Financing unequal equity ratios of unmarried partners

Amazingly precise legal assessment. I am quite impressed. It has succeeded in packing a lot of nonsense into very few lines, even though it (partly) points in the right direction. It is correct that the landowner (usually) is also the owner of the constructed house.

it is not a precise legal assessment but what the notary told us the day before yesterday. whoever is listed in the land register is the owner of the house. it does not matter at all who paid for the contents (house, etc.). the bank is also not the owner during the financing but holds the land as collateral. with a car it is different, for example, the bank has the vehicle title as collateral, which certifies them as the owner of the item (so for the financing of the vehicle, the bank is the owner). if someone is listed at 70% and another at 30% in the land register, in case of a sale the one with 70% would also receive 70% of the proceeds. however, in financing, all contracting parties are always jointly and severally liable, so each with 100% of the total sum. it also does not matter whether someone owns 30, 50, or 70% of the property. inheritance is regulated differently again, etc...
if you want to know exactly, you have to ask a notary; there are also plenty of lawyer websites where this is explained quite well.

to put it bluntly: if it is about securing significantly more capital from one side in the property, this can be relatively easily included through the division in the land register. if you are not married, you have quite different concerns anyway (e.g. will, inheritance tax, etc.).

Hi,

thanks a lot for the many answers. For me, it is primarily about excluding possibilities such as us being registered 50:50 in the land register, me now almost paying my 50% of the costs as equity, and if it comes to a separation, "only" getting half the house but still having to bear half the financing, since the contract with the bank only states that we as a couple pay the installment. According to your advice, this case would have to be contractually regulated so that the financing is not split equally.

if you want to do half and half, then of course each of you can pump in all your equity and then she pays more monthly installments. the bank doesn’t care where the money comes from.

Is that really so? If we jointly apply for the financing, then my income situation will also be included in the calculation and risk assessment of the bank. That is the reason for me to be included in the financing at all, so that it becomes cheaper.

you are financing the house together and make a payment of x euros. the bank will never find out from which account and in what proportions this payment is made, and it doesn’t really interest them. except for very few special exceptions, you both are always liable for the full amount of the property anyway. it does not matter if you and your partner agreed on a 7/8 and 1/8 payment, for example. if she does not pay the 7/8 because she is, for example, bankrupt, the bank will contact you and you won’t get out of it (this is called joint and several liability). therefore, all financing participants are checked for all financing-related details. it is perfectly possible that you finance a house with, for example, a permanent top position earning 100,000€ a year (and the remaining creditworthiness is of course in a positive range), which in the end is only paid by your better half, although she only has, for example, two 500 euro mini-jobs (because the bank thinks you will pay). basically, you then act as a kind of guarantor. what you probably intend is that you do not want to be involved in the financing. but how should that work? the bank can only use the entire property as collateral, even if half of it belongs to you. how should the bank sell your girlfriend’s half of the house, if the other half (not a semi-detached house!) of this single-family house belongs to you. you now have the following options: you bring in a lot of equity and pay more of the installment. you get that recorded in the land register accordingly (e.g., 60-40) you both pay in equal equity and then do everything 50-50 again. you keep a lot of equity. do you want that? with the ridiculous interest rates at the moment, it is not financially so great, but also not a disaster at your amounts.

Thank you for the clarification. I assume that I will contribute my equity (almost completely), still have the 50:50 entered into the mortgage (since the goal is that everyone pays the same), and adjust the installment accordingly so that I only pay a small part. Then I would only have to have a contract drawn up between us, which in case of emergency grants me more than half, namely proportionally according to the capital contribution actually made up to that point, so that I can buy out my wife (the other way around will not be feasible anyway).

Again: Get advice from a professional! Every case is different. Speculation and dangerous half-knowledge won’t help you! The money is definitely well invested.

Hello, that's right, we have also planned that, but you want to go into such a conversation well prepared.