Loan to Purchase Land

geoffky

double post...sorry

geoffky

ajbrunel wrote: »

Thank you COOLTRIKERCHICK

I have asked the seller if they would take a £25k deposit and the remainder over 5 years +interest of course, but the Agency said the vendor said no thanks. I also do not think Land is about to tank, being careful is one thing.

Kind regards



Alex

Can i ask how old you are?...10k a acre is a massive amount for arable and not the true value because of the cheap credit available in the last ten years it has got inflated away from its long term value and with all the credit being pulled it will revert to norm at some stage and i reckon that point is not far off at all..

I might be wrong but the bank will not take a gamble they have told you to get lost.

Here in Cheshire a massive amount of land is for sale as the farmers can not make it work and are selling up and none of it is being advertised to other farmers but mugs who are buying up 10 acre plots at a time ....at a vastly overinflated price..

Firewalker

Have you looked at Zopa (http://uk.zopa.com/ZopaWeb/public/homemv/three.html)? They may be willing to support something like that.

Firewalker

antrobus

geoffky wrote: »

Can i ask how old you are?...10k a acre is a massive amount for arable ....

The average for agricultural land is about £6k at the moment I understand, but there may well be considerable variations depending on a number of factors.

Firewalker wrote: »

Have you looked at Zopa (http://uk.zopa.com/ZopaWeb/public/homemv/three.html)? They may be willing to support something like that.

Maximum loan £15k, maximum term 5 years.

paddyrg

The value of ag land is so *SO* variable based on so many factors - one place on the edge of Bath is asking for over £20k/acre, yet another mixed plot, half a mile away but without road access went for just about £1000/acre. It is way way too variable to say it is 'worth' anything other than however much it changes hands at. This will be why lenders are nervous - is it 'worth' £1k/acre but you're paying 10x that? Even with your 50% deposit, the land could still be 5x overvalued as far as they're concerned.

heathcote123

ajbrunel wrote: »

Good morning to you

I am trying to get a Loan to buy 6 acres of land here in Devon asking price £50k (for own use growing Soft Fruit, planting an Orchard and keeping a few Sheep), I am not a home owner but I do have a 50% deposit.

Now the frustration; I could go out and buy a new car for £75k with this deposit which would be worth much less as soon as I drove it away; however all I am getting is show me a business plan as to how this is going to pay for the loan (over 5 years). Well I am not looking at this as a business venture and the land will still be worth more than I am asking to borrow. Please can anyone advise as to how I might get a loan?

Kind regards



Alex

Tell them you need a car loan then. I'd get the business element right out of it, because they're not going to trust the farming instincts of an IT project manager.

Get a personal loan and demonstrate you can pay it back out of your income. If you reckon you're going to pay it back out of profit from the land, it's hardly unreasonable to want to see a business plan.

pauletruth

hi we have an agri loan/ morgage with faf part of natwest

FAF - Farming and Agricultural Finance
FAF was established in 1977 and is a specialist provider of finance for agricultural and rural businesses. FAF has been a subsidiary of NatWest since 1999.
FAF provides funding for a range of commercial and semi-commercial purposes related to agriculture and rural businesses, including:

• Farms estates and land
• Caravan and camping sites
• Equestrian centres
• Rural commercial and retail properties
• Rural residential developments and country homes

Contact FAF
For more information on the products and services offered by FAF, contact us on 0800 225567 begin_of_the_skype_highlighting 0800 225567 end_of_the_skype_highlighting.

our credit was not very good infact rubbish. we managed on a 75% loan to value. they are nice folks as well.

paddyrg

Just another thought, agricultural financiers may not be keen to help if it is a hobbyist/lifestyle plot. 6 acres is an interesting size, it is too small to earn a living from pure farming, but big enough to keep you very busy. Have you ever kept a farm before? I grew up on a smallholding (indeed a moderately famous one as they go), and came to learn from the sharp end it is a huge amount of work to keep land well...

Sheep eat grass, but they won't go near it if it is too long, they prefer to follow a cow onto a field, so the longer stuff is gone and they can eat the bits they want. Sheep escape, so you have to fence. And proper fencing is worth getting fencers in for, as sheep wire and barbed wire will go slack unless your corner posts are well bored and braced. Then you need to get the fenceline totally straight, or all your staples ping out and you go to bed tired and frustrated! Then sheep need shearing, if it is not something you have tried before, it looks easier than it is. Then sheep get flystrike, yuk, unless you keep them clean round back and/or cu their tails. Then you want lambs, so borrow a ram for tupping, all good, but then you have pregnant sheep who need watching, and who invariably choose to lamb on the weekend you had something planned. You will also need some sort of sheep nuts and shelter etc for winter. Come spring with the new lambs, if the grass is over rich, expect pulpy kidney (easily cured, but it is not pretty). You cannot slaughter on the land, so you have to learn about the grizzly truth of slaughterhouses too. The orchard needs pollenating, so a hive might be in order, now you have to lean to beekeep as well!

I am not saying don't do it, but it is not something you do around IT consulting, it is a bit of a polar choice (and with nowhere near the money of IT consulting! In fact a few apples and some awesome meat and a few fleeces will not pay the rent. Maybe you could live part-year in a caravan on-site, but come winter you will really want a shower.

Feel free to PM me if you want to talk smallholdings from the POV of a former IT consultant who grew up on one

pauletruth

we had no experiance of farming. the wife keeps eying all the land around us. it becomes addictive. we just wanted a few sheep now we have them and 10 ponies and hundreds of hens. its not always fun and in mid winter horrible. if your planning livestock and there is no house on site how are you planning to feed them when its deep in snow .
good luck