Financing options for acquiring grandfather's house

First of all, thank you very much for your quick responses.

Do a valuation, then you can maintain family peace. At 93 years old, I assume that for the last 25-30 years it has only been maintained.

I don’t know exactly what “maintained” includes. Stuff like sealing the flat roof (with that black stuff) was done regularly.

Therefore, I would initially estimate a flat rate of €2,000/sqm for the renovation and your wishes.

Phew, for that we would need a loan of almost €350,000 alone. We would probably hardly manage that financially, especially if another loan is taken out.

However, I would only take out a private loan from the father at most and pay out the siblings regularly. And probably only for the renovation work.

I don’t quite understand the connection in the last sentence. What exactly do you mean?



And things like an advance inheritance from my father to me don’t make much sense? Or a purchase from my father on a pension basis? You hear different models here and there.



I also don’t know if my siblings necessarily have to be involved and receive money immediately, or if it’s ultimately a purchase between me and my father. It’s not the case at first that my siblings and I inherit the house.



We have a tax advisor (working freelance as a private practice psychotherapist).

An official valuation is all well and good, but it will certainly disadvantage you in the current situation. The comparative value method still includes all the houses that were financed at 1%, but you now have a much higher interest rate. Additionally, these houses were sold with different energy and renovation costs. I would talk to the siblings about what discount they would accept if they are paid out and then possibly pay for your own appraiser with the appropriate assignment. Depending on the condition of the house, this can also help with the inheritance tax for the father, as he will certainly want to come out under 400k. Another issue is the renovation costs. This sounds very much like a complete renovation and that is not cheap. Make sure to have a good cost estimate done beforehand. Private loans are something you can do, but I would avoid them if possible. The potential for disputes afterwards is very high, and if you want to be fair, you have to charge proper interest on the loan.

We had a similar case and did it as follows:

My sister and I agreed on a value that everyone was happy with. It took us less than 2 minutes over a mulled wine.

The value was split into thirds. 1/3 to my father, 1/3 to my sister, and 1/3 to me.
My sister was paid out by us.
My father, or rather my parents, will receive the money in small installments as a pension supplement when my mother retires. However, they have hinted multiple times that we probably will never have to pay the money because they simply don’t need it :D

P.s.
before anyone accuses me of taking advantage of my sister. A few years ago, she took out a private loan for the same amount when she and her husband bought a house, and my sister does not have to repay this loan either.

Thank you all for your answers.

Besides possible financing options, the question now arises regarding possible and necessary renovation work, which ultimately also plays into our general financing possibilities.

So, we would actually like to avoid a major renovation (at least if a major renovation includes what you usually find under images on Google for "major renovation").
The idea with the fireplace was just that, an idea; I just read that an open fireplace can also be easily converted, which would be a good option. Doors and doorframes, stairs, etc. could remain. The room layout and the number and position of the windows actually fit as well.

We discussed injection insulation and insulation for the flat roof a bit, which seems quite feasible price-wise (if generally possible).
Renovating the heating system and bathrooms would probably be the most expensive, if at all possible (there is already underfloor heating on the ground floor). I also have no idea whether one should renew the pipes etc. in this context, because with a house from the 70s, it would come up eventually anyway.

So, the house appears very modern and stylish for its age, the windows are definitely not from the 70s. Maybe I should just take a look at what has already been done together with my father.
The question is also whether one should do "everything" right away, or if some things could follow step by step.
Quite a lot of questions when you are just starting out.

My sister and I agreed on a value that everyone was happy with. It didn’t take us even 2 minutes over a mulled wine.

That sounds pretty cool, maybe we just need to talk about it that way around Christmas as well. I’m just a bit worried that house prices before the interest rate hike (to which houses in our area no longer sell) are very entrenched. :)

That can also go seriously wrong. I know a case where someone suddenly needed money for financing 5 years after a privately agreed arrangement, and then there was a dispute because the house was divided significantly below value. I would always arrange something like that officially, just like with any unrelated business partner. Emotions and large sums are always tricky.