Land Loan

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ncj15
ncj15 Posts: 3 Newbie
in Loans
My partner and I want to borrow £15,000 to purchase a piece of land which will eventually be used to build on. However, this will be in several years and we are not in a position to get a self-build mortgage at this point as we will both be changing jobs come September/October which makes getting a mortgage impossible. We are therefore happy to purchase the land knowing it is perfect and wait to apply for the mortgage in the coming years. Does anyone know of anywhere that could help us with this? Most loans won't allow you to borrow for land so we are really stuck!

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  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    edited 29 June 2016 at 1:20PM
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    ncj15 wrote: »
    My partner and I want to borrow £15,000 to purchase a piece of land which will eventually be used to build on. However, this will be in several years and we are not in a position to get a self-build mortgage at this point as we will both be changing jobs come September/October which makes getting a mortgage impossible. We are therefore happy to purchase the land knowing it is perfect and wait to apply for the mortgage in the coming years. Does anyone know of anywhere that could help us with this? Most loans won't allow you to borrow for land so we are really stuck!

    Why not wait nearer the time when you actually start the self build ?

    This thread might help

    http://www.thisismoney.co.uk/money/mortgageshome/article

    Lenders don't tend to lend the whole amount in 1 hit but in stages so imo just until you buy the land.

    I'm not saying don't do it.
  • spadoosh
    spadoosh Posts: 8,732 Forumite
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    I know this isnt the questions but how confident are you of getting planning permission?

    £15,000 seems extremely cheap for a piece of land that is likely to get planning permission.

    I live in the NW and land with planning for a small 3 bed detached sits anywhere between £125,000 and £200,000.

    I ask because this is something that has always interested me but there seems to be a consensus that this route is a difficult one.
  • bris
    bris Posts: 10,548 Forumite
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    There is little to no chance of getting permission to build on this land, land owners simply don't sell land until the know it's a dead end.


    There are companies who make a fortune selling to the public with false promises, it's not one of these you are buying from is it?
  • 27col
    27col Posts: 6,554 Forumite
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    There must be many thousands of us self builders who would love to know where we could buy enough land to build a house for £15,000.
    Sounds like a dream to me. Though I did once buy a plot for my first house, for £1,600. But that was in 1967.
    I can afford anything that I want.
    Just so long as I don't want much.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    Your options are:

    Save
    Stooze with interest free credit cards or super balance transfers
    Personal loan, but lie on the application
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    27col wrote: »
    There must be many thousands of us self builders who would love to know where we could buy enough land to build a house for £15,000.
    Sounds like a dream to me. Though I did once buy a plot for my first house, for £1,600. But that was in 1967.

    If only the OP had a time machine.
  • ncj15
    ncj15 Posts: 3 Newbie
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    Hi all,

    Apologies for the delay on this - none of the notifications came through and I have only just seen this.
    The land was farmland which was inherited and sold off - this particular piece went for £29k and was suitable for planning.

    We just got beat to it!
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    ncj15 wrote: »
    Hi all,

    Apologies for the delay on this - none of the notifications came through and I have only just seen this.
    The land was farmland which was inherited and sold off - this particular piece went for £29k and was suitable for planning.

    We just got beat to it!

    I think you have had a narrow escape.
    There is a reason the land was (relatively) cheap - you may well have been able to build on it but your problem would have been selling it on in the future.
    I think its called S52 or something look it up.
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