Purchase-demolition-new construction process + timeline feasible?

Hello everyone,

the following situation for which I would like your assessment due to my lack of own experience:

We want to build a new single-family house. For this, we have already acquired an existing (very old) house + land, or rather were at the notary and have so far only signed the purchase contract 2 weeks ago. So no money has been paid yet and the transfer in the land register apparently takes several months according to everything I have read. At the same time, we have already signed a planning contract with a construction company (regional general contractor) and received initial plans for the new building. They told us a possible start of construction due to high workload could be December 2021, which would be absolutely fine for us. For financing, we also had initial talks with Baufi24, [URL_INTERNA=https://www.hausbau-forum.de/threads/dr-klein-erfahrungen-bei-vermittlung-kredit-von-bank-genehmigt.29957/

Dr. Klein[/URL_INTERNA] and also 2 “normal” banks, but the feedback is of course everywhere “Basically, financing should not be an issue due to sufficient equity/mortgage of the purchase of the old house/land, but without an approved construction contract/-plan there is of course no loan yet (not quite sure about the wording anymore).”

The following (maybe dummy due to lack of experience) questions now:



[*]How exactly does the mortgage for financing work? The purchase price was about €230k, which we paid in cash thanks to an early inheritance. The new building will cost about €520k in total (including ancillary construction costs), i.e. €750k total. We would register the €230k as mortgage/equity for the financing of the remaining €520k. Is that possible even despite the demolition of the old house? Theoretically, the bank could also say: “You have destroyed the value of the old house, so we only recognize the land costs and thus not €230k but only €100k.”

[*]The rough schedule planned by us was as follows, but since I do not know how long the processes take, I would be grateful for feedback:

[LIST]
[*]Notary signature – end of March
[*]Land register transfer – max. 6 months later → end of September
[*]Demolition – ~October
[*]Clear financing as soon as construction plan is approved and signed – ~October
[*]Start of construction – ~December-

Thanks in advance for your answers!

Do you have a company for gutting and demolition?

Yes, we already have an offer for the demolition (demolition + disposal) for about €30k. Two other demolition companies have also been contacted, and we are still waiting for feedback.

And an appointment? That was our breaking point.
Have a look at the offer to see which pollutant classes are included in the disposal.

Not the appointment, but the one with the concrete offer had no objections to scheduling the demolition around October. I had spoken with the other two companies, and they told me that there is still some time until then. Therefore, I hope that the appointment in October should not be a problem. The point about the pollutant classes is good; that was not detailed in that one concrete offer (but he is also a somewhat distant paternal relative).

I am not an expert in the field.

But as far as I know, the bank determines which amount is registered as a land charge for the bank. That means the bank is listed in the land register with a certain amount. And if you can no longer pay the loan and the house is sold, the bank then has the right to receive that sum.

If a second bank is involved in the financing, a land charge is also registered for the second bank.

Whether the bank recognizes the purchase price as equity capital, I do not know. If the house is demolished, I suppose that maybe only the land is recognized as equity capital.