Mortgage for house with land for use as campsite

cloudberry45

Hi all,

wasn't sure whether to put this thread on this board or in the 'buying a house' section so apologies if wrong.

Basically we are looking to move next year and ideally we are looking at properties with land as I would like to run my own camping/touring site.

I have enquired through my current bank (Halifax) about a possible mortgage for the property but they would not be able to help us, same applies to HSBC too.

So my question is do I need to have a business mortgage instead? I will not be relying on income from the campsite to pay any of the mortgage as we will be able to use my husbands incomings for that purpose. Any advice greatly appreciated.

kingstreet

Yes, it's a commercial lending proposition.

amnblog

The house and garden can be dealt with on a residential mortgage, the campsite is a commercial proposition.

If both elements of the property are on the same title (freehold) you are looking at a commercial proposition only.

cloudberry45

Thank you both for your help, which mortgage companies am I best off contacting - is there any you may know of that would be better to deal with? Thanks again

Jessicavvp

Hi amnblog,
This is my first post on here, I can see this is an old post but hoping someone / you will see this...
If we were to buy a property with a residential mortgage, could we then split the deeds within the first 6 months so the land can then be mortgaged with a commercial mortgage and we keep the residential address as residential?
Or would the mortgage provider not allow us to split the deeds so close to purchase date because it would affect the value of the remaining house? If not, what if we did that one year after purchase, for example?
Any advice would be really appreciated

davidmcn

Jessicavvp wrote: »

Hi amnblog,
This is my first post on here, I can see this is an old post but hoping someone / you will see this...
If we were to buy a property with a residential mortgage, could we then split the deeds within the first 6 months so the land can then be mortgaged with a commercial mortgage and we keep the residential address as residential?
Or would the mortgage provider not allow us to split the deeds so close to purchase date because it would affect the value of the remaining house? If not, what if we did that one year after purchase, for example?
Any advice would be really appreciated

Remortgaging anything less than 6 months after purchase is problematic.
As for splitting the deeds, have you looked into what the respective values will be, what criteria a commercial lender would be looking for, how your affordability stacks up for each mortgage if you're e.g. giving up job and entering into a new business venture, etc.

ACG

Is it commercial?
I thought there was a rule that states if the commercial element is less than 60% (?) a residential mortgage can be obtained?

Its not an enquiry I get often...or ever, but im sure there is something like that in the back of my head.

ACG

Just to be clear, I am not recommending Barclays as a lender. Their criteria page I think is very good so thought I would take a look.

At least 40% of the property must be used as the applicant's main residence and the remainder must be used exclusively by the applicant for their own business purposes.
Mixed-use properties are limited to 80% LTV and certain commercial uses will not be considered:

• Fast food or sandwich shops
• Care homes
• Kennels
• Catteries
• Caravan Parks
• Working Farms

Im not sure if campsite would fall under caravan park or not. Im guessing probably not as its easier to remove a tent than it is a caravan.

davidmcn

ACG wrote: »

Just to be clear, I am not recommending Barclays as a lender. Their criteria page I think is very good so thought I would take a look.


Im not sure if campsite would fall under caravan park or not. Im guessing probably not as its easier to remove a tent than it is a caravan.

The campsite bit is from two years ago, the thread's been bumped by someone else (who don't mention what the intended commercial use would be).

ACG

Good spot! I missed that.