The investment property, the apartment block - lived family traditions in times of forced modernisation measures (sec. 555b of the German Civil Code.....

29 July, 2022

An apartment block in Eimsbüttel or perhaps something a little more modest in Harburg form part of the treasured "family silver" of a few mostly well-to-do families. Sustainable assets like this should be preserved if possible, because they can provide financially security even across generations in difficult times. This is practically an iron principle. 

But times more faster now, family structures change more frequently and at breakneck speed, and the distance between individuals has also increased. The larger the group, the greater the contrasts can be in the interests of the individual members of an ownership community. At the same time, the expectations upon the management of individual properties are becoming ever higher. And even in the case of fundamentally modest apartment blocks, the building technology can become an ever more complex integral system. But this innovation is not only the result of technological development, but is also due to "pressure" from the legislator, whose initiatives come, in turn, from globally established climate change.

With regard to structural changes in the course of modernisation measures, section 555b of the German Civil Code (BGB) established a basic framework. The decisive element is reducing use of non renewable primary energy in building management. The objective is clear, but when it comes to the means, options, tools and timescales, there are many contradictions, controversies and differences of opinion. One ever-present example is the often one sided debate on using heat pumps as the heating solution of the future. One ever-present example is the often one-sided debate on using heat pumps as the heating solution of the future. The resources actually available in terms of products, installation services and power capacities seem to conflict with the perceptions of government officials. In addition, a raft of technical upgrades in existing buildings is unlikely to be possible, not least because large heating surfaces are required if they are to work property.

One project that is much easier sell than the complicated installation of a heat pump is an energy upgrade of the roof space. Just improving the insulation above the rafters, perhaps combined with new roof  cladding, enables the energy balance to be considerably improved. Although, unfortunately, there has been a huge increase in building and material costs.

Whilst not an everyday scenario, but by no means unrealistic in an energy context, is the community of heirs in an inner city district who have managed to achieve good profits to their members for many years, but have established only very modest financial reserves. On-site property management has been undertaken by the most senior family member to save on costs.

The still oil-based heating packs up one day without warning. Suddenly, the persons involved realise that under the "still valid" concepts of the Federal Government, every newly installed heating systems should if possible (?) operate on renewable energies to at least 65%. A belatedly prepared prepared energy pass based on energy consumption also shows up additional weaknesses in the rendered external walls and unrenovated attic floor. A multiple occupancy building dating from the early post-war period. The two younger families members living in far-flung climes with no emotional attachment to the building, An initial cost estimate suggests that modernisation will require an investment running into six figures. In discussions with the "young seniors on site" the local bank proves unwilling to provide the finance. What happens now?   

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