Construction on someone else's property with subsequent purchase

Banks handle this differently; for us as a covered bond bank, this is possible – the Munich method according to the Federal Financial Supervisory Authority is simply applied in the calculation of the lending value. The property remains mortgageable. Only the disadvantage resulting from the fact that the GND or RND is not fully utilized is calculated; the capitalized hereditary building right interest is of course deducted, as well as, if applicable, a discount for general disadvantages arising from the hereditary building right agreement. It is definitely true that it is preferred if the repayment is completed 10 years before the expiration of the hereditary building right. But in my opinion, this is handled quite differently from bank to bank (even though according to MaRisk, SolVa, BelWertV, ImmowertV, etc., it shouldn’t really be so). Whether the whole thing is worth it is certainly another matter. The assessment of this rests with the seller and buyer :) But yes, your solution would certainly be the simplest and most straightforward.

Banks handle this differently, with us as a mortgage bank it is possible

Wow, then you must be relaxed. For us, it is a must to have repaid before maturity. Otherwise, I am familiar with the lending systematics.

The property remains property. mortgageable.

You mean the hereditary building right ;). The property has a value of 0€ :eek:

By chance, I have a very similar situation and, of course, I consulted a lawyer to find out why, how, and with what consequences. Note: I have a hereditary leasehold property with a low hereditary lease rent and a one-sided notarized contract (purchase offer). If it is accepted by the seller after 10 years, the previously agreed purchase price becomes due. If not, I continue to pay hereditary lease rent (which is not a problem for me as it is cheaper than financing the property, and 99 years is long enough that a sale of the property is easily possible).

That sounds like an interesting approach; how long to set the contract term would need to be examined more closely.

Regarding the direct purchase option: How could the speculative tax be best "reimbursed"? If you simply add it to the purchase price, the speculative tax to be paid increases significantly again. (For example, with a tax of 12,000 euros, that would be almost 5,000 euros more.) Do you have any ideas here? The two plots (the owner’s and the one we favor) are currently very poorly aligned regarding the boundary line; she wants to have the boundary line straightened first (i.e., surveying, etc.). Can this somehow be integrated into the considerations?

Regarding the option of direct purchase: How could the capital gains tax best be "reimbursed"?

Amounts up to €20,000 are also tax-free for gifts between non-relatives. But of course, this has nothing to do with your case, as that would be a tax evasion...

I'll throw the model "Mietkauf" into the ring. As far as I know, only the rent payments made until the purchase occurs (then after 2027) have to be taxed at the respective equity capital tax rate.

Alternatively, the house was neither inhabited nor rented out, right? Owner-occupation applies, for example, also to weekend or holiday homes that are "used" by the owner themselves. As soon as the garden was "owner-used" for relaxation, it is probably not necessary that the house was also inhabited.

As written: Basically, we would also add the difference on top, but so far our acquaintance has objected to this.

"Objected" doesn't sound good to me. Are there factual reasons why she cannot sell to you immediately if you pay her the capital gains tax? What happens if something happens to you or she becomes demented/ill or the social welfare office wants money from her, etc.? Does she have heirs?