Land Mortgage Loan to Build a House

Main conditions for receiving a loan

Purpose of loan
The Borrower build a house in accordance with the requirements of current laws upon the land plot which is subject to mortgage.

Granting of a loan
A credit line is opened for the Borrower enabling the Borrower to receive up to 4 tranches provided the limited (value of mortgage) is increased within fine years from the date of the first tranche.

Amount of limit
No more than 70% of the current appraised value of the subject of mortgage.

Loan currency
RUR.

Interest rates
From 12.75% in RUR.

Credit term
From 3 to 30 years (term divisible by 12 months)

Loan sum
Moscow area — from 490 000 RUR (equivalent in a foreign currency at the exchange rate of the Bank of Russia as of the date of filing the application with the Bank).

Subsidiaries — from 170 000 RUR (equivalent in currency of loan at the exchange rate of the Bank of Russia as of the date of filing the application with the Bank).

Collateral
Pledge of the land plot and of the buildings, houses, structures under construction on the land plot (if any).

How to take out a mortgage

Loan to buy a flat in the secondary housing market*

* If the loan is extended to a client who is an employee of a salary project and/or corporate client of the Bank, the interest rates are cut by 0.65 percentage points*****; of the loan is extended to a client introduced to the Bank by a partner company (real estate agent of credit broker), the interest rates are cut by 0.5 percentage points;

** Inclusively

*** If the income is confirmed by a Bank form, the interest rate is raised by 1 percentage point

**** In the absence of personal and title insurance, the interest rate is raised by 3 percentage points

***** Provided the borrower/coborrower meets the criteria for the given class of clients established by the Bank

List of land plot documents to be submitted by the Borrower subject to mortgage

1. Land sale/purchase agreement (order of the Head of Administration to allocate the land plot for construction and the permit for construction if the land plot is allocated by the municipal authorities for the purpose of individual housing, any other document confirming the title to land).
2. State registration certificate confirming the title to land.
3. Cadastre plan of the land plot (abstract from the state land cadastre) or a cadastre abstract regarding then land plot (abstract from the state real estate cadastre) in three copies provided by the territorial authority of the Federal Real Estate Cadastre Agency (Rosnedvizhimost).
4. Copies of the passports (birth certificates) of the sellers/pledgors of the land plot.
5. Original report on the assessment of the land plot done by an independent authority agreed with the Bank (assessment can also be done by the Bank).
6. Abstract from the USRT (united state register of titles) pertaining to the registered title to land.
7. Consent of the land title holder’s spouse to enter into the transaction; Statement of the title holder that he/she is not married as of the date of transaction; the marriage contract to evidence scission.
8. Other documents as required by the Bank.

Requirements to Land Plots

1. Land plot is to be located in the same territorial unit as the Bank’s unit extending the loan;
2. Size of the land plot is to be within the limits of the maximum and minimum sizes established by the legal acts of the constituent entities of the Russian Federation and the legal acts of the local authorities for different categories of land and purposes of use;
3. No completed or incomplete buildings, houses and structures the title to which is not registered within the USRT. Complete or incomplete objects can be situated on the land plot if they are owned by the Pledgor as registered with the United State Register of Titles if confirmed by relevant documents. In such a case the land plot is extended for mortgage together with the property situated thereon;
4. Land plot is to be classified within the category of residential land and has one of the following permits for use:
   • For individual housing;
   • For individual gardening and farming (homestead land);
   • For dacha building (with the right to build a house and the right to residence).
5. Limits and description of the land plot are to be determined in accordance with the procedure established by the land laws on the basis of the documents issued to the land owner by the state land resource and development including the land plot cadastre plan.
6. Bank will not accept in mortgage:
   • Land plots excluded from circulation or with limited circulation;
   • Land plots forbidden to be accepted in mortgage by Russian Federation Law;
   • Land plots the area of which is less than the minimum size established by the legal acts of the constituent entities of the Russian Federation / local legislation for lands of various purposes;
   • Part (share in) the land plot;
   • Land plots with the Pledgor’s title not being registered with the United State Register of Titles;
   • Land plots with complete or incomplete buildings, houses or structures the title to which is not registered with the United State Register of Titles;
   • Land plots with encumbrance (limitations) and/or unfit for construction.
7. Where the subject of mortgage is owned by the Pledgor as joint/shared property, all the co-owners must be Co-Pledgors and Co-Borrowers under the Loan Agreement.