Hello 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.
M
Myrna_Loy1 Mar 2021 21:37Neuling2021 schrieb:
We have been searching for a suitable property for years, and now one of those involved is about to start parental leave – which means a financing approval would be off the table for the next 12 months at least – hence the time pressure. I hope this is not the first child in this friendship circle – people change a lot when they have children.
P
pagoni20201 Mar 2021 21:41Neuling2021 schrieb:
What would be the advantage of fractional ownership?I only mentioned it for the sake of completeness, but for good reasons, almost no one chooses that. They also tried to suggest that to us, but it was never an option for us. If it were "play money," at least you could count it as a learning experience later on. A qualified notary will explain that to you properly.Neuling2021 schrieb:
Financing is joint and several.This has been mentioned several times here already, but maybe another opinion will convince you a bit more: Just don’t do it!Best regards
N
Nice-Nofret6 Mar 2021 16:12Surveyor, division into condominium ownership with a detailed condominium agreement, and then it is okay ...
Let me summarize what I believe I have understood (sorry, I have the impression there must be something in the drinking water, as this seems to be the week of confusing threads here):
1. It concerns a house with two residential units, which is intended to be purchased jointly with a family friend;
2. The house could be divided into two ownership units, with about 40% comprising the ground floor (GF) and about 60% the upper floor (UF) plus attic;
3. Included in the purchase would be a large plot made up of several parcels [Question: on which of these parcels is the house located, or where are its building setback areas?];
4. The house is in different states of readiness for occupancy: the "GF" unit is not yet move-in ready, the "UF + attic" unit is conditionally ready for immediate use;
5. You know the other family as neighbors from the same rental building; however, this is not the one planned to be purchased jointly, so this is not a landlord buyout;
6. Neither family alone qualifies for the total amount with their bank [Question: are these different mortgage lenders?], so you want to buy together with the other family;
7. To do so, you would want to divide the building into ownership units, but treat the common ownership of the entire plot differently in value proportion than suggested by the areas of the residential units;
8. Selling off unused portions of the land would not solve the problem because these areas would hardly be attractive to buyers.
.
A side note, a quick prayer to "@ all": I hope next week will be "normal" again, with not half-stammered story fragments here, but rather complete thoughts being shared, whose understanding no longer requires the combined deductive skills of Holmes, Watson, and the Three Investigators (I confess here to being the only one in my school year who never read TKKG). I’m slowly reaching the age where mind-reading becomes exhausting.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
1. It concerns a house with two residential units, which is intended to be purchased jointly with a family friend;
2. The house could be divided into two ownership units, with about 40% comprising the ground floor (GF) and about 60% the upper floor (UF) plus attic;
3. Included in the purchase would be a large plot made up of several parcels [Question: on which of these parcels is the house located, or where are its building setback areas?];
4. The house is in different states of readiness for occupancy: the "GF" unit is not yet move-in ready, the "UF + attic" unit is conditionally ready for immediate use;
5. You know the other family as neighbors from the same rental building; however, this is not the one planned to be purchased jointly, so this is not a landlord buyout;
6. Neither family alone qualifies for the total amount with their bank [Question: are these different mortgage lenders?], so you want to buy together with the other family;
7. To do so, you would want to divide the building into ownership units, but treat the common ownership of the entire plot differently in value proportion than suggested by the areas of the residential units;
8. Selling off unused portions of the land would not solve the problem because these areas would hardly be attractive to buyers.
.
A side note, a quick prayer to "@ all": I hope next week will be "normal" again, with not half-stammered story fragments here, but rather complete thoughts being shared, whose understanding no longer requires the combined deductive skills of Holmes, Watson, and the Three Investigators (I confess here to being the only one in my school year who never read TKKG). I’m slowly reaching the age where mind-reading becomes exhausting.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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