Land Mortgage

[cornwallexracers]

Just wondering if anyone knows if its possible to get a mortgage/ loan to purchase land? I'm looking at buying a few acres to put stables up on. I've spoken to the local planning department and they've said that they wouldn't object to me putting stables up on the land.

I went to my bank but the woman was useless, said that unless I own a house I can't have a secured loan, can't use the deeds to the land as security, and unless i have a turnover of in excess of 1 million then i can't get an agricultural mortgage (if I had a in excess of a million i doubt i'd need a loan for a few thousand!)

I'm sure it must be possible to get a mortgage or loan to buy land, does anyone know?

 

[carthorse]

Not sure but you could try a personal loan.Remember if you get planning permission for stables ,even wooden , you have to pay non domestic rates

 

[cariad]

Try asking the NFU - National Farmers Union, but you probably know that - for advice.

 

[jewel]

what are non domestic rates?

 

[carthorse]

Non domestic rates are what the council charge you even if you are not allowed to run a business or have liveries.
My neighbour never got planning permission and has the same amount of stables as me but doesn't pay anything .I did protest[not about her as she is a friend] and they came out and assessed again and still charge us £600 a year!!!

 

[nikanita]

Yes you can get a mortgage to buy land, normally between 50 to 60% of the purchase price/valuation, whichever is the lower. I would suggest you speak to a Business Manager at your local Bank.

 

[Bossdog]

Hi

We looked into this a few weeks ago and it is a complete nightmare. There are companies who specialise in land mortgages but they will only lend a certain % (50% in our case) and their rates are extortionate. As we live in RAF accomm we didn't have a house to secure against, in the end the only solutio was to remortgage my in laws house and act as guarantors, the direct debit comes out of our (well, my husbands

)account!! We used Abbey in the end, just because thye were the ONLY bank on our high street that were of any use at all.

HTH

Jules x

 

[sallyf]

Try Natwest we bought our yard on a commercial loan from them but be warned you do pay premium for it .
Ours is over 20 years as obviously for a very large sum and interest rate is 8%.
You will need a fair deposit as well.

 

[juliebrewer]

Yes i have a buisness loan only £8000 now on 7 acres and they hold the deeds, but the bank charges me 10% interest because its a loan and I dont own my own house.. You can get the loan but not 100% of the value. good luck. Keep tryying with different banks as some are helpfull and some are not..