The Accidental Smallholder Forum
Smallholding => Land Management => Topic started by: lesleysprite on May 01, 2012, 09:29:41 am
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Hi, having trouble finding someone who's willing to give a non-business mortgage on land with no building on it, has anyone managed to do this?
I could go for a business loan but not sure I could put together a good enough business plan in a short space of time, I don't have the experience, plus I'd then have to factor in any capital in the business plan into the loan. It wasn't really the plan to get the land and immediately set up a business but to do things a bit more gradually.
if anyone has a business plan they'd be willing to share with me to give me some tips i'd be very grateful.
Lesley
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Try googling business plan - there are loads of templates out there.
I am sure a fairly basic one would suffice but you do need figures worked out so you will have to take a stab at what you would do with it. Work out your guess at income and expenditure for the last three years, aims, competition etc. How long do you have to do this?
You can maybe have a look at these.
http://www.businessplanpro.co.uk/business-plans.php (http://www.businessplanpro.co.uk/business-plans.php)
http://www.businessplanpro.co.uk/ppc/compare-editions-both-sale/index.php?gclid=CJu97rTe3q8CFWwntAodAh2rAQ (http://www.businessplanpro.co.uk/ppc/compare-editions-both-sale/index.php?gclid=CJu97rTe3q8CFWwntAodAh2rAQ)
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Is what you are going to do with the land a commercial enterprise?
If it is, I would suggest you had a business plan anyway. The problem with ag enterprises is they tend to generate all their revenue in one lump (arable) or over two or three months of the year (livestock - with the exclusion of poultry and pigs). There used to be ag loans for this, that you repaid in a lump once a year, but I've not heard of anyone on one of those for ages.
Business plans aren't that difficult and can help you gain a vision for where you are going - beware the 'unexpected' costs though! They always seem to appear when you least need them...
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I don't know whether a 'business plan' showing the purchase price, doing nothing for a few years, and then selling at a profit, (showing land price trends over past thrity years and extrapolating) would suffice? I'd talk to the potential lender to see what they would need - it can't be that unusual to buy land as an investment. If you subsequently decide to use your land and not sell it, they won't care provided you are keeping up your payments and are not devaluing it with whatever you do with it.
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not so sure on this normally investors have the cash to buy outright rather than borrow to make money if that was the case every man and his dog would be on the gravy train land is considered a safe investment for a while celebs were buying up vast tracts of forrests and getting tax relief for there investment
it don't always work in the buyers favour there are examples every where of investing in land and going tits up :farmer:
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The value in land is what you can earn from it by building on it or running a business from it. The value of unused land is volatile and unappealing as security for a loan.
A loan is supposed to be repaid from something other than the bank enforcing its security.
If that were not enough of a problem the banks are all bust and trying to shrink their balance sheets.
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The value in land is what you can earn from it by building on it or running a business from it. The value of unused land is volatile and unappealing as security for a loan.
A loan is supposed to be repaid from something other than the bank enforcing its security.
If that were not enough of a problem the banks are all bust and trying to shrink their balance sheets.
Yes Simple Simon is not simple he is dead right, buying land is very expensive its more away to conserve money rather than make money. I would recommend renting land where possible.
Even so a business plan is often a good way to plan how you are going develop your business.