Purchase-demolition-new construction process + timeline feasible?

What put me off was this long duration with the registration of the land register to our name and the demolition companies, who say that October is still a bit of time, but if we can only do that when we have actually been registered in the land register, it could still become tight in terms of time.

There is once the legal transfer = registration of ownership in the land register and once the economic transfer. The latter is usually from the purchase price payment onwards. From then on, you could and must take care of the house/land = incidental costs etc. are on you. From then on, you can also demolish (permission needed? Possibly coordinate with the previous owner about this.)

We have a total sum of 750 k€ and put in about 230+demolition as equity and the rest will be financed. Because there was so much time between the old house purchase and the start of the new construction, the Dr. Klein advisor said the easiest thing would be that we pay the old house + demolition in cash, get it recorded as "already paid equity from the total sum" at the bank and finance the rest completely from the bank, so that we would be back to our original assumption.

Find yourselves a proper advisor and not a sausage seller. He's talking nonsense. You cannot register equity with the bank. No matter what, the bank sees that you have equity = land. No matter when or how acquired. The remaining equity ("wasted money") can also be easily proven. Simply put, you go to the bank in summer with a paid-off plot of land and say you need €520k for the house construction.

Thank you! That was just Dr. Klein. The conversation with Baufi24 was still very general, and we will probably schedule at least two more appointments with our house banks (VR Bank and Consorsbank). Demolition does not require approval; we have already checked this ourselves with the building authority. Once again, a big THANK YOU to everyone who responded so quickly, and have a nice Sunday!

At the end of the day, none of this really matters so far.

You need a plan for what you want to build in a non-final but concrete form. For example, a single-family house with 2 floors, basement, the following dimensions, equipment, etc. Based on this, the bank calculates the value for their internal assessment. Whether another window is added or a wall is moved one meter, etc., is not so relevant.

The next point is how the property is valued. There are approaches for this again, which can even vary from bank to bank and serve as an internal calculation basis.

Simple example:
The bank determines the house in the desired form to be worth 500k, the land after demolition 150k, meaning your project has a total value of 650k.

Afterwards, the calculation is made for how much loan you need. In your case, 520k for the house and the land has already been paid for. This means these 520k will be registered as a mortgage.

The next step is about the loan-to-value ratio or which interest rate you get (term etc., of course, are further influencing factors): The security for the bank would be the difference 650k-520k, so these 130k could be considered as equity or already paid security.

That you have paid significantly more out of your own pocket is unfortunately true but simply not security for the bank, because the money was simply lost, just like the house that once stood there. In this case, unfortunately, only costs but no realizable securities have arisen.

Thank you for the explanations! Unfortunately, I am not very experienced with the topic. :) You never stop learning! We already have a rough plan regarding floors, basement, and dimensions. We are now waiting for the next draft from the architect and will then tackle the financing issue in the summer.