Mortgage for Property + land/outbuildings

annie_sheen

We are looking into buying a farm house which comes with 4 acres of paddocks and outbuildings. The property isn't currently in use as a commercial small holding. They just keep hobby animals there. We have no plans to use the land commercially either, although one of the barns does have planning agreed to turn it into a holiday home although this is a long way off and we are not sure we'll want to do this anyway...


We have a mortgage in principal for a residential property at the price agreed but we are concerned the mortgage company is going to look at the property and say it is 'mixed use' because of the land and out buildings and say it has commercial status. Initial discussions with solicitors haven't been that helpful Does anyone have experience of this?


Also we are interested in knowing what HM Rev's definition of 'mixed use' is. Does our property qualify under these terms - having residential and non-residential elements? (i.e do we need to pay the 3% additional stamp duty levy for second homes?)


Are the stamp duty decision and mortgage decision on the 'mixed use/commercialisation' of the property linked? Or do they have different definitions and the decisions for each are completely separate form oneanother?


We can only find advice online for properties that clearly have a commercial strand (e.g. shop + flat, B&B, etc) but not for a property that just happens to have land which comes with it...


Any advice would be greatly appreciated!


Thanks

Rayray27

Hi annie_sheen,

Did you get anywhere with this?  My husband and I are currently in the same position.  Any advice would be gratefully received!

Thanks