3 per cent of fixed annual interest
Up to 20 years
Payment for construction works, 50% of technical project preparation value and 50% of maintenance costs
15 per cent to measures increasing energy efficiency defined by the Government of the Republic of Lithuania if the previously calculated heating energy consumption is reduced by at least 20 percent.
Additional state support
Up to 25 per cent to measures increasing energy efficiency defined by the Government of the Republic of Lithuania if the previously calculated heating energy consumption is reduced by at least 40 percent.
An administrator of a project* who signed a credit agreement on his behalf acting in favour of inhabitants.
Period of Grace
Repayment of a credit and credit and interest can be subject to grace period up to 30 months from the day of the disbursement of the first portion.
Disbursement of the Credit
The funds of the credit are paid directly to contractors for the finished works.
Not subject to charges applicable to document analysis, credit administration, commitment , amendment of agreement conditions and early repayment of the credit.
Credit is issued in euros.
Credit repayment approach
Credit is repaid in a linear annuity method - the instalment is reducing each months.
Early repayment of the credit
Inhabitants may repay the credit or its portion prior to the set maturity. This shall not be subject to any extra charge or penalties.
* Project Administrator - administrator of implementation of municipality programme or manager of the objects of common use of the multi-apartment house.
Multi-apartment House renovation (modernization) programme
The possibility to reduce heating costs which are growing each year and to improve the condition of the old house are the reasons to apply for a multi-apartment building renovation (modernization) credit.
Why to choose us? A solid partnership and experience in issuance of credits to renovation projects
or year we have been collaborating with such institutions as:
- Būsto energijos taupymo agentūra VšĮ (Housing Energy Saving Agency) (before 2013 it was called Būsto ir urbanistinės plėtros agentūra (Housing and Urban Development Agency)) – since 1999
- Central Project Management Agency - since 2002
- Mortgage Loan Insurance - since 2005
- INVEGA – since 2009
- European Investment Bank - since 2010
Šiaulių Bankas is the financing leader of multi-apartment house renovation in Lithuania . Under the new under the new administrators financing programme the bank provided 1 500 preliminary endorsements regarding regarding signature of credit agreements (the total value of these agreements - 376 million euros), 1 300 of which have been signed (total value - 306 million euros).
Terms, course, documents and other important information
The key stages of the renovation:
- Initiation of a multi-apartment house renovation
- Flat owners' meeting organization
- Preparation of an Investment Plan
- Public discussion of the Investment Plan
- Investment plan coordination with BETA
- Approval of the coordinated Investment Plan in the Meeting
- An application for a loan (submission of documents) to the Bank
- Bank's preliminary decision
- Purchase of contractual works
- Purchase of a Technical Project
- Verification of a Contractor at the Bank
- Bank's written commitment to provide funding
- Purchase of contractual works approved by BETA
- Credit Agreement Signature
- Purchase of Technical Maintenance
- Implementation of a multi-apartment house renovation
- Credit Disbursement
- Certification of a a multi-apartment house
- Applying for the state aids
- State Aid Receipt
- Interest and credit payment
- a multi-apartment house is built under the construction permits issued before 1993;
- investment plan foresees to achieve at least D building energy performance class and reduces previous computational thermal energy consumption by at least 20 per cent;
- not less than 60 per cent of the house inhabitants agree on taking a credit for renovation;
- the number of apartment owners that are past due with their obligations exceeding 170 euro for more than 60 days to at least one company rendering utility services or to the manager of the premises of common use (calculating in total) should be less than 10 per cent of all the apartment owners in the house.
The documents that should be provided by the project administrator in order to receive the credit for renovation of a multi-apartment house:
- application of the multi-apartment house administrator in the form acceptable to the bank;
- a project regarding renovation (modernization) of a multi-apartment house made and approved by owners of flats or other premises and coordinated with BETA;
- the energy efficiency certificate of the multi-apartment house;
- a decision regarding renovation (modernization) of a multi-apartment house made by owners of flats or other premises;
- A free-form certificate prepared and signed by the multi-apartment house administrator regarding flats and other premises located in the multi-apartment building belonging to legal entities and information on apartments owned by natural persons and other premises occupied for economic activities;
- a certificate from Hosing Energy Saving Agency about usage of de minimis aid ;
- Certificates from the utility suppliers (heat, electricity, water, gas and companies rendering waste transportation services ) and from the manager of the objects of common us;
- An extract from the real estate register about the owners of the flats of the multi-apartment houses and other premises;
- the list of apartment and other owners;
- valid articles of association of the multi-apartment house administrator and registration certificate/ joint activity agreement certified by a notary public;
- Agreement of assignment (if renovation (modernization) of a multi-apartment house is implemented by a multi-apartment house administrator authorized by the resolution of the beneficiaries);
- Resolution passed by the Municipality or its person in charge stating who is assigned to implement the multi-apartment house renovation (modernization) programme approved by municipality.
- a document evidencing the identity of the multi-apartment house administrator and a document proving the basis of repsresntation.
Will an administrator be obliged to cover not collected credit payments form its own funds?
An administrator bears responsibility for due collection of funds (credit instalments, accrued interest and default interest, if any) from the apartment or other premises owners and their payment to the bank. An administrator is not responsible for the obligations of the apartment or other premises owners to pay instalments and for failure or improper fulfilment of the obligations. In other words, the administrator's duty to repay the credit is limited to the extent of payments collected from beneficiaries.
