Land charge - Separate financing for land and house

Good morning everyone,

I hope you can help me. It is actually curious because I have been googling for days looking for this information and can’t find it. Yet this is nothing unusual, as I am not the only one who finances land and house separately.

So...

I have financed my land. The registered land charge is set at 50% of the market value. Now I will be finished by the end of the year and the land will be paid off. After that, the house financing will begin. The loan amount for the house financing logically does not correspond to the amount in the land register.

How has your house-financing bank dealt with this? I have read somewhere that the land charge is not tied to the registered amount and therefore an assignment should be sufficient, right?

An assignment of the land charge costs €250. A cancellation and new registration costs €2500. Of course, the assignment of the land charge from the bank financing the land to the bank financing the house would be very helpful for me. It is already clear now that the house-financing bank will be a different one.

I’m curious about your experiences.

How did your home financing bank handle it? I read somewhere that the land charge is not tied to the registered amount and thus an assignment should be sufficient, right?

To my knowledge, but only in one direction. So, if the underlying loan is smaller, the bank cannot claim the full land charge.

The loan amount for the home financing logically does not correspond to the amount in the land register.

So the loan amount is higher than the amount in the land register?

Then only cancellation and new registration will work anyway.

A cancellation and re-registration 2500€.

Where did you get that value from? That would already be a 430K loan.

To my knowledge, but only in one direction. So, if the underlying loan is smaller, the bank cannot claim the full land charge.

So the loan amount is higher than the amount in the land register?

Then deletion and new registration will work anyway.

Yes, the land charge is at €55k and the loan for the house will be between €406k-€415k. That's exactly why I’m looking for someone here who can give me a reliable answer, because the land and the house are financed separately. It can’t be that rare that someone manages to pay off their land before applying for the house loan.

Where did you get that value from? That would already be a €430k loan.

House + ancillary construction costs + outdoor facilities = €406k-€415k. That's not unusual these days at €400 per m³, right?

Yes, the land charge is 55k€

House + ancillary construction costs + outdoor facilities = 406k€-415k€. That is not unusual anymore today at 400€ per m³, right?

It can't be that rare that someone manages to pay off their land before applying for the house loan.

No, but where is your problem? The assignment cannot work because only 55k are registered there. Moreover, there are also situations where the assignment between banks does not work because both banks do not get along.

That means I cannot avoid the deletion of the existing mortgage and the new registration of a higher mortgage?

So. I can't avoid having the previous mortgage deleted and a higher mortgage newly registered?

just ask your current bank how they handle that. Usually, you get a deletion approval and take it to the notary / land registry office. Whether they agree to an assignment, I don't know.