Construction financing without land registry entry

Hello everyone,

we want to build a single-family house and need to finance about 40% of it.

Now the bank wants to secure its position through a land register entry. I think this is rather common.

Are there any possibilities or has anyone ever financed without this land register entry from the bank?

I don’t want to pay the notary and land registry fees again!

It would be great if you could give me some information on how this might be possible otherwise.

Thanks!!

If you have a classic car worth 100k in the garage, you can also offer the vehicle registration document. The crucial question is: what securities/assets can you offer and which does the bank accept? Usually, these are only real estate; everything else tends to be more complicated/more expensive...

However, if you have an existing and sufficient land charge registered on another property and the related loan has been repaid, you can link this registration to the new loan, which at least saves part of the costs.

Best regards
Dirk Grafe

No, unfortunately I have no other material / tangible assets that I could offer the bank. I know that the bank wants to secure the greatest possible security. But is there no other way I could propose to the bank?? Thanks again for your answers!!

Hi,

how is the bank supposed to get its money in case of an emergency without a land register entry or comparable security? Other securities (pledge, guarantee) will probably be similarly expensive or even more expensive if they are accepted by the bank.

The loan is "tied" to the property, so it is understandable that many banks also want to "tie" the security to the property.

Best regards

Michael

Theoretically, you can of course talk the bank into granting you a consumer loan of 100k€ with the appropriate income - whether this is the clever alternative, I dare to doubt.

Best regards
Dirk Grafe

Hello,

Registering a [Grundschuld] is the simplest and most effective instrument of a bank. If you have nothing to pledge, you cannot make a proposal.