A credit maturity is foreseen for 20 years, is ti possible to take acredit for the period of 10-15 years?
A credit maturity may be selected by the apartment owners whose interest is represented by the administrator. The maximum credit maturity may be established at 20 years, however the credit may be takne foe a shorter period of time.
KWhen the credit for the finished works is disbursed?
Šiaulių Bankas does not limit the credit repayment frequency. The bank shall immediately cover the expenses of the works after they are finished, invoice and work the acceptance-transfer deed are provided to the bank alongside with the confirmation of the finished works provided by the persons in charge.
Is it possible to repay a mortgage credit to the bank earlier than agreed?
Is it possible to repay a mortgage credit to the bank earlier than agreed.
If the credit is repaid prior to its maturity should the interest be covered for the entire period?
Interest is calculated summing up the actual credit balance of each day monthly (i.e., from the used and outstanding part of credit) and the interest must be paid accirding to the fact i.e. as much as the estimated amount as of the current day.
Credit provision terms foresee that during the credit usage period which is overlapping with the process of renovation the borrowers are allowed to pay nothomh even interest. Is it so?
Correct. During the credit usage period interest may be subject to the grace period. Interest accrued during the period of grace shall be paid during the remaining credit repayment period in compliance with a separate repayment schedule.
If and administrator planning the renovation addresses the bank regarding 5 multi-apartment houses . Will it have to sign one or five agreements?
5 credit agreements will be signed (one agreement of each multi-apartment house).
Who has to sig a credit agreemt? Is it each apartment owner?
The agreement will be signed by the administrator on behalf of the owners.
What works shall be subkect to financing?
Finance for construction works, 50% of technical project preparation value and 50% of maintenance costs.
Can a community take a credit?
Yes. A credit can be taken by a manager of the objects of common use (a community, a person authorized by a common activity and administrator of the objects of common use). A credit is taken in favour of inhabitants.
Are the credit servicing fees applied?
The credit administration fees such as a document analysis fee, credit administration fee , commitment feet, amendment of agreement conditions fee and pre-paiment fee shall not be applied.
A credit agreement includes a definition "appropriately executed works" - what does it mean?
Appropriately executed works shall mean the works which meet the quality requirements set to such works. After the works are finished the Bank must be provided with the transfer-acceptance deed signed by the contractor, the client (administrator) and the technical supervisor the are responsible for the quality of the carried out works.
Will it be paid for the renovation only during the heating season, or all year round? What will happen to instalment if heating is subject to compensation?
A credit instalment will be paid on monthly basis. The payment procedure of socially disadvantaged people is defined by the legal acts. As for socially disadvantaged people credit and interest as well as other expenses related to the preparation of the project and its implementation shall be covered.
A credit is taken on behalf of the administrator, so is the debt reflected in the balance sheet of the administrator?
This credit is not included in the balance sheet. The funds are only administrated by the bank and implementer of renovation but they are not accounted in their balance sheets.
Where could I find out more on multi-apartment house renovation (modernization)?
More information on multi-apartment house renovation programme is available on the the wesite at www.atnaujinkbusta.lt.
Will the owners of flats be obliged to pay for those owners who fail fulfilling the obligations?
No, each owner of a flat must repay only his own portion of credit which is issued to his flat (taking into account a useful area of the flat).
What is the procedure of making decisions regarding multi-apartment house renovation (modernization) programme?
Decisions is made y the flat owners at the meeting or by voting in writing. A majority of votes 50 per cent + 1 vote is required to make a positive decision. However, according to the requirements of Šiaulių bankas AB such decision has to be approved by at least 60 % of flat or other premises owners of the respective multi-apartment house.
Is a collateral required in order to receive a credit for multi-apartment house renovation (modernization)?
No, the inhabitants may receive the state aids and credit for house renovation not pledging their property.
What hoses may apply for participation in the multi-apartment house renovation (modernization) programme?
A house with three and more flats is considered to be a multi-apartment house. The houses that were built or permit to build them was issued before 1993.
- replacement of heating and hot water systems
- Rearrangement, replacement or equipment of ventilation and recuperation systems
- Roof insulation
- Insulation of the facade walls (including the socle)
- Glazing of balconies and loggias
- Change of the exterior doors and vestibule door
- Change of windows in the apartamens and other premises
- The basement ceiling insulation
- Renovation (modernization) of elevators
- Renovation (modernization) of other engineering systems of common use.
Renovation partners shall"
- provide consultations and assistance to the apartment owners regarding hosuing renovation issues;
- assess and coordinate investment plans and purchase documents;
- cooperate with municipal institutions, engineering consultancy companies, educational institutions and non-governmental organizations.
Debt administration partners
We have signed cooperation agreements with three acceptable debt recovery companies;
Administrators may choose whether the collection and recovery of the past due payments (debts) will carry out by the debt administration partner selected by the administrator and acceptable to the Bank or by the administrator himself.
Whom should I address regarding a credit for multi-apartment house renovation?
For more detailed information visit Šiaulių bankas branches or call 8 700 55 055 (+370 37 301 337 from abroad).