, with the main conditions for concluding an agreement:

The base rate is a relative concept that should not be relied upon. Banks apply increasing and decreasing coefficients to the base value. For example, in Sberbank the increasing ones are:

• 0.3% for applying for a mortgage not online;
• 0.3% for choosing an apartment not on Domklik.ru;
• 0.4% if the down payment is less than 20%;
• 0.5% if the client is not a salary client;
• 0.8% if a mortgage is issued without certificates;
• 1% when canceling life insurance.

In general, you can contact any of these banks and apply for a mortgage on your share, provided that it is the last one. The legal department will tell you how to formalize everything correctly so that the bank accepts the entire object as collateral.

Where to get a loan secured by a share in an apartment - review of the TOP 5 banks

Mortgaging a room is not the fastest and far from the only way to borrow money from a bank.

If you need a relatively small loan in the amount of 200-750 thousand rubles , then it is more profitable to order a credit card. Such products have a grace period of 50 days or more, during which interest on purchases and withdrawals is not charged.

Our expert review of the five best banks in the Russian Federation will help you choose a company.

1) Sovcombank

Sovcombank offers loans secured by an apartment and any other real estate. The list of objects includes rooms, houses, cottages with and without plots, non-residential and commercial premises. Regular clients and pensioners receive preferential lending conditions.

Conditions:

• amount from 300,000 to 3 million rubles ;
• terms from 5 to 10 years;
• the collateral must be within the product's coverage area;
• the client must have permanent registration;
• The client must have a landline home or work telephone.

Base rate – from 18.9% per annum.

2) VTB Bank of Moscow

VTB Bank of Moscow – consumer loans for all occasions at a rate of 13.9% per annum. The maximum amount is 3 million rubles . Fill out the application on the website, wait 15 minutes for a response, if the decision is positive, take the documents and go to the nearest branch to sign the contract.

The list of beneficiaries includes doctors, teachers, tax and law enforcement officials, and working pensioners.

3) Tinkoff Bank

Tinkoff Bank offers to take out a loan quickly and without leaving your home. Order a credit card with a limit of 300,000 rubles and receive it by courier on the day you apply.

Grace period – 55 days. For every purchase - cashback up to 30% in points. Issue and delivery are free. Annual maintenance – 590 rubles . The base rate is 19.9% ​​per year.

4) Alfa-Bank

Alfa-Bank – special lending conditions for salary clients and persons who already have a current account. Consumer loans up to 3 million and above, as well as mortgage loans secured by existing housing. Mortgage rate – from 9.2%.

Several types of credit cards are available with a limit from 300,000 rubles to 1 million . To receive one, fill out an application on the Alpha website, wait for a response and receive the card at the nearest branch. This bank has record terms for preferential lending - from 60 to 100 days.

5) Renaissance Credit

Renaissance Credit – cash loans up to 750,000 rubles under 4 lending programs. There is a universal rule - the more documents, the more favorable the conditions.

If you need money quickly, get a credit card with a limit of 200,000 . and a grace period of 50 days. Get it same day at the branch closest to your home. The base rate is 24.9% per annum.

Comparison table of bank offers:

What is needed to apply for a mortgage on a share

The object is not simple, so the criteria for the borrower will be slightly higher. The basic requirements for mortgage borrowers in banks are standard. Typically, loans are given to citizens over 21 years of age who work officially and have more than 3 months of experience in the declared position.

The main thing for the bank is that the borrower is able to repay the loan, so close attention is paid to the level of his solvency. What plays a role:

• total monthly income from all sources, proven by certificates;
• work experience. The higher it is, the more confidence in the borrower. Usually a copy of the work permit is required;
• current mandatory expenses. For example, for other loans, for child support.

Since we are talking about a share, a more complex piece of real estate, the bank will be more demanding. The transaction will be approved only if the borrower is perfect on all sides.

To increase your chances of getting a shared mortgage approved, you can contact 2-3 banks at once. If multiple approvals come in, you can choose the best offer.

