Redevelopment of an apartment with a mortgage: can it be done with a collateral agreement, conditions of Sberbank, VTB 24, what will happen if you do not legalize what has already been done in the purchased housing?

Purchasing various real estate on the secondary market poses the threat of buying an apartment with illegal redevelopment. Ideally, the seller first informs the buyer about this fact; in this case, there are no surprises. But very often it happens that ambiguities in the plan and in the documents are revealed after the transaction has taken place. Therefore, it is useful to know what risks are involved in purchasing an apartment with an illegal layout, how to avoid possible troubles, and what to do if such real estate was purchased.

Unauthorized layout in a mortgaged apartment

Unauthorized redevelopment today is no longer an obstacle to purchasing real estate with a mortgage from Sberbank. And many other banking organizations are capable of issuing mortgage funds for the purchase of apartments with redevelopment. However, it is still necessary to coordinate the work carried out with all the necessary structures. But now this responsibility falls on the shoulders of the new homeowners. But not everyone knows the dangers of such a feature. And this is completely in vain, since buying such housing with a mortgage also carries risks.

Until recently, buyers with a mortgage did not have the opportunity to buy real estate in which even the slightest, but not legalized, modifications were carried out. Banking organizations refused to provide a loan, even when in a residential building, in particular, an arched structure was installed instead of a doorway or unnecessary cabinets were dismantled. This point of view is still preferred by banks with some amount of state participation.

This idea appeared only a few years ago. Banking organizations issued a mortgage loan for the purchase of an apartment with illegal changes, but it was necessary to adhere to certain regulations. A certain period of time (up to six months) is established for the buyer of the apartment, i.e. the potential borrower has eliminated all illegal changes.

IMPORTANT !!! Otherwise, the bank where the mortgage was taken out may conduct its own review and determine whether the required actions have been taken. And if this has not been confirmed, he has the right to demand early payment of the mortgage amount. In addition, most often, insurance companies also refuse compensation.

Documents for redevelopment of an apartment with a mortgage

The consent documents you may need throughout the process are:

documentation that establishes your rights to housing;
reconstruction sketch;
consent of the credit institution from which the mortgage was taken out;
permission from the insurer;
permission from organizations such as fire inspection, Rostechnadzor, etc.;
technical documents of the apartment;
floor plan from BTI.

Redevelopment project for an apartment with a mortgage

A prerequisite for consent to reconstruction is the draft changes, which must be marked in red on a copy of the floor plan of the premises.

What are the dangers of illegal planning?

It must be remembered that for unauthorized technical changes, the owner of real estate may be punished due to the application of administrative measures (for example, he is subject to fines, the amount of which depends on the legal status of the offender), but only if no one is the occupant of this housing or those who live in the neighborhood did not suffer any damage as a result of these changes. Otherwise, depending on the extent of the results, more severe punishment, even criminal, may be applied.

What happens if an illegal redevelopment of a mortgaged apartment is detected?

The loan agreement specifies fines and sanctions that the bank can impose on borrowers in case of violation of the procedure for registering redevelopment, including its unauthorized implementation.

Article 7.21 of the Code of Administrative Offenses of the Russian Federation establishes fines for persons in case of detection of illegal redevelopment:

For owners of an apartment in a multi-storey building – 2,000 – 2,500 rubles.
For owners of private houses – 1,000 – 1,500 rubles.

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If the borrower has carried out unauthorized redevelopment, the bank has the right to demand that the collateral property be restored to its previous form, according to documents issued by the technical inventory authority.

What changes are considered illegal?

Not all technical transformations can be considered legitimate. In particular, when it comes to dismantling load-bearing structures, moving a bathroom and bathtub to a new territory, or other changes to the technical criteria of an apartment, it is impossible to legitimize such a layout in advance and is unacceptable to register for previous dates. There is no need to confuse re-planning with reconstruction. In particular, changing batteries from cast iron to aluminum, or changing batteries from one displacement to another is a reorganization, and for example, altering a doorway between living spaces is a change in layout.

ATTENTION !!! Redevelopment does not require formal certification, and redevelopment, even a small one, in itself requires its inclusion in the real estate papers.

According to the housing legislation of our country, redevelopment should be carried out only after the owner of the real estate has completed all the necessary documents, and after that, authorized persons inspect the premises and confirm that the repairs carried out were carried out in accordance with the planned plan. The presence of changes that were not previously agreed upon forces the owner to make changes under other dates, which is not always acceptable.

