Exchange of an apartment with additional payment through a mortgage

Is the procedure possible?

Many borrowers are confident that the presence of an encumbrance will not allow them to sell or exchange their apartment. Actually this is not true.

It’s just that for the period of lending, such living space is considered the temporary property of the bank, so any actions taken must be agreed upon with the credit manager (Article 37 of Federal Law No. 102 “On Mortgages”).

An attempt to carry out a transaction without the permission of the lender is a gross violation of the mortgage agreement . As a result, the bank may demand early repayment of the debt.

Features of mortgage housing exchange

When deciding on the procedure, be sure to consider several important nuances:

• The exchange of mortgaged real estate involves the replacement of collateral, that is, the re-issuance of a loan for another object (Article 345 of the Civil Code of the Russian Federation);
• The bank may give its consent to replace the collateral, but it is not obliged to do so;
• The procedure for carrying out the exchange is regulated not only by the mortgage agreement, but also by the internal instructions, regulations and regulations of the financial organization;
• If the apartment was purchased with the participation of a real estate company, then all further actions related to searching for a buyer and drawing up an exchange agreement should be entrusted to the same specialists. This will save the time required to check the seller and the property;
• The procedure can take more than one month. A preliminary consultation with a credit manager will help speed up the exchange - he will not only give consent to the transaction, but will also determine a clear procedure for its implementation;
• The same principles of taxation apply to an exchange agreement as in all other cases (Article 567 of the Civil Code). Payment of tax for each of the exchanged apartments is carried out in kind at the price specified in the agreement.

How does a mortgage exchange take place?

After receiving official consent from the bank to exchange the apartment, the procedure can be carried out. This is done in several ways.

1. Signing an exchange agreement - the transaction is concluded with the replacement of the collateral under the agreement, it becomes another property.
2. Applying for a consumer loan – the client takes out a loan to pay off debt on a previous mortgage, after which it is possible to purchase a new home.
3. The simultaneous conclusion of two sales contracts - the old apartment is sold, and the new one is bought by the borrower.

The possibility of exchanging mortgage real estate according to one option or another depends on the choice of banking institution

. The borrower cannot decide on his own which one is suitable. You should contact the bank before choosing a new apartment.

How to obtain bank permission?

Exchange of a mortgaged apartment for another is possible only if the following conditions are met:

• Only real real estate should be provided for exchange. This means that the borrower will not be able to move into housing that is under construction;
• At least 2 years must pass from the moment the housing loan is issued (some organizations increase this period to half the entire mortgage period);
• The client’s credit history must be absolutely clean, that is, have no overdue payments;
• Other housing must meet all lender requirements. This also includes the location - the area should be good and located close to a bank branch.

When making a decision, the financial institution takes into account 2 more points - the liquidity of the purchased living space (must be high) and the cost of the new property (less than or equal to the mortgaged one).

Is it possible to exchange an apartment with an additional mortgage payment?

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An exchange of a mortgaged apartment with replacement of collateral can be carried out only if the value of both objects is equal (this fact is established by the lender).

The procedure takes place in the following order:

• Providing documents for a new living space;
• Valuation of a new apartment;
• Clarification of mortgage terms;
• Concluding an exchange agreement;
• Registration of collateral;
• Removing encumbrances from old living space.

Such transactions have a number of difficulties, because not everyone will agree to buy an apartment that is pledged by a financial organization.

Available options

There are several ways to exchange mortgage housing. Let's look at each of them.

Method 1. Selling one apartment and buying another

We are talking about concluding a double purchase and sale agreement . To carry out this operation, the borrower must complete several steps:

• Pay off the balance of the debt;
• Remove encumbrances from collateral real estate;
• At the same time, apply for a new home loan;
• Find a buyer;
• Draw up a “purchase and sale” agreement for an old apartment;
• Sign a new loan agreement;
• Draw up a purchase and sale agreement for a new apartment;
• Register it with the State Registration Service.

Many buyers don't want to deal with a mortgage. In this case, they can be absolutely calm, since they are buying a home from which the encumbrance has already been removed.

It should also be noted that signing a double purchase and sale agreement is perfect for exchanging a mortgaged apartment for cheaper housing, because not a single bank will agree to deliberately reduce the liquidity of the collateral.

