Hello,
My girlfriend and I are planning to renovate and expand my parents’ house. We are not married yet and would like to move into the shared apartment first, then hopefully get married before having children. The house (including the yard, as it is farmland) will be transferred to my name in the land registry before the renovation. My parents will keep a right of residence and live on the ground floor, while we will completely renovate and rebuild the first and second floors. This means the roof has to be removed (it needs to be replaced anyway), the knee wall raised, walls moved, insulation and new windows installed throughout the entire house—a full package. Afterwards, we expect to have about 140-160 sqm (1,500-1,700 sq ft) for ourselves.
My question is whether anyone could roughly estimate the costs, even though I realize this is difficult. Also, what challenges might arise? The house will only be registered in my name, but the financing will be in both of our names. I know some will ask if I really want to live with my parents in the same house, but the point is that if I were to build a new house, I would then have to maintain two properties long term. Alternatively, renovating my parents-in-law’s house is also an option, but theoretically the same issues would arise.
There is also a mortgage registered on the property from the 1970s, about €50,000 (approximately $55,000). Would it be advisable to have the mortgage removed and register a new one later? Or would it make more sense, also for cost reasons, to keep the existing mortgage in place, transfer it, and adjust it?
Thanks in advance.
My girlfriend and I are planning to renovate and expand my parents’ house. We are not married yet and would like to move into the shared apartment first, then hopefully get married before having children. The house (including the yard, as it is farmland) will be transferred to my name in the land registry before the renovation. My parents will keep a right of residence and live on the ground floor, while we will completely renovate and rebuild the first and second floors. This means the roof has to be removed (it needs to be replaced anyway), the knee wall raised, walls moved, insulation and new windows installed throughout the entire house—a full package. Afterwards, we expect to have about 140-160 sqm (1,500-1,700 sq ft) for ourselves.
My question is whether anyone could roughly estimate the costs, even though I realize this is difficult. Also, what challenges might arise? The house will only be registered in my name, but the financing will be in both of our names. I know some will ask if I really want to live with my parents in the same house, but the point is that if I were to build a new house, I would then have to maintain two properties long term. Alternatively, renovating my parents-in-law’s house is also an option, but theoretically the same issues would arise.
There is also a mortgage registered on the property from the 1970s, about €50,000 (approximately $55,000). Would it be advisable to have the mortgage removed and register a new one later? Or would it make more sense, also for cost reasons, to keep the existing mortgage in place, transfer it, and adjust it?
Thanks in advance.
That sounds like a very expensive renovation since everything needs to be done and the house itself will also be altered. You will definitely need a building permit / planning permission for this. So first, have everything assessed by an expert—whether it’s an architect, structural engineer, or similar. And get a cost estimate.
To me, it almost sounds like it might be cheaper to demolish the building completely and rebuild it.
What I definitely wouldn’t agree to is being listed on the loan agreement but not on the land register. That means you personally have debt but no security or collateral. The relationship would have to be very strong to handle that. Renovations alone already put a relationship to the test. Is it planned to transfer the property deed after getting married?
I would recommend having the mortgage fully canceled since it is tied to the bank. You probably don’t want to remain tied to that bank, right?
In any case, this is not a simple matter. I would definitely not proceed without consulting an expert.
To me, it almost sounds like it might be cheaper to demolish the building completely and rebuild it.
What I definitely wouldn’t agree to is being listed on the loan agreement but not on the land register. That means you personally have debt but no security or collateral. The relationship would have to be very strong to handle that. Renovations alone already put a relationship to the test. Is it planned to transfer the property deed after getting married?
I would recommend having the mortgage fully canceled since it is tied to the bank. You probably don’t want to remain tied to that bank, right?
In any case, this is not a simple matter. I would definitely not proceed without consulting an expert.
It is clear that a building permit / planning permission is required. This was never even in question. It is also clear that an architect needs to be involved.
However, I want to have the cost estimate, inspection, etc. done only after the paperwork has actually been processed.
Tearing down the house and rebuilding might be theoretically possible, but not in practice. On one hand, because the house was built by my father and he certainly would not agree to that. On the other hand, renovations on the ground floor, which will be my parents’ future apartment, would be completely ruined.
The house was built in 1974, so work such as roof renewal and window replacement is simply due, and in my opinion, thermal insulation should be done at the same time. However, it is still too good to tear down.
And since we are renovating anyway, it should be adapted exactly the way we want it. The 1st and 2nd floors would then certainly be in a like-new condition.
I don’t want to have to remodel again in five years.
If you are married, my wife can probably be registered in the land register / property deed. Before that, I think it’s difficult because someone "external" would get a share of the house or the property.
Basically, we agree on this, as she does not want to "take" anything from me. Since we both come from a rural area, this might be hard for some to imagine.
