The Accidental Smallholder Forum

Community => Coffee Lounge => Topic started by: moony on November 23, 2012, 04:16:15 pm

Title: Buying land
Post by: moony on November 23, 2012, 04:16:15 pm
Has anybody got any help/tips on how to go about getting an unsecured loan/mortgage for a block of grazing land for at least 70% of the land value. As we are tenants of our current property the majority of companies I have tried only lend 50% and some only 40%. Surely there must be a company somewhere that can help. Any help would be much appreciated.
Title: Re: Buying land
Post by: Lesley Silvester on November 23, 2012, 06:49:00 pm
Sorry, I have no idea but hope someone does.
Title: Re: Buying land
Post by: doganjo on November 23, 2012, 08:32:21 pm
I'm afraid I don't know either, but I remember way back in 1968 we wanted to buy our first flat and couldn't get  high enough mortgage - we were given a  lifeline - an insurance policy to cover the difference.   I don't know if that is possible these days
Title: Re: Buying land
Post by: smiley bucket on November 23, 2012, 08:44:28 pm
I didn't think unsecured loans would be large enough to purchase land these days.
Have you tried AMC or just a presonal loan from your own bank?  Could someone be guarantor, or could the vendor offer a private mortgage?
There was a company sprouted up recently offering farmland finance, it was discussed on British Farming Forum, its name seemed to suggest it was affiliated to the  Nationwide Building Society but it is not, general consensus was avoid avoid avoid!!
Good luck, please let us know how you get on :)
 
Title: Re: Buying land
Post by: moony on November 24, 2012, 02:03:18 pm
We tried AMC and a couple of others. Also tried our bank. All with no luck. Best we found was a 60% offer which would leave us short on the deposit front. We basically want to buy the land for £55000 and have £15000 to put down. we could probably get by with a 70% loan. Cannot believe how hard it is to get a mortgage/loan for land and its not helped by me being self employed. Getting any sort of credit is a nightmare as it is. My mother would act as guarantor but is not willing to put her house as security which is understandable. Even then they would only accept a house as security if it is mortgage free, which hers is. Had thought of asking the vendor to offer a private mortgage but not sure if they still do that these days.
Title: Re: Buying land
Post by: smiley bucket on November 24, 2012, 11:14:09 pm
It is really hard getting finance to buy land if you don't own bricks and mortar, or so I have found.  If you can't raise all the money at once would your vendor sell a smaller amount of land and you rent the rest for maybe five years or so to give you time to save, at least that way you'd have a few acres to call your own? I really feel for you, I'd love to buy more land to extend my place but its so difficult :(