Land charge security on third-party property

I wanted to get a follow-up financing from ERGO. It concerns a condominium in a two-family house.

The property (built in 1992) is located on the outskirts of Hanover. Plot size 780m², total living area 217m². The entire property has a value of about 1 million euros.

My share is 76%. The other 24% belongs to a relative. There is a declaration of division and separate land registers for the two apartments.

ERGO was supposed to provide follow-up financing of about €100,000. That is less than the land value.

ERGO only wants to finance if they can register their mortgage on the entire property, including the other condominium ownership that does not belong to me.

Has anyone ever heard such nonsense before? ERGO must not be entirely sane. How do they come up with the idea to demand a mortgage registration on someone else's condominium ownership?

I actually thought ERGO was a reputable financing institution. I was clearly wrong. Something like this is more like a banking mafia.

To your questions:

Has anyone ever heard such nonsense?

Yes, every day!

ERGO must not be quite right. How can they demand a land charge registration on someone else’s residential property?

No idea… because they don’t understand financing? Financing for which this is a niche product?
Because they don’t want you as a customer????

I am always amazed how people can get so "verbally" upset about something like this on the Internet. You are not obliged to choose this company. If something doesn’t fit, you go somewhere else. End of story!

Because they don’t want you as a customer????

With a SCHUFA base score of 97.93 and a lifelong guaranteed pension income > €3,000, that should not be a problem.

I’m always amazed how people can get so "verbally" upset about such things on the internet. You are not obligated to take this company. If something doesn’t fit, you go somewhere else. That’s it!

One should warn others about such opaque practices. I will probably also cancel my insurances with ERGO because I do not want to support such companies anymore.

With a SCHUFA basic score of 97.93 and lifelong guaranteed pension income > €3,000, that should not be a problem.

There are values that cannot be reflected in any number.

One should warn others about such opaque practices.

Why opaque? They give you a path, which is very transparent?!

I will probably also cancel my insurances with ERGO because I do not want to support such companies any further

Do it!

It is technically not possible to register the land charge on a share of the house. All or nothing. Therefore, the co-owner must cooperate. Every bank will want it that way. You will probably be able to get an unsecured loan elsewhere at higher interest rates.

I am always amazed at how people can get so "verbally" upset about something like this on the internet. You are not obliged to take this company. If something doesn't fit, then you go somewhere else. End of story!

Charming at its best… as you would expect from … :p;)