Land ( Agricultural/Horticultural/Woodland ) Mortgages?

[TeeDee]

Hope someone out there can give me a quick 101 on what are available as Land mortgages.

So if I spot some land I wish to purchase ( could be anything ) what sort of Loans or Mortgages can an individual get on them?
Minimum land qualification? Minimum Loan?

Anyone looked into this already and can offer me some pointers , would be appreciated.

Cheers Guys and Gals.

 

[ged]

As far as I understand it in the UK there's no such thing as a mortgage for land. You have to buy land with cash.

If you haven't got the cash that means you'd need to take out a loan, which will probably be a personal loan from a bank.

If it's a loan of any size you will probably need to put up some sort of security, and it's unlikely the land itself would be acceptable to most lenders.

You'd be far better off talking your bank manager, always assuming the bank hasn't already fired him. If he gives you advice, heed it.

If you haven't anything to put up as security the conversation might be a short one.

There are a lot of sharks around dealing in land, take great care.

 

[TeeDee]

As far as I understand it in the UK there's no such thing as a mortgage for land. You have to buy land with cash.

If you haven't got the cash that means you'd need to take out a loan, which will probably be a personal loan from a bank.

If it's a loan of any size you will probably need to put up some sort of security, and it's unlikely the land itself would be acceptable to most lenders.

You'd be far better off talking your bank manager, always assuming the bank hasn't already fired him. If he gives you advice, heed it.

If you haven't anything to put up as security the conversation might be a short one.

There are a lot of sharks around dealing in land, take great care.

Fair enough - cheers.

http://www.amconline.co.uk/borrow/

 

[boatman]

Of course you can get a mortgage on land.
Eg, 2 seconds googling
http://www.accesscommercialmortgage...rtgages-faq/?gclid=CMzxh_S00cYCFcJe2wodhUUB7A

 

[Dave Budd]

the woods I have was bought from a bloke who owned three plots at the time. I rented for a while and was paying the interest on the mortgage Apparently he got one to buy some land with and then got trigger happy at an auction and ended up with three plots instead of one! The other two were near each other and he kept hold of them. The bank just increased the size mortgage that he applied for.

I think the NFU offer advice on such things too

 

[ged]

Of course you can get a mortgage on land.
Eg, 2 seconds googling ...

Well I haven't done the two seconds googling.

But frivolity aside, I think it needs more than that.

When somebody buys a property to live in by taking out a loan for the purchase price, he often calls the loan a 'mortgage'.

The loan is not the mortgage.

The mortgage is the legal agreement between lender and borrower, it will normally be an 'encumbrance' on the property's title, and it is subject to all kinds of statutory restrictions and protections because Parliament has long recognized that an Englishman's home is his castle. Or something like that.

I'm not sure that the same restrictions and protections apply in the case of things like woodland - in fact I'm almost sure that they do not - although the lender's interest may well be registered on the title.

This is not a legally simple subject, which is why I offered the advice that I did.

 

[santaman2000]

......When somebody buys a property to live in by taking out a loan for the purchase price, he often calls the loan a 'mortgage'.

The loan is not the mortgage.

The mortgage is the legal agreement between lender and borrower, it will normally be an 'encumbrance' on the property's title, and it is subject to all kinds of statutory restrictions and protections because Parliament has long recognized that an Englishman's home is his castle. Or something like that.....

All that sounds logical enough. However that same logic would indicate that it is more difficult for the lender (the mortgage holder) to take possession of the home for lack of payment than it would be for non-residential land. Wouldn't that be more of a disincentive to loaning for a home than it would be for other land?

 

[boatman]

It's a mortgage