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Articles about real estate in Estonia » Legal intricacies in real estate » Renting an apartment in Estonia: everything you need to know! Discover the amazing opportunities and advantages right now!

Renting an apartment in Estonia: everything you need to know! Discover the amazing opportunities and advantages right now!

Legal intricacies in real estate / Mortgage or Home Loans / The Path to the Dream Home
21.01.2024
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Renting an apartment in Estonia: everything you need to know! Discover the amazing opportunities and advantages right now!

Renting real estate is a popular phenomenon in the housing market in many countries. In Estonia, this method of acquiring an apartment is also gaining momentum. Let's take a closer look at whether it is possible to rent an apartment in this country and what is required for it.

What is real estate leasing?

Leasing, or financial lease, implies an agreement whereby one party (the lessor) provides property to another party (the lessee) for use for a specified period for a regular fee. At the end of the contract term, those who have rented the apartment may have the right to buy it at a pre-agreed price.

Renting an apartment in Estonia: features and conditions

The Estonian model of real estate leasing may differ from similar schemes in other countries. The possibility and conditions for providing an apartment for leasing depend on the policies of specific banks and financial institutions.

As a rule, to arrange a lease, potential clients need to provide evidence of their ability to pay and stable income. Credit institutions carefully check the client's financial history and reputation.

An important point is the down payment for the property. In Estonia, it can range from 10% to 30% of the property's value. The monthly payment amount depends on the amount of the down payment, the duration of the lease agreement, and the total cost of the apartment.

However, there is a peculiarity of Estonian legislation: the housing market is closely controlled by the state, which can create additional bureaucratic obstacles for arranging financial leasing.

Advantages and disadvantages of leasing residential real estate

Among the advantages of leasing is the ability to use housing without the need to immediately purchase it at full cost. This is a convenient tool for acquiring your own housing for those who do not have enough money for an initial mortgage payment or other forms of financing.

The disadvantages are associated with the overall overpayment for the property at the end of the contract term if the option of buying the property after the completion of the financial lease period is chosen. Moreover, by not paying the full cost of the housing upfront, the person essentially remains a tenant until the moment of purchase..

Examples of leasing service providers

In Estonia, various banks and companies operate that can offer services for leasing real estate. Among the most well-known are Luminor Bank AS, SEB Pank, and Swedbank AS. They offer individual programs with different interest rates and conditions.

Conclusion

Thus, it is possible to rent an apartment in Estonia, but this option requires careful study of all conditions and consequences of signing such a contract. Before starting the process of preparing the necessary documents, it is recommended to consult with specialists or legal consultants to fully understand all aspects of this form of real estate acquisition.

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