Which costs are NOT financed through a construction loan?

The building plot will be paid off at the time of construction. The currently registered land charge can certainly be reused. If the value of the building plot has increased by more than 30%, is it then wise to have the land charge newly (and thus higher) registered for the construction loan?

The cheapest option is to assign the existing property and have another one registered.
If both properties are with one lender, the addendum is not necessarily subordinate.
However, this should definitely be clarified with the bank beforehand whether they accept this.

The building plot will be paid off by the time of construction. The currently registered land charge can certainly be reused. If the value of the building plot has increased by more than 30%, is it then wise to have the land charge newly (and thus higher) registered for the construction loan? Those are also significant costs incurred by the cancellation of the old land charge and the registration of the new one, right? (I’m thinking around 800 euros)

Okay, maybe I didn’t understand it. The building site is paid off by the start of construction. Only then will you take out the loan for the house construction yourself. So far, so good. You take out, for example, 300,000 (fictitious number). Then your bank wants a land charge (in total) of 300,000. You already have, for example, 100,000 from the plot loan registered in the land register, which is basically free since it’s paid off. Then the bank will take the land charge and you will have 200,000 registered additionally.

This has nothing to do with the higher value of the building plot.

It has nothing to do with the higher value of the building plot.

The land charge is always independent of the loan.
Is the property already registered? If not, then have the amount for the house registered right away.
Even if the land only costs 150k, you can have the land registered at 450k for the house.
Once the loan for the property is paid off, you will receive the enforceable copy back and can use it for the house loan.
Provided the bank accepts this. So ask beforehand! Most banks probably won't be thrilled about this.

Hello everyone,

we were NOT able to register a higher land value for the property financing.

Furthermore, we already had to fight with the bank to set a high repayment rate so that the land will be paid off after the end of the interest rate lock-in period (5 years). The bank, of course, earns very little from this and tried hard to talk us out of the high repayment amount.

my motto: The more dissatisfied the bank, the better I feel :)

Therefore, in my opinion, with good equity (1/3 of the construction costs) + a paid-off land, there should be nothing standing in the way of a low interest rate for the home loan. or are there other significant influencing factors? (stable job as well as a good credit history excluded. guarantee not possible)

Greetings to all

When you talk about fixed interest periods, your property-financing bank holds the first priority. If you decide to build before repaying the property, you can only arrange your home financing with the property-financing bank. In other words, the bank has you in its hands and can, in this case, also add a few tenths of a percent.

It would have been wiser to finance the property with a variable rate. Then the installment could have been low, and you could have used unlimited special repayments. We did it that way and paid off the property in 12 months.