Upcoming house purchase: buy with or without leasehold rights?

Hello,
Have you already discussed the project with a bank? Many/All banks have strict guidelines for financing a house on a leasehold property!
You write about little equity. How little, are all additional purchase costs covered? What is the market value of the property considering the leasehold situation, banks always deduct a certain percentage when valuing such properties. Only a few banks offer 100% financing on leasehold properties and only with very good creditworthiness and with interest rate surcharges.
Many banks require a minimum term of the leasehold contract, some 35 years, some even 45 years. The financing should be completed at least 10 years before the leasehold contract expires, which suits you. And most banks do not go beyond 80% financing based on the bank’s valuation of the house and not based on the market value!
I had to experience all this myself last year :-(
Internet banks generally have more difficulties with leasehold properties than a local branch bank.
You may therefore have to purchase the land as well in order to get financing at all! So talk to your main bank and a mortgage broker.
Good luck with the project and never give up prematurely.
Daniel

Daniel, thank you very much for the kind and honest words!

We have appointments next week at the house bank, financial broker.... Let's see what is possible.

I received some documents from the owner in advance today. However, the leasehold contract can no longer be found. The leasehold right is, however, registered in the land register. As I said, the owner is the state of NRW. Is there any way to get the contract, or at least the conditions stated in it?

Daniel, thank you very much for the kind and honest words!

We have appointments next week at the house bank, financial intermediary.... We'll see what is possible.

I received some documents from the owner in advance today. However, the ground lease contract can no longer be found. The heritable building right is, however, registered in the land register. As I said, the owner is the state of NRW. Is there any way to get the contract or the conditions stated in it?

Sure. From the ground lessor or maybe the notary’s office if it still exists?
Daniel

Daniel, thank you very much for the kind and honest words!

We have appointments next week at the house bank, financial intermediary.... Let's see what is possible.

Today I received some documents in advance from the owner. However, the leasehold contract can no longer be found. The leasehold right is, however, registered in the land register. As I said, the owner is the state of NRW. Is there any way to get access to the contract, or to the conditions stated in it?

therefore really check. So far, I have only read that the seller verbally disclosed the terms of the lease agreement to you.

Completely clear. For now, I can only pay attention to what the seller says. As soon as it gets very concrete, I will want/need to refer to the facts. Aren't these leasehold agreements, at least when the land belongs to the owners, standardized anyway?

Completely clear. For now, I can only pay attention to what the seller says. As soon as it gets very concrete, I will want/need to rely on the facts. Are these leasehold agreements not standardized anyway, at least when the land belongs to the owners?

No; sometimes there are "similar" ones for a certain period of time.

And do you have a different one on hand?

The banks will want to see yours. Especially because of certain clauses regarding equity capital and the restrictions on only being able to register a land charge up to a certain amount.