Home construction financing confusion

WOW...I hadn't looked at it that way before. It is definitely true that the house is actually too expensive for this purchase price of 162,500. But in big cities, prices just keep rising (as do rents). The renovation costs are about 80,000. We could have avoided the expensive component if someone had registered the 39,000 in the land register. But that is out of the question. Now we have to weigh whether to accept the expensive component or not. It's "only" 39,000...or is it disproportionate after all?

Regarding the special repayments of the large component again (I probably didn't understand you): after ten years, special repayments of any amount are possible there. And yes, the funds freed up from the expensive component can of course be used as special repayments there. Did I get that now??

Regards

As mentioned, these are all just assumptions, but they can certainly be common.

It would be interesting to know why the bank stops exactly at 136TEUR with the condition of 3.53%. Normally, there are some lending limits (especially with such odd amounts), usually around 60% or 80%. Finding this out would be quite good. And then you can draw your own conclusions.

Also, the lending value will not correspond to the market (and therefore market) value, but there should not necessarily be a difference of 30 or even 40 TEUR at this scale.

So according to the advisor, it is actually the case that the current value of the house including the increase in value through renovation and modernization is not assessed the way I would have expected. I mean that of the assessed €80,000 renovation requirement only €55,000 is considered value-enhancing. Why exactly a limit is drawn at €136,000 I have to find out again. But it is clear that there is no room for negotiation at this point. If I assume that this matter is settled, do you consider the complete package acceptable or should further institutions be consulted? Honestly, I am somewhat tired of this by now. The present offer is also the first that I basically understood and somehow find coherent (although I cannot currently fully comprehend the exact limit drawing). Thanks already for the prompt and comprehensive feedback here.

Good morning!

I think the price of the house including the effort for renovations is acceptable. We have been searching for a while and therefore have a pretty good overview of the price development here. Furthermore, I also assume that the financing is fine as planned. I do not want to rule out that it might have been a bit cheaper with another bank, but basically we feel quite well advised. And if I interpret the statements here correctly, it is also not to be regarded as a complete disaster. For laypeople, it is simply not easy to navigate through the different financing concepts and at some point you have to make a decision. We have basically done that now. Thanks again.

Regards

Without exact cost items, any further comment remains a guess, just like the first ones...

What is missing is: land value per sqm, floor area ratio, plot ratio, plot size, living area, number of floors, purchase price, renovation breakdown, desired energy level (for KFW 151), additional costs, notary, court, real estate transfer tax, etc...

If the bank finances 195 and the house is worth 195 after renovation, then the bank does not care at all if you have invested 5 or 50 extra to reach this level. The main thing is that the value matches.

Therefore: Without exact cost items, any further comment remains a guess, just like the first ones...

Good, here are the details:
Purchase price €162,500
Standard land value €200 / m²
Floor area ratio, plot ratio I do not know at the moment.
Plot size (ownership): 343 m²

Living area 120 m²
Two full floors plus partially finished attic
Renovation schedule is a bit too complex here at the moment, but the major items are windows, hot water pipes, roof insulation, sanitary (together about €45,000).
Additional costs (notary, broker, property transfer tax = €18,000)