Already existing property as collateral for the bank??

Hello everyone,

my wife and I want to start building a house this year.

Our income is fine, only the equity could be higher.

We have already invested about 20k in our plot and will now have another 20-30k, so our equity will be around 40-50k. As I said, it could be more.

My question now. I will inherit a house from my parents. It has a value of 200-220k. Can I use this as "security" with the bank to get better terms? And would it make a difference to the bank whether I inherit the property in the future or have it transferred to me now so that the house belongs to me immediately?

Thank you very much and best regards

Of course that makes a difference. In the future inherited... well, that's nothing. That is a bounced check. The parents would have to guarantee with the property. - And if I ever put myself in the position of the testators, never ever would I guarantee with the house for my children and never transfer it to them prematurely. That would be madness, you run the loan into the ground and we would lose our home and be homeless. Life’s work gone, lost, frittered away, sorry mom and dad, tough luck. No.... kids, if you want to build, you stand on your own for your actions. Karsten

You can make the [logo], but your parents have to agree. Talk about having a land charge registered and hope that Junior pays everything off nicely, otherwise they will be homeless someday.

Of course, that makes a difference. Inheriting in the future... well, that's nothing. That's a bounced check. The parents would already have to guarantee with the property. - And if I ever put myself in the position of the testators, I would never, ever guarantee with the house for my children and never transfer it to them before its time. That would be madness, you run the loan into the ground and we would lose our home and be homeless. Lifetime achievement gone, lost, wasted, sorry mom and dad bad luck. No... children, if you want to build, you have to stand by your own actions yourself. Karsten

Hello Karsten,

Thank you for your answer. However, I did not ask if you would do it that way, and I find your answer somewhat presumptuous, since you don’t even know our life situation. My parents are happy to support me and have enough trust in me to fulfill my obligations. Apart from that, they do not live in the house they are bequeathing to me, but have another property. They will certainly never end up on the street.