Getting a mortgage on a self build with an agricultural tie.

wildriding1

Ok so my husband and I have been banging our heads against a wall for some time now trying to raise a mortgage to finish our house. We have an equestrian stud that we got planning 3 years ago to build a property on so it has an equine tie on it. I understand that is different and more restrictive than an agricultural tie?? We have managed to raid our piggy banks and relatives piggy banks enough to get the roof on but we now need to get a mortgage to finish and pay back the family.
We have been living in a mobile home for the last 5 years and we now have a 2 1/2 year old boy and 7 month old twin girls so as you can imagine, desperate for space!!
We have our own business in the stud and also building contractors, we operate both sides of the business as one company, therefore one set of accounts etc.
Can anyone explain more about the tie and if they can be lifted or changed in order to gain funding. We have just been told our house is worthless, even when finished with this tie unless the whole stud/property was sold as a going concern that's why lenders won't touch us :(:(

Let_Us_See

You property is not WORTHLESS. However, it might be unmortgageable, and therefore a cash buyer required. I take it the new property has its own title?

Many properties have various ties, and their mortgageability is dependent on the severity (T & Cs) of the tie, and therefore mortgage lenders will assess how the said restrictions/tie will affect the future saleability and lend accordingly (or not). A tie does not automatically exclude the ability to raise a mortgage, but it does restrict possible lenders and attract stricter underwriting.

Hindsight is a wonderful thing, but why wasn't the tie considered before commencing construction?

wildriding1

We're not trying to sell it, just finish it and pay family back.
The land it's sat on was my parents, they have a property on the land. I had built up the equine stud some years earlier but had lived for a few years in the town with my now husband, we moved into a caravan on the land whilst we were seeking planning as we need to be onsite due to the nature of our business. My parents gifted the land to us as a wedding present. We knew it had a tie on it when planning was granted but since speaking with someone today, they informed us it was an equine tie not an agricultural tie therefore complicating things more. Breeding is not equine, it is agriculture so not sure why this tie is different to an agi one?
I know agi ties are still awkward where raising a mortgage is concerned but as advised today, still easier than this equine tie. I can't find anything about equine ties, only agricultural ones.

wildriding1

Oh and yes it does have it's own title, it is a recognised property.

Let_Us_See

I understand you are not trying to sell the property, but I was merely pointing out the property was not worthless (as previously stated).

Agricultural ties are very common in certain areas, such as the New Forest, and don't preclude the ability to mortgage. However, every application is underwritten on an individual basis taking into account the tie/restriction.

Without clarification of the terms of the concerned tie, further comment is difficult, but the normal consideration is that the greater the restriction to an "open market" sale, the greater the difficulty in obtaining a mortgage.

Finally, I have never experienced a single lending publishing their T & Cs regarding ties. They might mention they would or would not consider lending on an agricultural tie, but no specifics. There is the added problem that the property remains unfinished.

What next? Instead of banging you heads against a wall I suggest you come to an arrangement with an experienced broker and let him bang his head on your behalf.

kingstreet

Are the AMC still lending?

Any use?

http://www.amconline.co.uk/

wildriding1

Sorry Let Us See, I misread your previous post!
We have had a couple of mortgage advisers do the leg work and haven't come up with anything so far. It is very complicated and as it is an equine stud business which is classed as agriculture so it is classed as commercial but we are wanting funds to build a house which is classed as residential, it doesn't really fit anywhere even though it has this tie which must make it commercial to some point?!! Oh and it's a self build! We were advised numerous times that if we get the roof on then it will be a piece of cake to raise funds to complete, that's done and we're still no nearer to getting anywhere!
I think our previous advisers/brokers have been a bit confused and as they don't fully understand and it doesn't fall in to one particular catagory, they're not able to portray a good case to any prospective lenders.
I will look into AMC thanks