Features of a commercial mortgage

The essence of obtaining a mortgage for the purchase of non-residential premises

Commercial real estate is premises from which you can make a profit. They can be, for example, offices, warehouses, premises for shops. You can purchase such real estate with a mortgage, but the lending conditions will be somewhat different from a standard mortgage on a residential building. You can get a loan to purchase commercial real estate:

• individuals;
• entrepreneurs;
• owners of small and medium-sized businesses.

There can be some complications when taking out a mortgage for commercial real estate. Take into account the nuances and details when obtaining this type of lending, since the process of issuing funds differs from a regular mortgage. Most often, difficulties arise for individuals, since lending programs for the purchase of commercial premises are designed specifically to support businesses.

Mortgage for non-residential premises

Mortgages for non-residential premises are gaining popularity among entrepreneurs and individuals involved in commerce. Reasons: need for new warehouse and office space. Is it possible to take out this property on a mortgage from Sberbank or VTB 24? We will find out further what the conditions are and the procedure for drawing up the contract.

Before purchasing a structure that will be used for commercial purposes, you need to familiarize yourself with the parameters of the objects that will be ready for such use.

Types of premises

The “non-residential” category includes all buildings that are not suitable for permanent residence. Namely:

• office;
• garages;
• areas for trade;
• warehouse

Approximate distribution of types of premises in the category “non-residential real estate” by demand

Purpose of the areas

Mortgages for non-residential areas are divided into two groups:

1. Purchase of a garage. Almost every car owner wants to have their own garage. For a person not involved in the transport business, a garage serves as a storage place for a personal car.
2. Purchase of commercial real estate. A legal entity may need such a purchase as a commercial real estate property if it is planned to be used for providing services or parking work vehicles.

The need for premises where no one will live, but they will generate profit, arises for both individuals (private individuals) and legal entities. Which of them has a better chance of obtaining such real estate?

Who can buy with a mortgage

Mortgages for non-residential real estate are not provided to individuals. Exception: small business owners.

Mortgages for non-residential premises are especially in demand by entrepreneurs who want not to depend on rent

Persons who have formalized their business activities may be issued with some restrictions, depending on the requirements of the bank.

It is for them that the country's largest financial institutions - VTB 24 and Sberbank - offer the most interesting lending programs for the purchase of non-residential real estate with a mortgage.

Take out a mortgage for non-residential premises in Sberbank

Buy a building for an office or warehouse, i.e. There are two ways to not use it as residential, through Sberbank. Apply for an “Express Mortgage” or a Consumer Loan secured by existing real estate. Which to choose?

"Express Mortgage" for individuals

An interesting and affordable offer for the purchase of non-residential premises is Express Mortgage. It allows you to take property for carrying out commercial activities for individuals engaged in individual entrepreneurship and organizations with an income of no more than 60 million rubles per year, with a period of doing business of 1 year.

Conditions for issuing a mortgage agreement for non-residential premises under the Express Mortgage program of Sberbank

Under what conditions can a client take out a housing loan:

1. Opening a personal account at a branch of the financial institution that will issue the loan is mandatory.
2. The maximum loan amount is from 5 to 7 million rubles, it depends on the region where the agreement is drawn up.
3. The minimum annual rate is 15.5%, the loan term is up to 10 years.
4. Insurance of real estate purchased with a mortgage and the life of the borrower.

To receive a loan, an application is filled out at a Sberbank branch and a package of required documents is submitted. A complete list of them can be obtained from the manager.

Sberbank offers to submit an application for a business mortgage via an electronic form from the website

Applications are processed quickly, and the purchased commercial real estate serves as collateral. Convenient payment methods for a transaction facilitate its correct execution and reliably protect against fraud.

"Business Real Estate" for legal entities

Sberbank has developed a financial product Business Real Estate for its clients. It can be taken by individual entrepreneurs and small businesses.

Conditions for issuing a loan “Business Real Estate”

A prerequisite is that annual income should not exceed 400 million rubles. The minimum rate is 11.8%, with a payment period of up to 10 years.

The loan amount ranges from 150 thousand to 400 million rubles and depends on the region. The mortgage agreement for non-residential premises is concluded after the completion of the purchase and sale transaction.

