Financing for a patio roof or conservatory: Your path to the dream extension
10 May 2025
3
Minutes
Katrin Straub
CEO at nextsure
For many, having their own conservatory is the epitome of living quality, yet the costs can be an obstacle. This article will show you how to realise your dream of a glass room or a sheltered terrace with the right financing strategy. We guide you through the options, from flexible loans to government grants, and offer you practical, proven tips.
The topic in brief and concise terms
A modernisation loan is often the best financing option, as it allows for up to 75,000 euros without an expensive land register entry and offers more favourable interest rates than an instalment loan.
Check government subsidies (KfW/BAFA) for energy-efficient conservatories, which can provide grants of up to twenty percent of the costs.
The need for a building permit depends on the federal state and the type of extension; heated conservatories always require a permit.
Calculate costs realistically: The basis for your financing
Before applying for financing for your patio covering or conservatory, a detailed cost breakdown is essential. Simple aluminium patio coverings are available from around 2,000 euros. A cold conservatory, which is not heated, costs between 8,000 and 25,000 euros, depending on size and material. For a fully insulated living conservatory that can be used year-round, you should expect costs starting at 20,000 euros, with projects over 70,000 euros not uncommon. Always plan for a buffer of at least ten to fifteen percent for unforeseen expenses. These costs include not only materials and installation but also the foundation, building permit, and any extras such as shading or ventilation. Detailed planning protects you from financial surprises and forms the basis for discussions with your bank.
Compare credit options: Find the right path for your budget
There are several ways to finance your extension, which differ significantly in interest rates and flexibility. A thorough review of the conditions can save you several thousand euros. Here are the most common options:
Personal loan for free use: This option is straightforward and quickly available, as no purpose needs to be demonstrated. However, the interest rates are often one to two percentage points higher than for earmarked loans. Such a loan for free use is suitable for amounts up to around 50,000 euros.
Renovation loan: As a property owner, you get significantly better conditions here. Many banks waive the costly land registry entry for amounts up to 75,000 euros.
Building finance: For very large and expensive projects over 75,000 euros, a traditional building finance with land registry entry is often the cheapest solution. It offers the lowest interest rates, but involves more bureaucratic effort.
Building savings contract: If you plan to build in a few years, a building savings contract could be a good option. It allows you to secure fixed, low loan interest rates for the future.
The choice largely depends on the project sum and your timeframe, which is why a careful comparison of offers is crucial.
Modernisation loan: Secure up to €75,000 without land registry entry
The modernisation loan is the ideal solution for most projects. As you, the owner, are liable with your property, banks offer interest rates that are often more than twelve percent lower than those of standard instalment loans. The biggest advantage is the waiver of a land register entry for amounts up to 75,000 euros, saving notary and land registry costs of several hundred euros. The process is therefore significantly faster than with a classic construction loan. The prerequisite is that you are the owner of the property and use the money demonstrably for a value-adding measure. Often, the cost estimates from craft businesses are sufficient as proof. Some institutions even offer loans up to 90,000 euros without registration. This form of financing thus combines favourable conditions with an unbureaucratic process and is therefore the first choice for most conservatories and patio roofs.
Check government funding: Take advantage of grants for energy-efficient extensions
If your conservatory is designed as a heated living space and contributes to the energy efficiency of the house, you can take advantage of government grants. The Kreditanstalt für Wiederaufbau (KfW) and the Federal Office for Economic Affairs and Export Control (BAFA) offer attractive programmes. Through the Federal Support for Efficient Buildings (BEG), grants of up to twenty percent of the eligible costs are possible, capped at 60,000 euros per unit. Alternatively, the KfW offers low-interest loans such as the "Climate-Friendly New Construction" programme (297). Our expert tip: An energy efficiency expert must be involved before awarding the contract to confirm eligibility for funding. Another option is tax deductibility: According to § 35c EStG, you can deduct twenty percent of the renovation costs (up to a maximum of 40,000 euros) from your taxes over three years, if you do not use any other funding. This option is particularly interesting if you have missed the application deadlines for grants.
Observe building regulations: Clarify approval requirements depending on the federal state
One commonly underestimated aspect is the building permit, the necessity of which depends on the respective federal state. As a general rule, a heated conservatory always requires a permit because it expands the living area. For unheated cold conservatories and patio roofs, there are exceptions that depend on the size. In North Rhine-Westphalia, for example, extensions up to 25 square metres of floor space are exempt from approval, whereas the limit in Brandenburg is 20 square metres. In federal states such as Bavaria or Baden-Württemberg, you almost always need a permit. Be sure to consult your local building authority about the local building regulations before planning. Additionally, you usually need to maintain a minimum distance of three metres from the neighbouring property. Clarifying these legal framework conditions early on will save you from costly fines or even having to dismantle.
Adjust insurance coverage: Secure the new value of your property
A conservatory or a high-quality terrace roof significantly increases the value of your property. Therefore, it is essential to adjust your insurance coverage. Report the addition to your residential building insurance to avoid underinsurance. The sum insured, often calculated based on the living area or the notional value of 1914, must be increased. The standard residential building insurance covers damage from storms (from wind force eight), hail, and fire. For glass breakage due to other causes, such as a children's playing ball, you generally need a separate glass insurance. Considering increasing weather extremes, flood damage insurance that covers damage from heavy rainfall or flooding is also worth considering. Comprehensive coverage protects your investment of several tens of thousands of euros in the long term. At nextsure, we help you optimise your insurance coverage to suit the new situation.
Request an individual risk analysis now: Have your insurance situation checked for free and receive specific optimisation suggestions.
More useful links
KfW offers detailed information on the support for existing properties for private individuals.
Federal Association Wintergarden e.V. provides comprehensive information and experts on the subject of winter gardens.
The Federal Ministry of Justice and Consumer Protection offers the Building Code (BauGB) online for review.
FAQ
Which financing is best for a patio cover?
For a patio cover, which usually costs between 3,000 and 15,000 euros, a modernization loan for property owners is ideal. It offers better interest rates than a normal instalment loan and is easy to apply for.
Do I need to enter the land register for conservatory financing?
Not necessarily. Many banks offer modernisation loans of up to €75,000 without the need to register a mortgage. This saves time and costs for notary and land registry.
Are there government grants available for a patio cover?
There are generally no direct subsidies for a simple terrace covering. Subsidies from KfW or BAFA are tied to energy-saving renovation measures, which is more the case for a heated and insulated conservatory.
How does a conservatory affect my home insurance?
A conservatory increases the value and space of your property. You need to notify your insurance company about the extension to adjust the insured amount and avoid underinsurance. Often, additional glass insurance is advisable.
Do I always need planning permission for a conservatory?
For a heated residential conservatory, yes, in all federal states. For unheated cold conservatories, there are exceptions depending on the federal state and size. Consulting with the local building authority before planning is always advisable.
Can I deduct the cost of the conservatory from my taxes?
Yes, if you do not take advantage of KfW or BAFA subsidies, you can claim craftsmen services and energy renovation measures for tax relief. According to § 35c EStG, twenty percent of the costs (up to a maximum of 40,000 euros) are deductible.
