Determination of the mortgage value for favorable land

Hello everyone,

how is the mortgage lending value of the property determined if I bought it well below the current value?

Hello everyone, how is the loan-to-value ratio of the property determined if I bought it well below the current value?

The purchase price of the property initially does not matter. Banks rather look at the standard land value. Purchase within the family? Then you can explain it well.

If it is an undeveloped plot of land, all the banks we contacted informed us that only the purchase price is included in the valuation. Upon inquiry, it was occasionally stated that a different valuation would be considered at the earliest 5 years after purchase or within the scope of the follow-up financing valuation.

Other perspectives would only have been possible in the case of a gift or significant deviations from the market price.

The purchase price of the property does not initially matter. Banks tend to look at the standard land value. Purchase within the family? Then you can explain it well.

Nonsense. Construction financing is a standard business. Initially, the purchase price counts. Everything else would have to be significantly below value and explainable (family, etc.)

Nonsense. Construction financing is a standard business. First and foremost, the purchase price counts. Everything else would have to be significantly below value and explainable (family, etc.)

Is there any reason other than family to get a significantly lower purchase price? By the way, I specifically asked that in my post. Because anyone who nowadays thinks they've got a bargain hasn't seen the catch.

If it is an undeveloped plot of land, all the banks we contacted told us that only the purchase price is considered in the valuation.

What exactly did you tell the banks or how did you ask?

Upon inquiry, it was occasionally stated that a different valuation would be considered no earlier than 5 years after purchase or in the context of the valuation for follow-up financing.

That is land. Nonsense. Incidentally, you haven’t yet said why you bought it far below value? The only reason can be family...

We bought it through the municipality. The standard land value was about 15% above the purchase price, market value (proven, since we resold a piece) was well over double the purchase price.

It was mainly about the equity ratio for us, but no chance.

We told the banks that we already own a plot of land, unencumbered, which we want to contribute as equity. Everyone only wanted to know the purchase price (acquisition date is visible through the land register). Our submitted cost breakdown based on [BRW] was immediately corrected by every bank.