Advantages of partial real estate sales
With the partial sale of real estate to capital
Partial real estate sales are an attractive way to create liquidity without losing complete control of your property. Here are some of the benefits listed:
Release of capital
By selling parts, you can convert a significant portion of your assets into liquidity without having to sell the entire property. The capital released can be used to cover living expenses, investments or other personal needs.
Increase in value
You continue to benefit from the appreciation of your property as you remain the primary owner. Any increase in the value of the property also benefits your assets.
Right of residence
By entering a usufruct right in the land register, you can continue to live in your property. This provides additional security and stability as your residence remains unchanged.
Disadvantages of partial real estate sales
Carefully check the costs of selling part of a property
Despite its advantages, a partial sale of real estate can also have disadvantages and costs that should be taken into account. Here are some points explained:
Cost consideration
Various costs may apply, including notary and land registry costs, the valuation of the property, and possibly fees for the partial sale itself. These costs can reduce the financial benefit of the partial sale.
Reduced property rights
Even if you can remain the primary owner, part of your property will be sold to a third party. In some cases, this could limit your rights or complicate them, especially when it comes to future sales or other transactions. Flexible options are not excluded and should be examined.
Market dependency
The amount you receive from the partial sale depends on the current market value of your property. If property prices fall, this could negatively impact the maximum amount you could receive.
Partial sale - who is it suitable for?
Different target groups with different motives
The partial sale of real estate can be an attractive solution for private individuals in Germany for various reasons. A central aspect is often decisive - the financial options that are or are no longer offered to the property owner on the market, so that partial sales are a solution if financing cannot be achieved by raising capital.
Retirement age is (almost) reached and financial freedom is desired
If you are over 60 and the statutory pension is not sufficient to afford all the freedom, but you own a valuable property, then selling part of the property is an option that is often chosen. The partial sale of real estate is therefore a good or better alternative to an annuity, real estate annuity, reverse mortgage, mortgage loan or a normal loan. No new debt or complete sale is necessary. You can live in your property permanently.
easy capital raising for every property owner
If you have reached a certain age as a property owner or if your income is not sufficient to get financing from a bank approved, a partial sale is an option to quickly obtain capital for free use.
Modernization measures or energy-efficient renovation
You don't want or can't finance with a bank and would rather have easy access to liquidity so that you can take action as quickly as possible.
Divorce, money for payout
If you are in the divorce process and need to pay off your divorced partner, but cannot find a classic financing solution, then selling part of the property can be a good (temporary) solution.
Debt restructuring, consolidation of several loans
There are existing liabilities that you would like to repay and combine, but this is difficult or impossible to implement as traditional financing, and then a partial sale is also an option for you.
Payment of inheritance tax on inherited property
It is not uncommon for significant inheritance taxes to be incurred, which cannot always be easily borne. But you also don't want to sell and raising capital in the traditional way is difficult, so even then a partial sale is an option for you.
A notice:
The results represent a model calculation and are subject to change. We assume no liability for the result of the calculation. The sales proceeds determined are exemplary or based on your entries.
Practical example & Partial sales calculator
Partial real estate sales looked at in numbers
To illustrate how partial real estate sales work, let's assume that Mr. Müller owns a property worth 500,000 euros. He wants to sell 50% of his property to create liquidity for other investments.
Valuation and partial sale
After a professional valuation, Mr. Müller sells 50% of his property to a partial buyer for 250,000 euros. In addition, there are notary costs of 2,000 euros and a fee for the partial sale of 5,000 euros - however, these costs are borne by the partial buyer.
Usage fee
Mr. Müller pays a usage fee for the portion of the property sold. Assuming that the usage fee is 4% of the sales value per year, Mr. Müller would pay 10,000 euros annually / 2,500 euros per month.
Increase in value
After a few years, the value of the property increases to 600,000 euros. Since Mr. Müller continues to participate in the increase in value, he also benefits from the increase in value. He is now entitled to 50% of the sales proceeds. In other words, 300,000 euros, of which 50,000 euros can be attributed to the increase in value. Together with his original payment amount/partial sale, he comes to a balance sheet after the useful life of 550,000 euros.
Variants of partial sales
There are two options available for partial sales:
Standard partial sale
The share you want to sell will be credited to you immediately.
Partial sale with interest credit
For example, you can invest up to 50% of the payout amount with interest and receive regular interest credits.
Process of the partial real estate sale
Request a quote online in just a few steps
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Fill out the contact form with a few details and we will identify suitable providers for you and confidently refer you to expert staff who will take care of your concerns.
Serious interest in partial sale
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If serious interest in the partial sale has been aroused, an independent, certified appraiser will be commissioned by the provider/bank and will evaluate your property. Based on the result, the final partial sales offer will then be created for you. You check the details and a personal contact person is available to answer any questions.
Payout
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If the certification has been successfully completed, the requested payment amount will be paid out to your account promptly.
You will receive a written offer quickly
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A written offer will be sent to you immediately, which will also describe the calculated value of your property and the procedure until payment is made.
Contract signing
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In order to make the partial sale legally binding, a notary appointment will be arranged for you on site, where the partial sale will be notarized. This usually happens two weeks after the offer has been accepted.
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