Borrowing money for land
Discussion
Hassle PH-mortgage broker scotal - he's got bugger all to do. ;o)
I don't think you'll easily get an unsecured loan for that amount. I'm not sure if it's an FSA ruling or just an industry accepted limit, but £25,000 is about the most you'll get unsecured.
That leaves secured... what are you going to secure the borrowing against? The land? It'll have to be worth the purchase price and more(!) for the lenders to take the risk on it. Imagine you, for some reason, can't service the loan. They need to be able to get their money back - they're not going to want to wait around to get the best price possible, they'll want it back quickly. Therefore, the land would need to be either worth a lot more so could be sold at a discount quickly or the kind of land that would sell quickly anyway. If you see what I mean.
My 2p only.
I don't think you'll easily get an unsecured loan for that amount. I'm not sure if it's an FSA ruling or just an industry accepted limit, but £25,000 is about the most you'll get unsecured.
That leaves secured... what are you going to secure the borrowing against? The land? It'll have to be worth the purchase price and more(!) for the lenders to take the risk on it. Imagine you, for some reason, can't service the loan. They need to be able to get their money back - they're not going to want to wait around to get the best price possible, they'll want it back quickly. Therefore, the land would need to be either worth a lot more so could be sold at a discount quickly or the kind of land that would sell quickly anyway. If you see what I mean.
My 2p only.
Jasandjules said:
Any mortgage is for the land. The house which stands on it simply comes too.........
So I can't see it being a huge problem to get a mortgage on it.
So I can't see it being a huge problem to get a mortgage on it.
Is that right? Why do mortgages insist on building valuations then?perfectly prepared to be told it is right, by the way. It just surprises me.
freddies_dad said:
So I can't see it being a huge problem to get a mortgage on it.
Is that right? Why do mortgages insist on building valuations then?perfectly prepared to be told it is right, by the way. It just surprises me.
Jasandjules said:
In law, all you are purchasing is the land I believe. Then a little bit of old law kicks in, which effectively says that all which is attached to the land becomes part of the land, thus the house comes with the plot you have purchased...
how do you borrow to buy a leasehold then?Edited by baSkey on Friday 28th September 16:54
bilko2 said:
I don't have a mortgage so i was wondering who does one borrow money from for woodland?
I want a minimum of 10 acres probably costing between 30 - 50 grand. I don't own any property so have no collateral.
Is it possible to get amortgage for such a thing?
10 acres for 30-50 grand where? how?I want a minimum of 10 acres probably costing between 30 - 50 grand. I don't own any property so have no collateral.
Is it possible to get amortgage for such a thing?
freddies_dad said:
O/T - baSkey; you bought somewhere yet?
nope!deciding to sit on our hands (ooh matron) and look after christmas (unless we see something especially ninja).
(and i have to try and fit in doing the IMC before christmas and i am too stupid to think about more than one thing at once..!)
Thanks for the info guys.
Just phoned these lot http://www.ecology.co.uk/
They will lend me up to %70 of the value of the land over variable repayment up to 25 years.
If i failed to keep up repayments they would reposess and i would probably loos the %30 i had paid outright.
Ballpark figure on £35k over 15 years is £350 pcm
20 yrs-£310pcm.
The land would have to have a valuation paid for by me at cost of a few hundred quid plus solicitors fees.
Well it's a start i suppose
Just phoned these lot http://www.ecology.co.uk/
They will lend me up to %70 of the value of the land over variable repayment up to 25 years.
If i failed to keep up repayments they would reposess and i would probably loos the %30 i had paid outright.
Ballpark figure on £35k over 15 years is £350 pcm
20 yrs-£310pcm.
The land would have to have a valuation paid for by me at cost of a few hundred quid plus solicitors fees.
Well it's a start i suppose
bilko2 said:
I don't have a mortgage so i was wondering who does one borrow money from for woodland?
I want a minimum of 10 acres probably costing between 30 - 50 grand. I don't own any property so have no collateral.
Is it possible to get amortgage for such a thing?
I've never done it, but I'd be happy to have a look round for you. PM me if you're interested. I want a minimum of 10 acres probably costing between 30 - 50 grand. I don't own any property so have no collateral.
Is it possible to get amortgage for such a thing?
freddies_dad said:
Hassle PH-mortgage broker scotal - he's got bugger all to do. ;o)
I don't think you'll easily get an unsecured loan for that amount. I'm not sure if it's an FSA ruling or just an industry accepted limit, but £25,000 is about the most you'll get unsecured.
That leaves secured... what are you going to secure the borrowing against? The land? It'll have to be worth the purchase price and more(!) for the lenders to take the risk on it. Imagine you, for some reason, can't service the loan. They need to be able to get their money back - they're not going to want to wait around to get the best price possible, they'll want it back quickly. Therefore, the land would need to be either worth a lot more so could be sold at a discount quickly or the kind of land that would sell quickly anyway. If you see what I mean.
My 2p only.
He's certainly thinking along the right lines.I don't think you'll easily get an unsecured loan for that amount. I'm not sure if it's an FSA ruling or just an industry accepted limit, but £25,000 is about the most you'll get unsecured.
That leaves secured... what are you going to secure the borrowing against? The land? It'll have to be worth the purchase price and more(!) for the lenders to take the risk on it. Imagine you, for some reason, can't service the loan. They need to be able to get their money back - they're not going to want to wait around to get the best price possible, they'll want it back quickly. Therefore, the land would need to be either worth a lot more so could be sold at a discount quickly or the kind of land that would sell quickly anyway. If you see what I mean.
My 2p only.
Jasandjules said:
baSkey said:
how do you borrow to buy a leasehold then?
A lease is a rent on the land? i.e. the owner has granted you title to use the land as you will for the term of the lease. If the lease isn't long enough, you will struggle to get a mortgage on it, I think. jimmyb said:
bilko2 said:
I don't have a mortgage so i was wondering who does one borrow money from for woodland?
I want a minimum of 10 acres probably costing between 30 - 50 grand. I don't own any property so have no collateral.
Is it possible to get amortgage for such a thing?
10 acres for 30-50 grand where? how?I want a minimum of 10 acres probably costing between 30 - 50 grand. I don't own any property so have no collateral.
Is it possible to get amortgage for such a thing?
freddies_dad said:
10 acres for 30-50 grand where? how?
I'd imagine it'd be agricultural land with no chance of planning/change-of-use ever being granted.Gassing Station | Business | Top of Page | What's New | My Stuff