Financing Land Purchase

Financing Land Purchase

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Discussion

anonymous-user

Original Poster:

55 months

Monday 11th August 2014
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Hi,

Looking to purchase a plot of land, is there anyway to finance this in the same fashion as a mortgage. The land is not going to be used to build on, well, not initially anyway.

Obviously the land itself has value but my understanding is that you cannot finance land as an asset in the same fashion as a mortgage.

Thanks

anonymous-user

Original Poster:

55 months

Friday 15th August 2014
quotequote all
Yes its quite simply an acre of grass land. Not extremely expensive but house purchase at the moment is taking up free cash. I don't intend to get planning permission for anything at this stage. Thinking of getting a couple of Shetland ponies....not for me.

Don't want to take out a 10-15 percent loan over 4 years to cover it if I am honest. Wondering if there is a similar option to a mortgage for it.

anonymous-user

Original Poster:

55 months

Tuesday 19th August 2014
quotequote all
Sorry I am rather confused. Are you suggesting I try to release cash from my pension to purchase the land? I haven't mentioned a pension?

Have I read your response wrong?

anonymous-user

Original Poster:

55 months

Wednesday 27th August 2014
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z4RRSchris99 said:
yes he's suggesting pension release

you won't get finance secured on a non income producing bit of land.

remortgage your house?
Ok - not really an option for me as my pension scheme does not allow such releases.

I will have to wait a few months to accumulate the funds.

Ta

anonymous-user

Original Poster:

55 months

Wednesday 27th August 2014
quotequote all
Ginge R said:
Yammy,

Apologies, I missed your question.

I was just suggesting a possible option, that's all. In terms of income production, as mentioned, I heard of one trustee who suggested that the new land owner collect firewood and sell it, bingo - income stream! Just an example of.. 'creative thinking' - not suggesting I'd be too happy with it mind.

It isn't pension 'release' as such - far from it. From a suitable pension (SIPP etc), it's simply another authorised investment.. just as you might also invest in XYZ fund. It still has to pass muster from the trustees though, to determine suitability and not all SIPPs would engage with the idea.
Thanks for that. I will speak to one of the consultants at work about it and see what they say..