Renovation loan for parental home

Good day,

the following situation: I live with my family (wife & child) and my parents together in my parents' house with two apartments. The house belongs to my parents; I myself have no siblings and will eventually be the sole heir.

The house is to be renovated soon: new heating system, new radiators, new windows + new front door; total costs approx. 100,000. We pay our utility costs, otherwise we live rent-free because we intended to make the house fit for the future. At first glance, a KFW loan was considered for us.

However, I do not read anywhere in the KFW loans whether they are also possible for non-owners. The situation is basically clear for us; however, we now ask ourselves whether other financing options might also be considered.

Who can help me with a tip?

Best regards

I would first seek clarity before taking out a loan as a non-owner for a house that does not belong to me.

Not because I worry about the parental relationship, but because the state will intervene in an emergency and takes no account of losses.

You have the loan hanging over you, the value of the house increases, and the parents go, I wish it on no one, to a nursing home.

I would protect the house, at least partially, from the state's access. Otherwise, a lot of money is invested and in the end neither you nor the parents benefit.

By the way, can't these repairs be covered by the renovation reserves?

I agree with Toxi, although the bank also requires a mortgage on the property

the bank [...] a land charge

Good for the bank, bad for the borrower. Then after the bank and the city, he has nothing left from the property.

However, there would even be a solution. Registering oneself directly after the bank with a security land charge. Then the little house might possibly also be gone, but before the state gets anything, at least you get your own money back. Although that is not my recommended solution.

Our former brother-in-law went through the same scenario. He invested his equity in the parents-in-law's house and together with the sister-in-law converted an apartment. At some point, the sister-in-law found someone else and he was stuck with his ex-parents-in-law because all his capital was tied up in the apartment and a payout was not possible.

Our former brother-in-law went through the same scenario. He invested his equity into the in-laws' house and, together with his sister-in-law, renovated an apartment. The sister-in-law eventually found someone else, and he was stuck with his ex-in-laws because all his capital was tied up in the apartment and a payout was not possible.

That's how it is. Parents in our circle of friends almost always have a problem with their children being allowed to renovate and move in, but resisting clarifying the ownership beforehand. Understandable when I have worked hard on the house for years and now the child gets the house for free..