The Accidental Smallholder Forum
Community => Coffee Lounge => Topic started by: JEP on July 30, 2020, 08:59:29 pm
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Hi everyone hope someone could give me a little advice please.
I own a smallholding and the field next door has come up for Sale. I would like to purchase the field. What is the best ways of going about getting a loan or mortgage to buy it. The field is up for sale for £35k.
What ways could I go about buying it.
Many thanks
John
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I don't know much about financing options @JWP, but what is the acreage?
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Hi it’s 3 acre field
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Speak to your bank for a quick option, £35 isn’t much so a secured loan would be no issue (assuming you have security), if you have a mortgage then bolting on an additional amount isn’t too much of an issue either (subject to existing borrowings).
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I don't think you can get a morgage for buying land? I would probably renegociate my existing morgage if you have equity. You can claim its for home improvements or debt consolidation, its not hard to do. Otherwise I would take out a personal loan if you can aford the repayments.
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I don't think you can get a morgage for buying land? I would probably renegociate my existing morgage if you have equity. You can claim its for home improvements or debt consolidation, its not hard to do. Otherwise I would take out a personal loan if you can aford the repayments.
We experienced something similar to this when we raised our mortgage to buy our farm, anything over 5 acres (I think) would not be considered as part of the mortgage valuation - when bought with a farm house too, so we had to buy our land with our cash and then based the mortgage on the property and 1 acre garden only.
It is generally very hard to raise mortgages on small parcels of land as their market value is very hard for the lender to quantify with certainty, so you would be better raising the money either unsecured, or secured to a 'known asset' such as your home to buy the land in question. All based on my own experience only.
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If the land is for sale through an estate agent, ask them if they have a mortgage broker who might be able to help you. I actually got a loan for the last land I bought, through my bank. If you can only get a loan for part of the price then you could probably get the rest on a credit card.
Money is actually quite readily available at the moment. Google "Secured loans". Have you got a business? Get a bounce loan. If all else fails - look at a bridging loan. They used to be prohibitively expensive when bank rate was 5%, but now that it's virtually nothing you can get a bridge for as low as 6%.