Assessment of financing plan, conditions bad?

Due to the condominium apartment [ETW] that is rented out:

Is it encumbered or free of charges?

Because if free of charges, then one can raise capital on it at 60% of the value (great interest rate!)

This capital is brought into the house project, thus better conditions.

This is done through 2 banks, so it runs independently, in case one wants to sell the [ETW] after all.

(Of course, one could only do one financing and include the [ETW] as additional collateral, that also works, but then it becomes complicated in case of sale)

Thank you for the reply, no, the etw is not free of encumbrances, there is still an outstanding debt of 18,000 on it. We cannot sell it beforehand because we still have to pay the speculation tax on it, so we want to wait.

thank you for the answer, no, the etw is not free of encumbrances, there is still a remaining debt of 18000 on it. We cannot sell it beforehand because we still have to pay the speculation tax on it, that is why we want to wait.

18,000€ is not the world.... so if it is still good security, then I would add something to it and use that as equity for the other project.