The list of documents.xls required for registration is impressive:

Non-targeted loan secured by real estate

A mortgage on non-residential premises for individuals can be issued in the form of a non-targeted loan, secured by purchased or existing real estate.

Parameters of a loan secured by real estate

To register, you must complete a number of steps:

1. Submit an application and submit a package of documents.
2. Sign a loan and mortgage agreement.
3. Register real estate.
4. Get money for your purchase.

Is it possible to take other commercial properties in this way? Yes, you can purchase any other property not intended for residential use. But only arrange the loan as a non-targeted loan.

Mortgage for non-residential premises in VTB24

Let's find out what VTB 24 can offer clients. Deadlines, client obligations, documents and interest under current programs.

Terms of "Business Mortgage"

VTB 24 offers entrepreneurs to take out real estate under the Business Mortgage program. Any object for commercial use can be purchased with collateral.

The maximum loan amount is 4 million rubles, the rate is 13.5% per year. The loan term is 10 years. The down payment amount is 15% of the cost, and if there is an additional deposit, it can be omitted.

Who can access the contract?

This offer is available to all legal entities. After the completion of the purchase and sale transaction, the acquired property must be provided for collateral.

VTB 24 accepts applications at bank branches, or you can fill out the form on the official website.

VTB 24 does not issue mortgages for non-residential premises to persons who do not run a business. In such cases, you can use one of the consumer loan programs.

Conclusion

Mortgages for non-residential premises have become a popular type of loan in market conditions. Therefore, before applying for it, you need to carefully read all the offers, compare the loan terms and then choose the best option.

Features of a commercial mortgage

Individuals who decide to take out a mortgage for commercial real estate will be faced with some features:

1. Increased interest rate compared to an apartment mortgage.
2. The lending period is much shorter - up to 10 years, rather than 15-25.
3. The initial payment is higher - from 30%; with a classic mortgage you can find offers from 10-15%.
4. More demands are placed on borrowers.
5. When purchasing real estate, a plot of land also becomes part of the security.

As with classic mortgage lending, in this case real estate becomes collateral. Until payments to the bank are completed, the borrower's rights to dispose of the property will be limited.

Registration of a pledge occurs as follows: the seller receives an advance payment, transfers ownership rights to the new owner, and the property becomes a pledge. After this, a loan agreement is concluded, the previous owner receives the remaining money.

Is it possible to take out a mortgage on non-residential premises for individuals?

Now lenders provide the opportunity for such mortgages not only for legal entities, but also for individuals.
This is due to the development of programs to support small businesses.

Some banks even allow individual entrepreneurs to pledge not only the mortgaged premises, but also any other real estate that they own.

To the garage

Individuals and individual entrepreneurs can take out a mortgage for a garage.
Some banks (for example, Sberbank) issue targeted loans specifically for the purchase or construction of garages. Of course, not all banks offer such a mortgage, but in this case, you can apply for a regular consumer loan.

Note! Garages are not real estate in themselves. They are connected to the land on which they are located. In addition, a garage must, at a minimum, have a foundation to be considered real estate.

Also, according to the law, you can take out a mortgage even for an ordinary parking space. Sberbank already practices issuing such loans.

The terms of this mortgage are:

1. The minimum loan amount is 45,000 rubles;
2. PV – 15% of the property value;
3. Commission for using mortgage funds – 10%;
4. The maximum loan term is 30 years.

With land

According to Article 69, Article 103 of the Federal Law, a land plot becomes collateral if a house purchased with a mortgage is located on it.
But there are also cases in which you can take out a mortgage and not pledge a plot of land:

• If it is municipal or federal property;
• If the area of ​​the plot is smaller than that established in the region;
• The property is under the right of permanent use.

You can learn more about mortgages on land in this article.

Commercial real estate

It is more difficult for individuals to buy commercial real estate than for legal entities.
The fact is that legal entities, in principle, issue loans at an increased rate, and if you allow an individual to issue such a mortgage, the bank will lose its money.

Such loans are most often issued:

1. For individual entrepreneurs;
2. Farm owners;
3. Small business owners;
4. Heads of companies.

Thus, in this case, the bank will carefully analyze the activities of the company that takes out the mortgage. That is, an individual (for example, the head of an LLC) must provide not only a standard package of documents, but also company papers.

