Up to 80 % of the lending value
Including with non-earmarked use. The calculation runs on the lending value — which is regularly below the market value. Plan with today's market price and you plan too high.
Equity release · § 34i GewO
Capital from your property — without a purchase behind it?
Most banks only lend when a property purchase is on the application. A few do not tie the release of capital to a property use at all. Those are exactly the banks we know well.
Can I release capital from my property without a real-estate purpose?
In many cases, yes. A few banks in Germany will mortgage a residential property up to 80 per cent of the lending value without tying the use to a property purchase — workable purposes include free liquidity, modernisation or redeeming expensive loans. Requirements: a loan amount from around €150,000; normally an unencumbered property, with a very strong credit profile also as a second-ranking charge up to 80 per cent. We know the few banks that do this.
What "without earmarking" means — and what it does not
In Germany, releasing capital from a property is not necessarily tied to financing real estate. But the market for it is small.
The norm at the counter: banks lend when you buy, build or modernise — residential use, preferably in Germany. Remove that field from the form and, at most banks, the whole case disappears. Not because the security is weak — because the lending policy does not provide for the case.
A few banks handle it differently: a residential property is mortgaged, and the use of the capital is not tied to a property purchase. In practice we see a range of purposes — free liquidity, modernisation, redeeming expensive loans. Which use works in a given case is something we clarify up front — before any application is filed.
The key figures
Normally unencumbered
The standard case is the paid-off property. With a very strong credit profile it also works as a second-ranking charge — likewise up to 80 per cent of the lending value.
From around €150,000
Below that loan amount the structure does not usually carry. If you need less, other routes are usually the better fit — and we say so honestly.
The distinction: when a property purchase is behind it after all
If the capital is meant to flow into a property purchase abroad, that is its own well-trodden route — with the same lending limit, but a different narrative towards the bank, plus the Spanish or Portuguese financing on top: Release equity from your German property to buy abroad.
Scope note: we broker the equity release on properties in Germany, under § 34i GewO. For competitive reasons, we name specific banks only within a mandate.
FAQ
Frequently asked questions
Do I have to tell the bank what the money is for?
The use is stated — but at these banks it is not tied to a property purchase. Workable in practice are a range of purposes: free liquidity, modernisation, redeeming expensive loans. What carries in your case is clarified before the application.
How much can be borrowed?
Up to 80 per cent of the lending value — including with non-earmarked use. The lending value is regularly below the market value; that belongs in the planning.
Does the property have to be unencumbered?
Normally yes — the standard case is the paid-off property. With a very strong credit profile, a second-ranking charge is also possible, likewise up to 80 per cent of the lending value.
Is there a minimum amount?
Yes — the loan amount should be around €150,000 or above. Below that, the structure does not usually carry.
Why does my own bank say no to this?
Because its lending policy does not provide for the case — most banks only lend against residential use. The no is a statement about the bank you asked, not about your case. We know the few banks that do it.
Tell us what the property is worth — and what the capital is for
With the rough value, any remaining balance and the intended use, we can tell you whether the structure carries. Before you file an application anywhere.
Discuss your case