Financing without equity - Repayment / Interest

The WIKR does its part, either you are done by the child's 18th birthday or you need a plan to cover the gap.

As far as I know, there are no costs for the children from the age of 18. Unlike with one’s own children, foster parents do not have maintenance obligations. The child is simply kicked out of care and left to fend for themselves. I myself know "a little" about this because I am a care leaver, meaning I was placed by the youth welfare office in supervised living and therefore experienced it firsthand. There is still youth assistance until about the 21st birthday if you have not yet finished school – I finished my Abitur at 20, one year later than "normal," because I missed a year due to a bank apprenticeship. Everything from 18 onwards is tied to whether you still need upbringing, as your emotional development must not be complete; otherwise, you have no chance of youth assistance and probably no foster allowance.

Banks probably view this constellation as if no children are present, since the maintenance obligation is missing. This cannot be equated with adopted children.

You know better about that than I do, but with the amount at stake here, it is likely more than what is credited as flat rates. This will certainly lead to a gap under the new rules.

To be exact:
Man 3300 minimum
Child benefit 576
Care allowance 2541

Care allowance is temporary, right? I could imagine that banks make deductions here. Maybe toxi can say something about this.

Children cost money and children in need of care have the advantage that you get showered with money but you should also duly provide this money to the children. That means proper clothing, food, clubs, etc. As far as I'm concerned, also a share for the rent. Although my children don’t pay me any rent........ hmm

Care allowance is temporary, right? I could imagine that banks might make deductions here. Maybe toxi can say something about this.

Children cost money, and children in care have the advantage that they get showered with money, but they should also definitely receive this money. That means proper clothing, food, clubs, etc. From my side, also a share for the rent. Although my children don’t pay me rent........ hmm

Let's rather leave this off-topic subject. I also have concerns whether some parents (no accusation against the original poster!!!) might be given the wrong incentives. We might want to adopt a child later, and I wouldn’t want to take a single cent for it. Yes, I’m even against child benefits. Too many parents just "blow" it. Instead of child benefits, there should be free care and meals at schools. In many other countries that works much better (France).. only Germany is.. ah, let’s leave it at that..

Let's better leave this off-topic subject. I also have concerns whether some parents (no accusation towards the OP!!!) are given the wrong incentives. We might want to adopt a child later and I wouldn't want to take a cent for it. Yes, I'm even against child benefits. Also, too many parents just "waste" it on booze. Instead of child benefits, there should be free childcare and meals in schools. It works much better in many other countries (France)... only Germany is... oh, let's leave it at that...

Adoption is not foster care....

Yes, it is an off-topic subject, but in most cases love for the children is not the main focus in foster care. I speak from experience.

You can compare it a bit to a childminder. It is a work-from-home job that is very well paid. Well, children's homes also cost the state money. But there, the kids get the money for clothes and have to manage it themselves.

I would discuss the whole thing with the current bank. The open unknown will be how large the difference will be between the selling price of the existing property and the remaining debt for this property.

Have you paid off a lot in the last 6 years?

Possibly there is basically equity to be raised (i.e. with a positive difference).

Since you want to build; that takes time. So, the whole thing will run through bridge financing. That is also not a problem from the bank's perspective.

However, from my point of view, you are "tied" to your current bank, so you should get to the point with them as quickly as possible.

Back to the topic again. I can only repeat myself. The big unknown is the difference between the existing debts and the selling price.