Multi-generation house construction financing

Hello everyone!

My husband and I have a plot of land in hand. We are now planning to build a multi-generation house on it together with my parents. My husband and I will buy the land and want to finance the outdoor facilities. The house itself and everything else that belongs to it will be financed by my parents.

My husband will take out a loan for the land + outdoor facilities accordingly, my parents already have the amount for the house + incidental costs together and can cover it completely.

I have read that the house and land belong only to one person or the people who are registered in the land register (my husband and me). How can you best take out a loan there? Only for the land itself and whoever builds on it doesn't matter? Or is it possible that my husband and I simply buy the land and my parents then build the house on it, and it will automatically belong to my husband and me?

If anyone has tips or experience reports, I would be very grateful!
Best regards! :)

In the land register, you can either be listed as four people or just one of you. It is important that your parents are definitely listed in the land register if they are also financing the majority, in order to be financially secured. The proportional shares of co-ownership can of course be weighted individually, although I fear that a high gift tax will be incurred if your parents want to give your husband that much.

In the land register, you can either be listed as four people or just one of you. It is important that your parents are definitely listed in the land register if they finance the majority in order to be financially secured. The percentage shares of the co-ownership shares can of course be individually weighted, although I fear that a high gift tax will be incurred if your parents want to give your husband so much as a gift.

Thanks for the information and the quick response. So my parents do not want to give a gift. They want to build the house on our land. If my husband buys the land, won’t he and I be listed together as a married couple in the land register? Or if we register all four of us in the land register, will the land + building then belong to all four of us together? (Unfortunately, I don't know anything about this, and the appointment with the notary is only next week, so I don’t want to go in there completely clueless.)

The house automatically belongs to the person who owns the plot of land on which it stands. So if only you and your husband are listed in the land register, then basically it would be your house, no matter who paid for it. The arrangement only works because your parents have the money available. A bank would not finance it like that, as they could not secure the loan through the land register. Maybe this answers your question?

The house automatically belongs to whoever owns the land it stands on. So if only your husband and you are listed in the land register, then basically it would be your house, regardless of who paid for it. The arrangement only works because your parents have the money available. A bank would not finance it like that for them, as they couldn't secure the loan through the land register. Maybe this answers your question?

Thanks for now :) Not quite, how would it look if we, meaning my parents and us four, entered the land register? Would the house and land then belong to all four of us?

Thanks first of all :) Not quite yet, how would it look if we registered ourselves with my parents, so four of us, in the land register? Would the house and land then belong to all four of us?

Yes. How you divide it percentage-wise can be chosen, you can look up fractional ownership for that.
However, the gift tax might become a problem if they declare the costs for the house significantly higher than the amount you contribute. A tax advisor can certainly help you better with that.