Old building renovation: Cheap modernization loans

 

Reasons for renovating old buildings: preserve charm, achieve modernity

When buildings were built a hundred years ago, the term “energy efficiency” in the construction industry was far from common: architects did not waste much thought about effective interior design or particularly energy-saving construction methods, instead they paid more attention to style and planned with crooked windows, long corridors , bright, high ceilings and stucco ornaments.

Even today, many prospective buyers still succumb to the charm of old buildings, but at the same time value modern technologies and a modern energy balance of the building. At first this sounds like contradictory contradictions, but with the help of an individual renovation of old buildings, everything can be easily connected. The best thing about it: By doing so, you’ll be saving quite a bit of energy costs in the future.

    Savings potential of an old building renovation

    Savings potential of an old building renovation

    In the past, it used to go through all the cracks and windows like pike soup, in the winter, stoves were used in the chord – and that was normal. Today, real estate owners have higher demands on their home. Rarely does a path lead past, to renovate the old building when buying directly. This not only applies to buildings from the first half of the 21st century, but also middle-aged houses from the sixties, seventies, eighties and nineties are often in need of renovation nowadays.

    However, the measures taken not only increase living comfort, but also energy efficiency. This is good for the environment and saves money. Façade renovation and new heating systems are usually at the forefront of recovery plans because they offer the greatest savings potential. According to DEKRA, a modern combustion boiler reduces heating costs by up to 25 percent annually compared to an old oil heating system. The old façade conceals a similarly great potential: Modern facade insulation can save another 12.9 per cent on heating costs.

    Rough reference values ​​for refurbishment costs

    For a house from the 50s or 60s you have to put about 40 percent of the purchase price on top of it again and put it into the refurbishment. For houses from the 80s and 90s, about 20 percent of the purchase price is due for the refurbishment. In the past 15 years, houses account for a good 16 percent. The total renovation of an old building is estimated by specialists with about 400 to 600 euros per square meter living space, individual measures are cheaper and thus faster to implement.

    Year of construction alone says nothing about remediation need

    The year of construction of the property is not necessarily crucial for their renovation needs. So it may be, for example, that a house from the 50’s was regularly modernized and is in top condition, while a property from the 80s has not been maintained since the first purchase and must now be completely overhauled from scratch. Therefore, check before buying, when the most important components of the property, such as the heating or the facade, were last renewed.

    Usual intervals and costs of an old building renovation

    Before buying an old building in need of renovation, you should not only find out when the most important building components were last renovated. It’s also important to know which ones will be back soon. Only if you get a good overview of the current state of affairs and the work due for completion in the near future, you can target your remedial measures. The following list shows when which measures usually become acute.

    Financing of old building renovation: construction financing or installment loan?

    Financing of old building renovation: construction financing or installment loan?

    When buying an old building, it is very likely that you have to invest financial resources in its renovation. It makes sense to co-finance the whole thing through the very low-interest mortgage financing and a modernization loan contained therein. This is possible as long as the planned measures by the bank are classified as adding value and the mortgage lending limit of the property is not exceeded by the higher credit. The original mortgage lending, which is actually only for the purchase of the house, is then increased by the sum that you need for the modernization.

    The total will be hedged through the land purchase process, and you will pay back what you have borrowed for purchase and modernization at the same monthly rate over the coming years. However, for people who have owned an old building for some time now and would like to modernize afterwards, it is more difficult to accept a new mortgage lending. For this, the property should already be debt-free, which is usually not the case. In such situations, however, offers a good alternative to mortgage lending: A purpose-built installment loan with optimal conditions. 

    Assigned Installment Loans for Property Owners

    As a real estate owner, you can resort to earmarked installment loans such as a reorganization loan for your modernization. You will get it even if your property is not debt free, and the mortgage lending limit also does not matter. Compared to mortgage lending, the restructuring loan is also less bureaucratic because it does not require a land register entry. All you need to do for the reorganization loan is to prove your status as a real estate owner.

    You can do this, for example, with a current land register excerpt, which you can obtain from your local land registry office. Banks grant cheaper rates for the reorganization loan than for a normal installment loan , because they consider the creditworthiness of real estate owners to be better. They assume that a real estate owner is more likely to pay monthly installments for a loan than someone without real estate. This property reward them with better credit conditions.

    Our tip: Include state funding in old building renovation

    Our tip: Include state funding in old building renovation

    Certain components of your planned refurbishment are supported by government support programs. That means: you do not have to pay for the financing of the new roof or the new heating alone, but under certain conditions receive subsidies or very low-interest KfW loans . Two possible sources for this are the Kreditanstalt für Wiederaufbau (KfW) and the Federal Office of Economics and Export Control (BAFA).

    The promotional loans of KfW

    KfW offers loans for the installation of ventilation and heating systems, for the thermal insulation of walls, roofs and cellars, through its program 151: Energy-efficient renovation . In doing so, KfW always focuses on increasing energy efficiency, which is why you must first consult an energy consultant who will show you which measures make sense.

    Renew heating system using the BAFA

    The BAFA loans also allow outdated heating systems to be converted to newer, more energy-efficient and environmentally friendly systems. The subsidies are primarily intended for combined heat and power plants, biomass plants, heat pumps and solar thermal systems. Our table shows you which measures are promoted in detail by which program.

    Measures and appropriate subsidies for renovation of old buildings at a glance

    Good planning is crucial in a renovation of old buildings

    A comprehensive refurbishment is a major project that takes a lot of time and wants to be well planned in advance. After all, you want to enjoy your old, new home for a long time and at the same time not financially accept it. Assistance and expert advice are indispensable in this case. It is best to consult the energy consultants of your Consumer Center for the planning.

    When it comes to financing the project, our mortgage specialists are your point of contact. They not only accompany real estate buyers through the purchase process and plan the modernization costs into their mortgage lending. They also help real estate owners to find the appropriate installment loan for subsequent remedial measures.

    Cheap restructuring loans for your old building

    We make financing easy for you: Our specialists are looking for loan offers and suitable providers for the refurbishment of old buildings. Optimal conditions included. To receive our support, simply request non-binding financing proposals. Your on-site consultant will contact you personally within 24 hours.