Can I sublease my apartment?
The possibility to sublease the apartment will be decided by the housing regulations. Subletting for up to 2 years is often allowed in coops, if the coop members decide this in the bylaws. The regulations will be discussed on the residents meeting august 21st and voted into action on the founding general meeting.
Can a receive rent subsidy if I live in a family bought apartment?
As a resident in an apartment bought by a family member you are renting from the owner of the apartment. Consequently it is possible to apply for rent subsidy following the current laws.
I’m retired/retiring soon, is a family buy for me?
Family buy is an option for everybody. Parents/children of residents can use the equity in existent properties to get a cheaper loan. This also gives the opportunity to secure grandchildren a future apartment in the middle of the city in a real estate market that does not look like it is softening anytime soon. A cooperative housing apartment is on of the best gifts you can give your family right.
When is the money due?
The money is due sometime in September, the exact date will be announced at a later time. This means that the money isn’t to be paid at the founding general meeting, but the money should be secured in the bank at this time as a registration is binding after this date assuming the housing cooperative becomes a reality.
What is the risk of continuing to rent?
The terms will remain the same as today.
What will the rent be in 15-20 years?
It is impossible for us to estimate the rent 15-20 years from now. This is
dependent on too many unknown parameters such as the value of the
building, the loan market and if further improvements or renovations is
needed. All changes will be decided on general meetings which all
cooperative housing members can participate in.
How is the budget decided?
The budget is decided by the lawyer in collaboration with the initiative group. The budget is decided so all expenses is covered but without the intention of generating a profit for the cooperative housing association. When setteling the cost of the share and monthly rent a the happy medium is sought to ensure the most people have the possibility to join and find the rent acceptable.
What is my rent spent on?
The monthly rent goes towards the day-to-day running of the building,
ongoing maintains and payment of the loans. It is a requirement of the law
that cooperative housing association makes payments on loans. When we
make payments on the loan the equity in the building increases and
consequently the value of the apartment shares increases too. So when you
pay rent you are making saving deposits in you apartment.
Can communicate about offers and possibly acceptance of offers can be done digitally?
Yes.
Can deposit and account for internal maintenance be used as part of deposit?
Yes.
If you remain a renting tenant can you buy an apartment at a later date? Can you get on the internal waiting list?
You cannot expect to become part of the coop later, if you do not join from the start.
Are the penthouse and balcony projects still happening?
In the event that we take over the building, the projects will be stopped and all changes returned by DIP. As with the penthouse project, the balcony project will also be stopped by a takeover of the building as cooperative housing. Future opportunities will then be determined by the cooperative association, which consists of all the cooperative owners.
My bank said that they do not provide loans for deposits to newly formed cooperatives, since they consider the risk too great. Are there other banks that will provide loans in this situation?
New rules have been introduced to ensure that cooperative housing associations do not go bankrupt. There are several banks that residents have spoken to who would very much like to lend to newly formed cooperatives. Call around.
Risk if the association goes bankrupt – there have been several high-profile cases of cooperative housing associations that have gone bankrupt?
New rules have come in to prevent this from happening. They have gone bankrupt because of “smart” loans and underfunded maintenance. It is important that the residents who know the property tell the technician what they know about the property’s condition eg. with advice and regarding mould etc.
There would be no joint liability for the building’s mortgage loan, but one’s deposit will be lost.
Transfer of share/apartment and internal moving?
This depends on the terms of association, which the Initiative Group creates itself. Family can get priority, and an internal waiting list can be established etc. When a renter moves out, their apartment would then be converted into a coop apartment.
Can you buy a different apartment than your own?
As a starting point you have to buy your own apartment. But there is nothing to prevent from making a policy for internal moving, when establishing the coop association, but it depends on the terms set by the coop association.
Typically, reverse parental buying (child/grandchildren buying their parents/grandparents apartment) will also be allowed.
Price of the property?
The price is the offer from DIP and is not negotiable.
Changes to the property that DIP has notified?
These would be reversed, in terms with the letter that everyone has received.
Increased property taxes – difference between coop and renting?
Not yet 100% fixed, but there will be no significant difference.
Money under the table to sell coop?
At the moment this is not a problem, as there are no problems selling cooperatives today and have not been for many years.
When will we be a co-owner?
The association would be founded in September with the acquisition of the property as of October 1st.
Who should you contact if you suspect property damage?
Peter Jahn & Partners A / S, Pil Thorn Gammelgaard, ptg@pjp.dk, and
initiativgruppen@mellem5gader.dk