Requirements to Residential Premises

Main Bank Requirements to Residential Premises to be Mortgaged

Residential premises that are a separate apartment in the house, detached residential house (cottage) or townhouse designed for permanent residence that consist of one or more rooms, for which ownership is registered in accordance with the established order, may be mortgaged.

1. Residential premises to be mortgaged must meet the following requirements:
• they must be connected to electric, steam and gas heating systems enabling supply of heat to the entire areas of the residential premises, and to the sewage system;
• they must have hot water supply (including that with use of gas heating systems) and cold water supply in the bathroom and the kitchen;
• have sound state of plumbing equipment, doors, windows and roofs (for last floor apartments);
• if residential premises are purchased in newly built houses, apartments may have no plumbing equipment, interior finishing, provided however that all mainlines are connected, including: central water supply, sewage system and electric power supply;
• if residential premises are purchased in rural area, such premises may have no connection to centralized water and gas supply systems and to the sewage system, provided however that standalone supply of the above is supported.


2. The building that houses a pledged property must meet the following conditions and requirements:
• It must not be in critical state;
• It must not be registered as the building that requires major repair with evacuation of dwellers;
• It must have reinforced concrete, stone or brick foundation;
• It must not be included in demolition plans of local and (or) state authorities.


3. The Bank does not provide loans for purchase of the following real estate property:
• apartments in apartment houses:
  — whose floor decks entirely consist of wooden structures;
  — light-construction houses (panelized/wooden houses) with corridor or section layout system, having common sanitary rooms and kitchens);
  — houses of "hostel" type (houses with kitchens or sanitary rooms shared by multiple apartments);
  — whose bearing walls contain wooden structures;
  — houses built before 1965, lower than 6 floors;
  — bearing-wall houses lower than 6 floors that were built more than 20 years ago (inclusively); brick houses lower than 6 floors that were built or had the last major repair more than 30 years ago (inclusively).
• Residential premises, seller’s title for which is not registered in the Unified State Register of Rights to Immovable Property and Transactions therewith;
• apartments in ramshackle houses, houses recognized to be failing buildings in accordance with the established order, houses to be demolished for other reasons provided for by the existing legislation of the Russian Federation, including attachment for state and/or municipal needs, at the time the decision is made of the apartment / residential premises mortgage;
• residential premises that are subject in contest;
• apartments in houses to be reconstructed and (or) subject to major repair, unless otherwise is determined by loan departments based on the character of reconstruction or major repair in question.
• residential premises used for purposes other than their designated purpose and permitted use (in case residential premises are reequipped and redesigned to be used as non-residential premises without agreeing in the order established by the law);
• detached residential houses:
  — older than 20 years, except for houses, for which positive opinion of the Appraiser confirming satisfactory liquidity of the property is available (but not more than 50 years for brick houses);
  — houses not designed for permanent residence (summer houses, dachas, garden houses and other constructions, in which do not support borrower’s registration at the place of residence);
  — houses built on land lots owned by the seller on a leasehold basis, in case the lease period expires earlier than the loan agreement plus one year;
  — houses located on the agricultural land;
  — houses located on the land referred to such categories as lands of industry, power generation sector, transport business, communications, radio broadcasting, television, IT sector, lands used to support space activity, lands of defence and security, and lands of other special designation.


4. The cost of pledged property must be confirmed by appraisal of the independent appraiser. The appraiser must appraise mortgaged property not earlier than 3 months prior to the moment the Bank accepts mortgaged property as collateral.

The appraisal is held by an independent appraiser. The Bank recommends its customers and borrowers engaging independent appraisers and appraising companies, in relation to which positive collaboration decision has been made.

Requirements to real estate to be pledged when executing a consumer loan secured by real estate