What is financial leasing of real estate?

09.12.2009 11:39
But when it comes to financial leasing, real estate, everything is much more complicated. Although this trend in commercial real estate in Ukraine is actively growing, but finding a company-lizinogodatelya residential real estate is difficult.

The main advantage of leasing to the mortgage - the lack of need to make some kind of bond because shelter until the payment is in the ownership of the company-lessor. Breach of contract (for example, failure to pay) the lessee does not lose his own apartment or other property. At the same time for the whole house is at the disposal of the tenant, unless of course he does not violate the terms of use, most of which usually involve re-planning and anything that might lead to a reduction of the price.

In addition, the lease agreement is more flexible than a loan, and the client can work out together with the landlord any convenient payment scheme: for example, you can pay at varying intervals, and the rate can be both fixed and floating. Together with the value of the property the tenant pays and the so-called percentage rise in price - the interest rate ranging between 10% to 20%. Just like when buying apartments on credit, taking an apartment lease, you must make an advance payment - from 5% to 30% of the price.

Utopian conditions

For a flat price of 500 thousand UAH. monthly payment (up to 20 years) under such conditions, with a down payment of 5% and with an annual rate of price increase of 15% would be about 9 thousand grn., with a reduction up to 2,5 thousand in the last months of payments. But such conditions are rather utopian and Ukrainian banks and leasing companies refuse to provide them to residential real estate for individuals, that is, ordinary citizens. That term of the contract (cost-effective and it will be at least 15 years old) and is a major problem due to which the banks refuse to provide apartments for lease.

In large banks and leasing companies do not have similar programs for residential real estate, but there are organizations that have developed a program for regular customers. For example, some regional companies have programs to purchase housing in leases in any city in Ukraine. First, the customer must choose an apartment, after which the company buys it and rents in the long-term lease with a mandatory redemption. That is, after, say, 15 years, the tenant automatically becomes the owner of the apartment.

The main condition here is the readiness of the facility. That is the house where the apartment is located, should be put under the key. In other words, an apartment lease will not be able to buy a house under construction. The next equally important condition - the paying customers. Depending on the value of the object it is necessary not only to confirm their income, but also have a sponsor (they can be like any enterprise, and, for example, rich friend). In addition, the tenant can check the data work record over the past 2-3 years, and his credit history. But even with such inspections chance to acquire an apartment lease is still more than to get credit for it.

Alternative loan

Thus, we can get the selected accommodation to rent up to 10 years with 13-15% per annum in dollars, provided that you have paid an advance of 10-15%. Monthly payment will be calculated based on the total value of housing divided by the number of payments plus interest. These costs are also added to the annual insurance and housing fees of lessor (which, again, makes such a lease more like a loan).

Lizingoderzhatelyu also have to pay for appraisers and complete necessary documents to the BTI. For a flat price of 500 thousand UAH. monthly payments would amount to 7.5 thousand UAH. that slightly more than the monthly fee for renting a good two-room apartments in Kiev. So leases - an alternative not only loan: instead to rent from the owner and all the while faced with rising rents and all sorts of domestic scandals, much more profitable to overpay a little bit, but still live in an apartment without a host, which also will eventually become yours.

As for payment, the original leasing companies require monthly payments, but still in his personal capacity, agreed to discuss options for flexible circuits. Unlike traditional leasing, lizingoderzhatel pay fixation of rents, which does not depend on market conditions.

The disadvantages are that you can terminate the lease agreement, just to pay the residual value, that is, finally bought a house lessor. Where no penalty charges for early repayment is not. Terminate the contract, not pay off the balance of value, will be problematic.

With the consent of the parties it would end the sale of an object without compensation already paid to the lessor of money or obligation of paying the balance amount can lie on the shoulders of the guarantor. Yet such a deal - and profitable alternative loan, because the tenant and, accordingly, the future owner does not need any money to provide mortgage and he risks nothing.

Looking for the lessor

The important point, which draw attention to the company-lessor, is the lack of any financial or legal risk to lizingoderzhatelya. Prospective landlord can absolutely not be afraid that by signing the loan contract for the apartment of the secondary market may encounter incorrectly documented sales and mortgage housing.

In addition, the lease agreement does not appear in the credit history and can not be a hindrance to take money from the bank, for example, a car (with the usual outstanding loan for an apartment, get another loan becomes extremely problematic). But the search for such leasing programs should be prepared for what will appeal to regional and often little-known company, to find that it is sometimes quite difficult. And by concluding a contract, just in case it is desirable to use the services of a lawyer friend.

In any case, financial leasing housing remains almost the only opportunity to purchase housing for those banks deny loans. But to make leasing of housing, you must have a clear legal base, because the existing laws is prohibited lease property complexes and plots, which automatically excludes the possibility of acquiring a country cottage or country house. A lack of a clear mechanism for the deal could stretch its registration for six months.

In this case, the high risks in the domestic property market are forcing leasing companies to develop programs described above, using conventional lending conditions, which may not always be beneficial for the client. However, the lease with option to buy can be negotiated with the owner of the home, bypassing the leasing company, but to conclude such an agreement is sufficient as difficult as it was given assurances of its execution.

Terms of the acquisition of housing lease with option to buy

1. Advance payment - 10-30% of the appraised value of the property
2. Term - 1-15 years
3. Interest rate - 13-20% per annum
4. Possible Commission services the leasing company, services, BTI and appraisers signing
5. The annual payment of insurance of housing
6. Repayment: annuity (equal parts)
7. Flexible system of payments: monthly, quarterly, etc.
8. The possibility of early termination of the contract with repayment of the residual value of the property with the acquisition of property rights without incurring penalties

Required Documents

1. Application for leasing services (a form provided by the company)
2. Passport, identification code of the lessee and spouse
3. Marriage / Divorce
4. "Dovidka of income for ostanni pivroku"
5. May require a copy of a work over the past three years, to check credit history - a copy of the credit, collateral agreements (if any).
6. May need a letter from the guarantor (bank, a legal organization, physical persons)
7. May require the lessee's balance of payments


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