First buy the plot, then calmly plan and build...?

Hello,

very short notice we have now received a purchase commitment for our desired plot of land.
The contract is to be signed this month and notarized in January.

Unfortunately, we still have no idea what and with whom we want to build and what exactly it will cost.
We also still have a condominium that is to be sold.

The plot of land is to cost €102,000 + €2,500 for notary/land registry (2.5%) + €5,100 taxes (5%) = approx. €110,000

Our situation:

Married couple, both 37 years old – no children yet (separation of property)

Husband:

Net income: approx. €2,400

BHW building savings contract from 2003:
(contract amount €57,000 at 5%, credit interest 2%)
Current payout amount upon waiver: €41,500

Call money deposit: approx. €42,000

Wife:

Net income: approx. €1,300
No savings

Together:

Paid-off condominium 80 sqm,
Value approx. €70,000-80,000 – 50/50 in the land register
The husband has lent the wife €25,000 for repayment!

The desired house will cost approx. €200,000 - 250,000 and must be completed in 3 years!

How would you set up the financing?

The husband wants to acquire the plot of land as sole owner and also take out and service the house financing alone.
Does it make sense to borrow the necessary €30,000 for the plot of land flexibly, or should you ask relatives to avoid a land charge registration?

Does it make sense to take out a variable loan of the necessary 30,000€ for the plot, or should one ask relatives to avoid registering a land charge?

As you rightly point out, the first option incurs fees at the notary, land registry, and bank. On top of that come the interest charges. Later again, when the banks agree among themselves to repay the loan and have to coordinate with each other, plus additional costs for the land register.

If possible, I would ask the relatives, but also draw up a contract with them. Or – if there is enough mutual trust – declare it as a gift. This 30,000€ loan will then not be officially recorded, and you can consider whether to even declare it later with the "big loan" ;)

On our paid-off condominium, we did not have the mortgage removed. Couldn't we now take out a variable loan for approximately the sale price of the apartment? Then this could be easily repaid after the sale... This way, the new property should be free for the large loan for the house! Is that possible?

Paid-off condominium 80 sqm,
Value approx. €70,000-80,000 - 50/50 in the land register
The husband lent the wife €25,000 for repayment!

What is meant by the last sentence?

Regards, Yvonne

Presumably, that the apartment is debt-free and to achieve this the remaining 50% from [Ehefrau] (?) was paid by [Ehemann]. Strange behavior in a marriage, but to each their own ...

Why is it strange with an agreed separation of property? We know enough people who cannot/will not separate because of a property. Everyone must decide for themselves...