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Everything you need to know about the building permit

The building permit is a specific document, issued by the building supervisory authority. It proves that a new construction or a rebuild does not violate public law regulations. Having in mind, that every federal province hat its own regulation about the location of construction, you should previously obtain informations from the responsible building supervisory authority.

In that respect, the building permit is the basic requirement for starting your new construction or reconstruction project. In order to get a building permit, those who are entitled to perform on construction projects, such as architects/civil engineers or supplier of prefabricated houses, have to submit the building application.

The necessary papers could be different in each federal province, so you have to look into its construction regulations. The following documents are always absolutely essential: Site plan (at a scale of 1:500), construction drawings (at a scale of 1:1000), informations about generating water supply and water disposal, specifications about statistics, heat insulation and noise protection, calculations on the built-up property area and the undeveloped part, evaluations on the total floor area/the surface area and on the living space/effective area. Furthermore, a listing of shell construction costs and of total expenses as well as a data entry form about construction activities are to hand in. Finally, you have to collect signatures from the owners of the neigbouring properties. They cannot stop the building permit. However these property owners have the option to file a suit against your construction permit, at the administrative court. That´s why it is recommended to obtain their consent.

The above mentioned documents, along with the building application, have to be submitted at the municipality. Afterwards, the corresponding body will turn the building application over to the building supervisory authority. Within ten working days, this authority has the obligation to check, if the application is complete. In case of incomplete data, the applicant will be granted a period of time in which he can hand in the concerning papers. Should the applicant not meet the deadline, the request will be rejected. At best within ten working days, you receive a confirmation about the complete proposal, including the date on wich the request will be decided.

From the date of receipt, the building permit is valid for three years. Please note, that this permission has to be shown at the building site, when there is an inspection. Otherwise the responsible supervisor will set a time limit of three days for submitting the missing building permit. At worst, he could issue an order to stop the whole building project. In the light of the above, construction work can only take place, when you hold this essential permit in your hands. Otherwise, there is the threat of fines or the building site could even be demolished completely, because a building permit cannot be granted afterwards.

Additional requirements concerning the construction project:

Two weeks before finishing the shell of buildung, the building supervisory authority is to be contacted, so that those responsible take appropriate measures for the acceptance of the construction site. Apart from this, you have to inform the building authority, two weeks before completing the whole construction. In addition, on the day of acceptance you must show a confirmation paper about the safe usability of the exhaust system, issued by the chimney sweeper. 

If your construction differs substantially from the development plan, from town charter or rather from building regulations, a request is to be made. Generally, this kind of application is very difficult  and can only be approved, as long as there is no harm to public interest.

Do you have any more questions?

An individual consultation appointment can be arranged by contacting us:

Phone: 0721 – 56 42 42
E-Mail: info@FinanzierungsExpert.de or just use our information contact form provided on this website.

Contact us

Information about the author:

Alexandra Schneider is a certified bank business administrator and she writes about up-to-date topics, for FinanzierungsExpert.

 

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Construction financing without equity capital – how should this be done?

As with so many things in life, sometimes the unexpected happens!

You are not really looking for real estate. And honestly speaking, very shortly after beeing graduated, recently starting a job and having a lack of equity capital this kind of project does not fit with your current stage of life. But then, as luck would have it, you have spotted your dream property, or you have access to real estate on favourable terms which you find very appealing for a long time.

To keep a long story short: You have to seize the opportunity!

But how does that work if your parents can´t support you with money and you also can´t provide property as a additional security?

In fact, it is perfectly realistic to carry out a complete financing together with incidental extra expenses. Besides the selling price, in case of aquisition land transfer tax, notary fees, land registry costs and in certain cases broker´s commissions have to be paid, which amount to approx. 10% – 15% of the total purchase price. As a result, the overall expenses will increase enormously.

By providing a full funding, banks take therefore a high risk because the additional purchase costs don´t have an equivalent value, and finally, they are regarded as a credit in blank. The one condition for such granting loans is a very high credit rating which is reflected in a high and sustainable income, in not having any negative credit events at the Schufa (credit investigation company) and in a property which is well located and in good condition.

Even if all those criteria are fulfilled, there a still a lot of banks which do not offer full funding because of business policy and which demand the contribution of additional purchase costs.

In such cases, there is the possibility of splitting the funding. The selling price of the property will be  funded through the desired bank, and besides, the additional purchase costs will be financed through a so-called subordinated loan provided by a specialised bank. Since the security of the loan is subordinated, as its name already suggests, the relevant bank has to bear a particularly serious risk. According to this, the bank will set a high interest rate. However, there is one benefit: Most of these credits can be replaced prematurely at any time, without any early repayment charges. This means that you enjoy a certain flexibility. At all times, you can completely repay the loan or you can use monthly liquid funds as special repayment, in order to reduce the expensive credit component as quickly as possible.

As you can see, this kind of financing allows customers, with a monthly liquidity but yet a lack of capital accumulation, the possibility to aquire soon enough their own dream property – despite insufficient equity capital.

 

Do you have any more questions?

An individual consultation appointment can be arranged by contacting us:

Phone: 0721 – 56 42 42
E-Mail: info@FinanzierungsExpert.de or just use our information contact form provided on this website.

Contact us

Information about the author:

Alexandra Schneider is a certified bank business administrator and she writes about up-to-date topics, for FinanzierungsExpert.

 

 

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Child benefit for building – Questions and Answers

By law enactment, child benefit for building – a government grant scheme to support families building homes – was introduced, on 05 July 2018. It aims to support young families to create their own homes, by supplying cash subsidies.

Does every family obtain child benefit for building?

Not at all, child benefit for building is attached to special conditions.

Under what conditions does a family receive child benefit for building?

Families with at least one child, being under 18 years of age and living in the same household, who have an annual taxable income of maximum 75.000,00 Euro plus 15.000,00 Euro per child, are eligible for this kind of child benefit.The subsidy amounts to 1.200 Euro, per child and per day, and is granted for the period of ten years.

For a better understanding: Each family with one child is allowed to have a maximum annual taxable income of 90.000 Euro and obtains a subsidy of 12.000,00 Euro, in total. In case of a family with two children, there is a maximum tax revenue of 105.000.00 Euro, and the total grant amounts to 24.000,00 Euro.

Apart from these financial conditions, two more criteria are to be met: The applicant aquires property for his own use, and besides, he does not own any further real estate assets. Child benefit for building is not a credit, but a subsidy, applied for through the KfW Bank.

When will the construction child benefit be paid out?

Child benefit for building is paid out in annual instalments. After a positive review of the supporting documents by the KfW Bank, the first grant instalment shall be transferred to the applicant´s account. You will find the specific date of payment on the confirmation paper which you have previously received from the KfW Bank. The further grant instalments will be remitted in the following nine years, always in the same month of the first payout.

Can you apply for construction child benefit retroactively?

Yes, indeed. Construction child benefit can be applied for retroactively, from 1st January 2018 on. That means, when you build or buy a house, in 2018 or later, you can submit your application. At the latest within six month after moving into residential property, you can make a request.

 

Do you have any more questions?

An individual consultation appointment can be arranged by contacting us:

Phone: 0721 – 56 42 42
E-Mail: info@FinanzierungsExpert.de or just use our information contact form provided on this website.

Contact us

Information about the author:

Alexandra Schneider is a certified bank business administrator and she writes about up-to-date topics, for FinanzierungsExpert.