Fréd and Céline have difficulties getting a new home loan. They have built their house on someone else’s land. Certainly building land of Céline’s mother. Yet this creates a complex situation and time is running out! They must repay a bridging loan. Otherwise they lose their house. How do they get out?
Build a house on other people’s land
Years ago, Frédéric and Céline decided to build a new home on a plot of land. Only this building plot is not from them, but from Céline’s mother.
They are therefore immediately confronted with a first problem. The financing of their new construction. Few lenders are willing to grant a mortgage loan if you are going to build on someone else’s land. Ultimately, they find a solution and receive a bridging loan in 2 years.
But there is a second problem. If you are going to build your house on someone else’s land, you are not an owner! Even if you live in that house and you pay for everything. From the home loan to the property tax.
The owner of the land is the owner of everything on it. They also call this the right of retraction.
Home loan in the form of a two-year bridging loan
Despite this complicated situation, Frédéric and Céline still receive a home loan in the form of a bridging loan.
This bridging loan runs for 24 months and must be repaid. Time is running out … Frédéric and Céline urgently need to find refinancing of their mortgage loans. If not, they risk losing their house.
Even now they are experiencing the same difficulties. Because they built their house on someone else’s land, many benches quit. Too special! Too risky!
Solution found through notary and credit broker in mortgage credit
Nevertheless, the situation of Frédéric and Céline does not have to be a risk. Only it requires a well-considered approach. Customization.
Frédéric and Céline find this customization at their credit broker in mortgage credit. He talks about it with a friendly notary. There is a solution to get out: the mother transfers her property rights to her daughter.
At the same time, the mother combines it with a donation of the building land. In this way it is an outright indulgence with a gift. Taxes have to be paid on both transactions (registration fees for cancellation and gift tax).
Becoming the owner with new home loan
Through their credit broker, Frédéric and Céline apply for a mortgage loan to finance all this.
This new home loan is approved and in the meantime the deed is already over. Frédéric and Céline are now the legal owners of their house.
What can you learn from this?
Building a house on other people’s land often leads to problems:
- you are not the owner of your home,
- you can be evicted immediately,
- it is difficult to find a home loan
For real estate transactions you should therefore appeal to a notary. Before you undertake something yourself. “Think before you begin.”
Fortunately, there are also solutions for a home loan. Even if it seems difficult or hopeless at first sight. Such solutions require an individualized approach. You can find that approach with an independent mortgage broker.
Do you have a question for us? Complete this form and tell more about your situation. This way we can put you in touch with a credit intermediary in mortgage credit from your region.