Method 2. Replacement of collateral

An exchange of a mortgaged apartment with replacement of collateral can be carried out only if the value of both objects is equal (this fact is established by the lender).

The procedure takes place in the following order:

• Providing documents for a new living space;
• Valuation of a new apartment;
• Clarification of mortgage terms;
• Concluding an exchange agreement;
• Registration of collateral;
• Removing encumbrances from old living space.

Such transactions have a number of difficulties, because not everyone will agree to buy an apartment that is pledged by a financial organization.

Method 3. Using a short-term consumer loan

Another popular method, which includes several steps:

• Finding a buyer for mortgage housing;
• Obtaining a short-term consumer loan, the amount of which will be sufficient to close the mortgage;
• Removal of encumbrances from an old apartment;
• Signing the purchase and sale agreement;
• Repaying the loan with the money received;
• Purchasing a new apartment;
• Imposition of encumbrance.

When applying for a consumer loan for a significant amount, the bank may insist on the participation of one or several guarantors.

The main advantage of this method is the relatively easy search for a buyer, because at the time of signing the purchase and sale agreement, the apartment will not be pledged to the bank.

However, it was not without a number of shortcomings. These include:

• Increased requirements for a borrower who decides to take out a consumer loan. For some time, he will have to pay off 2 debts at once, and this requires a high level of solvency;
• Transactions should be completed within a maximum of 1-2 days. In order not to arouse suspicion on the part of the lender, the borrower must first find a buyer and a new home, and only then apply for a consumer loan;
• The need to provide other property as collateral. To reduce red tape, opt for the unsecured option;
• Collection of many documents (including income certificates).

Method 4. Exchange by assignment

Is it possible to change the mortgaged apartment to another by assigning either it or your own credit obligations to another person? This is only available if the new borrower unconditionally accepts the terms of the existing mortgage agreement.

The assignment is fixed by a separate agreement, after which the status of the borrower passes from the seller to the buyer . As for ownership, the new owner will receive it only after the fact of the transfer is recorded in Rosreestr. Until this point, the parties can refuse the assignment by submitting a corresponding application to the bank.

The main advantages of such an exchange include the legal purity of the transaction and a reduced amount of debt, allowing the new borrower to quickly clear out the balance of the loan and get a good credit history.

The identity of the citizen to whom the mortgage is reissued is subject to careful verification . If it does not meet the lender's basic requirements, the assignment exchange may be refused.

True, in some cases the bank simply has no choice, so it is forced to agree to any candidate (for example, if the old borrower is declared insolvent).

The borrower pledges old housing to the bank at 70% of its value

This option is suitable for those people who have savings for a new apartment. The missing amount of funds can be obtained by mortgaging your existing housing. The main condition is the existence of ownership rights to the apartment. In addition, banks evaluate existing real estate for liquidity. They may refuse for several reasons:

1. The house is in emergency condition.
2. The housing is subject to reconstruction.
3. Old building.
4. The house has an unfortunate location.

Many reputable banks, such as Sberbank, prefer to take housing that has only one owner as collateral. It is difficult to get a larger amount if the apartment:

1. Small size.
2. Located on the first or last floor.
3. Purchased a couple of months ago.

You cannot mortgage an apartment in a building under construction.

It is important to know a couple of features of collateral:

1. The same apartment can be mortgaged several times, the main thing is that its value is not less than the amount of loans received.
2. An apartment that is pledged can be rented out and thereby saved for the purchase of a new home. The main thing is to coordinate this issue with the bank.
3. You can register a recently born child in the apartment without the approval of the bank.

This option for purchasing a new home assumes that most of the amount for a new apartment will have to be paid from personal savings, which is beyond the means of most people with average incomes.

The borrower pledges an apartment to the bank, receiving 70% of the cost from it, and takes out a mortgage for the remaining amount secured by a new apartment.

If it is impossible to get a mortgage for a new home due to low legal income, you can try to mortgage your old apartment for 70% of its value. This money will not be enough to buy a new home, but now you will have to take out a new mortgage for a much smaller amount.

