Financing Check: Building a House in 2.5 Years

From when can a house be mortgaged? Due to Corona and Christmas, there will probably be a slightly longer gap between the notarized certification of the transfer and the entry in the land register. Do we have to wait until everything is updated in the land register, or can we already go directly to the bank?

The mortgage is placed on the land, not on the house. The mortgage deed can be signed at the notary on the same day as the purchase contract. If it is in Buchholz in Lower Saxony, the municipal supervision must then issue an approval according to § 121 para. 1 NKomVG (or other "crooked things" may come into play, such as a notary escrow account).

What are you looking at? I am myself "near Buchholz" :)

We want to take a look at the new development area near Sprötze

The loan is secured on the property, not on the house. The land charge can be signed at the notary on the same day as the purchase contract.

Mhm. This is about a real estate gift happening in parallel, and we want to use this to finance our home.

We want to take a look at the new development area near Sprötze

Thanks for the info. I’m more on the other side of Buchholz. Are you dependent on the D-Bahn? Then I can also suggest Stelle/Ashausen, Klecken, Emmelndorf, Meckelfeld (maps a bit outside, but right in the middle, because of the train station). Dibbersen or the Nenndorf area could also be interesting if you will be working in Hamburg. Klecken, Emmelndorf, and Ohlendorf have good highway connections. Hanstedt and Jesteburg offer nice living, but you would have to drive some kilometers to the train connection...

I advise you to take a closer look at the highway entrances via Google Maps: west of the highway it's usually quite calm, quieter than east. And often you get to the city faster than if you live on the direct edge of Hamburg. Neugraben/Neu Wulmstorf was also on your radar, as I read yesterday.

Yep, senior usufruct is not good (the age of the entitled persons and the specific design are important for the bank). It is very similar to the right of residence.

Thanks anyway for this hint! In the meantime, not much has happened, corona, illness and such. Also, all new development areas are dragging on... Next Tuesday is the notary appointment. The property will now be transferred to us by way of anticipated inheritance in return for a provision payment. Since everything is going very slowly at first and now going fast one after another (only received the transfer agreement today), I have a question and can’t find anyone over the weekend who can tell me more about it (my bank contact is not reachable), but there are a few knowledgeable people around here: There are 2 old mortgages in the land register, they are paid off and will be deleted, deletion consent is available. I will already have an owner’s land charge registered over 50% of the market value of the property in order to then promptly mortgage the property (for equity for our house, gift tax, maintenance of the house, Porsche (joking) etc.) The owner’s land charge is already included in the transfer agreement. So far so good. What is still listed under “to discuss at the appointment” is: - Yes or no: the additional securing of the provision payment in the land register – the capital value is about 15% of the property value (grandma is 84 years old and the provision payment is low) - Yes or no: a retransfer priority notice for: sale, insolvency, foreclosure, gross ingratitude according to the Building Code, death of the donee before the gift, divorce - and the ranking order of these things with the owner’s land charge. I had proposed to register nothing except the owner’s land charge in the land register. Or if the other things, then subordinated to that. I assume this will also happen. But assuming the “worst case”: the real burden of the provision payment and the retransfer priority notice come into the land register and also rank higher than the owner’s land charge – is there at all a possibility to get a mortgage on the house? Or does it change little because the real burden is so low and the retransfer priority notice only applies to the existing cases.

I will already have an owner’s land charge registered over 50% of the market value of the property in order to mortgage the property shortly thereafter (for equity in our house, gift tax, maintenance of the house, Porsche (joking) etc..) The owner’s land charge is already included in the transfer agreement. So far, so good.

Why? It is quite possible that the bank will not accept the land charge because it does not meet their requirements (interest, ancillary costs, personal liability, etc.). There is absolutely no reason for that.

The real burden of the pension benefit and the reservation of surrender notation will be entered in the land register and also rank higher than the owner’s land charge – is there even a chance to get a mortgage on the house? Or does that hardly matter because the real burden is so low and the reservation of surrender notation only applies to existing cases.

The notarial contract specifies which rank each gets. Pension benefit in priority (what does pension benefit mean?) is usually much worse than the right of residence or usufruct. As a bank, I would calmly reject the financing request after three sentences. Pension = care = highest care level as monetary benefit = €2k monthly + pension = monster value!!!

Thank you for the answer.

Why

To secure a first priority, that was the idea. If the bank doesn’t accept it, then you can change it again and waive the priority. There simply isn’t enough time now.

The notarized contract states who gets which priority

correct, and both variants are included in the draft with the note that it will be discussed and decided at the notary.

Supply service in priority (what does supply service mean?) is usually much worse than the right of residence or usufruct

sum x per month – no other things. So nothing else. Basically I don’t worry about it because the good lady still owns a few properties.

What role does a possible retransfer play?