Construction financing, 2 borrowers

Hello,

I have a question regarding construction financing. Briefly about the situation.

My girlfriend and I want to purchase a property. I already have some equity, my girlfriend has not yet had the opportunity to save any due to her studies. The financing could theoretically be done 100% by me alone, but my girlfriend does not want that. She wants to co-finance the property. The option that both finance 50% each does not work, since, as mentioned, she currently has no equity. She wants to finance with a different percentage share. This should remain flexible so that each can make additional payments at their discretion.

How does it look legally if both partners have signed with the bank, but one can/wants to stop paying? The bank logically turns to the other borrower in that case. Understood so far. But what happens if the relationship (not married) ends and an unequal amount has been paid into the joint financing account? For example, I paid 75%, girlfriend 25%. Does she then have the right to fully reclaim the 25% already paid towards financing? (In my opinion, she would thus have lived in the property rent-free during that time.) Or is a portion automatically withheld by the bank equivalent to the usual local rent, or does she have to "buy herself out" of the contract with the bank? ---> How does this situation look in regard to the land register, notarized contract, and the bank?

Thanks in advance for the contributions!

My girlfriend and I have the same situation. We will both be equally responsible for the financing and on the land register, meaning we are both equally liable. However, since I am also contributing equity and I will contribute about 2/3 and my girlfriend 1/3 of the payment, we will create a partnership agreement that regulates all circumstances and also determines the financial matters in case of a separation. You should do something like this in your situation as well. It costs a bit since it has to be done notarized, but then everyone is on the safe side.

The bank doesn't care which pot exactly the money comes from.

With us, everything is done jointly and 50/50. Since Partner A has more equity than Partner B, Partner A lends a part of the equity interest-free to Partner B. This is to be repaid in the event of separation. We think this is a good solution.

Thanks first of all for the quick answers!

Regarding ONeill: We are not equal partners, as I am contributing equity and will also contribute more (about 75%) to the financing. However, this can vary, among other things, due to bonus payments. Therefore, I would find it unfair to be registered "only" 50% in the land register. How did you handle this in the event of a separation, is the amount your girlfriend has paid so far refunded to her in full or only partially by you? If partially, in what proportion? How was this regulated? (Part of the local rent is withheld???) -> This is my suggestion, because otherwise she would have lived in the property for free with full repayment.

Regarding m_l_r_s: Unfortunately, this does not work for us, as I bring in equity and earn more, thus finance more. What if partner B cannot repay the borrowed and financing money upon separation? Otherwise, I find it also a good solution.

Include equity in the notarized contract when purchasing - construction.

Rules on who is allowed to keep the house in case of separation.

Between you, set up a GbR contract preferably with a tax advisor and done.

You have to distinguish between the external relationship with the bank = loan agreement. There you are equal partners, meaning that you both have full liability. It cannot be regulated differently.

Then there is the internal relationship between you and your girlfriend. Here you can agree on whatever you want. Ideally by notarial contract.

The land register is initially irrelevant. The bank is not really interested in how you divide the shares. However, it should correspond to the arrangements you have made internally.