Thus, the bank will have two apartments as collateral at once - the old and the new. In this case, we are not talking about a mortgage when exchanging with an additional payment - the old apartment does not have to be sold or exchanged. The borrower retains ownership rights with an encumbrance on these two apartments. If income allows, you can “buy out” both apartments from the bank or sell a smaller home. Mortgage for improvement of living conditions

You can take advantage of a special loan to improve your living conditions. Such a mortgage can be obtained using various government programs:

1. Mortgage for young families - suitable for couples under the age of 35.
2. If there are two children in a family, you can use maternity capital to improve living conditions. You don't have to wait three years.

Price difference

Another important nuance is the difference in price. Here the borrower has 3 different options. Let's look at each of them.

Exchange for housing with identical value

An equivalent exchange of living space is considered the easiest for both the borrower and the financial institution . In this case, the area and condition of the housing do not matter.

It may have a smaller area, but be of higher quality, or vice versa. The price is equal in both cases.

Exchange for more expensive housing

In this case, the bank has even greater interest, since the new collateral will have a higher market value. If the difference in price is more than 20%, the lender will certainly agree to the exchange with an additional payment.

The clause on the payment of a certain amount must be specified in the exchange agreement. The difference in cost can be compensated not only with money, but also with other valuable property (land, garage, etc.).

Exchange for cheaper housing

This method is considered the most labor-intensive, because the bank is not interested in obtaining less expensive collateral.

You can count on the lender's consent only in one case - if the mortgage is repaid by 2/3. In all other cases, the borrower will have to either wait or look for funds to make an early payment.

Exchange of house for apartment

Many residents of megacities strive to leave the city and acquire their own plot of land, and some people living in the private sector dream of moving to a high-rise building.

Hence the question arises: “How to exchange a house with a mortgage for an apartment and is it possible to do this?” This procedure takes place under the same conditions as the exchange of one apartment for another.

There are several important differences to consider:

• There must be a branch of the lending bank in the region where the housing is purchased;
• The owner of a private home should include an expert assessment of the land plot, a cadastral passport and a paper confirming ownership of the land plot to the generally accepted package of documents.

What documents are required for exchange?

According to Russian legislation in force in 2021, to carry out the exchange procedure, the borrower must collect the following package of documents:

• Internal passport of the Russian Federation (copy and original);
• Copy of TIN;
• Written consent of the spouse (if the loan is issued to a married couple);
• Marriage or divorce certificate (if available);
• A bank statement reflecting the status of the account and confirming the absence of fines and late payments;
• Application for exchange of living space;
• Mortgage agreement;
• SNILS;
• Certificate of family composition;
• Copy of personal account;
• Birth certificates of children (for minors under 14 years of age);
• Title documents for the second apartment.

How to exchange housing purchased with a military mortgage?

Due to the fact that real estate purchased with a military mortgage has a double encumbrance (bank and Rosvoenipoteka), it will be the most difficult to carry out any actions with it.

The simplest option is to pay off the debt in full. Having closed the mortgage, the former borrower becomes the sole owner of the apartment and can do with it at his own discretion.

In the absence of personal funds, it is necessary to find a buyer who is willing to pay the balance of the loan amount and agree with him on the exchange of one property for another.

In addition, the borrower can write an application for transfer to another duty station (usually to another city) . However, in this case, the clause on relocation and exchange of mortgage housing must be spelled out in the agreement.

Exchanging mortgage housing involves a lot of nuances that are extremely difficult for an ordinary person to understand. To avoid problems, indicate all the terms of the exchange in the loan agreement in advance.

Conditions for exchanging an apartment pledged under a mortgage agreement

This procedure requires the following conditions to be met:

• It is necessary to exchange the collateral. In other words, after the transaction, the mortgage agreement is reissued for another property.
• The creditor may express his consent to the exchange of the collateral apartment. However, such a decision is not mandatory. No one can force the bank to agree to such an exchange.
• The replacement procedure is regulated not only by the terms of the loan agreement, but also by internal banking documentation. For example, each financial organization has its own internal regulations, instructions and other regulations. There are situations when the bank agrees to an exchange if most of the debt is repaid. However, other lenders do not pay much attention to the date of the mortgage agreement to approve the exchange.
• The bank may allow the procedure of exchanging one credit home for another property if the client has a positive credit history. In other words, if you have debts or arrears, you can forget about exchanging your mortgage apartment.
• The value of the selected property must be no less than the remaining amount of debt, taking into account the interest rate.

Important! Experts recommend first obtaining written consent from the bank for the exchange, and only then searching for new housing and completing various documentation.