Mortgage for a livery yard?

_MizElz_

_MizElz_

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Has anyone ever looked into / been given a mortgage for a yard or for land with potential to use as livery yard? Do you go through the same process as when buying a house, or do you have to have business plans, bigger/smaller deposits etc? Does it matter whether the yard is already up and running (ie. you would just be 'taking over the reins') or whether you would have to start from scratch?

Lots of questions - I do apologise! Thanks in advance for any info :)
 
I was a mortgage consultant for eight years. It would be looked on as a commercial mortgage if you were taking in horses (ie liveries) and earning money from it. The amount you could borrow would depend on what your current income is, the existing accounts (if it is being used for the same purpose prior to you purchasing it, the value of the property and will also take into consideration any mortgages / loans / major outgoings you currently have, especially if you are still going to have them ie if you are not going to be living a property on the business.

Also you will be very unlikely to get any more than 70 - 75% of the value of the property / business, so therefore your depsosit will need to be somewhere in the region of 25 - 30% - perhaps even more given the current climate and the general reluctance to lend at present.

The property will need to be valued by at least one surveyor (perhaps two) - with the cost likely needing to be borne by yourself.

I couldn't be certain if you were buying land - as most people who do this would be planning to build either a house / hotel etc - so it may be that a stable yard would need to be discussed with a potential lender on an individual basis.

Hope this helps, and sorry if it sounds a bit negative (on reading it back) - unfortunately it's still a bit of a tough time to be asking for a mortgage for anything at the moment.

Good luck if you decide to go ahead
 
The lenders main concern is how you are going to be able to pay this money back. Do you have an alternative demonstrable income to make repayments, or would you be generating repayments from the yard?

If you can prove you have disposable income for repayments and a deposit, you shouldn't have too much trouble borrowing.

If you buy a yard as a going concern, and they ahve several years of good books, you'll pay more but again shouldn't have a problem getting a business loan. (you'll need a biz plan). If its performing poorly but you can convince them you can turn it around, you may get a loan.

If you want to start from scratch with limited deposit you stand virtually no chance of a loan (maybe 4 years ago...)
 
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