Restrictions on types and methods of redevelopment of mortgage housing

Not all plans can be legalized, therefore, it is also impossible to obtain consent for their implementation from the bank. These include:

Dismantling (full or partial) of load-bearing walls. But you can make a through opening provided the wall is reinforced.
"Warm floors" with connection to the general house network.
Relocation of risers of heat, gas and water supply and sewerage systems.
Arrangement of bathrooms, kitchens above living spaces. Exceptions are ground floor apartments.
In apartments with gas stoves, dismantling the walls between the kitchen and the room is prohibited.
Combining a balcony and a room with the radiator moved outside the living area.
Splitting or changing the dimensions of rooms. Areas of less than 9 square meters are considered critical. m. and a width of less than 2.25 m.
Dismantling ventilation ducts.
Welding fireproof hatches on loggias.

What damage will the apartment owner bear?

All the most important technical indicators of a residential premises are displayed in its documentation, and in addition - in the cadastral document. These documents are required to be drawn up during the process of acquiring ownership rights. Without them, it is unacceptable to conclude any contracts with real estate. When real estate indicators change, this immediately entails the invalidity of its documents. It follows that the owner, with any claim to ownership of real estate, may find himself in an unpleasant situation.

If you don’t change anything and don’t get new passports, then you won’t be able to easily manage your property later. If the acquirer even wants to complete the agreement in this form, he will demand a volume discount in order to later independently agree on changes using these funds. Simply put, housing becomes economically unprofitable, loses value and can only be sold at a discount, which is completely unprofitable for the owner of the apartment who has invested his own money in it. While the changes are properly reflected in the documents, the economic attractiveness of the apartment rapidly increases, since real estate with successful alterations usually increases in value, in contrast to ordinary options with the usual set of shortcomings.

What changes in the apartment plan may banks not pay attention to?

As with a mortgage, when refinancing an apartment, it becomes collateral for the bank. Therefore, in order not to incur material losses caused by a decrease in the value of such real estate, which is pledged, banks take a differentiated approach to the redevelopment of housing:

some completely refuse to collateralize real estate with unauthorized changes in the layout and demand that they be officially legalized;
others do not consider the glazing of balconies and loggias, as well as the demolition of old built-in cabinets, to be a redevelopment;
Still others do not pay attention not only to the demolition of partitions, but also to the transfer of utilities. For such banks, it is important that in the technical plan of such housing there are no red lines (red lines traditionally indicate illegal changes in the layout of the apartment, the official layout itself is drawn in black).

Redevelopment mortgage refinancing in different ways. Of course, it is better if the changes were officially legalized. Then the higher value of the apartment as collateral will allow you to get a larger loan and reduce the loan interest rate. Each bank, before opening a mortgage refinancing, evaluates the collateral real estate, inviting an assessment commission of experts to do this.

In most cases, the most reliable collateral that is growing in value on the real estate market is an apartment without encumbrances. If there are obvious technical violations made during the redevelopment, the bank will refuse to issue a new loan.

If appraisers determine that changes in the redevelopment only increased the cost of housing on the market, then the bank will most likely approve the refinancing of the mortgage and will not require the redevelopment to be legalized.

How can an illegal change of layout be determined?

Many owners are not at all worried about the fact that the real estate papers are not perfect, sincerely convincing themselves that this is not important to anyone. In fact, the threat of finding illegal ones exists under any circumstances. Typically, the definition goes like this:

ATTENTION !!! When changing the layout, changes in the performance of adjacent structures may occur. In particular, the sound insulation of the wall intersecting with neighbors will increase, or the ventilation will become worse, or otherwise the neighbors will be able to assume that a change in layout has occurred in the neighboring apartment and will complain to the housing inspector.

After contacting the real estate, they will send special people who must compare the planned indicators of the residential premises with its current condition, and if any discrepancies are found, they will prescribe a penalty and order that the discrepancies be removed from the documentation within a period of up to six months or the housing be brought to its original position.

Due to multiple violations of technical standards and regulations, an emergency situation will occur, or interruptions in the functioning of house communications, which may imply the interest of utility services, and after that the previous episode will be repeated, the only difference is that the amount of the penalty will be the largest, the changes themselves may It will be impossible to eliminate, just as it will be impossible to affirm. In the process of comparing meter readings, changes in the layout may be revealed by a utility employee, after which a statement will be received from the utility company to the housing inspectorate.

Conditions for the reconstruction of purchased housing

Before contacting the bank to obtain permission, you should familiarize yourself with the mortgage agreement for the purchased home. The conditions for the reconstruction of the collateral property are stipulated in the section “Rights and obligations of the parties”. Typically, banks include a clause on the possibility of redevelopment with the permission of the Mortgagor. If the agreement contains such a clause, then you should contact the bank branch for advice.

However, in some cases, banks impose a complete ban on making any changes other than cosmetic and routine repairs. The presence of such a condition in the contract means that the owner will not be able to carry out redevelopment until the end of the debt payment.

