Estimated and collateral value of property. feel the difference

What additional costs does it incur? mortgage borrower both when applying for a home loan and throughout its entire term

Mortgage is the most profitable option purchase of housing, since rates on housing loans are lower. But do not forget that in addition to the down payment (on average 10% of the cost of the apartment), the borrower needs to be prepared for additional expenses which cannot be avoided.

When calculating financial opportunities the borrower must take into account expenses that can be either one-time (paid when applying for a mortgage) or permanent (stretched out over the entire term mortgage loan).

Property valuation

The bank will definitely require an assessment of the cost of the apartment. This is necessary to determine the value of the collateral that goes to the bank until it is repaid full cost housing loan. The assessment is carried out by companies accredited by a credit institution. On average, the cost of assessment work is about 5 thousand rubles.

Notary

If you buy a share in an apartment, then such sales transactions are concluded. The cost of his services will be about 0.5% of the amount specified in the purchase and sale agreement, but not less than 300 rubles. and no more than 20 thousand rubles. Also, if you are married, you will need a notarized consent of your spouse for a real estate transaction. Usually notary offices they charge 1-2 thousand rubles for this.

Insurance

Russian credit organizations necessarily demanded in favor of the bank. Banks may also require the borrower to insure the health of the borrower. This option is not always required, but if you do not want to insure yourself, the bank may refuse to issue a mortgage or increase the loan rate. Insurance will have to be renewed annually for the entire term of the loan. The cost of health insurance is usually about 1% of the loan amount. Wherein financial institution for health insurance, it usually reduces the loan rate by the same amount - 1%. The amount of the insurance premium will gradually decrease over the life of the loan, as it depends on how much money the borrower owes the bank.

Registration of ownership

For registration of ownership of purchased housing in Russia, a state duty is required, which is provided for Tax Code. The buyer of an apartment cannot avoid this expense, but he will only have to pay 500 rubles.

Broker services

In most cases, buyers use the services of a realtor to search required apartment. And if in the primary market a transaction can be carried out directly through the developer, then in the secondary market, most likely, you cannot do without a realtor. The services of a realtor are not cheap - brokers usually charge from 1 to 3% of its cost for selecting an apartment and supporting the transaction. Buyers also sometimes use the services of a mortgage broker. The cost of his services is almost the same as that of a realtor.

Other bank services

When completing a mortgage transaction, banks provide Additional services, which also need to be taken into account in the cost of obtaining a loan. For example, when completing a mortgage transaction, you may need to rent safe deposit box, where the money will be stored until it is transferred to the seller of the apartment. Some lenders also charge additional payments for transferring funds from another bank, non-cash transfers, cashing out funds and even counting money. The cost of services depends on the specific bank, and it is better to find out in advance.

1. The value of the subject of pledge is determined by agreement of the parties, unless otherwise provided by law.

2. Unless otherwise provided by law or contract, a change market value the subject of pledge after the conclusion of a pledge agreement or the emergence of a pledge by force of law is not a basis for changing or terminating the pledge.

The terms of the agreement, which provide, in connection with a subsequent decrease in the market value of the collateral securing the citizen’s obligation to repay a consumer or mortgage loan, the extension of the collateral to other property, early return loan or other consequences unfavorable for the mortgagor are void.

3. Unless otherwise provided by law, agreement of the parties or a court decision to foreclose on the pledged property, the value of the pledged property agreed upon by the parties is recognized as the sales price (initial selling price) the subject of pledge when foreclosure is applied to it.

Comments to Art. 340 Civil Code of the Russian Federation

1. The article establishes different modes for accessories of the pledged property and its fruits and products. The pledge covers things and their accessories, unless otherwise provided by law or contract. Fruits (regardless of whether they are separable or inseparable), products and income received from the use of the pledged property are included in the subject of pledge only if this is provided for by the terms of the agreement. For example, income from mortgaged securities, unless otherwise provided by the pledge agreement, are not included in the subject of the pledge and must be transferred to the pledgor.

2. Enterprise mortgage as property complex includes the pledge included in it movable property, rights of claim under concluded transactions, including during the mortgage period, and exclusive rights, unless otherwise provided by law or agreement. The mortgage of an enterprise does not interfere with its activities, procurement necessary property, implementation of related expenses. The mortgagee has the right to control (in fact and in documents) the correctness of the maintenance of the enterprise, the expediency of the expenses incurred (see paragraph 2 of Article 343 of the Civil Code). Mortgages for enterprises will be reflected in more detail in the law on mortgages.

3. A mortgage on a building or structure is allowed only with a simultaneous mortgage land plot or the right to lease or part of a land plot sufficient for the functioning of the mortgaged building (structure). This rule mandatory for the mortgagor who has the right of ownership or the right to lease the land plot on which the mortgaged building (structure) is located.

In cases where the mortgagor is not the owner or lessee of the land plot on which the building (structure) constituting the subject of the mortgage is located, he has the right to mortgage only the building (structure). Such an agreement is valid (see paragraph 44 of the Resolution of the Plenums of the Armed Forces of the Russian Federation and the Supreme Arbitration Court of the Russian Federation No. 6/8).

