Remaining loan amount specifically "NBA" player bank

2021-06-01 09:47:59

With the new loan, you will have to pay off the variable loan anyway, anything else makes no sense.

Firstly, the loan for the construction financing will be cheaper than the variable loan. Secondly, I assume that the bank financing the land has also had a land charge registered. Hardly any other bank will finance your project, at least not with decent conditions, if they can only be registered in second place in the land register.

So take the money for the land directly and repay the variable loan immediately with the money. If equity is available, it is better to use this as a buffer.

2021-06-01 09:59:17

With the new loan, you will have to repay the variable one anyway, everything else makes no sense.

Firstly, the loan for the construction financing will be cheaper than the variable loan.
Secondly, I assume that the bank financing the land will also have a mortgage registered. Hardly any other bank will finance you for the project, at least not with decent conditions, if they can only register a second charge in the land register.

So take out money directly for the land and repay the variable loan immediately with the money. If equity is available, better use this as a buffer.

However, this variant would certainly worsen the interest rate since it would then be a 100% financing.

2021-06-01 10:15:45

Again: The credit for the property is var. privately financed, no mortgage, and the interest is a drop in the ocean compared to construction financing, therefore I leave the drop and thereby have the highest flexibility.

As a result, the house has the first rank in the land register for this property.

Thus, I want to have security with the higher house credit as a buffer, not have to refinance, and if anything is left over, put it into the privately financed.

Hope it is a bit clearer now.

2021-06-01 10:42:21

The usual practice is loan disbursement upon invoice submission. No invoice, no disbursement. The remainder can only be paid out if there is a corresponding clause in the contract. That may apply to €20k but certainly not to €100k. Additional construction costs must be specified and co-financed if they cannot be covered by equity.

2021-06-01 12:37:10

Again: Loan for the property is var. privately financed,

Is there any equity at all in the structure? Because the money must be repaid - no matter who it is with.

Because of this, the house has first priority in the land register for this property.

That is correct.

Therefore, I want to have security with the higher house loan as a buffer, avoid having to finance additionally, and if anything is left over, put it into the privately financed one.

That is not so simple. A buffer is okay - setting the costs somewhat higher right from the start. But a buffer of €100,000 will not be available for full financing. The bank knows that you have a private loan running (or should at least know). Make a reasonable calculation (€300,000 for a house is not particularly high - that would be about 100 sqm including ancillary building costs and garage and a little greenery around it) and talk to the bank.

2021-06-01 12:59:35

Thank you for the hints, I will discuss it with the bank in detail.

To reassure you, ancillary building costs will flow into the calculation from the buffer/petty cash and as non-equity, and the house with garage is set at 365 (with manufacturing costs "Pos. 300") by the architect.

The difference of 100K was deliberately thrown into the room so drastically.

So that in this constellation shown above it may be "only" about 35K difference to the 400K.

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Remaining loan amount specifically "NBA" player bank

Alex1987

SamSamSam

Stephan—

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Stephan—