Let's take a closer look at the loan agreements between Sberbank and VTB24.

Sberbank

On a note. Sberbank currently offers the most favorable mortgage lending conditions. These include providing the client with the opportunity to change the living space at his own discretion.

Under the agreement, the borrower undertakes not to take actions that could lead to damage or loss of real estate, as well as to a decrease in its price. Accordingly, to obtain Sberbank’s consent to carry out redevelopment, you will need:

a project of planned work drawn up in a specialized organization;
conclusion of an appraisal examination that the value of the home will not decrease after redevelopment;
consent of the insurance company to carry out the work with a list of changes made.

After receiving permission from the bank, the borrower can apply to government authorities to obtain a work permit.

VTB 24

The VTB 24 mortgage agreement specifies the borrower's responsibility for gross violation of the rules for the operation and repair of the premises. To approve the redevelopment, you will need to provide the bank with the following documents:

The insurance company’s consent to carry out the work, including a list of work, the availability of correction factors for the duration of the work, the company’s acceptance of the risks of possible damage to property during the work, a receipt for payment of additional services to the company.
Conclusion from the body for the protection of architectural, historical and cultural monuments that the planned work will not damage the building (if the house is an architectural or historical monument).
An appraisal report confirming that the fact of redevelopment will not reduce the cost of the apartment.
Application from the owner on the official VTB 24 letterhead.

VTB 24 imposes requirements that the applicant has no overdue debts:

on loan repayment;
for payment of mortgage risk insurance;
for the provision of documents that the borrower undertakes to submit within the time limits specified in the agreement (receipts for payment of taxes, utility bills, etc.).

Important! After the permit is issued, the client will have six months to provide the bank with documents on state registration of the redevelopment: an updated floor plan and an explication of the BTI.

Why is it necessary to legalize redevelopment?

In general terms, the vast majority of modifications made, even if they are not expressed in inspection and legal documents, are not critical: no one will be kicked out of the apartment for them.

However, situations in life are very different. In particular, if someone’s downstairs neighbors consider that a bathtub or shower stall that is not listed in the regulatory documentation (that was ever installed above their kitchen area, but was not completed in a timely manner) could worsen their living conditions in this residential area, they will have the right send an appeal to a judicial authority. The result of the trial is easy to predict: the changes made will be found to be contrary to the law, the owner will be obliged to pay a large sum of money and ordered to return everything to its original position. As a result, it turns out that the buyer paid for a property with a bathroom, but purchased a home without the necessary elements and with difficulties.

So, if a real estate property with an illegal bathroom is offered for sale at the cost of a residential premises with “registered” conditions, this gives reason to suspect something and start bidding. “Unauthorized seizure” of the corridor is also a basis for revising the cost.

For what reason does the new layout need to be legalized, despite the fact that this is very difficult? First of all, for situations where the home will still need to be put up for sale someday.

ATTENTION !!! It is necessary to recall that illegal redevelopment is not an obstacle to sale, but the list of likely purchasers will be very narrow (thus, this will be visible in the price of the apartment). After all, the vast majority of transactions in the real estate market are currently carried out using mortgage lending, and banking organizations, as everyone knows, never approve loans secured by encumbered real estate.

How to quickly obtain a permit?

In order to obtain a permit as soon as possible, it is better to follow a certain algorithm of actions. This will help avoid mistakes and speed up the whole process.

Studying a mortgage agreement: when is it prohibited?

The first step is to carefully read the contract to see if it contains clauses that prohibit the reconstruction of the collateral property:

If the bank has prohibited any repairs other than cosmetic ones, you will have to wait until the contract expires.
If the contract states that redevelopment is carried out with the consent of the lender, then redevelopment is possible. It is worth contacting a bank branch for advice.
If the contract does not stipulate the conditions for changing the premises, then you will also have to contact the bank for advice.

The manager will help you navigate the list of required documents and the bank’s requirements for the applicant. It is worth seeking advice because the contract does not specify a specific procedure for obtaining permission, and the information on the Internet is for informational purposes only.

Is it possible to carry out work without the consent of neighbors?

Note! Before you start collecting documents, you should notify your neighbors about the planned work.

Mandatory notarized consent of neighbors may be required in the following cases:

carrying out redevelopment in a communal apartment;
if common property is affected during the work.

Making a plan with a project

For the insurance company and the bank, a simple description of the work that will be carried out in the apartment will not be enough. It is necessary to draw up a plan in a specialized design organization, which will reflect the information:

on the list of planned works;
on the progress of work, including dismantling and installation work;
about the plan before the reconstruction;
about the plan after the reconstruction.

The processing time for project documents ranges from 3 days to 30 days, depending on the complexity of the reconstruction.

