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Renovation of an apartment building - smart decision for building improvement
Norvik Banka offers an opportunity to get a loan for repair, renovation and insulation of apartment buildings, repair of roofs, enhancement of energy efficiency and other works which will increase the property value, cut the heating expenses and improve the quality of life of tenants of the houses.
The loan may be applied for by legal persons – companies engaged in house maintenance, condominiums or housing co-operatives; thus, each individual owner of an apartment will not have to make their apartment the subject of pledge or grant personal collateral. Monthly payments made by the tenants for house maintenance will serve as loan collateral.
The amount of the loan granted is from 5 000 to 200 000 EUR. Loan currency – EUR. Loan term – up to 10 years.
Improvements after renovation:
  • developed housing which is easier to maintain and manage;
  • increased value of the real estate;
  • reduced risk of unforeseen expenses for repair works;
  • improved appearance of the house;
  • increased lifetime of the apartment building, etc.
Upon renovation, apartment owners will gain:
  • higher level of comfort, well-developed environment to live in;
  • warmer apartments;
  • reduced heating costs;
  • increased real estate value, etc.
Possible intended use of the loan: <
  • repair and/or replacement of a roof;
  • insulation of exterior walls of a house;
  • insulation of basement ceilings;
  • replacement and/or repair of windows and/or doors;
  • repair and/or replacement of interior lines of communications and/or heat supply networks;
  • repair of communal entrance hallways;
  • insulation of pipeline heating systems, etc.
Collateral:
1. Primary collateral:
  • commercial pledge on a claim right against debtors (in case of SIA or AS) or cession (in case of DzĪKS, DzĪB);
  • future cash flow – timely monthly payments made by the apartment owners for the maintenance of the house under repair/renovation transferred to a settlement account with Norvik Banka.
2. Additional collateral:
  • guarantee by SIA "Latvijas Garantiju aģentūra"
  • accounts receivable insurance
  • surety by third persons (residents of the Republic of Latvia – legal or natural persons)
  • deposit in the amount of 1-3 monthly loan payments
Main Requirements:
  • no less than 85% of apartment owners in the apartment building under repair/renovation have been making timely payments for the maintenance of that specific real estate and utility bills for the last 12 months;
  • no more than 20% of the apartments in the apartment building under repair/renovation are encumbered by a prohibition for the benefit of a third party or by a right of pledge;
  • 75% of apartment owners in the apartment building approve renovation/repair works, as well as getting a loan and, if required, the increase in the maintenance cost.
Documents Required:
1. Borrower’s legal documents:
  • registration certificate;
  • company’s articles of association;
  • copies of owner’s/owners’ passports.
2. Borrower’s financial documents:
  • statement from the State Revenue Service (SRS) on tax payment (received, maximum, 1 month ago);
  • balance sheets:
    • last annual report with an SRS mark (with account breakdown);
    • balance sheet for the operating accounting period (with account breakdown);
    • profit and loss calculation for the operating accounting period (with account breakdown);
3. Information on the apartment building under repair/renovation (incl. the results of the energy audit, work description, cost estimate, etc.);
4. Signed minutes of the meeting of the apartment owners or a questionnaire on renovation and receiving a loan;
5. Other documents – upon the Bank’s request.
Every loan application is examined individually.
You may get a loan advice for the renovation of an apartment house or apply for the loan at any branch of Norvik Banka.
To get additional information, please call (+371) 67041100.