Financing for house construction - desired loan / open credit

Sorry, Tapatalk keeps logging me out. I am b.b.

Whether the bank can be entered in the land register is not finally decided. Both are unlimited outside the probationary period

The question is not whether it can, but that it wants to.

Otherwise, the bank has no securities for the amount.

Why shouldn't she want to?

The bank wants to be registered in the land register for such an amount.

You say it is not yet clarified (probably with the parents-in-law) whether she can/may.

And if it is not "fully" up to the top edge, I also do not see the problem that a bank would lend you money.

Probably even on very good terms; however, only if it goes into the land register.

I do not understand why the question cannot be answered clearly, distinctly, and above all, comprehensively.

Basically, with the income, a mortgage-secured loan in the desired amount is not a problem at all. Anything other than a mortgage loan does not make sense. It would be too expensive, too large at over 100,000 euros, and, as described, completely nonsensical. If a land charge cannot be registered, I would also not carry out the value-adding expansion and modernization.

The mortgage loan must be secured by a land charge on the parental home. Thus, the parents are liable in rem and the [TE] personally. A purpose declaration that the bank requires from the parents on a form then establishes the connection between the loan and the land charge.

It is important to know whether there is still a valid land charge or whether the house is free of encumbrances. A land charge that is no longer valid can be assigned to the bank. Otherwise, the land charge must be newly registered.

If the house has a granny flat, taking out the loan can lead to the local customary rent no longer being recorded as income by the tax office. Consult a tax advisor on this. The question remains whether rent is currently being paid and, if so, whether it will still be demanded or required for the parents after the investment.

So, a mortgage loan secured by land charge based on the parents’ security is possible and feasible; the purchase of a kitchen and the repayment of existing loans can also be realized with and from the loan.

I don't understand why the question cannot be answered clearly, distinctly, and above all holistically.

Basically, with the income, a mortgage-secured loan of the desired amount is absolutely no problem. Anything other than a mortgage loan makes no sense. It would be too expensive, over 100,000 euros too large, and as described, completely pointless. If a land charge cannot be registered, I would not realize the value-adding expansion and modernization either.

The mortgage loan must be secured by a land charge on the parents' house. Thus, the parents are liable in rem and the OP personally. A purpose declaration that the bank requires from the parents on a form then represents the connection between the loan and the land charge.

It would be important to know whether there is still an outstanding land charge or whether the house is free of encumbrances. A land charge that is no longer outstanding can be assigned to the bank. Otherwise, the land charge must be newly registered.

If the house has a granny flat, taking out the loan can lead to the tax office no longer considering a customary local rent as income. Consult a tax advisor on this. The question also remains whether rent is currently being paid and, if so, whether this will still be demanded or required for the parents after the investment.

So, a mortgage-secured loan based on the parents' security is possible and feasible, and the purchase of a kitchen and the repayment of existing loans can also be realized with and from the loan.

The house is paid off.

So far, the house is only inhabited by the parents.

We then do not have to pay rent; the upper floor is basically a shell.