Property value in financing - How is it calculated?

Hey everyone!

For our house construction, my father wants to transfer or gift me a part of his property.

It will be measured and transferred out of the former farm.

Of course, notarized, etc.

This property is to be deposited with the bank as equity for the house loan.

How does the bank calculate the value of the property? Do they strictly go by the standard land value? Or do other factors play a role?

Surely a value will be recorded for the gift? The tax office is interested in that as well. It will be the one the bank uses as a basis.

Yes, the standard land value is of course a good approach. Is construction allowed there? Former farm sounds dangerously like an outlying area.

It is "dangerous" but our architect is working on sorting everything out. The nice gentleman from the building authority was already on site and looked at everything and said he will write his report in a way that it will probably work out.

Well, no tax is due anyway up to €400,000, right? And he can't determine the value himself...

The standard land value of €25/m² is of course not that high...

Well, the bank will certainly not set a higher amount, possibly even less. It would probably also be harder to sell if it is some kind of family matter. For now, expect around 25€/m², that won't help much with the loan-to-value ratio.

Depends on the size ;) 2000m² should help quite a bit, I think.