How is the amount of the land charge determined in the case of a new construction?

Good morning everyone,

our new building was completed about 3 months ago. Everything went well, including financially.
Now I would need collateral from a bank again for a different matter.

Can someone tell me how the maximum mortgage amount is generally determined for a new building? How do the land price, new building price, and, if applicable, additional costs factor in?

Thank you very much and best regards
Tobi

The land charge can in principle be registered at any amount. However, as a measurable security, usually only 60% of the loan value determined by the bank is taken into account (loan value = the price expected to be achieved long-term for the property / does not correspond to the purchase price of land + house, but is normally significantly lower). Unfortunately, I cannot answer more for your vague question. What exactly is it about?

If we assume a assessable security of 60 percent of the lending value, it should nevertheless be mentioned that the land charge is still and indeed registered in the amount of the loan - at least that is how I know it from two financings.

Best regards

K1300S

Well, I bought a plot of land for about 200,000 (excluding additional costs) and built a house on it for 243,000 (price from the developer). I have invested another approximately 100,000 so far in additional costs and interior construction/furnishing. It is currently encumbered with 304,000. Now, due to an unfortunate situation, which I do not want to go into further, another bank requires a security of 30,000. At the moment, the money is in an account and pledged. And given the current interest rate, that's not really great.

According to my statement, it should be feasible to increase the mortgage - but of course, this again incurs processing fees, etc. In addition, the bank already registered in the land register must of course increase it (and not some other bank register a second mortgage), otherwise it would only be subordinately secured.

Yes, fees for that would be around 500,-, which would pay off again since the bank is currently offering me 0.5% for the pledged 30,000,-.

How can the bank currently registered in the land register increase the land charge if another bank needs the security? Can it then transfer the land charge amount to the other bank?