Equity is tied up in a condominium, is financing still possible?

  • Erstellt am 2013-01-17 21:48:04

alitaki78

2013-01-17 21:48:04
  • #1
Hello everyone,

we have a condominium that is to be sold and for that we want to buy a plot of land and build a solid house. The question is, can I finance the plot of land without equity??? and if the condominium is sold later, can I "top up" the equity??

How does something like this work?

Thank you very much for your help

alitaki78
 

heltino

2013-01-18 01:10:43
  • #2
When financing, the following factors play a role:

1. Equity
2. Loan-to-value ratio
3. Creditworthiness

From this results your interest rate.

Adding more equity usually isn’t that simple, prepayment is generally limited.

The bank can tell you exactly; without income, life situation, other loans, etc., this cannot be answered.
 

alitaki78

2013-01-18 23:17:21
  • #3
hello Heltino,

thank you very much for your answer.
You are right, special repayments are usually limited and creditworthiness is also an important factor.

So there is probably no way around selling the [ETW] first, then everything else.


:)
 

nordanney

2013-01-19 11:52:48
  • #4
Hello, the condominium does not have to be sold first. We are facing the same problem (existing single-family house must be sold so that equity is available for the new house) and have solved it as follows. Financing of the new house in the long-term way we want + bridge financing of the proceeds from the sale of our previous house. The only catch is that you have to bear the bridge financing costs in addition and should take them into account in your calculation. Many banks offer bridge financing (e.g. local savings banks, PSD banks, Deutsche Bank, Volksbanken, etc.). Just ask your bank or go to a financing broker. Best regards Nordanney
 

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