Kauplykill is a fund that invests in residential properties and is owned by Skuggi Construction Company, a company with decades of experience in construction and real estate development. Kauplykill offers up to 25% support for first-time buyers and 20% for other buyers when purchasing properties owned by Skuggi Construction Company, making it easier for buyers to finance their purchases with lower borrowing.
Kauplykill is hosted and operated by Stefnir Asset Management, one of the country’s largest asset management companies and part of Arion Bank Group.
The fund will invest in shares of the respective properties that will be in undivided co-ownership with individuals.
Individuals who have at least 10% equity and pass the credit assessment of Icelandic banks for up to 65% loan.
Kauplykill then contributes up to 25% and consequently becomes a 25% co-owner of the property.
A buyer who is purchasing their first property or has not owned residential property for five years.
The annual maximum utilization of private pension savings is ISK 500,000 per individual and the utilization can last for a maximum of 10 consecutive years.
Further explanations of the conditions can be found at rsk.is
Apartments from Skuggi Construction Company’s projects Áshamar 2-6 and Baughamar 1
which are owned by the Skuggi Construction Company group.
The individual pays rent amounting to 5% of Kauplykill’s contribution to the property’s purchase price.
The rent is NOT paid monthly but becomes due upon sale of the property or at the end of the contract.
The rent is indexed and due rent bears indexation from the due date until it is paid.
If the sales proceeds do not cover settlement after the mortgage has been paid off, the rent is cancelled.
If the property increases in value due to market conditions, the customer receives the benefit of their 70-75% ownership share minus accumulated rent and remaining mortgage, if any.
Kauplykill also receives the benefit of its 20-25% ownership share.
If the property decreases in value due to market conditions and is sold at that point, the loss is divided proportionally according to ownership shares.
The customer bears the depreciation on their 70-75% share and Kauplykill on its 20-25% share.
The rent is cancelled if the sales proceeds do not cover it after the mortgage has been paid off.
Kauplykill is fully owned by Skuggi Construction Company.
Our buildings are constructed with professionalism, with quality and customer needs as our guiding light. Today, Skuggi employs a group of specialists, and each year numerous subcontractors work for the company. We select experienced people and emphasize cultivating cooperation with reliable professionals who deliver quality work.
Kauplykill is hosted and operated by the fund management company Stefnir hf, which is part of Arion Bank Group.
Kauplykill’s benefit is to create a more active and stronger market for Skuggi Construction Company’s new buildings. Stefnir’s benefit lies in operating and managing new funds that grow in accordance with residential market price developments.
The individual pays rent amounting to 5% of Kauplykill’s contribution to the property’s purchase price.
The rent is NOT paid monthly but becomes due upon sale of the property or at the end of the contract.
The rent is indexed and bears indexation until paid, but partial or full early settlement is permitted.
If the sales proceeds do not cover rent settlement after mortgage and other costs have been paid, then it is cancelled.
Kauplykill pays up to 20-25% of property taxes, depending on property ownership share. The customer pays for daily maintenance and property operation such as electricity, heating, housing fees, and insurance.
The customer handles daily property maintenance and related costs, including housing association fees.
Kauplykill takes proportional part in costs for renovations approved by the housing association, but not for changes decided by the buyer (e.g., fixtures or painting) or damage beyond normal wear and tear.
The buyer is permitted to sell the property at any time during the contract period. However, if the sale takes place within 36 months from the contract date, a wear and tear fee is charged amounting to ISK 200.000. This is to cover costs incurred for document preparation and administration.
The buyer can own the property longer than 10 years but needs to settle the contract with Kauplykill by refinancing the property after 10 years.
Upon sale, the contract is settled simultaneously. The seller receives their profit proportionally as their 70-75% ownership share has increased with the market, minus 5% annual rent for full usage rights of Kauplykill’s 20-25% ownership share.
The rent is debited monthly, indexed, and settled upon sale or end of contract. If the sales proceeds are not sufficient to pay off the mortgage, the rent is cancelled.
Otherwise, settlement proceeds as follows: first sales costs and mortgage are paid, then accumulated rent is settled, and finally, what remains of the customer’s 70-75% share is paid to them.
For individuals lacking equity, there must be a suitable ownership period to build up equity through ownership. For these reasons, it was not considered advisable to have too short an ownership period.
Additionally, individuals typically refinance residential property between 5-10 years, so this ownership period was considered suitable.
When purchasing the property, the customer buys 70-75% and Kauplykill buys 20-25% of the property directly from the seller.
The customer undergoes credit assessment and takes loans from a banking institution/pension fund as is generally done. The loan goes on the 1st lien of the entire apartment (100% ownership share) but similarly Kauplykill receives 2nd lien in the apartment (100% ownership share)
Yes, the buyer can refinance their mortgage loans during the contract period. This always requires Kauplykill’s approval, but Kauplykill is not permitted to refuse approval without reasonable and legitimate cause.
The customer can demand to exercise their purchase right at any time after delivery by notifying Kauplykill in writing.
However, notification of purchase right exercise must reach Kauplykill no later than the date specified in the contract (option period).
If payment is made towards the contract based on the market value of Kauplykill’s ownership share, future rent decreases proportionally.
Without written approval from Kauplykill, the customer is not permitted to make changes to the property that go beyond the maintenance that the customer is required to perform.
All changes to the property that are not considered normal maintenance are at the buyer’s expense.
Kauplykill is not permitted to deny approval without legitimate reason.
Yes, the buyer is permitted to rent out the property and receives all rental payments.
The buyer bears all responsibility for the property regarding damage and losses that may occur during rental.
The parties enter into two contracts a) Co-ownership Agreement and b) Lease Agreement.
The main contract is the co-ownership agreement and covers the duties and rights of both parties i.e. the customer who is 70-75% owner of the property and Kauplykill who is 20-25% owner.
The lease agreement covers what payments the customer makes for use of the ownership share.