Housing support office/housing claims, experiences?

Hello dear community,
we received a letter from the housing promotion office today and are hoping for your advice.

First of all, the key data:
We have 3 children (boy 5 years, boy 3 years, and a girl 1 year) and have submitted the Z15 application. The house is a classic 1970s end-terrace house with 3 bedrooms (14 sqm, 14 sqm, and 17.5 sqm). We plan to expand the living space through an extension.

Now the problem is that the housing promotion office writes to us that the existing building meets the living space requirements because the large bedroom with 17.5 sqm can be shared by the boys.

Has anyone of you had experience with such a situation?

Currently, we are considering 2 options:
- Option 1: Write a statement explaining why we do not want to accommodate the boys together in one room.
- Option 2: Reduce the room size in planning. The room adjoins a storage room which is actually unusable due to its size. This means enlarging the storage room into the bedroom. However, we would have to withdraw the application and resubmit it with the adjustments. Whether that raises questions, probably.

If you can share experiences here or have good advice, we would be very grateful.

Are you dependent on the z15 loan? It also has disadvantages. A conventional construction loan would also work.

Now the problem is that the housing subsidy office writes to us that the existing building meets the housing requirements, since the large bedroom of 17.50 sqm can be shared by the boys.

This is a decision based on objective criteria set by the L-Bank.

why we do not want to accommodate the boys together in one room.

That would be a subjective answer. But I DO NOT want to, is not necessarily productive in such a situation. Especially because the boys are relatively the same age. I don’t see that way. Option 2 is better. I would follow that after a personal discussion with the bank (provided there is not the slightest chance for Option 2 there). So then defer the application, make a redesign and apply again. Please with a good justification why you want to make the room smaller. In the direction of "with the change, we are creating a new room that is well usable for family life (use for xyz), which leads to the previous children's room becoming smaller and only sufficient for one child."

Thank you very much for your answers.

We rely on the Z15 loan; without this component, it will be really difficult.

We withdrew our application yesterday and will only submit the costs for the acquisition and renovation of the existing building. We will try to finance the extension separately at a later time.

We really hope that it will work out this way and that we can start the project someday.

I thought it was already purchased, since above only the planning of the renovation was mentioned. Now then, since we are on the extension: before buying, I would 1. for terraced houses first check everything in the development plan and inquire at the building authority whether an extension or possibly a dormer to expand the living space in the attic is allowed. 2. If the house is from the 70s, a good calculation should now cover the financing of the necessary renovation. And if you calculate generously, and then save something again through EL, the internal renovation is practically planned financially - no matter what you call the financing - what you do not get now in money, you probably will not be able to raise later either.