Financing for splitter

Hello to the forum!

How is a divider financed? (Buy residential building -> make declaration of division -> sell apartments individually)

When buying the house, the bank is registered in the land register, is the loan then distributed according to the shares of the apartments?

Does the bank always have to agree to the division?

Best regards

Hello,
the bank does not have to agree to the division. The first registered mortgage will be transferred as a collective mortgage to all apartments in case of division. However, when selling, the bank can demand the entire purchase price (unless something different was agreed at the beginning).
By the way, a long-term financing (due to prepayment penalty) is usually not concluded for a division measure, but a variable interest rate is generally chosen. Everything else must be discussed between you and the bank. Please also talk to your tax advisor beforehand; as soon as you sell multiple apartments, you will be treated as a commercial real estate dealer (trade tax!).
Overall, not an easy matter, which banks usually do not like to support. Why? Because the nice apartments are sold first and the seller (and thus the bank) often remains stuck with the residual units.