Can I use a site passed for a house as a mortgage deposit?

wassupbob

Basically I'm considering buying my first property, but like a lot of first time buyers I;m struggling for the deposit!
I'm a farmers son and the long term plan has always been to build my own place somewhere on the farm. To that end my Dad has looked into possible sites on the farm.
My question is could I use this site as a mortgage deposit to allow me to buy another property to live in until i'm ready to build my own place.
Also does this sound like a good idea? Would I be better to rent until then and try to save a deposit or is this a better way to go?
Any help would be much appreciated!

wassupbob

Is this a really stupid question???lol

G_M

If you sell the site at market value you could raise the deposit money. But then where would you....err... build.... your... ??

naked

This one might seem like a stupid question though...

Do you need a mortgage?

How much does a house cost to build, minus the cost of the land? Are you doing the building, or are you employing a builder to do it all?

Would your deposit be large enough to cover the house build (and fitting out), and could you get another type of loan to make up the difference?

Just a random thought.

I'm not sure how mortgages work when there's no building yet to secure it against

opinions4u

I'm a farmers son and the long term plan has always been to build my own place somewhere on the farm.

Agricultural covenants will often mean that the land is not considered suitable security for a mortgage.

You may stuggle to borrow against a property on a farm.

sammyjammy

You may also find it very hard to receive planning permission to build a property on a farm which is presumably on green belt land/in the middle of the country.

Conrad

If the land is sectioned off and shows as such on land registry in your name then a lender could potentialy lend to YOU against it's value.

If the land (ie the security) is in your dad's name then any loan would be to him, not you.

The only lenders that can consider this are those that are lending purely against the value of the land. Thier interest rates will be high, from 9 - 18%