Mortgage and two different banks

Hello everyone, I have a question regarding the mortgage with two different banks: My girlfriend and I want to purchase a plot of land in the second row together with my sister and her husband. The plot of land to be sold will be divided for this purpose and we (the four of us) will acquire the new plot, which is later to be divided ideologically again by means of a partition declaration. According to the notary, the latter step can only be done after the four of us have become owners of the new plot. Financing for my sister’s family is arranged through Allianz. Our financing consists of DSL Bank, KFW home ownership, and KfW energy-efficient building programs. The plot is to be purchased by my sister’s family using equity and a partial payout of the Allianz loan, and by us using equity and the KFW home ownership loan. Now each bank demands a partition declaration, which we can only create once we are the owners. Of course, we can only become owners once the bank has paid the amount. How does one reach a solution here? Can both banks be recorded with equal ranking on the mortgage? Can they somehow come to an agreement? Does the insurance (Allianz) cause additional problems here? We are really desperate as to how we should manage this... Best regards Jan

Hello Jan,

Now every bank requires a declaration of division. Which we can only create once we are owners. Of course, we can only become owners once the bank has paid the amount. How do you get to the goal here?

Most likely if you agree with the current owner on a division of the property before each financing of the property share; you can confirm the assumption of costs for this to him in writing.

Otherwise, it will be an endless back and forth regarding the first-ranking registration.

Kind regards

I can only agree with that - the easiest way would be to get the owner to agree to a subdivision beforehand - otherwise, a couple of you would first have to buy the property and then divide it...