Need advice of good mortgage loan company for farm/equestrain use

brookiebroo

Hi guys need some advice so any info welcomed

I'm looking to buy a farm which I am going to use for equestrain livery business

The place has 21 acres, barn and stables and already have liveries so already has an income

Apparently the best loans available will require a 40% deposit

My parents are lending me the deposit but we were hoping to get a 20% deposit but also my parents are selling their home and waiting for the sale but the land is having final bids mid July so not sure if my parents home will sell in time

Can I get a mortgage/loan and use my parents home which they are willing to do for me as security and if so how would it work and how much would they secure the house on to get the full £300,000 loan?

Any help will be much appreciated

bouncydog1

Others more knowledgable will be along but a few points immediately spring to mind:-

As you are buying a business you will need a business plan complete with budgets and forecasts;
Have you got copies of the lastest accounts and have you had these reviewed by an accountant or similar?
What is your experience of running a livery yard?
What further investment will the business need - land management costs, repairs, upgrading etc?
Due to current economic situation many people are having to get rid of their horses/find DIY - have you thought about this if liveries in situ reduce?
How will you replace them?
Have you factored in insurance costs?
Are you going to employ staff?
What money do you have to put down - certainly in the cast of ordinary mortgages deposit loans are frowned upon and effect ability to repay unless the deposit is gifted.
What has your own bank said and what state are your own personal finances in?
Is the loan only in your own name or supported by others e.g. partner/parents?
Are you keeping another job or will this be your sole source of income?
Are you thinking of diy or assisted/full livery - what will you include service/feedwise?
Will you produce your own hay/haylage?
Will you need outside help to do this or will you be able to cut/bale yourself?
If you have to buy in, have you sorted out a supplier?

Lots of questions but you need to think about all of this and more before you even start looking for a mortgage.

First place I would go would be your own bank who will have history of your account etc and if you go fully prepared then this should help your application. There should be a business team there who you should be able to go and discuss with.

Other places I would look would be any sites to do with the farming community as there will likely be a lot of helpful information regarding loans etc.

brookiebroo

Hi thank you replying

Business plan is already done. I currently run 2 business so know how to run a business and the livery currently have 11 horses DIY earning £1000 month so I will keep them on.

In the vale people are crying out for good facilities and we have these they just need upgrading and my partner runs a maintenance company so we can do this cheaply.

We don't need any staff as I can do it all and Iv owned horses all my life and compete so know what I'm doing :-)

I just need the companies now as all I'm getting is a 40% deposit and I don't have spare £120,000 was hoping to get it at 20% but my parents might lend that 40% against their house so wondering if there are any companies that allow this.

Kind regards

Conrad

OP - yes it sounds like this can be done. There are specific lenders for this whole arrangement.

Be very very careful. Some lenders are far cuter than you or your Lawyers.

Now some will say to do a bridge loan on your parents but these are costly. There are cheaper options by far subject to your parents status and age.

I don't like to get too specific on public fora.

gwernybwch

brookiebroo wrote: »

Business plan is already done. I currently run 2 business so know how to run a business and the livery currently have 11 horses DIY earning £1000 month ...... I don't have spare £120,000

I know that You haven't posted here for comment on your business plan, but you realise that borrowing £120k at 6%, the mortgage payments will be approximately £775 pcm? It the total income is £1000k pcm, it doesn't leave alot of room for error......

Anyway, surprisingly alot of the 'High Street' banks have a good understanding of Agri / land based businesses. Although you might have to travel (to say Camarthen) to meet their Agricultural specialist.

Otherwise the Agricultural Mortgage Company might be a good start -
http://www.amconline.co.uk/

Good luck with the venture.

KingElvis

I wouldn't saddle yourself with debt...........

geoffky

why are your parents being put at risk....do it yourself because could you look them in the eye if it all went wrong...

[Deleted User]

http://www.nfuonline.com/

KingElvis

You need to check out the neigh-bours too and make sure they're stable.

chalkie99

Ignore Elvis - He's just horsing around.

brookiebroo

We know what we are doing and my parents are fine with it as the projected income for first year is £200,000 with the extras we are adding to the yard. Currently the yard is in very poor shape and the facilities need upgrading but our current business is a maintenance company so these upgrades won't cost us much at all. And once the business Is running and the barn can be converted the place will be worth over a million pounds as locally something similar has sold for 1.3 millions so the place is a gold mine

Realisticly and I don't mean to sound rude to anyone here but you shouldn't be in business if your not confident and all you see is the bad in every scenario so people who are saying all the negatives and worrying about it being costly and putting my parents under pressure. They wouldn't have offered if they were not happy and I wouldn't be asking for the best mortgage ready to go if I wasn't confident it will work, the £1000 a month income is based on the minimum guaranteed income which the yard is currently making so even if the monthly repayments were £1000 month or even more I would still be jumping in as I know it will make 10 x that withint he first year no problem

Thank for everyone's advice so far but anything negative I'm not interested as negativity is the reason why the economy is the way it is. You get no where in life unless you take a risk.

:-)