Are you a property manager or a member of a co-owners' association? Do you want to renovate your building or improve its energy efficiency? The co-ownership loan is designed to support you in this sustainable transition.
To learn more, contact us!
By phone:
(352) 42 42-20 63
It is a fixed-rate collective loan, taken out by the co-ownership (minimum of 2 members), to finance renovation work, regulatory compliance, or energy efficiency improvements to the building.
Examples of eligible works:
Vote on the project and the use of the loan
Quotes, property manager’s manual, list of co-owners, etc.
The insurance premium must be paid before the loan is set up
Each co-owner confirms or not their participation
Key terms and conditions:
You can request a quick preliminary agreement before the general assembly.
Good to know
Loans falling under the scope of the law of December 21, 2013 on the financing of small and medium-sized enterprises ("SME Financing Law") may be repaid early.
Offer subject to conditions and approval of your application by the bank.
 |
Flexibility: each co-owner is free to participate or not; |
|||
|
Speed: no more delays, even with tight deadlines; |
|||
|
Security: fixed rate guaranteed, monthly payments known in advance; | |||
|
Easy : no mortgage registration required; | |||
|
Protection: credit insurance is mandatory in case a co-owner fails payments. |
Once the renovation project is presented and approved by a majority vote at the general assembly, the financing phase begins.
There are several options available:
When the reserve fund is insufficient or a call for personal funds is too burdensome, a co-ownership loan can be taken out.
This collective renovation loan allows you to spread the cost over time and preserve the reserve fund for unexpected expenses.
The co-ownership loan also enables quicker action and helps meet tight deadlines required for compliance with new regulations.
It can also give access to government subsidies, provided the work is completed within a specific timeframe.
Financial constraints or complex administrative procedures should no longer delay or prevent your projects from happening.
Thanks to the mandatory credit insurance, the financial reserves of the co-ownership — and of all participating co-owners — are protected in case of payment default by one of them.
If a co-owner fails to pay their share of the loan, the credit insurance covers the missing payment.
The credit insurer then takes responsibility for recovering the amount from the defaulting co-owner.
The one-time credit insurance premium must be paid in advance using personal funds before the co-ownership loan can be granted.
How to contact us:
By phone:
(+352) 42 42-20 63
Frequently asked questions
The co-ownership loan is intended for building managers or co-owners’ associations. Collective financing requires a minimum of 2 participants for any co-owned building located in Luxembourg.
The main documents include:
According to each application, the bank reserves the right to request additional information or documents from the property manager or the co-owners’ association
The co-ownership, with the agreement of the co-owners, takes out a collective loan with the bank. This process is based on a decision made during a general assembly, where the nature and cost of the work are defined and approved by a majority of co-owners.
The minutes of the general assembly, sent to each co-owner, include the investment plan, the estimate, the purchase order, and the decision to take out a loan.
Although this is a collective loan, each owner decides whether to participate or not by sending a written or emailed confirmation.
Once the property manager has taken out the loan on behalf of the co-ownership, the monthly payments are allocated to the participating co-owners based on their ownership shares.
Co-owners who do not participate in the collective financing will contribute their share through personal funds or a private loan.
Each co-owner pays their monthly contribution into the co-owners’ association account. The loan is repaid automatically from the co-ownership’s current account.
(1)Offer subject to conditions and approval of your application by the bank, along with the required supporting documents.
