finance to purchase land..help..

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crazycoloured

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i have seen 25 acres 5 minutes away from where i live..the land is of good quality..and reasonably priced..problem is i don't have instant cash..or own my own house..is there a way around this problem,i have a job but its not full time..i doubt id be able to borrow money either..any solutions?
 
I asked a mortgage adviser the same question and he told me that for the amount I would have been looking at (it was around £40k, I think) there were no mortgages on the market. You would in any case need a commercial mortgage for land (not because it is a business, but because it is non-residential) and these can require as much as a 50% deposit, unless you have something to put up (say your house) as collateral. He advised me to look at 'car loans' instead, which although the repayments are higher, don't require collateral and are simpler than mortgages. Good luck! Sounds lovely.
 
the land is for sale at £69,950..the land is really ideal..would it be possible to get a mortgage through the estate agents? its a unique opportunity and one i don't want to miss...
 
If you can't borrow money..? Do you mean you won't be able to get a loan or you can't borrow from friends and family?

In any case you're looking for a lot of money with a part time job and no collateral. Don't want to sound pessimistic but it doesn't look likely.
 
I would definitely ask the estate agents for their advice. It does sound a good price. Alternatively, if you could borrow some but not all of the money, would they consider selling part of it to you? I'm not sure how much you are ideally looking for but 10 acres, say, is plenty for most people's personal use. Or find a friend who wants to go halves and then share the cost or putting up stabling, fencing etc.
 
There are reasons for the rules for lending to people. If the standard organisations will not lend to you it means you are too big a risk, and very likely to default. If you only work part time and don't own property I don't think it is responsible to be trying to borrow that kind of money for grazing land. What is wrong with only buying things in life that you can actually afford?
 
im not going to even bother answering your question sprig..i could say the same about you..its a simple enough question and iv taken all the advice on board..
 
I don't think you should get defensive. I am not trying to be unkind but merely point out the harsh reality of how things are. I would hate you, or anyone else, to be in the position where they over stretched themselves so the horses could be just down the road on their own land then interest rates rise (which they will) and then find the payments unaffordable. What would happen then? Land goes, horses go and you may well end up in a position where your credit rating is so damaged that you could never get a loan again and may even struggle to rent houses etc. It might not be what you want to hear but you should still consider the possibility.
 
No property, part time job, not able to borrow money, want to buy land. That leaves the options of win the lottery, persuade family or get a wealthy partner.
 
jemima*askin said:
No property, part time job, not able to borrow money, want to buy land. That leaves the options of win the lottery, persuade family or get a wealthy partner.
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I'm afraid this is right. Even if you managed to buy the land how would you afford water,electricity (assuming it has none), building hard standing and stables, secure fencing, land maintenance? Sorry, the list is endless, I don't mean to rain on your parade but you need to be realistic.
 
OP the other thing to consider is why is it so cheap - not sure what area you're in but £2800 an acre is really cheap (normally 5 to 10k) so I;d carefully check it doesn't flood or isn't contaminated or subject to stupid restrictions of us.
 
OP, I'm not sure of your exact situation but your own land is a big commitment. Myself and my partner own our house outright, I could relatively easily obtain a mortgage against it to buy land, but I wouldn't because I would have to own quite a few horses to make the time, money and hassle worth it, particularly for that kind of acreage. I would think long and hard before jumping in.
 
crazycoloured said:
the land is for sale at £69,950..the land is really ideal..would it be possible to get a mortgage through the estate agents? its a unique opportunity and one i don't want to miss...
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That's mighty cheap for what you say is good quality land. That only works out at £2798 per acre which is the lowest price per acre I've ever heard of in this day and age (I work as a trainee land agent so deal with this daily)!!

Are you sure there is nothing wrong with it or it's an infilled landfill site or something? There must be a reason why it is so cheap because if it's suitable for horses it's usually 10x the price! For general pony paddocks/grazing land I'd be looking at around at least £10k an acre anywhere!
 
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