My introduction - is this feasible?

Hello,

my boyfriend and I, both 30, would like to buy a house that needs renovation. The house + land belong to the family and will first be appraised, or an expert will assess the entire house. According to current land prices, the land is worth about €150,000. The rest has yet to be determined. A lot needs to be done: new windows, new heating system, bathroom, kitchen, floors, walls, ceilings... We could do a lot ourselves, but we would still have to cover the material costs. Since I have never really dealt with this topic before, the question is whether we can afford it at all. The following financial situation applies here:

Net income from both of us: €4,000
Current warm rent: €850
Equity: €20,000
Building savings contract paid up: €20,000

We would also like to apply for funding for the renovation work. And has anyone experienced that banks have problems with unmarried couples?

Questions upon questions, I hope someone can help
:D

First, the answer to the simple question: In my experience, banks have no problem with unmarried couples. For the banks, it is primarily important that the borrowers have a permanent employment contract.

To clarify the financiability, the unknowns must be excluded, which in the specific case are the renovation costs of the house. Estimated values for construction costs based on square meters of living space or similar key figures are of no use here either. It can even go so far that an extensive renovation is more expensive than a new build. I recommend having a specialist/planner create a renovation concept in which the costs are calculated according to building components (Kostenberechnung). Kostenberechnung means that the specific quantities of the individual components are listed, e.g. x sqm plaster to be removed and redone, x windows to be replaced, etc.

The possible personal contribution should definitely be realistically assessed; besides the craftsmanship and time aspects, this is also a question of the construction process and clear separation of services to avoid jeopardizing the warranty. My recommendation is: What cannot be reliably done personally should initially be calculated as an external service.

Involving an expert to assess the existing building is indeed the right beginning. However, this does not yet replace a renovation concept.

Only with a cost breakdown for the renovation as concrete as possible and sufficient reserves for unforeseen expenses—especially in the case of renovations—can an overall cost statement be made. And only then can it be assessed whether and under what conditions financing is possible.

Planning costs must definitely be taken into account; depending on the scope of the planned construction work, a building permit may also be necessary, which almost sounds like the case described here.
By the way, some funding programs only apply if construction work has not yet started.

Urgent recommendation: seek professionally competent and independent support, have a renovation concept created.

Thank you very much for the detailed response.

Both employment contracts are permanent. However, one is still subject to a probationary period... That might possibly be a problem.

I thought anyway that the bank would want to receive a rehabilitation plan so that the loan is approved. However, I thought that we could create such a rehabilitation plan ourselves based on cost estimates. Where can I find such a specialist and approximately how much will it cost me?

Why would a building application be required? For which project does it seem necessary?

Hello,

before there is a misunderstanding: I do not mean that a building application is necessary – of course, I cannot assess that. I recommend checking whether a building application might become necessary. Even with differences in the respective state building codes, there is nationwide agreement that a (significant) alteration of a building also requires an application, so not just new construction or extensions. If, for example, the interior walls are only newly plastered or painted, no building application is of course necessary. But if walls are moved or there are interventions in the structural integrity, a building application may be necessary or a structural engineer must be consulted.

It is correct that banks want a renovation plan with a cost breakdown, often drawn up or confirmed by a planner/architect.

Since I do not know the specific scope of your project, I can only describe it in general terms. I often experience that clients obtain offers from companies, for example for the replacement of windows, painters, floor layers, etc. They add the offers together and then find during the construction phase that the estimated costs are by far not sufficient. Usually, this has the following causes in a renovation:
- previously unknown damages appear (e.g. beam ends in ceilings are rotten)
- companies make as cheap offers as possible because they compete with other providers, sometimes knowingly providing incomplete offers – later, additionally agreed services then drive up the costs
- the services are not fully recorded, in particular the interfaces/transitions between the individual trades were not sufficiently considered
- no "buffer" for unforeseen events was planned
- the possibilities for own work were overestimated

One really has to ask oneself: Do I have sufficient expertise to assess the building law situation and the technical matters?

How much a professional costs of course depends on the desired scope of services. I do not know your project well enough to make a forecast.