Loan for apartment house renovation

Loan for apartment house renovation and improving of energy efficiency

To be able to save up on heating bills we suggest you take energy-efficiency measures.

  • Reduced expenses on heating
  • A better-looking building
  • Higher value of the property
  • Reduced risk of expenses for unexpected repairs
  • Owners get a property in good technical condition which is easier to maintain and manage
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Preserve more heat

Even though you have to pay substantial sums for heating during winter, it often occurs that your appartment is still cold. It happens in case your apartment house consumes a lot of energy, but does not use it efficiently - so that large amounts of heat dissipate outside. Thus by paying for heating you are actually paying for heating the air outside as well.

Don’t pay double

Residents of each house can make save up funds for house repairs, however, it usually takes a long time. If savings are not sufficient, then it is possible to use Swedbank loan for apartment house renovation and energy efficiency improvement.

No collateral

A loan is issued to house management and not apartment owners so you won't have to mortgage your real estate or be a guarantor for a loan. Your monthly payments for public facilities will serve as a security.
Loan can be received by any house manager - be it a householder society or an enterprise specialized in house management - if 75% of apartment owners agree with receiving the loan.

Information about the new apartment building energy efficiency program is available on altum.lv. Once the program is launched, information about the bank's terms of lending will be added.

Key terms & conditions

  • Loan amount up to 100% of the project cost;
  • Loan currency - EUR;
  • Fixed or variable interest rate;
  • Repayment period - according with support program's new conditions;
  • At least 75% of household owners support the decision to take a loan and increase the monthly bills for public facilities;
  • It is necessary to make a deposit in the bank for an amount of the loan repayment for a period of 1-3 months, under a condition that this deposit stays in the bank in the required amount for the whole repayment period;
  • Loan repayment is done by increasing the monthly payments for public services for each 1 m2 according to apartment space, loan amount and period;
  • Principal amount repayment can be started after the repair works are finished;
  • Loan security - future cash flow - monthly payments for public services made on time by household residents.

Following criteria are being evaluated:

  • Financial situation of loan receivers and payment discipline of apartment owners. At least 95% of all bills for public services have to had been paid in time during the previous 12 months;
  • Loan payments and loan risk by 1 m2. Maximal loan – 100 EUR/m2;
  • Technical condition of the building, description and estimate of the planned works.

Collateral:

  • Future cash flow
  • Timely house management payments by apartment owners
  • No need to mortgage the apartments and no need for personal guarantees of apartment owners

Documents required:

  • Property documents
  • Borrower’s legal documents
  • Complete information about the building to be renovated
  • Finance documents
  • Description and cost estimate of the works to be carried out
  • Dwellers’ decision to take out the loan