The Mortgage Fund has released a report stating that 233 fully renovated apartments in the Absheron district have been added to the list of rental housing. These apartments are situated in the village of Sarai on Muhammad Asadov Street, and their monthly rent starts from 376 manats. Starting from August 3, citizens will have the option to select these new apartments through the “electronic system of mortgage lending and loan guarantee.” Currently, 3,736 individuals have already entered into a lease agreement under the mechanism with the obligation to sell. The mechanism for leasing residential areas with an obligation to sell was established in Azerbaijan on January 25, 2019, through a decree signed by President Ilham Aliyev. According to this procedure, rental agreements can be made for periods ranging from three to 25 years, with specific conditions outlined in the contract. The Azerbaijan Mortgage and Credit Guarantee Fund (AICGF) provided further details about the rental mechanism in an interview with Trend. The lessee must be a citizen of Azerbaijan with no overdue obligations or loans at the time of application. There are stringent requirements for age restriction, proof of income, and prepayment due to the prepayment nature of residential premises purchased through the Fund. The market value of the living space will be determined by an independent appraiser, and the living area must be insured at the estimated cost. After signing the contract, the lessee must pay an advance payment equivalent to 12 times the monthly rent amount. Monthly payments follow thereafter. The tenant will have the right to transfer their lease rights to a third party after the fourth year of the lease, with the consent of the Foundation. In the event of the tenant’s death, the lease agreement’s rights will pass on to their heirs. The cost of renting residential space with the obligation to sell must not be lower than the market price, and the housing must be insured by the Fund. The Fund may also impose additional requirements on tenants. The Fund offers fully renovated residential spaces equipped with electricity, water, and gas for rent. Houses built after 2013, provided with gas, water, and electricity, will also be available for rent under the obligation to sell. The rented residential premises will be insured by insurance companies, with the Fund covering the insurance premiums, and the cost of living space being taken into account when calculating monthly payments. Upon completion of payments, the residential premises belong to the Fund and will be transferred to the tenant. Monthly payments are directed towards covering the costs of purchasing living space, purchase costs, funds raised for this purpose, maintenance, management, and insurance. The cost of living space and monthly payments will vary depending on the location of the premises. Citizens will be given the freedom to choose any house they prefer when renting out residential areas with an obligation to sell. It is important to note that life insurance is not required when renting apartments with the obligation to sell. Additionally, tenants in the fourth year of the lease can transfer their lease rights to a third party with the Foundation’s consent. The allocation of apartments for rent will be based on the priority of applications submitted to the Fund through the electronic system. The Azerbaijan Mortgage and Credit Guarantee Fund, established by President Ilham Aliyev’s decree on December 26, 2017, is the legal successor of the Azerbaijan Mortgage Fund, with an authorized capital of 466 million manats. The Fund’s functions include issuing mortgage loans, providing guarantees for mortgage loans and loans in manats for entrepreneurs, issuing subsidies from the budget to cover part of the interest on loans for entrepreneurs, and introducing the “Electronic Mortgage” system.
Source: Turan News Agency