Is it possible to rent out a mortgage apartment and how do banks look at it?

The popularity of acquiring an apartment at the expense of mortgage funds is known. This is due to the possibility, using a long-term preferential lending program, to solve the housing problem, invest money and save savings.

Often real estate is bought not in order to live in it, but as an investment, with the aim of making a profit.

How to rent out an apartment, the loan for which has not yet been repaid?

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.

If you want to know how to solve exactly your problem - contact the online consultant form on the right or call the numbers below. It's fast and free!

Legislation

Until the loan is fully repaid, the apartment is the property of the bank and is under collateral.

Real estate serves as collateral for the obligations of the borrower (mortgagor) to the lender (pledgee) - as stated in the Federal Law No. 102 "On Mortgage".

The right of ownership established by Art. 209 of the Civil Code of the Russian Federation, there is a combination of three components - possession, use and disposal.

Federal Law No. 102, Part 3, Clause 1, Article 1. gives the borrower the right to own and use property with the possibility of extracting useful properties from it.

The borrower's property rights in terms of property disposal are limited until the debt is fully repaid.

Federal Law No. 102, which regulates the pledge of real estate, does not contain a direct prohibition on the right to dispose of property, i.e. to make legal transactions in relation to him – incl. to rent, but imposes certain restrictions.

Clause 1 of Article 40 of the law states that the pledgor has the right, without the consent of the bank, if this does not contradict the mortgage agreement and if the following conditions are met:

• The lease term does not exceed the term of the obligation secured by the mortgage;
• The purposes of using the property correspond to its purpose.

The procedure for imposing restrictions on turnover is established and regulated by law.

Negotiability is a property of objects of civil rights, which consists in the possibility of alienating an object under a contract of sale, exchange or donation, or its transfer from one person to another in the order of universal succession.

So, in accordance with Article 129 of the Civil Code of the Russian Federation, if no restrictions are imposed on the transaction with an apartment, as with an object of civil rights, then it can be transferred from one person to another by inheritance or in another way not prohibited by law.

Features of renting a mortgage apartment

Credit organizations, in an effort to protect themselves, often draw up loan agreements in such a way that the borrower undertakes to obtain consent to perform any actions with the pledged property, whether it be:

1. Sale;
2. Exchange;
3. Lease;
4. Registration of other persons;
5. redevelopment;
6. Visit of relatives.

To rent out a mortgaged apartment, it is necessary to comply with the clauses of the signed loan agreement.

Based on this, for a borrower who decides to rent an apartment, there are three possible scenarios:

• The bank does not provide for restrictions, or it allows renting out an apartment purchased with a loan. In this case, the lease agreement is drawn up on any terms favorable to the parties.
• A direct ban on renting a mortgaged apartment has been imposed. If it is not possible to obtain consent, then the actions of the borrower will be considered illegal.
• Agreement with the lender is required - the terms of employment are additionally negotiated. Only after the fulfillment of the requirements put forward by the creditor, a permit is issued.

If the loan agreement does not contain a clause prohibiting the transfer of the pledged property into possession of third parties under a lease agreement, or a banking institution gives permission, then you can rent an apartment.

In this case, you should notify the bank about the concluded lease agreement, because. according to Article 34 of Federal Law No. 102, he has the right to document and factually verify the existence and conditions of maintenance of property.

Apartment for rent on a military mortgage

These rules also apply to military personnel acquired.

In addition to the bank, the apartment is also pledged by the state. The state does not impose special requirements for collateral and does not limit the borrower's actions.

The receipt of rental income is regarded as a commercial activity, and Federal Law No. 76 “On the Status of Military Personnel” prohibits the systematic receipt of profit by military personnel.

In order not to break the law, you should rent an apartment periodically - the principle of systematicity and consistency should not be traced.

How to hand over if the bank has forbidden?

The inclusion in the contract of a clause prohibiting the lease is explained by the bank's desire to control the state of the collateral, because until the loan debt is fully repaid, there is a possibility that the apartment will become the property of the creditor.

A credit institution is interested in maintaining the value of the collateral, and the borrower, transferring real estate for use to third parties, will not be able to constantly monitor its condition in order to prevent possible damage in time.

To lift the ban, you need to convince the bank that its interests will not be affected. Recommended mechanism of action:

1. Draw up an application addressed to a credit and banking institution with a request for consent.
2. Indicate in the application the reasons that prompted you to use an additional source of income– for example, the occurrence of financial difficulties.
3. Provide the pledgee for review with a completed lease agreement containing a section obliging to use the leased residential premises strictly for its intended purpose and to maintain its condition in its original form. Describe the tenant's candidacy positively.
4. Attach a certificate issued by the insurance company that it is notified of the owner's intention to rent out housing.
5. Wait for an answer. After reviewing the documents, the bank will make a decision within a week.
6. If yes, formalize the lease agreement. State registration is required only for long-term - over a year, agreements.

If the creditor is negative, is it possible not to inform him?

After all, it would seem that the risk is small - how will the bank find out about the agreement concluded orally?

This conclusion is erroneous, the absence of a written form deprives the bank of the opportunity to prove the fact of an illegal action, but it will be able to find out about the settlement of unauthorized persons in the mortgaged apartment from:

• neighbors;
• Employees of the insurance company who will identify who was in the apartment at the time of the insured event;
• Representatives of the pledge holder authorized to check the availability, condition and conditions of maintenance of the pledged property.

Having established that the borrower is renting an apartment without permission, the bank has the right to demand early, full repayment of the debt.

Failure to comply with the requirements entails the filing of a lawsuit for the enforcement of the subject of pledge.

If the signed loan agreement contains a clause prohibiting the transfer of residential premises for rent, then for violation of the terms of the agreement - a fine.

The amount of the fine and the accrual mechanism should be specified separately.

If you want to know how to rent an apartment correctly so that you are not deceived, we advise you to read.

Is it beneficial?

Take a property in a mortgage and rent it out, is it worth buying an apartment for rent?

The obvious benefits of acquiring and renting a mortgage apartment for rent, even taking into account the difficulties and contradictions, include:

1. The income received is commensurate with the monthly payments on the loan;
2. Reducing the financial burden on the borrower;
3. Increased demand for residential real estate, return on investment.

Main cons:

• The amount of insurance with the intention to rent out housing will increase by 20-30%;
• Troubles with the tax authorities are possible if 13% of the tax is not paid from the received amounts;
• The need to carry out repairs after the tenants;
• Deterioration, damage to property;
• The bank, at the initial stage, notified of the borrower's intention to rent an apartment, may raise the interest rate and increase the minimum down payment.

The tenant is not the owner, is not interested in saving the property and is not responsible to the mortgagee, but in the case of renting a mortgage apartment, he also risks.

If the bank finds violations, the lease agreement will be declared invalid, and early eviction will be required. Therefore, you should find out in advance:

1. The presence of an encumbrance - whether the apartment is mortgaged;
2. The position of the pledgee in relation to the subject of pledge - whether there is permission to rent.

Before renting and renting a mortgage apartment, you need to carefully weigh all the possible risks, calculate the benefits and make the best decision.

Is it possible to rent out an apartment bought with a mortgage? We suggest you watch the video.