4. Pledge of apartments and other premises located in apartment buildings, can be carried out without a mortgage of the land plot on which the house or other building is located. However, according to general rules on real estate pledge with obligatory notarized certification and corresponding registration.

5. A mortgage of a land plot is allowed without a mortgage of a building (structure) located or being constructed on this plot. In this case, the mortgagor or other owner of the building (structure) retains the right limited use(easement) part of the land plot necessary for the passage and use of the building (structure) in accordance with its purpose (see Article 274 of the Civil Code and commentary thereto).

When mortgaging a plot of land, a copy of the boundary drawing must be attached to the contract this area, which is issued by the relevant committee for land resources and land management. The parties do not have the right to set the estimated value of the mortgaged land plot below it standard price(Part 4, Clause 5 of the Decree of the President of the Russian Federation dated February 28, 1996 N 293 “On additional measures on the development of mortgage lending").

6. The Civil Code (clause 6 of the commentary article) allows for the pledge of things (following the Law on Pledge) and property rights that the mortgagor will acquire in the future. Thus, a loan can be provided for a building (residential premises), for the construction of which loan funds are allocated. The subject of the pledge may be future royalties or amounts that the pledgor may receive by inheritance.

Therefore, the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation of August 13, 1996 N 3238/96 in case 9-30ka, in which the Presidium of the Supreme Arbitration Court of the Russian Federation found the pledge agreement invalid on the grounds that at the time of the conclusion of the agreement the pledgor was not the owner of the item, should be recognized as inconsistent with the pledge legislation collateral (did not own it legally economic management), and received it under the purchase and sale agreement only subsequently (see Bulletin of the Supreme Arbitration Court of the Russian Federation. 1996. N 10. P. 72).

Reading this article will take you approximately 7 minutes.

We have already answered the question earlier “How to get a secured loan?”- talked about the procedure for obtaining secured loans, reviewed the types of collateral and stages of debt collection.

This article talks about the value of collateral:

Enjoy reading!

What is collateral?

Collateral is property provided by the borrower, which is used as a guarantee that the terms of the transaction concluded with the lender will be fulfilled. Usually we are talking about real estate, vehicles, electronics, jewelry or other forms of property officially owned by the mortgagor. If the borrower flatly refuses to repay an existing loan, the financial institution has every right use the sale of collateral to compensate for possible losses.

Collateral requirements:

• The market value of the collateral must cover the loan payments and all costs of the lender.
• The period for the sale of the collateral specified in the agreement does not exceed 150 days.
• The borrower is required to confirm ownership of the collateral.
• Temporary financial restrictions, including a ban on sales and registration of deeds of gift.
• Obtaining permission from a co-owner to provide joint property as collateral.
• Mandatory insurance of property provided as collateral.

Thus, a loan is considered secured if the collateral provided by the client fully meets the requirements put forward by the lender.

It should be noted that some financial institutions complicate the lending procedure by requiring the mortgagee to additional security. At the same time, the value of the provided property should not excessively exceed the loan amount. Typically, the market price of the collateral is 20-30% higher than the loan amount. This is enough to pay off overdue debts.

Market price of collateral

An expert assessment of collateral involves calculating the current market value, because the concept of loan security directly depends on the quality of the collateral offered by the borrower. Full collateral will comply with the bank’s requirements regarding financial aspects transactions.

The market value of the collateral must:

1. Cover any costs associated with the sale through auction of the collateral specified in the agreement.
2. Exceed the amount of the loan received.
3. Compensate additional payments and interest for one year of using the loan.

Lenders typically view the value of collateral as total amount all loan costs. To determine market price, it is necessary to carry out a thorough assessment of the collateral objects. For this purpose, experts are hired who are part of the staff of a lending institution or provide their services as independent specialists. Appraisal firms can be hired by both the lender and the borrower.

Methods for determining the value of collateral:

• A full assessment, involving the involvement of experts to study the collateral.
• Application of the purchase price taking into account reduction factors.
• Using the amount specified in the previously concluded insurance contract for the collateral object.

Of course, the best option is to calculate the value of the collateral from scratch. In this case, professionals will pay attention additional factors affecting the value of the collateral. For example, at the stage of insuring collateral, costs are not taken into account, so the estimated value does not correspond to reality. Experts should consider any costs associated with the lending process. The optimal cost of collateral is considered to be one that fully covers possible costs, interest payments and other costs for the loan planned to be obtained.

Large banks usually take as collateral only liquid objects for which there is constant demand. It's about about property, the sale of which should not cause any special difficulties. Mandatory requirement also considered correct composition and preparation of documents in accordance with current legislation.

Lenders try to take into account the size interest rate and the current level of property liquidity. In addition, before you start applying for a loan, you should insure the objects provided as collateral. It is allowed to use the borrowed property as full security. For example, a car loan and mortgage require this form of transaction guarantee.

