How Ukrainians Can Obtain Rental Housing with the Right to Purchase
Today, 60.5% of Kyiv’s population and 46.1% of the Kyiv region live in overcrowded housing. The demand for new housing and rentals in the capital and surrounding areas remains high. According to forecasts, rental prices in Kyiv are expected to rise by an average of 25-35% in 2024.
This is reported by AgroReview
Construction law attorney Oleksandr Bosenko explains how Ukrainian citizens can become owners of rental housing. Renting with the right to purchase is a form of contract under which one party (the lessor) provides another party (the lessee) with property for use for a specified period in exchange for payment, with the option to subsequently purchase the property. This process is regulated, in particular, by Article 810-1 of the Civil Code of Ukraine.
Conditions for Renting with the Right to Purchase
The lessor under such a contract can only be a legal entity. The duration of the lease is determined by the agreement but cannot exceed 30 years. After the full payment of rental fees, the lessee has the right to obtain ownership of the housing. Renting with the right to purchase allows individuals who do not have sufficient funds to gradually accumulate finances for the purchase of their own housing while using it during this time.
“The right of ownership does not automatically transfer to the lessee after signing the lease agreement.”
The lessee becomes the owner of the apartment only after fulfilling all the conditions specified in the contract. Until the ownership right is transferred, the lessee is merely a user of the housing, and registration of residence in the apartment is carried out only with the owner’s consent.
What to Pay Attention To
In particular, it is important to check the documents for the apartment and the owner to ensure the legitimacy of their rights. It is also advisable to avoid apartments where minors or underage individuals are registered and to check for any ongoing legal proceedings regarding the property. Before concluding the agreement, it is advisable to involve an independent appraiser to determine the actual value of the housing.
The advantages of renting with the right to purchase include the ability to obtain your own housing even without having the entire sum of money. However, it is important to be aware of potential pitfalls, such as possible increases in rental payments, changes in property prices, or financial difficulties that may hinder timely rental payments.