Author Topic: Mortgage Headache! (Read 1365 times)

Winnie23 · « **on:** July 18, 2018, 10:51:34 am »

Hi everyone - finally joined after some questions to my answers came up on here, seemed the best place for information and help. Current situation- live in mortgage free property after inheriting when dad passed away, we have spent two years rennovating from roof to floors and how want to get a mortgage to pay off loans we got to do the work, possibly also paying off
Mortgage for small house we lived in before which is attached to the farmhouse we live in now. Stumbling block seems to be we have 15 acres and most banks only consider 10.land only has a a couple of small ponies, cobs and pigs - not used at all for commercial purposes, just basically a non used farm with a few pets. Any suggestions of mortgage companies or advise gratefully received, thankyou x

RCTman · « **Reply #1 on:** July 18, 2018, 08:47:46 pm »

Hi and welcome, i'm sure you will get some help from others from this site who are more capable of giving you advice.

honeyend · « **Reply #2 on:** July 18, 2018, 10:06:37 pm »

I would consider separating it legally with the land registry so its two or even three separate properties, and get the mortgage on one bit. It will cost money but it means that you are mortgage free on the rest of it and do what you like. You need a good agricultural solicitor that is aware if the tax implications for capital gains etc Depending where you live there is no capital gains when you sell your main residence, so make sure you live in the one you sell, I think its about 2 years before you sell.
We will eventually split our out building and land from the house to sell separately, like you we have no mortgage, The going rate for land around here is a about £10k+ an acre but this would not be reflected if sold in one lot with the house.

Rosemary · « **Reply #3 on:** July 19, 2018, 09:12:40 am »

We had a chat to our mortgage adviser about the same thing and he suggested getting a residential mortgage for the house and garden and an agricultural mortgage for the rest.

Maysie · « **Reply #4 on:** July 19, 2018, 10:17:56 am »

We mortgaged the house and garden (approx 1 acre) and bought the rest of the land mortgage free to avoid the exact issues that you face. All separated on the Land Registry as part of the purchase - which was pretty straight forward to do (ie for our solicitors to do!).

The problem is that houses are much more straight forward to sell than land, if it was ever to be repossessed, so mortgage companies do not like loaning at high loan-to-value rates on parcels of land as they are hard to value and may prove harder to sell on.

The mortgage market is also much more competitive if it is a simple, straight forward mortgage.

waddy · « **Reply #5 on:** July 22, 2018, 12:12:58 pm »

Hi

We bought a house with nearly thirty four acres. We used a mortgage broker who was very good and certainly earned his fee getting us the best mortgage. The bank lent on the house only as we had a good deposit. They weren't interested in the land and as we weren't running a business on it we could go for a residential mortgage. We do plan to run a business from the buildings as we go on but don't expect problems with the mortgage. If you are in the south west pm me and I can pass on details of the broker.

H