Why is using maternity to buy a real estate undesirable?
The expert explains how best to dispose of the benefit from the state
Do not rush to allocate shares to children
Remember the first important rule! Do not hurry to allocate a quarter share to each minor in an apartment bought for 5 million rubles. The smaller the share of children, the easier it will be to get permission from the guardianship authorities for a subsequent transaction. However, the share distributed among all family members should not be less than the share of the maternity capital in the purchased housing. That is, if the maternity capital was 1/13 of the cost of the apartment, then this 1/13 should be distributed in equal shares to all family members.
Any transactions with this property before the children reach the age of majority can be made only with the permission of the guardianship authorities and in no other way, simply put, the family becomes dependent on them. If during the time you paid the mortgage and released an encumbrance on a mortgaged property, more children appeared in the family, then you are obliged to give them shares, too. And this is the tip of the iceberg!
Not every bank will give a loan for a deal where the owners are children
For example, a family bought a one-room apartment for 5 million rubles, having fulfilled all the requirements of the legislation and properly allocated all family members with a ¼ share. After a while, they decided to expand and purchase a two-room apartment. The young family with children does not have free money, so they intend to use a mortgage, while selling previously purchased housing.
Firstly, not every bank is ready to give a loan for a transaction where the owners are minor children. For banks, this is a significant risk. The guardianship authorities, in turn, will not allow the sale of the one-room apartment without giving children shares in the purchased real estate (two-room). At the same time, the bank will not give permission for the allocation of children's shares in a new apartment while the mortgage is valid. A vicious circle. That is, in fact, the possibility of obtaining a mortgage, as well as the list of banks ready to provide a mortgage loan in such situation, is reduced. Besides, you need to get the approval of the guardianship authorities to conduct such transaction, and this is a very difficult task. In most cases, an ordinary family will not be able to cope on their own without the help of a competent realtor and lawyer. Then buyers have additional, significant costs, which largely arose due to the applied maternity capital.
Let's move on. Before giving permission for the transaction, the guardianship authorities will compare the children's shares in the apartments being sold and bought. Are they equivalent in square metres and cost? Here, the family can also fall into trap. Let's say you want to sell an apartment in the city and move out of the city (to the district) to your house. The guardianship authorities will request the documents from the BTI (Property Inventory and Registration Authority) for two real estate objects and compare them. This practice is quite common. Just the other day, I was advising a family whose guardianship authorities refused to buy a country house, because such deal, in their opinion, violates the interests of children. But they, by the way, have already made a deposit for the house.
What to do with maternity capital
What can I recommend?
- If possible, do not use maternity capital: with a high cost of real estate, which far exceeds the size of the capital itself (maternity capital will not make a large contribution, but the binding with the shares of children will be iron-clad); when buying primary housing, if you plan to sell it in the coming years.
- Do not allocate large shares to children, especially in houses and apartments of a large area.
- Use the services of competent specialists in solving your housing issues. The benefit that you will receive from their work will more than cover the cost of their services, as well as save your time and nerves.