Home Loan for Buying a Guest Apartment – LHV Bank Developed an Innovative Solution for Laferme
Domestic LHV Bank has begun offering a new guest apartment home loan to buyers of the Laferme complex being built on Pirita Road in Tallinn, with an initial down payment starting from 20%, but a loan term of up to 30 years and an interest rate similar to a home loan matching the client's profile.
According to Ingmar Saksing, a member of the management board of LVM Real Estate, which is handling the sales organization of Laferme, there was an empty niche in the market for offering modern financing solutions for guest apartments, which domestic LHV Bank has now seized. "In the case of guest apartments built in several places in Estonia, buyer financing has so far been hampered by numerous limitations, such as an initial down payment reaching up to half the purchase price, a loan period of up to 10 years, and often an interest rate significantly higher than a regular home loan," explained Saksing. According to him, LHV's new home loan for guest apartments provides a solution to all these problems, as the product terms are essentially the same as those of a regular home loan, only requiring the buyer to make a slightly higher initial down payment.
According to Catlin Vatsel, head of the personal financing department at LHV Bank, the bank is fully prepared to finance guest apartment buyers with a home loan, provided that the buyer plans to use the property as a residence in the future. "In addition to providing an initial loan application response within 24 hours, we offer home loan borrowers favorable loan terms and the opportunity to repay the loan exceptionally flexibly, at a time and amount suitable for them, without additional fees or penalties. In addition, clients can use the everyday banking services of LHV, which holds the title of best service bank," she noted.
Laferme, rising next to the Flower Pavilion, which consists of a new and historical building connected via a first floor and underground parking garage, will be completed as planned in spring 2025. The historical part of Laferme will be completely renovated by KRC Construction on behalf of developer Lind Living, and it will be supplemented by a modern addition that harmoniously fits with the surrounding buildings. "This is a dignified location known to all Tallinn residents on Pirita Road between the Song Festival Grounds and the Flower Pavilion. Over the past decade, several new residential buildings that are very highly valued and popular on the real estate market have been built in the area. The architect of the Laferme project, Tormi Sooväli, has done very good work, and in addition to quality interior solutions, the appearance and harmonious overall impression of the entire complex are also ensured," said Ingmar Saksing, a member of the management board of LVM Real Estate, which is handling the sales organization of the building.
