The purchase of another property or the early repayment of an MdM loan will mean an obligation to return the surcharge. Are these all premises? It turns out that there are and there are other events that mean the loss of the surcharge.
Many people have benefited from MdM subsidies
However, meeting the criteria of the Act and obtaining a loan does not mean that borrowers no longer have other obligations related to their loans. It is worth being aware of what we cannot do for 5 years after buying an apartment, because the consequences can be very expensive. According to the regulations, there are 5 reasons when you should pay back the extra payment.
We will have to pay the additional fee if we sell the property which was financed by the Flat for the Young loan. Therefore, we will have to pay the additional fee if the apartment is sold, donated, or if we exchange the apartment for another property.
The same effect will apply if the entire apartment is sold, and if only the shares are sold. The sale or donation of even a small part will be tantamount to a refund of the subsidy received. The only exception is in the event of the extension of statutory jointness. If the apartment was purchased by one of the spouses before marriage, it is possible to extend co-ownership without consequences for the Flat for Youth loan.
Renting or lending an apartment
The Flat for the Young loan is used to finance the borrower’s and buyer’s own housing needs. As a result, certain restrictions on the use of real estate for a period of five years have been introduced. At this time, the flat cannot be rented, in whole or in part, and the flat cannot be rented to anyone during this period. Handing over the apartment for use by another person will mean breaking the regulations and sanctioning the necessity to return the surcharge.
The property purchased in the Flat for Youth program cannot be transformed into another property and used in a way that will not meet the buyer’s housing needs. So, buying a flat, for example, we can’t transform it into a service premises when the purpose of the loan was to buy a residential property. Similarly, when buying a house, we cannot say that we will run a store there, for example.
A separate issue is the possibility of registering a business activity in an apartment. Interpretations indicate that the mere fact of registering a business does not yet mean a change in use. Until the apartment is a real place of business, the rules are not violated. The mere fact of registering a business does not mean a refund.