The Accidental Smallholder Forum
Smallholding => Buildings & planning => Topic started by: cuckoo on November 06, 2011, 10:52:09 pm
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We are interested in a property with agricultural condition of occupancy which we can meet. What mortgage companies can people recommend as I have been advised that mortgage companies can be difficult if properties have a agricultural condition of occupancy.
Thanks
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Yes, many/most won't lend on an AOC.
This is generally as they can't be bothered to understand that the price you're paying for it already reflects the AOC, and if you can't repay, many others will pay the same price you did, so whilst an AOC reduces the value of a property, it does so at all stages of the chain, you buy and sell at that lower price, so makes no difference to money being lent.
Anyway we got ours many years ago from Midland Bank, now HSBC. You could tryb them.
We also went ot the Agricultural Mortgage Corporation - seemed the obvious choive, but at that time seems that lending to buy a farm wasn't in their portfolio !! - may well have changed now - try http://www.amconline.co.uk/index.aspx (http://www.amconline.co.uk/index.aspx)
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Maybe also try the Ecology BS and Triodos bank as they are eco-driven and look at a lot of non standard stuff so are a bit less tick box about things.
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Thank you I will investigate these options!
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Good luck - hope you get your mortgage.
Selling our farm, which needs renovating completely, the feedback from potential buyers is that they cannot get a mortgage, because its neither residential not a business. 13 acres is too small to run as a business, but it sounds like they are better at givng out business loans than anything else at present. Therefore if your farm is large enough to warrant running a business from, this may help you secure a mortgage.
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I'm in a similar boat mortgage wise - when I had a full time day job I bought this 10 acre registered smallholding under a domestic mortgage with Intelligent Finance as quite a few companies baulked at it including agri land ::)
Now I can't get a domestic mortgage because I'm self employed and my income isn't reliable for repaying, not to mention IF stopped doing new mortgages but I am hoping to persuade them to reloan to the original purchase price so I can go buy some land for cash then sell or let this place, depending on the market, to meet the mortgage payments..
I am also investigating a buy to let mortgage based on a business plan letting this and/or a new house, but it's a total minefield when you are actually working the land as opposed to having a "large garden" for your "hobby" ::) If I was farming on a big scale it'd be far less problematic as there are companies that deal with that sector, but I don't have that kind of setup on which to base loans either ::)
There's no AOC (Section 75 restriction here) so I don't have that problem I suppose ::) but I did hope to be able to buy somewhere on the basis that I can actually meet that criteria and like you I discover it's not so easy :(
Will have a look at Ecology and Triodos too, any other suggestions that come along come to that.. but I am also being interviewed for a full time day job at the end of the month :( just to get the credit rating back and be in a position to buy where I want to be longer term, rent it while I'm doing said job, and then leave again to move back into the lifestyle I enjoy before I'm too old to enjoy it any more ;)
Anyone considering the "dream downsizing" route, take note and get your finances done while you have the ratings ;)
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Thanks for all the replies - unfortunately house sold to a cash buyer yesterday - and it wasnt me :(
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Sorry it wasn't you :( But, I am sure something else will be on the market that will suit you - seems more properties for sale than buyers just now.
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Sorry to hear your news, but for future reference The Principality (a Welsh Building Society) do mortgages for AOCs my brother-in-law (who lives in one) informs me.
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The ecology BS will give you a mortage for this but you need a sound business plan and from experience I would strongly recomend them to anyone, they have high principles which are driven by nature which is good when your in our line of business :thumbsup: