Property Renovation Loans
Renovation Credits Once the property is amortized, the monthly costs are reduced, but refurbishment work is ongoing. Depending on the extent of the measure, the company’s own funds may not be sufficient. The reorganization loan is useful in this location. Remediation loan – all information at one click! A renovation loan is initially a normal installment loan where the requested amount is paid to the borrower, who then places it in mont.
Unlike a consumer credit, however, a special purpose lending loan is granted. The borrower may therefore not arbitrarily decide on the amount paid out, but only for remedial work. The exact arrangement of the loan is determined from house to house. In most cases it is envisaged that the amount paid out may only be used for refurbishment work on a specific site.
Such a purpose-based use has the advantage that the house bank distinguishes the borrower with a low interest rate. The restructuring loan is thus clearly cheaper than a conventional installment loan. The restructuring loan is not only available to owners, but also to tenants who want to renovate the property. Reorganization loans are not modernization loans! The restructuring loan must not be equated with the modernization loan.
Often the two terms are used for one and the same because the purpose of use is very similar. With these construction measures water, primary energy or energy can be saved. The modernization loan is also used when the real estate gains in value through the measure or when additional living space is created.
The modernization loan is a legal description that is unique in 555b BGB. It is not perceived so strictly by all sides. Before you grant a loan, however, you should inquire with your house bank. Some banks do not accept an oral explanation of the loan amount and want to break it all down.
Especially with large amounts, credit institutions often check whether spending makes sense. Often they then need a proof in the form of photographs or visit the companies to be renovated. Enter the desired amount and select the purpose. Even if the amount of the loan is open at the top, many credit institutions grant a maximum of EUR 50 000 to EUR 75 000 for a reorganization loan.
Some credit institutions demand security in the form of a mortgage over a certain amount, usually from an amount of EUR 10000. Even if the usual duration of a renovation loan is 24 to 84 months, there are offers from 12 to 120 years old. The restructuring loan is intended for renovation work.
But what is a renovation?
In general, this includes: The replacement of the fitted kitchen is not part of the renovation, as the fitted kitchen is an integral part of the building. However, it is important to talk to the house bank in advance. In addition to real estate construction, Intrasavings bank also supports energy-saving measures or the age-appropriate renovation of residential real estate.
Intrasavings bank funding, however, excludes clean-up measures. In some federal states, there are countries that provide cheap reorganization loans, and in some areas there are also subsidies for remedial measures. If you have decided on a renovation, it may well be worthwhile to inquire about alternative options for the reorganization loan. Therefore, you should definitely add the full price of the craft and compare it with the cost of a renovation loan.