Financing: Registered land charge vs. recorded land charge

Dear community,

Has anyone already had experience with the [Briefgrundschuld]?

We are currently in the process of financing our building plot. Now we have been presented with the option of the [Briefgrundschuld] by a potential lender. (of course only advantages :)) I have also read about pros and cons on the internet, but I would like to hear your opinions about it. Sensible? Or better to stick with the old-school book entry?

PS: we have to take out a variable loan since the house planning is not yet finalized and the associated costs.

Best regards

PS: we have to take out a variable loan because the house planning is not yet finalized and the associated costs.

I don’t understand? What does the plot of land have to do with the house? Fixed loan for the land. For the house, a new loan later, the repaid part of the land is equity. Olli

I don't understand? What does the plot have to do with the house? Fixed loan for the plot. For the house then a new loan later, the repaid part of the plot is equity. Olli

I don't understand your comment now.. Well, we are acquiring a building plot. Since the notary appointment is quite short notice, and we accordingly still have no house design (and the associated costs are not fixed), we cannot conclude overall financing. Ergo, we have to switch to a variable loan in order to be able to redeem the land charge at any time, possibly with a new lender then. But that's not the point now, rather about experiential values with a registered land charge and a book land charge... But apparently, no one really has experience with this yet..

Experience with a registered land charge and a land charge in the land register...

The registered land charge is more expensive. Otherwise, both are land charges. No differences in loan security. The registered land charge has a few advantages, e.g., a private written assignment is possible (relevant if the bank grants you a loan in its own name on behalf of another). In normal life, this is not interesting for you.
I would always initially take the one in the land register; the registered land charge can still be issued later if necessary.

P.S. Mortgages are old school. Both the registered land charge and the land charge in the land register are modern.
Which banking group is the hint from?

The [Brief] is more expensive. Otherwise, both are [Grundschulden]. No differences in loan security. The [Brief] has a few advantages, e.g. a private written assignment is possible (relevant if the bank grants you a loan in its own name on behalf of a third party). In everyday life, this is irrelevant for you.
I would always take the [Buch] first; the [Brief] can always be created later if necessary.

P.S. Mortgages are old school. Both [Brief] and [Buchgrundschulden] are modern.
From which banking group does the hint come?

Thank you very much!
Suggestion comes from VR Bank

Proposal comes from VR Bank

LOL, I expected that - then I can also understand it very well because of the private written assignment. But everything is okay and there is no reason to worry. Then VR Bank has other options, for example, to offer a 30-year fixed interest rate.