Taking over half of the house after separation - questions about options

Hello everyone,

I have to provide some background because the case is probably not that simple and I need your opinion here and to explore possible options I have.

My then wife and I bought a semi-detached house in 2011 for €206,000 and took out two loans from BW-Bank for it, one for €109,000 directly from BW-Bank (15 years term/3.35%) and one from KFW for €70,000 (10 years term/3.15%). Currently about €150,000 outstanding – the value of the house now €250,000-290,000.

We separated in 2013 and last year my then girlfriend bought half of my wife’s half of the house for €25,000 + half of the outstanding debt, because the bank refused in 2017 that I take over the entire house myself since I still had to pay alimony to my ex-wife and had/have two installment loans.

Now my girlfriend broke up with me at the beginning of this year and, of course, wants to get out of the house and the loan as soon as possible. She wants her €25,000 back.

I want to keep the house at all costs but I fear the bank will not cooperate because of my two installment loans and the alimony for my daughter. I would have to finance the €25,000.

After deducting all monthly expenses including the rate for the house, I have about €1,200-1,400 left each month for free disposal, which I consider a lot of money.

My Schufa score is 96.81%.

If the bank refuses the release from debt, what options would I have to keep the house anyway?

I can think of:
- My father 71 – about €1,700 pension could take over half, but I don’t know how the bank would evaluate that due to age and pension amount
- Pay off both property loans early and refinance elsewhere?
- ....
- ....

I am truly grateful for any tip!!

Best regards

Hmm, when my then husband moved out and I paid him off, the bank did not receive any information from me regarding that. It doesn't have to. The main thing is that the loan is serviced!

However, you probably have to come up with €25,000 somehow..

The problem is that she definitely does not want to remain listed in the credit and land register.

The problem is that she absolutely does not want to remain listed in the credit and land register..

That will only work if the bank agrees to release the debt liability. It already didn’t work with the ex-wife, so that’s out of the question here.

Option 2 with your father might work, but doesn’t have to. The bank could consider a debtor change here, but your father would only take over the loan and not the house. So just a classic sale from your ex-girlfriend to your father. Does he already know how lucky he is?

In Step 1 I would clarify that with the bank. Actually, there should be enough free collateral available to increase the loan again. The only question is whether the bank considers the monthly income sufficient. But you can only find that out from the bank, and of course your household budget should be as accurate as possible.

If that should not be possible
How much could you pay her immediately?
Assuming €10,000 immediately and she gives you a €15,000 loan and receives a second-ranking entry in the land register for it, and you then pay it back in installments. Here, the question is also whether you have enough left over monthly.

In Step 1, I would clarify that with the bank. There should actually be enough free collateral available to increase the loan again. The only question is whether the bank considers your monthly income sufficient. But you can only find that out from the bank, and of course, your household budget should be as accurate as possible.

If that doesn’t work out
How much could you pay her immediately?
Assuming €10,000 immediately and €15,000 she gives you as a loan and receives a second-rank entry in the land register for it, and you then pay it back in installments. Here, too, the question is whether you have enough left monthly.

yes, but the good lady wants 1 out of the house / land register and 2 out of the loan.

The bank doesn’t have to do anything here at first.