HOUSING COMPANY MONTHLY CHARGES
Housing Company Charges are set in the Housing Company articles of association.
A Housing Company shareholder is obliged to reimborse to the Housing Company his/her share in the Housing Company expences, based on the principle set in the articles of association of the housing company. The charges mentioned above shall not be mixed with any lease or over similar payments.
Housing Company expences , which are in line with housing company law, articles of association or contract can be covered by the charges mentioned above.
Such expences are Real Estate acquisition and construction; usage and maintenance; plot of land lease; heating, water supply and waste handling; cleaning and lighting of the common areas of the housing company; management and maintenance companies fees; real estate insurances and taxes ; repair costs; additional construction or major renovation costs.
Basis for the Monthly Charges
The basis for the charges shall be set in the articles of association. Apartment square, for example, can be choosen as the basis for the charges. Additionally, water, electricity, heating or other commodity which is possible to calculate based on factual consumption or reliably estimate can be the basis for the charges. A Housing Company shareholders meeting shall decide on the amount of a charge. The meeting determines the unit price of the charge. Housing Company Monthly charges (Yhtiövastike) consists of Maintenance/Management Charge (hoitovastike) and possible Charge for financial costs / Charge for capital costs (Rahoitusvastike / Pääomavastike).
Maintenance/Management Charge (hoitovastike) covers the Housing Company real estate maintenance costs and heating. Charge for financial costs / Charge for capital costs (Rahoitusvastike / Pääomavastike) in its turn covers Housing Company loans related costs, such as interest and principal of those.
- Charge for financial costs / charge for capital costs (Rahoitusvastike / Pääomavastike) is a monthly payment to be made by housing company shareholders. The payment applies to the both the principal and the interest on the housing company loan. When the housing company loan is paid in full, the charge for financial costs does not apply any more.
- Maintenance / Management charge (Hoitovastike) is a monthly payment to be made by the housing company shareholder. The payment applies to housing company management, maintenance, utilities, waste management, cleaning, real estate tax and insurances.
- Charge for plot rent is a monthly payment to be made by the housing company shareholder. The payment applies to the costs arising from the lease payments for the plot of land rented by the housing company.
Usually, depending of the article of association and/or decision of the shareholders meeting of a housing company, the shareholder has an opportunity to repay the housing company loan by, for example, one time payment at any time.
When the housing company is on the leased plot, you can buy the apartment with less capital involved and pay the share of the plot rent as a part of the monthly charges. Whereas the housing company is on its own plot, correspondingly, more capital required for the apartment purchasing, but the monthly housing costs are lower.
Plot of land redemption and transfer
Lehto provides all necessary information for each housing company to be built, including the conditions for the plot of land redemption.
The plot of land's redemption price is not included in the debt-free price of the apartment. The price for the leased plot redemption is given separately. Usually, paying the redemption price is possible at the time of completion of the apartment and once a year thereafter.
When you use the redemption right, the full redemption price must be paid at once. Some housing companies also allow the partial redemption of the lease share. If you later sell your apartment shares and have not exercised your plot of land redemption right, it will be transferred to the new owner.
The plot of land redemption is a real estate transaction, thus the transfer tax of 4% to be paid.
The housing company can redeem the plot entirely for itself if all the shareholders redeem their parts of the plot. In this case, the rented plot becomes the housing company's own property.
In some cases, the redeeming of the share of the plot of land related to the apartment may have sense, depending on the buyers plans to live in the apartments longer or to rent it out, as well as on financial aspects.
In addition to the mentioned above a Housing Company can collect different charges such as water, parking places, internet connection and common sauna usage.
In accordance with the Housing Company law (of 1.07.2010) The board of a Housing Company is obliged to present the shareholders' general meeting a written report of the maintenance needs of the company's buildings and property in the period of five years following the meeting. Therefore, a long-term repair program can be drawn up for the company, usually by the housing company board and property manager together or by an independent expert in building care. Usually, this occurs in practice with the help of building condition assessment and a technical long-term maintenance plan. The plan defines likely service life, repair need, repair method and anticipated repair cost for each building element. The condition assessment ad maintenance plan gives the shareholders of the housing company an overall picture of the condition of the property and buildings, future repair needs, their recommended repair schedule and estimated costs.
Housing Company Charges are set in the Housing Company articles of association.
A Housing Company shareholder is obliged to reimburse to the Housing Company his/her share in the Housing Company expenses, based on the principle set in the articles of association of the housing company. The charges mentioned above shall not be mixed with any lease or over similar payments.
Housing Company expenses, which are in line with housing company law, articles of association or contract can be covered by the charges mentioned above.
Such expenses are Real Estate acquisition and construction; usage and maintenance; plot of land lease; heating, water supply and waste handling; cleaning and lighting of the common areas of the housing company; management and maintenance companies fees; real estate insurances and taxes ; repair costs; additional construction or major renovation costs.