Advantages and disadvantages

Loans secured by a share are not much different from bank loans, but they allow you to:

• Get a loan if you can’t prove your income;
• Save on appraisal and insurance costs;
• Receive an amount greater than in the bank;
• Do not correct your credit history if it is negative;
• Remain registered in the share;
• Receive money without the consent of other owners.

The only significant disadvantage of such lending is the possibility of losing a share in the apartment if the borrower did not carefully read the lending documents or did not comply with payment discipline.

If we're not talking about the last beat

In this case, everything is more complicated. It is no longer possible to buy a share of a mortgage using the standard scheme. Banks will not agree to such a deal, since they do not get involved with shares at all; they are only interested in entire objects that will not bring any legal problems.

For example, an apartment has 3 owners, each with a third. And you want to buy one third of this property with a mortgage. It turns out this:

1. The owner of the third being sold must send formal offers to purchase his share to the other co-owners. Sale is possible only if this issue is resolved.
2. Refusals are received, the potential borrower goes to the bank to apply for a mortgage on the share.
3. The bank sees that only a third of the apartment will be mortgaged, the remaining ⅔ belongs to other people. The bank will not be able to accept the entire object as collateral, so it will refuse the transaction.

There is no hope for the deal to be approved at all. In its pure form, it is simply not possible to obtain a mortgage for a share; not a single Russian bank will accept only part of the apartment as collateral.

The fact is that if there is a delay, you will need to sell the object. But it is difficult to sell a share, especially since its price is always low. Plus you will have to resolve issues with other co-owners. Banks don’t need this fuss, so they simply refuse to conclude an agreement.

How to urgently apply for a loan secured by a share in an apartment - 4 useful tips

The presence of collateral in itself speeds up the receipt of a response from the bank.

And expert advice will help you get a loan on more favorable terms.

Tip 1. Use the services of brokers

A professional credit broker knows EVERYTHING about profitable loans in your region. He is aware of the conditions in a particular institution and has established contacts with bank employees.

Such a specialist will find the most profitable option for you out of all possible, and, if necessary, will help you get a loan with bad “credit karma”.

The question is how to find an honest and truly helpful broker? A qualified specialist is looked for like a good doctor - based on recommendations. If this method is not available to you, focus on ratings, company status, and reviews on independent resources.

Tip 2. Take a private loan

Advice for those who have already been rejected by banks and other financial companies. A private lender does not care about your credit history; he will not require a bunch of documents to confirm your solvency. At the same time, the private owner issues money almost instantly.

Cons: risk of contacting a scammer, high interest rates.

Tip 3. Calculate loan terms using a loan calculator

If you want to save time, use loan calculators that are available on the website of any self-respecting bank and microfinance organization. This way you will immediately understand what awaits you and quickly select the most profitable option.

Tip 4: Consult with investors

Professional investors invest their funds only in profitable projects. But if necessary, they will help you choose an individual lending program that will speed up the loan process.

Investment companies, like private traders, are not interested in your credit history. Their guarantee is the property itself, which you do not want to lose.

A short video to help:

If you leave another property as collateral

If you own another whole property, you can offer the bank to accept it as collateral. That is, the bank issues you a mortgage loan to purchase a share, but takes as collateral not the property being purchased, but the one that is already owned by the borrower.

In this case, if claims arise, the bank will simply foreclose on the mortgaged apartment and will be able to sell it without any problems. The borrower will have the purchased share and the remaining money.

Many mortgage banks in the Russian Federation will be ready to make such a deal. But everything still needs to be agreed upon. Plus, the mortgaged apartment must fully comply with the bank’s requirements.

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%.

Conditions of issue, terms and amounts

Unlike unsecured loans, large secured loans are issued on terms similar to bank lending. The interest rate is around 8% per annum, the loan term can reach 15 years. And the amounts depend on the value of the property. The most common calculation of the loan amount is 80% of the cost of housing. The percentage may decrease depending on liquidity and the condition of the living space.

A capable citizen of the Russian Federation - the owner of a share who has a permanent job - can become a borrower.