Purchase shell construction and complete it including financing

Hello,

we are considering whether to buy a shell construction. It has a roof and windows including all necessary utility connections. The entire interior finishing is still missing.

The shell construction including the plot should cost about €125,000 (+ ~€10,000 additional costs). For completion, the real estate agent quotes €50,000-75,000. I have done some calculations myself and come to about €85,000-90,000 until complete completion (I want to include a few extras) including carport etc.

I bring equity of up to €70,000.

How can I finance this property? Because the bank only sees the purchase price of the house, but not the costs for completion. If I were to take out a loan of e.g. €160,000, it would initially be overfinanced from the purchase price point of view, even if the entire rest would then be my capital and in the end the lending value would be significantly better. How is this handled? I want to finance €170,000, contribute about €50,000 equity myself and have a €20,000 reserve. Is that possible and if so how? Is this financially more complicated than a complete new build?

It's just a normal financing like with a new construction. The bank evaluates in the as-is condition, so it looks at the finished property. No one will probably ever finance you a shell construction without the intention to complete it.

With a new construction, the bank also doesn't say "there's no house there, so there's no loan" ☺

I see it the same way as nordanney! The only critical point would be the financing conditions of the house. You would need to be able to clearly demonstrate the value of the house after complete completion. You don't want to put yourself in a worse position than a new build where you have construction service descriptions, architectural plans, etc. Not that the bank imposes a 100% condition on you. A silly question, is this shell construction so interesting?

Something different: How long has the shell construction been standing as it is now? And are all the documents available that would be necessary for completion?

From when is the building permit?

The shell construction is interesting, good location and also attractive in terms of price (about 15-20% cheaper than self-build). The year of construction is not exactly known to me, since it was built according to [Kfw60 Standard] it is probably 2009. Without an expert report, etc. I won’t buy anything anyway (only if the house is flawless). Since the house is sealed (roof, windows, etc.) it is also dry inside (some birds were inside, but there was air exchange). You couldn’t smell any moisture.

I have already asked about the building permit, but haven’t received an answer yet. The owner (who is a real estate agent) was dodging that. I’m not familiar with the area and would estimate that a new permit is needed, although outside you won’t see any difference except the front door and exterior landscaping. No one needs to dig up anything anymore.

There are no documents regarding completion (it was probably architect planning). Needed are drywallers (to raise the wall on top, plastering, etc.), stair builders, heating engineers, plumbing including tiling, screed, and at some point a front door.

Fingers far away! The building permit has surely long since expired. Or why else would someone be messing around there. Why indeed? A rogue who thinks badly of it.

A new building permit means, consequently, that you have to meet today’s requirements! And if the insulation suddenly has to be 4cm thicker, then some distance, the ridge height, or something else will not be complied with. Besides, such a building application will also cost quite a bit of money.