Is this a 100% financing?

Hello everyone,

quick question. How is something like this evaluated by the bank:

Purchase of an existing property for €125,000 (value of the property €230,000) difference is inherited.
Conversion/renovation costs €105,000
furniture, kitchen, buffer €35,000

€35,000 is equity, so it is completely used for furniture, kitchen and buffer.

So the financing amount is €230,000
But with the €105,000 value-increasing things like new windows, insulation, etc. also happen.

Since the purchase price is significantly below the value, is this still considered 100% financing?

Presumably a >100% financing. Renovation costs certainly won’t be included 100%. Furniture, kitchen, buffer are your private pleasure anyway :)

It depends on how the bank values the house. If the bank actually recognizes €230K (verifiable by appraisal?), possibly minus a 20% safety deduction, we are at €184K, plus assumed 50% of the renovation costs €52.5K, making a total value of €236.5K. €230K would be just below that.

Perhaps one of the bankers will comment here again. The prerequisite is, of course, that the value of €230K is actually correct.

I see furniture, kitchen, and buffer as does.

The value is verifiable. The brokers' assessments are significantly higher, but I don't put much emphasis on them.

It depends on how the bank values the house. If the bank actually recognizes €230K (verifiable by appraisal?), possibly minus a 20% safety discount, we are at €184K, plus an assumed 50% of the renovation costs €52.5K, making a total value of €236.5K. €230K would be just below that. Maybe one of the bankers will comment here again. The prerequisite, of course, is that the value of €230K is actually correct. I see furniture, kitchen and buffer as

Land. calculated correctly. Maybe it’s only a 10% safety discount, maybe only 40% or even 70% of the renovation costs are taken into account or or or – only the bank that then finances knows for sure.