How can a property be financed after a building permit has been granted? This guide shows which project, cost, equity and collateral documents lenders typically check and how the financing is structured until disbursement.
Status: 29. August 2026 · Technically tested by Jürgen Kronawitter
At a glance: For a resilient property financing, building permit, property right, cost and scheduling, equity, collateral and repayment must fit together. In this area, Alternate Immobilien only arranges financing for projects for which the building permit is already available.
Approval alone does not lead to a loan commitment. In addition, lenders checks whether the approved project complies with calculations, construction contracts, market assumptions and financing structure. Deviations between approved planning and financial model must be openly explained and financially mapped.
What matters is not only the document itself. lenders compare the scope of approval, approved plans, project calculation and planned construction process.
| Test field | What should be comprehensible | Typical open question |
|---|---|---|
| Scope of approval | Use, structure, areas, pitches and approved building designs | Does the model finance the approved project? |
| Ancillary provisions | Conditions, conditions and technical evidence to be provided | Are there additional costs or delays? |
| Legal and time-limit status | Service, legal remedies, period of validity and required notices of start of construction | Can we start on a scheduled and legally compliant basis? |
| Project identity | Consistency between planning permission, land ownership, the SPV, the cost plan and sales documents | Are there any unapproved plan changes? |
The building code details differ by location. For example, rules governing Art. 68 BayBO Issuance, written form, approval fiction and prerequisites for the start of construction in Bavaria. For projects in other federal states as well as in Austria or Switzerland, the applicable law is relevant.
Important: The building permit is granted without prejudice to the private rights of third parties. Ownership, easements, construction loads, rankings and other land risks therefore remain independent examination points.
A lender not only finances a property, but a complete return logic. These eight building blocks should be consistently documented.
Notarial purchase contract or proof of ownership, up-to-date land register extract, cadastral map, purchase price due, prior notice, easements, construction loads and, where applicable, contaminated loads must be classified. Contracts for the sale of land shall be subject to: § 311b BGB Notarization of Notarization.
Building permits, approved plans, building description, area calculation and ancillary provisions belong together. Cost and revenue planning must be based on precisely this level of planning.
Lenders check track record, ongoing projects, financial statements, current economic documents, origin of own funds and possible liability. In a young project company, the performance of the sponsors is particularly in focus.
Land, acquisition costs, construction and ancillary development costs, taxes, sales expenses, financing costs, contingency and liquidity must be included in the sources and uses statement and the drawdown timetable.
JV/VDC contract or robust trade offers, schedule, supplementary mechanics and technical project management show whether approved concept and budget can be implemented.
Amount, origin, time of deposit and previous project expenses are taken up. Whether shareholder loans or subordinated funds are recognised determines the specific financing structure.
The market study, unit and price schedule, sales strategy, presales or, for investment properties, the proposed letting and stabilisation plan must be consistent with the location and timetable.
Sale, forward sale, long-term investment property finance or another exit are presented in a comprehensible manner with amount and date. Sensitivities show what happens with delay, additional costs or lower revenues.
An ordered document structure can be found in the Checklist for documents for real estate project financing§ 18 KWG and the EBA guidelines on lending and monitoring form a regulatory framework; the specific requirements list remains lenders- and project-specific.
The correct structure depends, among other things, on loan, equity, schedule, construction cost risk and exit. A product name therefore does not replace a project review.
First-line financing through bank or institutional lenders. Typical are detailed credit checks, collateral orders and clearly defined conditions for first and further payouts.
An integrated debt tranche can simplify coordination, but is priced differently by risk and loan than a classical banking structure.
subordinated capital can complement an equity gap. Rank, term, remuneration and intercreditor rules must fit the priority financing.
In the case of a narrow execution window, a short-running structure may be useful. The prerequisite remains a reliable repayment by mortgage financing, sale or refinancing.
| Exemplary use of funds | Amount | Possible source |
|---|---|---|
| Land and non-profit-making costs | €3.4 million | equity and/or debt capital |
| Construction and construction costs including reserve | €6.6 million | Senior, Whole Loan or combined structure |
| Total | €10.0 million | Project-specific funding mix |
The example only shows the logic of Sources & Uses. It does not contain a statement on financeable quotas, conditions or a loan commitment.
Project, land, building permit, capital requirements, own funds, schedule and exit are checked for basic fit.
Senior, Whole Loan, Mezzanine or Combination are classified according to risk, rank, maturity and repayment.
Legal, sponsorship, approval, cost, market, construction and collateral documents shall be structured consistently.
The request is addressed specifically to addresses whose volume, asset class, region and risk profile fit the project.
Lenders check credit rating and project, if necessary, have technical and economic evaluations carried out and formulate credit and collateral contracts.
Only when the contractually agreed conditions are proven and released, the payment can take place. More about this in the guide Payment requirements at property development finance.
The Financial Model charges for additional space, pitches or other use not covered by this permit.
Real estate transfer tax, notary, planning, financing costs or cost buffer are incomplete and later generate an unfunded gap.
Notarial deadlines, conditions of the seller and realistic credit process were not coordinated.
Origin, availability, rank and time of deposit remain open or existing project expenses are not cleanly documented.
Sales time, revenues or follow-on finance do not contain a buffer for market, cost and forward deviations.
No. In this area, Alternate Immobilien only arranges financing for projects for which the building permit is already available. Building advance decision, ongoing approval process or expected building rights are not sufficient for this service.
No. lenders additionally examine property rights, borrowers and sponsors, costs, dates, construction contracts, equity, collateral, market assumptions and repayment. A commitment arises only after a complete credit decision.
This depends on the project, location and lenders. Redress status, neighbourhood consents, ancillary provisions and time limits should be transparently documented. The quality of the approval for decision or disbursement is required in the specific financing agreement.
Typical are building permit and approved plans, land and purchase documents, project profile, cost and time planning, capital requirements and own funds, sponsor track record, construction contracts as well as sale, rental or other exit.
Yes, if lenders and structure so provide. For example, continuous project financing or separate tranches for acquisition and construction are possible. Payment, use of equity and collateral must be synchronised in time.
Mezzanine can complement a gap between senior loan and real equity. It does not replace approval or project review and must be coordinated with priority lenders in terms of ranking, duration and return.
No. Complete documents allow a robust examination, but do not replace a credit decision. Financial viability and conditions always depend on the specific project and the risk profile of the lenders.
Submit location, permit status, capital requirements, own funds and schedule. Alternate Capital sets the starting position and discusses possible next steps.
Jürgen Kronawitter is Managing Director of Alternate Immobilien GmbH. He accompanies property developers, property developers, investors and property investors in structuring and arranging professional real estate finance in the Germany, Austria and Switzerland.
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