How to make a before and after cost estimate?

Redevelopment can reduce the market value of the apartment, which is unprofitable for the bank, so the borrower must provide an appraisal report. To do this, a project is submitted to the assessment organization. The appraiser's conclusion states:

list of works;
the cost of the apartment before the planned work;
the cost of the apartment after they are carried out.

Contacting the insurance company

On a note. When calculating the sum insured, the existing configuration and technical characteristics of the apartment are taken into account.

Changing them entails the need to contact the insurance company to recalculate the basic sum insured. To do this you will need:

insurance contract;
design documentation;
results of the assessment examination.

The insurance company's consent to redevelopment contains:

list of planned works;
correction coefficients that take into account the possibility of a violation of the integrity and serviceability of the premises;
the company’s agreement to accept the risks of possible damage to property during repairs.

To obtain consent, you will need to pay for additional company services.

List of documents for the application

An application is submitted to the bank with a package of documents attached:

borrower's passport;
certificate of ownership;
mortgage agreement;
permission from the insurance company;
receipt for payment of additional insurance services;
results of the assessment examination;
redevelopment project;
technical passport of the apartment.

Review of the application takes 5-10 days.

Reference. The received permit is valid for 3 to 6 months, during which the owner is required to submit documents confirming the registration of the reconstruction of the home.

What do you need to provide to the Housing Inspectorate?

You should not delay contacting the Housing Inspectorate, as it may take a lot of time to consider the application. The following must be attached to the application for redevelopment permission:

title documents for real estate;
project;
BTI passport with floor plan and explication;
the lender's consent to carry out repair work;
conclusion of the author of the house project (when making changes to the load-bearing structures of the building).

The application review period takes about one and a half months; after receiving permission, work can begin.

Obtaining a technical passport

After completing all repair work, the owner must contact the BTI to draw up a new apartment plan.

BTI will send its employee to take measurements and draw up a technical passport.

Notification to credit institution

It is necessary to provide documents confirming the registration of the redevelopment with the housing inspectorate and an updated technical passport of the BTI to the bank.

Important! Notification of the credit institution about the successful completion of the work is mandatory, otherwise the bank may doubt the purity of the borrower’s actions.

Possible difficulties

There are a great many important points, but you need to remember that the most popular and least pleasant moment is the bathrooms above the kitchen areas and rooms. In order not to “miscalculate” the acquisition of such real estate, it is necessary to examine not only its technical passport, but also the layout of the property, which is located on the ground floor.

IMPORTANT !!! In addition, you need to be prepared for the fact that approval of redevelopment is a long-term matter, very expensive, and it is advisable to include actions related to its legalization in the amount of the agreement. The registration process begins with the creation and certification of planned changes by a specialized commission and ends with the presentation to the Rosreestr authorities of a new technical passport of the premises, on the basis of which changes are included in the documentation.

How long do affirmative procedures take? For specialists who work in this direction, all actions may take several months. But, as a rule, those who want to save money by taking most of the troubles on themselves usually spend more than a year on legalizing modifications.

In particular, in a standard situation, it will take several weeks to complete the “former” real estate document (this requires an inspection of the apartment). How long it will take to prepare an updated project (which should include various technical aspects) will depend on who turns to the specialist. After this, you will need to obtain documentary confirmation from the fire inspection. Usually, this takes about a month.

How is an apartment with illegal remodeling assessed?

You won’t be able to get a mortgage without an appraisal – this is a mandatory condition of the bank and the law. Contact a trusted organization with a reputation. Be careful with private owners who promise to issue an appraisal without “noticing” the illegal redevelopment - if this is discovered, the bank may challenge the deal and accuse you of fraud.

Refuse the deal if the seller or realtor “promises to negotiate” with the bank - you may lose the deposit and money for the appraisal;
If the seller is ready to give a discount or correct the changes himself, great, continue communication, but insist on an independent and objective assessment. This way you will know the market value and be able to bargain reasonably.

How it works:

Choose an organization to evaluate. Call the manager. Agree when it will be convenient for the appraiser and the seller to meet at the apartment. It is better to come to the meeting and be present during the process;
The appraiser needs to submit documents - a BTI plan, a copy of title documents, a copy of your passport.
The expert will take photographs of the property and inspect the apartment;
You will receive an assessment report in 2-5 days.
The report will record what changes have been made to the apartment. You will find out the actual condition of the apartment with all its shortcomings. The conclusion will indicate the market price of the property.

If necessary, an expert can calculate the amount that will be required to eliminate illegal redevelopment. Average market prices for work will be taken into account.

Are you faced with an apartment without legalized redevelopment? Contact our managers - we will tell you how best to act and not lose money.