Why are developers offering apartments?
Land use plan requires to achieve a balance between residential and non-residential premises. We often face with the fact that real estate brokers in the sale convince the client that apartment is in fact the same as flat. It is not so, just the opposite, it is a non-residential space. Building Act, Land RegistryAct and Zoning plan are not familiar with the concept of apartment. The reasons why builders offer apartments are more.
Light technical review
When the developer applies the building authority for planning permission, one of the documents that must be accompanied is a light technical review. In layman´s terms, if the area shall be classified as flat, light-technician must confirm in his review whether the space enters a sufficient amount of light to be able to use the space for housing. Almost in every apartment building arise sites that are overshadowed by the surrounding built-up area so light shines into premises only for a few hours a day or not at all. This space cannot therefore be characterized as residential but on the contrary, it is, as we have already mentioned, a non-residential space.
For builders it is preferable to sell the premises for housing rather than sell or lease them as non-residential. When light enters the space, let´s say, one hour less than defined in the standard, these non-residential premises builders designate as an apartment or studio.
Is it possible to report a permanent residence in an apartment?
The apartment is entered in the Real Estate Cadastre as flat i.e.thing intended for housing. It follows that in the apartment you can report a permanent residence.
Problem with equipment mortgage?
The problem can occur in processing mortgage loan.
Although in the title deed the apartment is registered as flat, in processing mortgage loan the bank need not to qualify it as a flat. One of the documents for approval of a mortgage is an expert´s report. The expert will require in addition to the project documentation also planning permission respectively final building approval. However, in both cases the bank becomes apparent that this is a non-residential space and not a flat. Since the mortgage is primarily intended for refinancing housing, bank probably decides not to approve your mortgage.
With the purchase of the apartment always remains an open question for the owner whether in the resale will not occur complication of refinancing.