Immobilien: Wann ist es sinnvoll, die Grundschuld löschen zu lassen?

In Germany, buyers typically spend around 360,000 euros on purchasing a property, often borrowing money from the bank to finance the purchase. A common accompanying entry in the land register is the Grundschuld, which serves as collateral for the loan. When the loan is fully repaid, many property owners would like to have the Grundschuld eliminated as quickly as possible.

However, in certain situations, it could save money and effort to maintain the entry. What is a Grundschuld? The Grundschuld is distinct from the remaining loan balance, which does not decrease automatically with the repayment of the loan. Even when the borrower has no outstanding debt to the bank, the Grundschuld may still be listed in the land register, such as in the case of over 200,000 euros, without the bank requiring the original loan amount.

The Grundschuld remains a security in the land register. When should one let the Grundschuld stand? If one expects to need further funds for the house or apartment in the foreseeable future, it may be beneficial to keep the Grundschuld listed. This could be the case when undertaking major renovations, remodeling, energy efficiency improvements, or purchasing solar panels.

An existing Grundschuld can serve as security for a new lender in such situations, potentially avoiding notary and land registry fees for a new loan application. It can also be advantageous for a future real estate purchase. Suppose someone wishes to buy a second apartment or house and requires a loan for it. In that case, they might use an already existing Grundschuld as security, potentially simplifying financing and saving costs.

However, an important point to note is that the Grundschuld alone does not guarantee that a bank will provide a loan in the future. The decision ultimately depends on the borrower's creditworthiness, income, loan-to-value ratio, and the specific terms of the financing. When should one eliminate the Grundschuld? Property owners should consider eliminating the Grundschuld when selling the property, according to the Consumer Advisory Center North Rhine-Westphalia.

Buyers typically prefer to acquire an immobilie without any outstanding obligations. Therefore, the sale of the property usually involves the deletion or replacement of existing Grundschuld. The notary coordinates the necessary steps between the seller, buyer, and financing bank. Eliminating the Grundschuld may also be advisable when transferring the property within the family, especially when parents transfer the property to their children under certain conditions such as a warranty of support or right of residence.

In such cases, the Grundschuld is not only a matter of maintaining order in the land register but also a way to protect the children's inheritance in case of financial difficulties of the children. In the event of a forced auction, the parents may lose their residence. What does eliminating the Grundschuld cost? Property owners first need permission from their bank for deletion, which must be issued free of charge by the financial institution once the loan has been fully repaid.

The deletion is then processed through the notary and the land registry office. The exact amount of fees depends on various factors, including the size of the Grundschuld. For a Grundschuld of 200,000 euros, the total cost for notary and land registry office may amount to approximately 800 euros. Those who choose to keep the Grundschuld as security and potentially use it again in the future may save on these fees and the associated effort of applying for a new Grundschuld.

Therefore, the decision to eliminate the Grundschuld should not be made solely because the loan has been repaid; instead, one should consider whether the Grundschuld still provides practical benefits.