In order to expand the terrace as desired, usually a larger sum is necessary. However, the required amount is usually not always on the current account or the call money account . In order to turn your own terrace into a green oasis, borrowing is ideal.
Terrace extension – financed with the help of a loan
With a loan , many things are possible with a terrace extension, such as the new creation of such a green oasis, an enlargement or the various repair / modernization works.
A loan for the terrace can either be a classic installment loan or a modernization loan . After all, as an owner, you want to know the property in good condition and feel at home on the terrace. In addition, such work also ensures that the value of the property increases.
Such a loan can be used for a variety of repairs, repairs and embellishments. This includes, for example, a connection from the living room or bedroom directly into the beautiful green. Or the terrace is expanded, roofed or renewed the tiles / floor tiles. Likewise, it is also feasible with the help of a loan , to create a complete terrace according to your own wishes and ideas.
Outgoing borrowers must be aware that a modernization loan is always earmarked and the loan amount may not be used for anything else.
Who decides to upgrade the terrace for a modernization loan, should absolutely note that this loan type is earmarked. Accordingly, the borrower is only allowed to use the loan amount for the purpose stated in the contract.
The sum may therefore not be spent on anything else. However, the individual works are not recorded in detail in the contract. If the loan amount is used for the extension of the terrace, the borrower is allowed to fully use the loan amount.
Thanks to the earmarking, the borrower benefits from a lower interest rate . With a installment loan , these are usually much higher.
However, banks only grant a modernization loan to real estate owners. Tenants are generally obliged to report desired structural changes in advance to the owner or ask them for permission. As a result, the banks exclude tenants from the outset of the award of a modernization loan. In addition, some banks also claim that the property is occupied by the owner himself.
The advantages of a modernization loan include the very favorable interest rate, which is due to the contractually stipulated purpose. In addition, it is usually possible to negotiate fairly flexible loan amounts and repayment terms with the banks.
The disadvantage of a modernization loan, however, is that the loan amount may not be used flexibly, but is only to be used for the terrace extension.