Rural and Agricultural Mortgages
Agricultural property finance can cover a wide variety of properties. As experienced agricultural finance consultants we have financed many situations including: working farms, diversification of farm use, country estates and smallholdings, holiday complexes and even instances involving the purchase a main residence that happens to have equestrian facilities or simply some stables and large acreage.
Fox Davidson property consultants specialise in mortgages for land and property with equestrian facilities and large acreage property – we have access to various suitable agricultural mortgage lenders so keep reading to understand further the different finance options available.
Commercial farm finance is available from many lenders in the UK, this includes specialist farm finance companies and high street commercial banks, many of whom have an agricultural sector in their commercial finance division.
Bridging and development finance for agricultural property
Where a commercial mortgage lender will not yet lend (perhaps due to experience or issues with the property) it is possible to use bridging finance to fund the purchase.
Many farmers with land are looking to develop the land they own. Development finance for farmers allows land with planning to be developed into residential property. You can find out more about development finance on our development finance page.
Inheriting a farm
Inheriting a farm can often require raising finance to buy out siblings, repair or refurbish the property or to buy new equipment. The farm may not have been run as a profitable business due to age or illness and now money needs to be raised. We can source lenders who are able to lend against the value of the acreage on a short or long-term basis. These lenders do not require previous farming experience to lend on this basis.
Tenant farmers can be offered the right to buy land at a discounted price – we have experience in securing finance against the discounted price on a concessionary purchase basis. This allows the tenant farmer to raise 100% of the purchase price.
High street lenders often don’t want to take the risk or understand the benefits of farm diversification.
Short or long-term finance can be secured on farm diversification allowing equipment to be purchased, planning applications to be submitted and renovations to be made.
Country estates or properties incorporating some let property
Larger estates often have cottages separate to the main residence on the land which are let either as holiday lets as standard buy to lets or have staff living in them.
High street lenders often have an issue with this as it mixes residential regulated finance with non-regulated buy to let/holiday let finance. We have helped clients who have been advised to split the title on their property to separate the house from the land and cottages. This is not necessary as it is possible to secure residential finance against the whole freehold. This can be secured on competitive high street bank rates.
Mortgages for smallholdings and property with large acreage
Most high street lenders will either only value the house and its immediate gardens or will only lend if the property is under ten acres – we know which lenders to approach for clients who are interested in accessing competitive mortgages for property with land.
Valuing the house and gardens may cause an issue with the finance as this can push the loan to value of the mortgage up which increases the rate offered or forces the purchaser into providing more deposit. This is unnecessary.
Here at Fox Davidson we specialise in providing finance for residential properties which have a large acreage. We have lenders that will lend on smallholdings and country estates with no limit on the amount of land that forms part of the title deeds.
Mortgages for property equestrian facilities
Funding is possible from mainstream lenders on property with equestrian facilities such as stables and a manege, property with an equestrian tie or property with an agricultural tie. It’s really all about getting to know you and the property and presenting a good case for lending to the right lender. The better a lender understands how the property will be used the more likely they are to lend.
Where an equestrian property is to be used commercially then this falls back under commercial lending and we would typically require 2/3 years accounts for the existing business on which the lending would be based.
For residential and commercial mortgages on: farms, mortgages for equestrian property and large acreage property mortgages, contact one of our specialist property finance consultants.
Can you get a mortgage on a property with equestrian facilities?
It is possible to secure a standard residential mortgage on a property with equestrian facilities. Where the property will be run on a commercial basis then a commercial mortgage will be required.
Can you get a mortgage on a property with land?
Most mortgage lenders will lend on property with up to 10 acres. The lender will value the house and garden.
Can you get a mortgage on a property with an agricultural tie?
Mortgage lenders will lend on property with an agricultural tie. It is important to establish the terms of the restriction and assess how they may affect the sale of the property in the future.