Results 1 to 17 of 17

Thread: Finance to buy small holding

  1. #1
    Junior Member
    Join Date
    Apr 2013
    Location
    United Kingdom
    Posts
    5

    Finance to buy small holding

    Hi All,

    Just wondering if anyone could put forward Companies whom they could recommend for financing the purchase of a smallholding (20 odd ac)?

    We would be moving from a Std domestic mortgage to owning a going concern.

  2. #2
    Senior Member
    Join Date
    Feb 2013
    Location
    Carmarthen
    Posts
    364

    Re: Finance to buy small holding

    I thought small holdings could get normal domestic mortgages - but I suppose all the banks have changed their policies recently.

  3. #3
    Senior Member
    Join Date
    Feb 2013
    Location
    Glamorgan
    Posts
    1,914

    Re: Finance to buy small holding

    Quote Originally Posted by windylamb View Post
    I thought small holdings could get normal domestic mortgages - but I suppose all the banks have changed their policies recently.
    And I did, maybe Fenland speak to your existing provider first , or a bank if your with a building society , money lending is their game?, but others include AMC (Agricultural Mortgage Company/Corporation?)

  4. #4
    Senior Member
    Join Date
    Feb 2013
    Location
    South Glos
    Posts
    1,061

    Re: Finance to buy small holding

    Natwest or Lloyd's have agri divisions who would help if your normal lending department don't want to know.

  5. #5
    Senior Member Quattromike's Avatar
    Join Date
    Feb 2013
    Location
    Moray
    Posts
    466

    Re: Finance to buy small holding

    I was told when I spoke to a few banks regarding this that if the land and buildings were not going to be used commercially then a domestic mortgage would be ok, others said straight out no under any circumstances. If you plan to be commercial operation then get your pencil out and get your business plan down.
    "At the end of the day, I think it's going to get very dark."

  6. #6
    Junior Member
    Join Date
    Apr 2013
    Location
    United Kingdom
    Posts
    5

    Re: Finance to buy small holding

    Quote Originally Posted by Quattromike View Post
    I was told when I spoke to a few banks regarding this that if the land and buildings were not going to be used commercially then a domestic mortgage would be ok, others said straight out no under any circumstances. If you plan to be commercial operation then get your pencil out and get your business plan down.
    Thanks All,

    My original post may have been slightly misleading. The property comes with no ag ties etc but does have a farm shop/rental income side to it so I would say is definitely "commercial".

    Indeed the only way we could afford to go for it is if the "business" aspect adds up.

    Best sharpen my scribe by the sounds of it...

  7. #7
    Senior Member Quattromike's Avatar
    Join Date
    Feb 2013
    Location
    Moray
    Posts
    466

    Re: Finance to buy small holding

    How much acreage can a residential farm be and still be classed under a domestic mortgage. Anyone?
    "At the end of the day, I think it's going to get very dark."

  8. #8
    Senior Member
    Join Date
    Feb 2013
    Location
    Bury St Edmunds
    Posts
    1,025

    Re: Finance to buy small holding

    I would go for whoever offered the cheapest long term mortgage. Do not forget to add charges into the equation.
    Ixworth Solar Farming Ltd.

  9. #9
    Senior Member
    Join Date
    Mar 2013
    Location
    Northumbrialand
    Posts
    1,487

    Re: Finance to buy small holding

    Have you got access to a good Agri Accountant.......they should have good knowledge of current rates being offered and should be coupled with good independent advice.
    Surprising the variation that there can be at one time between different companies.

  10. #10
    Senior Member matthew's Avatar
    Join Date
    Feb 2013
    Location
    Cornwall, SW
    Posts
    648

    Re: Finance to buy small holding

    Quote Originally Posted by Gee View Post
    Have you got access to a good Agri Accountant.......they should have good knowledge of current rates being offered and should be coupled with good independent advice.
    Surprising the variation that there can be at one time between different companies.
    And be aware that the difference is not necessarily to your advantage.
    There are 'Wonga' type operators in agriculture too. The ruse is to offer cheap money on a short term loan, increase wildly ...
    and then repossess by default. Some well known names are involved with such valuations and cash so be careful.
    Thread running on the other side describing this now on 114 pages..

  11. #11
    Senior Member
    Join Date
    Mar 2013
    Location
    Northumbrialand
    Posts
    1,487

    Re: Finance to buy small holding

    Quote Originally Posted by matthew View Post
    And be aware that the difference is not necessarily to your advantage.
    There are 'Wonga' type operators in agriculture too. The ruse is to offer cheap money on a short term loan, increase wildly ...
    and then repossess by default. Some well known names are involved with such valuations and cash so be careful.
    Thread running on the other side describing this now on 114 pages..
    And the independent advice should sort those ones out. Best to remember that "you get nowt for nowt" in this world.
    Given a healthy record there should be good fixed rate deals available.

  12. #12
    Member
    Join Date
    Feb 2013
    Location
    S E Cornwall
    Posts
    45

    Re: Finance to buy small holding

    Quote Originally Posted by Gee View Post
    And the independent advice should sort those ones out. Best to remember that "you get nowt for nowt" in this world.
    Given a healthy record there should be good fixed rate deals available.
    Without wishing to sound negative, from reading the thread on 'the other side', some of the people who are feeling 'hard done by' were given what they thought was independent advice.

  13. #13
    Member
    Join Date
    Jan 2014
    Location
    United Kingdom
    Posts
    47

    Re: Finance to buy small holding

    Quote Originally Posted by Quattromike View Post
    How much acreage can a residential farm be and still be classed under a domestic mortgage. Anyone?
    I was told 10 acres by a vendor recently. That apparently is why so many smaller properties are marketed with a small acreage and "more land available by negotiation" added.

  14. #14
    Senior Member
    Join Date
    Mar 2013
    Location
    Northumbrialand
    Posts
    1,487

    Re: Finance to buy small holding

    Quote Originally Posted by jade35 View Post
    Without wishing to sound negative, from reading the thread on 'the other side', some of the people who are feeling 'hard done by' were given what they thought was independent advice.
    good Agri Accountant

  15. #15
    Senior Member Quattromike's Avatar
    Join Date
    Feb 2013
    Location
    Moray
    Posts
    466

    Re: Finance to buy small holding

    Quote Originally Posted by collies View Post
    I was told 10 acres by a vendor recently. That apparently is why so many smaller properties are marketed with a small acreage and "more land available by negotiation" added.
    So 100 acres is a no go then commercial mortgage only?
    "At the end of the day, I think it's going to get very dark."

  16. #16

    Re: Finance to buy small holding

    My very recent experience is lenders will loan on the value of the house and garden only.

  17. #17
    Senior Member WoodenHead's Avatar
    Join Date
    Feb 2013
    Location
    Sussex
    Posts
    374

    Re: Finance to buy small holding

    Quote Originally Posted by ballibeg View Post
    My very recent experience is lenders will loan on the value of the house and garden only.
    We borrowed from Santander (our existing Mortgagor) an additional amount (adding) to mortgage, roughly 5% of house value, to convert a dilapidated adjoining building to 2 bedrooms.

    Valuer said in conversation when walking round that it would be 'no problem' but the valuation would be on the residential curtilage of the house only; and the land - circa 12ha of pasture + woodland etc - would be excluded from the calculations. Odd that

    ps We've found Lloyds Commercial Banking (Kingston & Guildford SME - they cover a lot of the SE) have been brilliant for commercial loans lately. You need to have your ducks in a row and capable of borrowing, but are extremely helpful even though we don't bank with them. PM if anyone wants contact details

    WH
    Money isn't everything - but it sure helps to keep the children in touch

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •