Sell old house, build new one, how to finance?

I think you have two options: Either there is already a land charge on the old house in the required amount, which can then be used as collateral for the bridge financing, but only with the original bank. With a trust order at the bank, the deletion of the land charge after transfer also works flawlessly.

Or a new land charge in the total required amount for the house is registered on the new property. Then the bank that will finance afterwards usually has to provide the bridge financing as well, which simplifies things anyway. Advantage: In an emergency, you could refinance if discussed in advance with the bank, since the collateral is already in place. Disadvantage: The costs for registering the land charge are significantly higher.

That is an interesting topic. I would also be curious to know what would happen if the old house cannot be sold afterwards. What happens then?

The interim financing with a variable interest rate has an advantage there, you can continue it. Then you just have the double burden.

Therefore, we sold and handed over our property beforehand and have now found somewhere else to stay until the house is completed. It is nerve-wracking, but saves money and provides flexibility. However, it is certainly not so easy or even possible for many.

How high is this variable interest rate at the moment, can you find that somewhere?

Best regards
Sabine

Curly, you take care of the bank balance sheet, which to me means that you sit somewhere in the Controlling department, right?

Does Euribor ring a bell to you?
Do risk costs mean anything to you?
Does administrative expense mean anything to you?
Does profit margin ring a bell?
These are the four biggest items that influence the variable interest rate.

Actually, there should be someone in your department who can tell you everything down to the smallest detail.

PS: As an employee yourself, you should have some kind of direct line to someone in the [Baufinanzierung Privat] area. They can tell you all the more or less dirty tricks, even as [EB] at conditions that probably no ordinary mortal ever gets.

You can also sell today and remain as a tenant until day x (=move). This will cost you a small discount, but in return you have clear certainty about what your sale brings and can save yourself the interim financing.