Note! Due to the peculiarities of the legislation of the Russian Federation, issuing loans for the purchase of commercial real estate is accompanied by difficulties for banks. If only because the transfer of non-residential real estate as collateral from an individual is a rather specific process, from the point of view of the law. Therefore, each case should be considered individually.

More often, such loans are accompanied by stricter conditions for the borrower.

Recommended viewing:

Largely:

• The interest rate on a mortgage can be from 11.5% to 20% per annum ;
• Loan amount from 150,000 to 200,000,000 rubles ;
• Down payment on mortgage at least 20%
• Loan term – from 5 to 15 years ;
• The building in which the premises are located must be permanent;
• There should be no encumbrances on ownership.

Conditions for commercial mortgage recipients

Banks may set different conditions for obtaining a mortgage; the requirements are not regulated by law. Most often, when applying for a commercial mortgage, an individual entrepreneur checks:

• having citizenship of the Russian Federation;
• age restrictions – from 21 to 65 years;
• location of the borrower and registration on the territory of Russia in the bank’s area of ​​operation;
• the presence of a mobile phone that is used at work, this can also be the borrower’s personal number.

Mortgage requirements for legal entities:

1. The period of state registration at the time of filing the application is at least 9 months.
2. The total share of participation of the Russian Federation, municipalities, public and religious organizations, non-residents, foundations in the authorized capital is up to 25%.
3. Legal address of the borrower in the region where the bank operates.
4. The actual location of the borrower is in the region where the bank operates.

For a commercial mortgage, it is impossible to make part of the payment using maternity capital or other housing subsidies. It is also impossible to obtain a property deduction.

The essence of commercial mortgage

Legal entities (no matter what form of ownership - the main thing is that registration does not take place in the name of a specific individual) acquire real estate with a mortgage, after which they use it for commercial purposes in accordance with their statutory activities:

• place production and storage facilities there;
• organize a place for selling goods (outlet) or providing services;
• rented out for the purpose of obtaining additional profit or income.

The essence of a business mortgage remains the same as in the usual version: banks lend for the purchase of real estate against its own collateral. Residential real estate is used only for individuals, and commercial real estate for legal entities.

So, the case when a company purchases an apartment for its employee on a mortgage and makes all payments (by agreement with this same employee), essentially will not be a commercial mortgage, since this undertaking is not initially commercial, but is one of the ways of material incentives key employee.

Issuing a loan

Before you apply for a commercial real estate mortgage, submit an application. It’s more convenient to do this online on the bank’s website, but you can also do it in a branch. Documents you will need:

• passport of a citizen of the Russian Federation with permanent registration;
• state registration certificate;
• certificate of registration with the tax service;
• legal entity charter;
• licenses, if this is due to the type of activity;
• protocol on the appointment of a manager;
• an order on the appointment of a chief accountant or on the transfer of the duties of an accountant to a manager;
• financial statements;
• tax returns;
• documents on the purchased property.

If the bank approves the mortgage, the process of issuing money to purchase the property begins. Since the law does not regulate collateral for a commercial mortgage, registration of a mortgage can only occur after the property is transferred into the ownership of the borrower. This creates great risks for the bank, since it turns out that the loan is unsecured for a certain period. The bank first issues money, and only then registers the premises as collateral and insures its risks.

Ways to get a commercial mortgage

There are several schemes for obtaining a mortgage for commercial real estate:

1. Through a purchase and sale agreement . The buyer pays the seller part of the amount, the bank guarantees receipt of the remaining money. After this, ownership rights are registered in the name of the buyer. An agreement is concluded between the borrower and the bank and the property is registered as collateral. The bank issues borrowed funds, and the buyer transfers them to the seller.
2. By prior agreement. The buyer pays part of the amount to the seller. The property is registered as the property of the borrower and as collateral to the bank. The bank pays the remaining amount to the seller.
3. Redemption by a legal entity . First, they create a shell company. The property is pledged as collateral to this company. The borrower buys the shares of the company, that is, pays off the loan. When he buys all the shares, ownership of the company will be transferred to him.
4. Registration for an individual . The mortgage is issued by a private person - the owner of the business. The bank evaluates the solvency of the borrower and its assets. The company's activities are also assessed. After this, the bank issues a loan.

