Buying land - completely O/T

[Bladesman]

I have the opportunity of buying a few acres of Yorkshires finest. It is presently being used as stables and pasture for horses and will remain so for my wife's horses.

However, as I do not have the cash in the bank is there some form of "land" mortgage or would I have to remortgage our house to release capital?

Anyone any ideas?

[40 scout]

I should think it's probably cheapest to go the 'house' route - no doubt someone will lend on pasture, but not as good a security as property therefore not as good a deal on offer.

My two penny worth!!

Steve

[Evil J Guano]

I would guess if the land is adjoining your property and therefor more of an asset then you would have a good chance of adding it to the mortgage. Most vendors would want a healthy premium if that was the case too.

Value wise most farmers round here take the market value of house with and without land and ask for the difference. That might be 10x the actual market value for land not next to a house. They expect the purchaser to pay all expenses too. Not sure if this is standard practice?

If it's away from your house then I'm not so sure.

Would be interested to know how you get on.

[sladey]

I have the opportunity of buying a few acres of Yorkshires finest. It is presently being used as stables and pasture for horses and will remain so for my wife's horses.

However, as I do not have the cash in the bank is there some form of "land" mortgage or would I have to remortgage our house to release capital?

Anyone any ideas?

Remortgaging the house is the better option - securing it on the land will mean you'll pay commercial/agricultural loan rates which will probably be considerably higher than domestic loan rates.

[hot66]

but ... make sure a re-morgage doesn't incur penality charges & doesn't put you on a worse rate than you are currently on ..... no point putting the whole debt ( house + land) onto a worse rate if the other option is keeping you main debt ( the house) on the current competitive rate & taking out a less attractive rate on a relatively small amount of debt for the land ( I've made lots of assumptions here )

[Bladesman]

Thanks guys

I am looking into it next week in more detail. Somewhere at the back of my mind I seem to recall that I could use agricultural land as a form of pension vehicle (SIPS??)