Regarding the mortgage deed, as far as I know, it is also possible to assign it to another bank. The mortgage deed would of course have to be adjusted accordingly.
However, I want to have the cost estimate, inspection, etc. done only after the paperwork has actually been processed.
Tearing down the house and rebuilding might be theoretically possible, but not in practice. On one hand, because the house was built by my father and he certainly would not agree to that. On the other hand, renovations on the ground floor, which will be my parents’ future apartment, would be completely ruined.
The house was built in 1974, so work such as roof renewal and window replacement is simply due, and in my opinion, thermal insulation should be done at the same time. However, it is still too good to tear down.
And since we are renovating anyway, it should be adapted exactly the way we want it. The 1st and 2nd floors would then certainly be in a like-new condition.
I don’t want to have to remodel again in five years.
If you are married, my wife can probably be registered in the land register / property deed. Before that, I think it’s difficult because someone "external" would get a share of the house or the property.
Basically, we agree on this, as she does not want to "take" anything from me. Since we both come from a rural area, this might be hard for some to imagine.
Regarding the mortgage deed, as far as I know, it is also possible to assign it to another bank. The mortgage deed would of course have to be adjusted accordingly.
I also come from a rural area.
The advantage of transferring ownership after marriage is that you only have to pay notary fees and no taxes.
Without a marriage certificate, it would simply be too expensive, because the property would either have to be sold officially or given as a gift. In both cases, taxes apply to your girlfriend.
When selling, depending on the federal state, 5 to 6 percent of the sale price must be paid based on the share recorded in the land register. But be careful, if the sale price is set too low, the tax office might consider the difference as a gift. And gift taxes are very high if there is no family relationship.
We also completely renovated our house. It’s a lot of work, but usually worth it. We now have almost new-build standards. Only the foundation walls and the roof structure date back to 1962.
I would recommend having the mortgage lien cancelled and then re-registered when taking out a new loan.
The advantage of transferring ownership after marriage is that you only have to pay notary fees and no taxes.
Without a marriage certificate, it would simply be too expensive, because the property would either have to be sold officially or given as a gift. In both cases, taxes apply to your girlfriend.
When selling, depending on the federal state, 5 to 6 percent of the sale price must be paid based on the share recorded in the land register. But be careful, if the sale price is set too low, the tax office might consider the difference as a gift. And gift taxes are very high if there is no family relationship.
We also completely renovated our house. It’s a lot of work, but usually worth it. We now have almost new-build standards. Only the foundation walls and the roof structure date back to 1962.
I would recommend having the mortgage lien cancelled and then re-registered when taking out a new loan.
If you also come from a small town, you surely know how difficult it is to get everyone involved and on the same page. No offense intended.
What confuses me now is that earlier you mentioned it might be better to demolish the house. But now you wrote that you also completely renovated your house.
It’s clear that a lot of work will be involved. On the other hand, demolition and rebuilding certainly isn’t less work either.
As for the costs, I would roughly estimate around 250,000 euros (about $270,000), without having spoken to a professional... A new build is probably not cheaper.
Regarding the mortgage lien, I think having it canceled and registered anew is the cleanest solution—unless it makes a big financial difference, which I unfortunately haven’t been able to find out yet.
What confuses me now is that earlier you mentioned it might be better to demolish the house. But now you wrote that you also completely renovated your house.
It’s clear that a lot of work will be involved. On the other hand, demolition and rebuilding certainly isn’t less work either.
As for the costs, I would roughly estimate around 250,000 euros (about $270,000), without having spoken to a professional... A new build is probably not cheaper.
Regarding the mortgage lien, I think having it canceled and registered anew is the cleanest solution—unless it makes a big financial difference, which I unfortunately haven’t been able to find out yet.
The first post sounded like a complete renovation, and in such cases, you need to calculate what makes more economic sense.
But as you said, sometimes other factors also come into play.
With a budget like that, you should be able to achieve quite a bit.
If the mortgage deed dates back to the 1970s, you should actually already have a certificate of cancellation from the respective bank. Removing it doesn’t cost much.
The fees for registering a mortgage deed always depend on the amount involved.
PS: Notary fees can be calculated online everywhere. Notary costs are regulated by law. You can basically calculate for yourself how much it will approximately cost.
But as you said, sometimes other factors also come into play.
With a budget like that, you should be able to achieve quite a bit.
If the mortgage deed dates back to the 1970s, you should actually already have a certificate of cancellation from the respective bank. Removing it doesn’t cost much.
The fees for registering a mortgage deed always depend on the amount involved.
PS: Notary fees can be calculated online everywhere. Notary costs are regulated by law. You can basically calculate for yourself how much it will approximately cost.
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