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Neuling20211 Mar 2021 17:34Hello dear forum members,
We are currently facing the decision to buy a house together. Since this situation is not very common, there are unfortunately only a few examples online, so I really hope you can help us.
Here are some important details for better assessment:
Apartment 1:
- approx. 40% of the total living area
- Condition: in need of renovation and refurbishment (from the 1950s)
Apartment 2:
- approx. 60% of the total living area
- Condition: attic converted in 1983, upper floor move-in ready but with 80s/90s style (uPVC windows, fitted kitchen from 2008)
- Also requires renovation, but is move-in ready in contrast to Apartment 1
Plot of land:
> 2,000m³ (divided across multiple parcels), but about 90% designated as a landscape protection area on a slope and was therefore hardly considered in the purchase price according to the real estate agent
No declaration of division exists yet, but we plan to arrange this in the future
The plan was to split the living area in the purchase contract on a 60:40 basis, with the remaining areas shared equally at 50:50.
According to the notary’s feedback, this apparently isn’t possible; instead, we can only buy with a 60:40 split and additionally agree on joint usage rights. The only option would be to exclude all land parcels and then split 50:50 – which would lead to an increase in the proportional purchase price for Apartment 1.
The 50:50 division was intended as compensation for not ordering an appraiser to assess the lower value of Apartment 1, strictly dividing the purchase price based on living space. For various reasons, time is pressing, so the purchase and financing should be completed as soon as possible. The notary appointment is already arranged, and financing is joint and several.
A fair process is our top priority. Therefore, our questions are:
- In your opinion, does the condition of the apartment weigh heavily, or do you see a pure division based on living area as correct?
- Do you think it is appropriate to divide the entire plot area according to 60:40, even though it was hardly considered? Should a different price per square meter then be applied?
- What other ideas do you have?
Thank you in advance for your assessments. We are really struggling.
We are currently facing the decision to buy a house together. Since this situation is not very common, there are unfortunately only a few examples online, so I really hope you can help us.
Here are some important details for better assessment:
Apartment 1:
- approx. 40% of the total living area
- Condition: in need of renovation and refurbishment (from the 1950s)
Apartment 2:
- approx. 60% of the total living area
- Condition: attic converted in 1983, upper floor move-in ready but with 80s/90s style (uPVC windows, fitted kitchen from 2008)
- Also requires renovation, but is move-in ready in contrast to Apartment 1
Plot of land:
> 2,000m³ (divided across multiple parcels), but about 90% designated as a landscape protection area on a slope and was therefore hardly considered in the purchase price according to the real estate agent
No declaration of division exists yet, but we plan to arrange this in the future
The plan was to split the living area in the purchase contract on a 60:40 basis, with the remaining areas shared equally at 50:50.
According to the notary’s feedback, this apparently isn’t possible; instead, we can only buy with a 60:40 split and additionally agree on joint usage rights. The only option would be to exclude all land parcels and then split 50:50 – which would lead to an increase in the proportional purchase price for Apartment 1.
The 50:50 division was intended as compensation for not ordering an appraiser to assess the lower value of Apartment 1, strictly dividing the purchase price based on living space. For various reasons, time is pressing, so the purchase and financing should be completed as soon as possible. The notary appointment is already arranged, and financing is joint and several.
A fair process is our top priority. Therefore, our questions are:
- In your opinion, does the condition of the apartment weigh heavily, or do you see a pure division based on living area as correct?
- Do you think it is appropriate to divide the entire plot area according to 60:40, even though it was hardly considered? Should a different price per square meter then be applied?
- What other ideas do you have?
Thank you in advance for your assessments. We are really struggling.
O
Osnabruecker1 Mar 2021 17:49Talk with your friends.
If you cannot reach an agreement among yourselves, I don’t see a future for this friendship project.
If you cannot reach an agreement among yourselves, I don’t see a future for this friendship project.
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pagoni20201 Mar 2021 18:03You understandably find this difficult because it’s a complex situation with many risks.
My question is whether it really cannot be divided into individual condominium units so that each person is responsible for their own part?
Another possible option could be joint ownership of shares, but that also carries significant risks.
Things and especially people (including yourself) change... I would never undertake such a project if it wasn’t clearly divisible, so that I or my family could always be self-sufficient no matter what happens on the other side.
That is a very bad starting point for finding an adequately safe solution.
I would first use that appointment for proper advice and to explore solutions, and only then decide if it can still work for both parties.
My comment on that: Ufffffff (sorry, but I can’t emphasize this enough)
I would be less worried about a 40 or 50% share; the real problems and risks lie in the overall situation and especially in joint and several liability financing.
What will you do if...
- illness
- divorce
- loss of interest
- conflict
- unemployment or bankruptcy, and more
Whatever you discuss beforehand, it must still work in emergencies or conflicts.
I assume you want to move quickly and cheaply... precisely that can cause you big trouble down the road.
From what I am reading and suspect, my advice to you is: stay away!!! And do so quickly and at a distance, unless you can clearly separate it so that it also works independently in case of emergency.
And... EVERYONE pays and is responsible for their own matters!
You can still share the heating system and so on, as in a multi-family house or a condominium association, but in my opinion there must be a clear division or at least the option for separation, otherwise this is a powder keg... and believe me, I generally tend to think positively!
My question is whether it really cannot be divided into individual condominium units so that each person is responsible for their own part?
Another possible option could be joint ownership of shares, but that also carries significant risks.
Things and especially people (including yourself) change... I would never undertake such a project if it wasn’t clearly divisible, so that I or my family could always be self-sufficient no matter what happens on the other side.
Neuling2021 schrieb:
For various reasons, time is pressing,
That is a very bad starting point for finding an adequately safe solution.
Neuling2021 schrieb:
The notary appointment is already set
I would first use that appointment for proper advice and to explore solutions, and only then decide if it can still work for both parties.
Neuling2021 schrieb:
The financing is joint and several liability.
My comment on that: Ufffffff (sorry, but I can’t emphasize this enough)
I would be less worried about a 40 or 50% share; the real problems and risks lie in the overall situation and especially in joint and several liability financing.
What will you do if...
- illness
- divorce
- loss of interest
- conflict
- unemployment or bankruptcy, and more
Whatever you discuss beforehand, it must still work in emergencies or conflicts.
I assume you want to move quickly and cheaply... precisely that can cause you big trouble down the road.
From what I am reading and suspect, my advice to you is: stay away!!! And do so quickly and at a distance, unless you can clearly separate it so that it also works independently in case of emergency.
And... EVERYONE pays and is responsible for their own matters!
You can still share the heating system and so on, as in a multi-family house or a condominium association, but in my opinion there must be a clear division or at least the option for separation, otherwise this is a powder keg... and believe me, I generally tend to think positively!
P
pagoni20201 Mar 2021 18:13Ysop*** schrieb:
If it should be fair, then I wouldn’t just make a rough estimate. And definitely not take joint liability for something. And also not split it later on. Handle it properly! That’s right, this can also be assessed externally or by a neutral person. Trying to save money here can become very costly.
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Neuling20211 Mar 2021 18:14Osnabruecker schrieb:
Talk to your friends.
If you can’t reach an agreement among yourselves, I don’t see a future for the friendship project. We are doing that – we have been renting the same house together for many years.
That is exactly why we all want a solution that is fair for everyone involved.