Request for advice on property financing

Good day everyone,

I have been reading the forum for some time now, first of all thanks for the many infos.

However, now the point has come where I also have to ask a question and hope for your advice.

So now to the question:

The current status is that I have found a plot of land and it is also reserved.

The problem is that the house planning has just begun and therefore I do not yet have the total costs to create the entire financing plan.

After several talks with different banks, they all suggested that I first take out a variable annuity loan to buy the land.
Then, when (approx. next year) the house planning is finished, this variable loan should be replaced by the overall financing.

However, I have a few concerns.

If I finance the plot of land with Bank X now, they would of course have themselves registered in the land charge.

If afterwards, during the planning, I know the total costs and now a reasonable comparison between the banks is possible.

If I now want to take out the entire financing not with Bank X but with Bank Y,
the entry in the land charge would have to be deleted and the new bank entered.

That would cause high costs again (notary etc.)

Is there a way to arrange the whole thing so that no high costs arise when changing banks?

I hope I managed to explain the topic somewhat understandably (Sorry :( )

I am very grateful for your opinions and infos.

Regards Alex

The costs for the release of the land charge (or also an assignment) can only be reduced or avoided if no land charge is registered in the first place.

That means you would either have to purchase the property entirely with equity or at least pay a large part of it from equity and then find a bank that waives a land charge and maybe only accepts a positive/negative declaration (a declaration that the property is not encumbered and that you commit not to encumber it). But that will be difficult.

Depending on the amount, you can also take out a regular consumer loan. However, you usually pay a significantly higher interest rate for this, so that [die Grundschuldlöschung] is the more cost-effective option.

Best regards,
Jochen

First of all, thank you for your quick responses.
If I understand correctly, an assignment of the mortgage would be significantly cheaper.
However, this is only possible if the new financing amount is lower than the previously registered mortgage. Right?
The costs of a possible deletion and new registration of the mortgage would not be a big deal if changing banks would be worthwhile, but they are relatively unnecessary costs that it would be nice to save.
Thank you!

If I understood correctly, assigning the land charge would be significantly cheaper. However, this is only possible if the new financing amount is less than the previously registered land charge. Right?

No! The smaller land charge for the first bank can be assigned, and additionally, another new land charge can be registered for the outstanding amount. However, two land charges cost more than one land charge.

How much loan needs to be taken out for the [Grundstück]? Depending on the amount, as already mentioned, it might be cheaper to have a loan without a [Grundschuldeintrag].