Land value too low - therefore no approval for construction financing

2015-11-19 10:26:20

And the bank would get their money, in the case of a forced auction the entire savings, and we are both employed indefinitely (my husband is a civil servant). For financing, we have always rejected the option with the building savings contracts. 1. My husband already has a building savings contract running and I do too, saving in Riester construction. And why should we take out a second one? They also wanted to offer a Riester loan (or something similar) after the repayment maturity, where the Riester subsidies would be included in the loan and disappear. And we do not want that. Our wish would be: a pure annuity loan plus possibly KfW bank.

2015-11-19 10:50:27

And here in my residential area, the land prices (between 100 and 200,- per sqm) are too high for us. We do not want to spend more than 300K to build a house. That is too high for us, no matter how attractive the location is. In the letter, our house bank said that if we were to convert the attic, then one could discuss the financing again.

2015-11-19 11:05:33

In the letter, our house bank said that if we had the roof converted, then we could talk again about the financing.

From this one could conclude that the bank simply values the property too low (for your loan request). Converted attic = more living space = higher property value = more loan

2015-11-19 11:13:10

No, he means "market value discount," that is a general discount after determining the object value.

However, something like that would be directly priced into the land value and applies more to the used real estate market. But even here, it should be included in the market value. One can follow this approach when determining the value using the cost approach.

And I can imagine that the appraisal committee for the region does not want to hear anything about that (negative interpretation for the region). And one wants to avoid that.

Have you meanwhile understood the difference between the standard land value, lending value, and market value of a developed property?

Hello,

I can confirm that. It was exactly 8% for us (new build turnkey fixed price). That means we had to provide at least 8% in addition to ancillary building costs. New build, mind you, and not a "discounter." We provided the 8% equity because the interest rate was great.

2015-11-19 11:14:47

Yes.

but nothing changes about the discussion. Or have you found a financier?

2015-11-19 11:21:40

But the attic conversion is not free after all. It also costs money, which must come (be financed) from somewhere.

Similar topics
19.02.2013	Is a Riester loan useful for my case?	13
10.07.2013	What do you think about the financing? + I have a huge problem	12
23.08.2013	Financing existing property - Attention beginners ;-)	13
21.01.2015	Financing with an additional mortgage on the parents' house	12
16.03.2015	Is financing new construction realistic?	12
12.10.2015	Youth financing feasible or too early?	12
15.09.2016	Financing without equity with security?	52
18.01.2016	Financing - where is the mistake?	33
10.07.2018	House financing through SAB	49
20.06.2016	Error in financing?	282
09.09.2016	Which financing (type/components) should we consider?	29
19.10.2016	From when does the financing start at the handover of the house in summer 2017?	19
21.10.2016	Is financing even possible?	41
10.02.2017	Is financing a new building feasible?	65
10.04.2017	Banks for 110% financing	169
17.05.2019	New construction - What is included in our financial budget?	77
14.05.2020	Financing Land & House - 2 Different Loans	34
04.10.2021	House construction financing: possible or too tight?	21

Land value too low - therefore no approval for construction financing

arubau36

arubau36

nordanney

HilfeHilfe

HilfeHilfe

toxicmolotof