Mortgage / loan for woodland?

[sandspider]

Hi all

 

Just wondering, can anyone recommend a company that will offer a mortgage or loan at a non-horrific rate for the purchase of woodland / land? (Not a huge amount of actual money, and maybe 50 - 75% of likely purchase value). I've tried the usual suspects, but get either blank looks or hideous rates as it's for land rather than property.

 

Any suggestions please?

 

Thanks.

[northcountryboy]

I cant recommend a particular company but Ive heard if you have a private pension you can get the pension company to purchase woodland and land as part of your pension equity.

[Inoff the Red]

Unfortunately you are experiencing the consequences of the credit crunch.

Prior to the recession banks were making crazy lending decisions (for example 105% mortgages etc). Now lending institutions are making equally stupid decisions by looking primarily at their security position of assets pledged which they discount to a fire sale value.

 

 

On the basis that you have already tried your own bank/building society, i suggest you go to your accountant or a mortgage broker who should know which lenders are worth approaching for the project you have in mind.

 

Lending institutions these days are little more than glorified pawn shops. I think you will struggle to get anywhere near a 75% mortgage for woodlands unless you show that it can consistently generate sufficient income to cover mortgage payments 1.5 times. Even then, they will compare their perception of its fire sale value against the proposed loan and if there is a gap they will probably look for additional security from somewhere (second charge on house/personal guarantee etc) as additional cover.

[arbwork]

may be worth asking John Clegg & Co - Services: Sale of Rural Property good luck

[arbwork]

also here Finance | Woodlands.co.uk

[TRADITIONAL LOGGERS]

Ecology Building Society.

[sandspider]

Thanks guys.

 

Yes, bloody credit crunch. No pension, so that's not an option. But Ecology (also recommended by the finance section at Woodlands) does look to be the best option I've found so far - still 6 - 7% though. Hmm.

 

Possibly better to buy land with a house needing renovation on it, that way you can still get a normal-ish mortgage...

[csservices]

AMC might be worth a try they specialise in agricultural mortgages for land etc so may be able to help.

[TobyAllen]

Business loan from your bank. It's likely to be 50% on land, and you will have to go through the normal business loan paperwork.

[rovers90]

Thanks guys.

 

Yes, bloody credit crunch. No pension, so that's not an option. But Ecology (also recommended by the finance section at Woodlands) does look to be the best option I've found so far - still 6 - 7% though. Hmm.

 

6-7% is not too bad really. Especially as it sounds like they know what they are doing. Another option could be to release equity from your house.