Are you buying a flat (ejerlejlighed)? Then you should look closely at the association's shared property and the finances behind it. This can have a significant impact on your finances and disposable income after the purchase. Read more below.
You shouldn't only look at the condition of the specific home you're buying, but also the condition of the shared property that the association (foreningen) is obliged to maintain. It's therefore natural to also look into the association's operations, how it is funded on an ongoing basis, and whether maintenance is otherwise being prioritised.
Newly built homes There can be enormous differences between associations' assets, savings, and, of course, the maintenance needs of the building. For newly built homes, the need for maintenance is, all else being equal, limited. If it's prioritised within the association, savings — and therefore assets — can grow quickly.
Older properties
For older buildings, there may be larger necessary renovation projects underway or a wish to modernise the building. This can, for example, involve major expense items such as a new roof and sewer works, or modernisations such as adding balconies or lifts.
The owners' association's expense items Namely, how the owners' association (ejerforening) funds maintenance and improvements to the property:
- By taking out a joint loan (fælleslån)
- Cash payment per owner
- Financing through the sale of the owners' association's property
- A reserve fund/savings that can contribute
It's therefore essential for you as a buyer to get the right advice, so you can navigate which expense items you risk facing during your period of ownership. A truly skilled advisor can guide you through which expense items don't appear directly in the sales material and the purchase agreement.
In addition, there are naturally a number of other factors — such as options for renting out, parking, pets, and restrictions on renovation, among others — that may be relevant to your specific purchase.
TIP On page 4 of the sales listing (salgsopstilling), you can see the buyer's cash requirement as well as an overview of the owner expenses.
If the estate agent has received a response from the owners' association's administrator and updated the sales listing, you'll be able to see any joint loan (fælleslån) already taken out listed there.
What are my options when negotiating? Our skilled buyer's agents can help you negotiate and provide a concrete assessment of the right price for the home, taking into account any existing or upcoming joint loan. As the owner, you take over the debt, which can significantly affect the resale value.
How does an already existing joint loan affect my finances?
Our skilled financial advisors are ready to give you guidance and pursue the bank's approval of your purchase, taking any joint loans into account. A joint loan can significantly affect your disposable income, which is why the financial approval will be affected by it. It can also place certain limits on your financing if you wish, or are required, to pay your share of the joint loan in cash.
Fill out the contact form so we can talk about how we can help you with buying and financing your home.
