Smallholding Mortgages.

Buying a smallholding can mean the start of a whole lifestyle change. 

Making sure you have the correct finance on the property with the right lender for you can help secure it quickly and help you benefit from competitive interest rates long term.

A smallholding is a residential property that has more land than garden area, but is not a commercial farm.

Often the land will be used for a mixture of crop growing, livestock and woodland, grassland.

Smallholding mortgages are main residence mortgages, regulated by the FCA, they are assessed base don your current annual Uk taxable income. The smallholding must be owned in personal names and the majority of the value must come from the main residence on the land.

We cant secure business loans using business plans for potential use of the land for smallholding mortgages.

How Much Can I Borrow On A Smallholding Mortgage?

At Fox Davidson we specialise in smallholding mortgages. Mortgage lenders will value the main residence property and the land. Lending is base don your current UK taxable income, we can not us ‘potential’ income from the land including letting or camping etc.

We can secure finance of up to 95% against smallholdings using your current UK taxable income and subject to the valuation of the main residence and the land.

Our acreage page details some of the lending criteria regarding properties with more than a garden.

The size of the acreage and location of the property can determine which lenders we approach.

The use of the smallholding is important to clarify right at the start of our journey.

Subsistence farming, a few livestock for grazing and some equestrian use is pretty standard.

If the property is to be used more intensively such as calf rearing & dairy farming we may need to look at slightly more specialist lenders as this is deemed to be a more commercial use of the property.

Often our clients may be purchasing a smallholding which they will gradually increase production on.

One client may be retaining their job in order to cover the cost of the finance and the other may be looking to subsistence farm the land.

Grown-up children or parents may also be involved.  Sometimes the property may have more than one residence on the title allowing a few generations to live at the property together.

We can secure standard residential finance on this type of scenario at market leading rates.

What Types Of Property Can Be Purchased With A Smallholding Mortgage?

Diversification – we have arranged residential finance on smallholdings which also have an element of commercial use to them.  

As each property and each scenario is different we provide bespoke advice and service for every enquiry.

To discuss smallholding mortgages please do get in touch with one of the team. We look forward to working with you.