h9nry
2015-02-16 21:26:52
- #1
We have found a plot of land that very closely meets our requirements. Currently, it is not yet developed; it has been fallow for a long time and is now being sold, with development planned in the coming months. The price per square meter including development is about 15% higher than what the municipality charges for developed plots, which would be acceptable to us for now. However, when looking at the standard land value for the relevant area, it has become apparent that this (as of 2012) is only 20% of the selling price. Our plan was to acquire the plot essentially from our equity and then incorporate it into the financing. My question or concern now is that the bank might base its valuation on the old standard land value, and consequently only credit 20% of our equity. This would call the entire financing into question. Would this actually be the bank's approach to valuing the plot, or would development and the fact that other buyers have also purchased in the area lead to an "upward adjustment"?