You can apply for a mortgage on commercial real estate using any of these methods.

Mortgage for non-residential premises for individuals in 2021

Welcome! Today we will find out what a mortgage for non-residential premises is for individuals, which banks and under what conditions issue a mortgage for non-residential premises and how it is processed.

Is it possible for an individual to take out a mortgage on non-residential premises?

Banks in Russia have implemented special commercial mortgage lending programs.

Since 2009, changes have been made to the legislation of the Russian Federation regarding the issuance of loans for non-residential premises for individuals.

Several years ago, consumer loans with high interest rates created discomfort for many borrowers. Because of this, many were unable to take out a loan for a long period of time.

The acquisition of non-residential premises must be approached with special responsibility. Commercial or other non-residential premises are available to both individuals and individual entrepreneurs.

Lawyers argue that in the process of carrying out any financial transaction related to the acquisition of commercial real estate, difficulties arise.

Each buyer must take into account all possible nuances that must be carefully considered before making a purchase.

Everyone knows that purchasing a home with a mortgage is commonplace. But commercial properties and non-residential premises are not available to all citizens. Basically, a loan is issued if the property is pledged to the bank.

When the collateral is a building built on a leased plot, then the banker must be presented with a written agreement from the owner of the land to enable the transfer of lease rights into a mortgage.

Individuals can afford to purchase objects in the form of a garage, office, summer house and any other building.

There are a huge number of lenders who issue mortgages to individuals and legal entities. Programs have been developed that support small business ideas. Some banks issue a loan as collateral not only for the purchase of a mortgaged premises, but also for any real estate. This question mainly concerns individual entrepreneurs who have a good banking history.

Commercial real estate is primarily non-residential premises intended for doing business. There are businesses that register as individual entrepreneurs. Therefore, for small businesses, issuing a loan becomes a daunting task. This issue can be resolved in another way.

For example, Sberbank offers clients to take out a mortgage for commercial real estate. Individuals can take advantage of the bank’s advantageous offer and purchase non-residential premises under the best conditions, which are presented below in the article.

Owners of profitable premises can use the property for their own needs or rent it out.

The legislative framework

Issues of mortgage of business premises are regulated by the Law “On Mortgage (Pledge of Real Estate)” dated July 16, 1998 No. 102-FZ. The legislation of the Russian Federation does not address the procedure for obtaining a loan for the purchase of a commercial property. This question concerns only mortgaged property. The created act regulates the real estate pledge relationship.

Features of lending include:

• The high cost of a commercial property, which affects the very relationship of lending such a mortgage.
• The main feature of non-residential real estate lending compared to residential mortgages is the high interest rate. Unfortunately, due to the high rate, not everyone can afford to purchase commercial real estate.
• For commercial real estate, a loan is issued only for a short period of time. If, when purchasing a home, the borrower has the right to take out a loan and repay it within 30 years, in this case the debt will have to be paid off within 10 years.
• The initial fee is approximately (30%)

Before issuing a loan, the banker has strict requirements. In this case, the length of entrepreneurial experience, profitability and other characteristics are taken into account.

If a separate building is purchased as collateral, then the land plot is also registered.

Which banks give loans?

Today, a mortgage for the purchase of a commercial property by an individual is issued in a number of financial institutions throughout Russia. We have prepared a special table for you:

BankRateDown paymentNote

The most interesting conditions for the average person to purchase real estate for business is a mortgage from Absalutbank. The bank is quite loyal to borrowers and can consider the situation individually. A certificate in the form of a bank is accepted for consideration, which is very convenient for people with unofficial income.

Registration procedure

When applying for a mortgage for the purchase of commercial real estate, the history of the borrower is carefully considered. This rather complicated process is associated with the imperfection of the relevant legislation. It should be noted that a lien cannot be placed on the property until the transfer of ownership from the seller to the buyer.

When such a situation arises, the risk for all parties to the transaction increases significantly, including the financial institution that issues the loan. In order to minimize the risk to their own funds, financial institutions have developed a special mortgage registration scheme, which consists of three stages:

Initially, the purchase and sale transaction is completed, and then the pledge. The amount is given to the seller after the mortgage is registered in the name of the new owner.

