Pursuant to art. 5 of Law of Ukraine No. 800-VI of December 25, 2008 “On Preventing the Impact of the Global Financial Crisis on Development of the Construction Industry and Housing”, the Cabinet of Ministers of Ukraine has approved by its Resolution a relevant Procedure of Leasing out an Accommodation with Redemption.
According to the specified Procedure, under a lease agreement, a lessor being one party transfers to an individual lessee being the other party an accommodation on a payment basis for a long period (up to 30 years), upon expiration of which or earlier, provided all rentals have been fully paid (an accommodation redeemed), the accommodation becomes an ownership of the lessee.
The Lessor manages the accommodation until the Lessee pays rentals in full amount. The Lessee owns and uses the accommodation leased out and, upon payment of all rentals, acquires ownership of this accommodation.
Lease conditions may spread out to an apartment or its part, a residential building or its part meant and suitable for permanent residence. A lease agreement should be concluded in writing, and is subject to mandatory notary certification and compulsory state registration. An agreement becomes effective after it has been registered with state authorities.
Rentals include redemption payments and a Lessor’s reward (income). Accommodation value specified in the lease agreement consists of redemption payments and an initial contribution of the Lessee. Lessor’s reward (income) is calculated as an interest rate from redemption payments; its amount is fixed with the lease agreement. The Lessee pays utility fees.
When a lease agreement is terminated, the Lessee and other persons residing with him/her will be subject to eviction with no accommodation facility provided to them in exchange.
In the event of the Lessee’s death, all rights and obligations under the lease agreement will be transferred to his/her heir.
The Resolution becomes effective starting on April 06, 2009.
Pursuant to art. 5 of Law of Ukraine No. 800-VI of December 25, 2008 “On Preventing the Impact of the Global Financial Crisis on Development of the Construction Industry and Housing”, the Cabinet of Ministers of Ukraine has approved by its Resolution a relevant Procedure of Leasing out an Accommodation with Redemption.
According to the specified Procedure, under a lease agreement, a lessor being one party transfers to an individual lessee being the other party an accommodation on a payment basis for a long period (up to 30 years), upon expiration of which or earlier, provided all rentals have been fully paid (an accommodation redeemed), the accommodation becomes an ownership of the lessee.
The Lessor manages the accommodation until the Lessee pays rentals in full amount. The Lessee owns and uses the accommodation leased out and, upon payment of all rentals, acquires ownership of this accommodation.
Lease conditions may spread out to an apartment or its part, a residential building or its part meant and suitable for permanent residence. A lease agreement should be concluded in writing, and is subject to mandatory notary certification and compulsory state registration. An agreement becomes effective after it has been registered with state authorities.
Rentals include redemption payments and a Lessor’s reward (income). Accommodation value specified in the lease agreement consists of redemption payments and an initial contribution of the Lessee. Lessor’s reward (income) is calculated as an interest rate from redemption payments; its amount is fixed with the lease agreement. The Lessee pays utility fees.
When a lease agreement is terminated, the Lessee and other persons residing with him/her will be subject to eviction with no accommodation facility provided to them in exchange.
In the event of the Lessee’s death, all rights and obligations under the lease agreement will be transferred to his/her heir.
The Resolution becomes effective starting on April 06, 2009.