NFU Mutual Smallholding Insurance

Author Topic: Buying a smallholding  (Read 451 times)

Blooms88

  • Joined Jun 2019
Buying a smallholding
« on: June 11, 2019, 03:24:45 pm »
Hi All,

Im new to all this so please bear with me!

I was hoping some of you may be able to share with me the process of buying a smallholding in Scotland. From the bidding process to surveys conveyancing, mortgage etc etc

Just to give you some background myself and my partner already have a herd of pedigree cattle which we keep all on rented ground but we are desperate to have something to call our own. Im currently on maternity leave with child number 2 and other half is a self employed stockman.

Our dream might be pie in the sky for we are very much on a low income with no deposit but if the right place came along the bank of mum and dad may be able to help us out.

Thanks all
Voss Electric Fence

tommytink

  • Joined Aug 2018
Re: Buying a smallholding
« Reply #1 on: June 15, 2019, 06:43:26 am »
Hi,

Do you live in Scotland now? My mother-in-law does and know when she bought (a house) it was like a sealed bid system. Don’t know if it’s any different for smallholdings.

You’ll need an agricultural conveyancer. They have the knowledge of the additional searches and agri-related checks. As an example I think this was the form that our sellers had to complete: It’ll cost more than a standard fee for a “normal” property as it’s more in depth.

https://uk.practicallaw.thomsonreuters.com/5-616-7576?transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhcp=1&view=hidealldraftingnotes

This is the form our sellers had to complete for us. This is only for England and Wales but imagine same sort of thing applies in Scotland.

I would suggest finding an agricultural solicitor and asking all your questions to get a definitive answer. They shouldn’t charge you, especially if there’s a chance they can get your business!

Good luck.

doganjo

  • Joined Aug 2012
  • Clackmannanshire
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Re: Buying a smallholding
« Reply #2 on: June 15, 2019, 07:20:19 pm »
Whether it's just a house, a house with land, or a house with land and a CPH, as far as I know the system is the same.

All property being sold in Scotland needs a home report for the house, and a valuation within that for mortgage purposes.

The best mortgage I know of at present is about 95/96% so you need 4/5% cash for a deposit.  You might be able to get better than that if you have a tame bank/building society.  If you offer above valuation you need the deposit plus the amount over the valuation, plus any money you need for renovations etc

In some areas in Scotland properties are going for asking price (this can be a few thousands below the mortgage valuation); some for valuation, some for above valuation, and some for silly money above valuation.
So it depends what area you are looking in.  Local estate agents know the score so ask them.

You can offer for a property verbally(to be followed up in writing in due course), or in writing, and it can be dependant on selling your present property or not (if you have nothing to sell and have amortgage lined up).  But it may or may not be accepted.  If it is accepted then your solicitor will take it from that point to completion.  In Scotland your word is your bond so once you have offered and that has been accepted it will cost money to get out of the deal. So make sure you have a solicitor who will advise you on prices in the area

If there is a lot of interest in a property the selling agent may go for a closing date (sealed bids as in England) - at the stated date and time the buyer will decide which offer they will accept - and it doesn't have to be the highest!

Good luck - hope that ramble helps you  :innocent:

Always have been, always will be, a WYSIWYG - black is black, white is white - no grey in my life! But I'm mellowing in my old age

Blooms88

  • Joined Jun 2019
Re: Buying a smallholding
« Reply #3 on: September 14, 2019, 06:35:25 am »
Thank you very much for all the advice.

It's still a waiting game to find the right property. We really want to stay in the Angus/Vale of Strathmore area which is very much a premium area unfortunately

We will continue to watch and wait!

doganjo

  • Joined Aug 2012
  • Clackmannanshire
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Re: Buying a smallholding
« Reply #4 on: September 14, 2019, 10:56:13 pm »
Whether it's just a house, a house with land, or a house with land and a CPH, as far as I know the system is the same.

All property being sold in Scotland needs a home report for the house, and a valuation within that for mortgage purposes.

If there is a lot of interest in a property the selling agent may go for a closing date (sealed bids as in England) - at the stated date and time the buyer will decide which offer they will accept - and it doesn't have to be the highest!

Good luck - hope that ramble helps you  :innocent:
I am about to move home.  I am downsizing from 5 bedrooms and an acre to 3 bedrooms and 2 5ths of an acre.  I am in the  Wee County.  Houses here are going on the market and off again in days - possibly because we are 5 minutes from the motorway system, and about half an hour from three main cities, Glasgow, Stirling, and Edinburgh.  Rail and bus links are fairly good too
I paid silly money for my new house in the eyes of my daughter, way above valuation, but she won't accept that market forces were the reason. 
There were 7 offers at closing date, and three were only about 3000 below mine, so although it sounds a lot of money,  if I over paid it was only by 1.5%.  In addition, I was lucky to sell mine (for 10K more than I bought it for 11 years ago.  Not a lot, but still better than not selling - and I only had one offer.)  As well as that I have been looking for 7 or 8 months, and there has been nothing remotely suitable in that time till this one came up.
So it very much depends on the market.  Just keep looking, try to gauge prices in your area - zoopla sometimes helps, and a good lawyer will too.  Fixed prices are rare these days but are still sometimes there - there is usually a reason for it though - like near a busy roaad, or a pig farm  :innocent:  And be prepared for missing out if there is a closing date, just put it behind you and try again.
And that is just the start - now where did I put my mind map for moving house, must check my list  :roflanim: :roflanim:
Always have been, always will be, a WYSIWYG - black is black, white is white - no grey in my life! But I'm mellowing in my old age

 

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