First, a mortgage is issued on the object under the old owner, and then gradually the transfer of ownership and re-encumbrance occurs.

The transfer of ownership of commercial real estate to a legal entity is carried out after the acquisition of the right of ownership of this legal entity from the seller.

Package of documents

Sberbank borrowers are required to collect a package of documents. First of all, the documentation should differ from individual entrepreneurs and small businesses. Papers are processed within 7 working days.

The main condition is the successful running of an entrepreneurial business. If there are no unnecessary problems when maintaining accounting and tax records, then the borrower is freely issued a loan.

To apply for a mortgage, you must come to a banking institution with:

• application for a loan,
• a questionnaire indicating that the borrower is not a legal entity,
• documentation indicating the borrower’s activities and financial history,
• paper indicating the borrower’s credit history,
• income certificate,
• a copy of the mortgage valid at the time of registration,
• legal documents.

Mortgage for a garage

Entrepreneurs as individuals can take out a mortgage for a garage. Financial institutions can issue a targeted loan for the purchase of a property or construction of a garage. Such loans are not available at all banking institutions.

If desired, you can use consumer loan services. It should be noted that the “garage” object itself is not presented as real estate. First of all, a garage must have a foundation. Only in this case the garage is considered a real estate object.

Mortgage for commercial premises

Many financial institutions offer favorable conditions. Clients are usually interested in obtaining a loan for commercial real estate for a long period of time. Many people want to own an office, warehouse, retail property, etc.

Sometimes this type of loan is issued to private individuals. Sometimes a unique opportunity arises to purchase an interesting object inexpensively. Owners of commercial real estate can always earn money by renting out a certain property.

Loans for the purchase of commercial real estate are issued to small business owners. Thus, the owners of the facility can provide the enterprise with the necessary premises. The loan is issued directly to the owner of the small business. It is important to note that legal entities do not have the right to obtain this type of mortgage loan.

Pros and cons of commercial mortgages

There are several disadvantages to a commercial loan:

1. Long waiting period for a bank decision. Usually the answer comes no earlier than 5 days. But in many situations, consideration of the application can take up to two weeks. This is due to the fact that the bank checks not only the borrower himself, but also his business and real estate.
2. Some banks charge a fee for processing an application for a commercial mortgage.
3. This type of lending is often offered only in large cities. In small towns, such mortgages are often unavailable.

Advantages of a commercial real estate mortgage:

• some banks allow borrowers to take a deferment on mortgage payments for up to 6 months or a year;
• you can choose different debt payment schemes: equal payments or seasonal payments, this is especially beneficial for those companies that depend on the time of year;
• Some banks do not oblige you to take out a mortgage.

It is advisable to take out a commercial mortgage only when there is a benefit for a specific enterprise. Otherwise, getting involved in a long-term loan secured by real estate may not be advisable.

Which bank is better to choose

Which bank is better to apply for a commercial mortgage depends on which loan parameters are the most important. For example, if you need a minimum down payment, compare this parameter according to the offers of different banks. If the interest rate is more important, look for a bank based on this criterion. Also keep in mind that the interest rate is affected by income, credit rating, business stability and the quality of the collateral.

Choose the most suitable bank conditions and fill out an application. This can be done online on the official website. Waiting for a response from the lender can take up to several days. The presence of a guarantee or collateral that is already owned by the potential borrower significantly increases the chances of loan approval. Then the bank’s risks are reduced, and it is ready to make concessions to the client - lower the interest rate, reduce the size of the down payment or extend the maximum term of the commercial mortgage.

Recommendations when applying for a mortgage

To increase your chances of getting a mortgage approved and getting more favorable terms, contact a bank with which you have previously collaborated. If you did not have any controversial situations before applying, the bank may approve the most favorable conditions. It is illogical to apply for services from different credit organizations, so first of all you should consider the bank where the businessman has a current account.

It is recommended to treat a commercial real estate mortgage as an investment. Draw up a business plan, calculate the benefits. If it covers the cost of paying interest, a mortgage can be taken out because it will bring profit to the business or allow you to save on renting premises.