We bring to your attention 4 credit organizations where you can get a loan secured by real estate and a vehicle:

Valuation of collateral property

By involving professionals in collateral valuation, a financial institution usually plans to receive a full report, which will indicate specific parameters of the collateral and justify data regarding its value. The lender only needs the expert's conclusions. If the estimated price does not meet the parameters of the transaction, the financial institution will refuse financing. A potential borrower will have to look for other collateral, or reduce their financial appetite by reducing the size of the loan and the duration of the loan.

Collateral assessment stages:

1. Study of documents categorically confirming the sole or joint law ownership of the object used as security.
2. Examination of the collateral, including checking its current condition.
3. Calculation of the market value of property.
4. Drawing up a report on the work performed.

Additional requirements for appraisal activities are put forward depending on the type of collateral. The expert is obliged to carefully study the entire package of documents provided by the borrower, as well as the collateral itself. When it comes to real estate, electronics or vehicles, it is estimated technical condition property. Sometimes finished products are used as collateral and different kinds raw materials, so the borrower must additionally obtain the right to use the premises in which such objects are stored. Thus, the assessment of collateral also includes document verification.

Lenders try to put forward the most adequate requirements for collateral, therefore, appraisers in their work are often based on the requests of financial institutions. The assessment usually lasts from half an hour to several weeks depending on the type of collateral. If at runtime similar work If any problems arise, the borrower may refuse further cooperation with the lender.

Conclusion of a pledge agreement

After the assessment stage, the parties begin to conclude the contract. According to similar document, the borrower transfers movable or real estate the other party (creditor) in order to provide a guarantee of the return of the dog. The collateral process allows you to gain access to improved lending conditions. A borrower who voluntarily guarantees a transaction can apply for long-term loans.

The contract states:

• The type of property provided as collateral.
• The estimated value of the object used as collateral.
• Conditions for using collateral to pay off debt obligations.

The item used to guarantee the transaction remains the property of the borrower. The lender only gains access to the collateral if the client violates the agreement. The borrower is prohibited from selling or donating the pledged item until the end of the loan agreement.

Procedure forced collection debt occurs only in the event of a deliberate violation by the client of the terms of the transaction. First, the collateral is seized and then put up for auction by the lender. The amount received, which corresponds to or exceeds the estimated value of the property, is used to pay off the debt. The balance of funds received from the sale of property and loan repayment is returned to the borrower.

Determined by agreement of the parties;

A change in the market value of the pledged item after the conclusion of a pledge agreement or the emergence of a pledge by force of law is not a basis for changing or terminating the pledge;

The terms of the agreement, which provide for a subsequent reduction in the market value of the collateral securing the citizen’s obligation to repay a consumer or mortgage loan, the extension of the collateral to other property, early repayment of the loan or other consequences unfavorable for the mortgagor, are void;

The value of the pledged item agreed upon by the parties is recognized as the sales price (initial sale price) of the pledged item when foreclosure is filed on it. Unless otherwise follows from the law, agreement or court decision.

The pledgee is obliged to take measures to maintain and ensure the safety of the property, namely:

Insure the pledged property at the expense of the pledgor in its full value against the risks of loss and damage, and if the full value of the property exceeds the amount of the claim secured by the pledge - for an amount not lower than the amount of the claim;

Take measures necessary to ensure the safety of property;

Immediately notify the other party of a threat or damage to the pledged property (Clause 1 of Article 343 of the Civil Code of the Russian Federation);

Do not take action. Which may lead to the loss of the pledged property or a decrease in its value, and take measures necessary to ensure the safety of the pledged property.

The pledgor has the right to own and use the collateral that remains with him, including extracting fruits and income from it, unless otherwise provided by the agreement or follows from the essence of the collateral (Clause 1 of Article 346 of the Civil Code of the Russian Federation). In this case, the use must be of a targeted nature and not degrade the quality of the property.

The pledgor has the right to dispose of the pledged property through its alienation, lease or free use to another person or in any other way, but only with the consent of the pledgee and unless otherwise follows from the law, agreement or the essence of the pledge (Clause 2 of Article 346 of the Civil Code of the Russian Federation).

In addition, the citizen mortgagor has the right to dispose of the pledged property in the event of death, i.e. bequeath it. Moreover, an agreement limiting this right is void.

The pledgee has the right to demand early execution the main obligation if the collateral is lost. According to Article 351 of the Civil Code of the Russian Federation this right can be implemented in cases where:

The subject of the pledge has left the possession of the pledgor, with whom it was left, in violation of the terms of the pledge agreement;

The subject of the pledge was replaced by the pledgor without the consent of the pledgee (clause 1 of Article 345 of the Civil Code of the Russian Federation);

The pledged property was lost due to circumstances for which the pledge holder is not responsible (destructed or damaged, or the pledgor lost ownership rights or economic control over it), and the pledgor did not exercise the right to restore the pledged item or replace it with other equivalent property (Clause 2 of Article 345 of the Civil Code of the Russian Federation ).

The pledgee is also given the right to demand early fulfillment of the main obligation, and if this requirement is not satisfied, to foreclose on the pledged property in cases where the mortgagor’s offenses do not entail the loss of the pledged property (Clause 2 of Article 351 of the Civil Code of the Russian Federation). These include: