Mortgage for land? or any other option?

adiva

After renting land for the past ten years we have found a near perfect yard for sale, for £150,000. It does have living accomodation on site.

Me and my fiance currently have £75,000 left on our mortgage, our house has been valued around 135,000.
We have a joint income of £50k per annum.

I have spoken to a few land loan companies but unfortunately we have the wrong type of animals (need sheep and cattle) and not enough acreage to make it a viable option.

My parents own their property and have offered to help in anyway possible, would we be able to buy just under half their property (release £100,000) in order to buy the land and then pay the mortgage?

Or would it just be simplier, easier, cheaper to go get a loan/commercial mortgage (if we can)?

Thanks in advance!

geoffky

why risk your parents money while they are alive? are you really that selfish because i would never put my parents at risk because i had a dream...get a loan and forget your parents money until they do leave it to you.

adiva

Because they said they would rather see us use it now whilst they are still here and share the dream? Plus they would eventually be moving on with us into one of the log cabins onsite? anyway, thanks for zero help geoffky, hope you feel better after your little rant

Crinz

adiva wrote: »

My parents own their property and have offered to help in anyway possible, would we be able to buy just under half their property (release £100,000) in order to buy the land and then pay the mortgage?

problem i see with this:

if you want to raise money from your parents place you will have to have them remortgage themselves for 100k. Age and income would come into this. how old are they and whats joint income like?

other way to do it would be to have the whole property transferred into your name and release cash this way. Income would again have to be considered but age probably not such a factor.
Would you be selling your place? if not then could you afford another 100k on top of your mortgage. Looking at the income I would say probably yes but I dont know any other debts you have

AFAIK you cant but half a property off them if you are going to be mortgaging it.

If you go down the 2nd route then will there be any issues if they are taken into long term care or do they have an inheritence tax liability?


Just a couple of thoughts to start off the discussion

adiva

Thank you Crinz that is really helpful. We would be selling our house, we would have accomodation on site that we will move in to. I have been on the phone to someone about a land mortgage today and think we may be able to go down this route after all. Thanks again!