Calculation of equity capital in connection with KfW loan

Whether and to what extent the garden adds value is, I think, debatable. So far I have assumed that it is not financeable, as it is not permanently attached to the house.

Not attached to the house, but to the property. And for the garden or the outdoor facilities (which of course also include the driveway and the terrace) easily around €50,000 are added, which are also taken into account by the bank (terrace €5,000 + driveway €10,000 + earthworks for the garden with topsoil and lawn seeding + edging stones + outdoor electricity, etc.)

It seems we have different experiences.

Every bank calculates differently, as you can see once again. Therefore, my advice remains: 1. contact one main bank 2. at least 2 intermediaries. Calculate the construction sum as accurately as possible in advance (or have it calculated) and use that as a basis for discussion. You don't want unpleasant surprises during the credit check and/or loan disbursement.

I do not understand this problem - which we have indeed discussed quite often - unfortunately.

At the very beginning, we created a calculation with all the costs incurred. From the land, notary, house costs, kitchen, outdoor area, budget for furniture, budget for lamps, buffer, etc. That was a pretty long list and below it was a sum. Let's just assume that it was 500 K€.

Then we made a statement with our equity and looked at what we wanted to contribute from it. Let's also just assume 100 K€ here to stay with the example of the OP. => 100 K€ equity

So we needed 400 K€ from the bank - regardless of the form, whether with or without KfW => 400 K€ borrowed capital

I took this list with me to the bank meeting and asked the bank advisor to mark the items for which we should please use our equity and for which we need to submit invoices. => from my point of view a practical solution.

Due to the high equity ratio, the advisor said we should simply use our equity first and then gradually withdraw amounts while submitting the "larger" invoices (>10 K€). That would be enough. Sometimes 20 K€ were even paid out quasi blank.

But that depends on the bank. Therefore, my recommendation as described above. With the list as complete as possible to the advisor. He will then tell you what the respective bank "finances" and what you should rather pay from the equity.

It is not about what is paid from equity and what from [FK] and with which invoices the [FK] is secured, but about the lending value. That is a difference.

It is not about what is paid from equity and what is paid from debt and with which invoices the debt is secured, but about the loan value. That is a difference.

The advisor can also look that up from the aforementioned list. This is also handled differently from bank to bank.