# Lending for agricultural land



## TableEnd (26 Feb 2013)

Hi, there is 12 acres of argicultural land we are looking to buy but I rang our mortgage provider this morning and they said unless we are building on the land within 6 months they are not lending. We have a smallish mortgage and could afford the repayments as the land is selling for a good price but is there anyway to access funds? We were hoping to top up our mortgage in order to spread out the repayments the other option we were going to look at was credit union but is there anyway of getting a longer term than 5 years?

thanks in advance.


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## dereko1969 (26 Feb 2013)

Are you buying the land to use as agricultural land or with the future intention of building on?


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## Brendan Burgess (26 Feb 2013)

Did you ask your lender if you could remortgage your home? 

The switcher market is dead, but if you had a low LTV after the cost of the land, you might find a lender. 

Brendan


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## TableEnd (26 Feb 2013)

dereko1969 said:


> Are you buying the land to use as agricultural land or with the future intention of building on?


No it would be purely for agri purposes...I don't think it would ever get planning.



Brendan Burgess said:


> Did you ask your lender if you could remortgage your home?
> 
> The switcher market is dead, but if you had a low LTV after the cost of the land, you might find a lender.
> 
> Brendan


 
No I didn't PTSB said they are not lending for anything that does not involve building on so I presumed that included remortgage. We need about 25000 so I was thinking of the local CU we save there every month but wouldn't have half of that in saving with CU.


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## Slim (26 Feb 2013)

Val_Ally said:


> No it would be purely for agri purposes...I don't think it would ever get planning.
> 
> 
> 
> No I didn't PTSB said they are not lending for anything that does not involve building on so I presumed that included remortgage. We need about 25000 so I was thinking of the local CU we save there every month but wouldn't have half of that in saving with CU.


 
The credit union may lend you up to 4 times what you have in savings there, if you do not have previous loans(i.e. a borrowing record)with them. They can extend repayment period up to 10 years,


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## demoivre (26 Feb 2013)

Val_Ally said:


> No it would be purely for agri purposes...I don't think it would ever get planning.
> 
> 
> 
> No I didn't PTSB said they are not lending for anything that does not involve building on so I presumed that included remortgage. We need about 25000 so I was thinking of the local CU we save there every month but wouldn't have half of that in saving with CU.



How much do you have in the Cu? Could you not use those savings and get an unsecured term loan from PTSB for the rest of the money you need?


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## TableEnd (26 Feb 2013)

demoivre said:


> How much do you have in the Cu? Could you not use those savings and get an unsecured term loan from PTSB for the rest of the money you need?


 
We only have 1000 at mo in credit union and have savings in post office but would need that to fund some of land price


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## demoivre (26 Feb 2013)

I'd go with Brendan's suggestion so. PTSB do topups but whether they will do so to acquire land is another story.


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## TableEnd (26 Feb 2013)

We also have a precious tracker, can they change this if we topup?


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## Dermot (26 Feb 2013)

How much savings in total have you got that you are prepared to put towards the purchase of the land?.
How much is the land likely to cost you?.
Remember you will have legal and registration fees etc.
How much of an income would you get if you let the land on a 7 year lease so as to defray the repayments?.
What is your total mortgage repayments at the moment and what is the nett household income?.
I assume you are married and you probably are not a farmer.


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## TableEnd (26 Feb 2013)

*Reply*



Dermot said:


> How much savings in total have you got that you are prepared to put towards the purchase of the land? 10000
> How much is the land likely to cost you?.35000
> Remember you will have legal and registration fees etc. Is this based on value of the land? Anyone idea how much
> How much of an income would you get if you let the land on a 7 year lease so as to defray the repayments?.
> ...




I hope that answers it all


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## Dermot (26 Feb 2013)

Val-Ally.  Your mortgage is quite reasonable but it brings your household income down to €500 per week which will bring a few wrinkles to a lenders forehead in today's climate.  I presume your husband has an accountant for his farm accounts. You might have to get the accountant to make a projection on what extra income the acquisition of the 12 acres would bring in. Your savings are quite good. I would approach the Cr Union particularly if you know any of the people in it. I would also approach the main banks as well.  I would make sure and have all my proofs of savings,earnings and outgoings and future projections with me and in an organised fashion when meeting an official in any of these lending institutions.  If you are well prepared you are in with a better chance.  You will have in the region of €2,500 for legal, stamp duty and registration charges approximately. The best of luck to you,


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## TableEnd (27 Feb 2013)

Many thanks guys.

Ok my parents have saving that they wouldn't necessary want to move to CU as it would tie them down but would use to gaurantee the loan.

Would a secure loan against our house be an option?


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## fraggle (27 Feb 2013)

Hi,

I went through something similar last year. It was very difficult. I spent a LONG time chasing every avenue but each promising one failed in the end. I got the impression they were more likely to lend if the land was going to be used commercially, which I wasn't going to do.

In the end I managed to increase the amount of cash I was putting towards it and plumped for a 5 year personal loan for the remainder.


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## TableEnd (28 Feb 2013)

Thanks all. I am meeting with the CU in the morning to talk about borrowing 25000. Has anyone any tips etc that I should know going in with me. 
I have printed out payslips for both myself and spouse
Single Payment statement for last year
6 mths worth of bank statements.
My parents are mortgage free and will offer their house or savings as collateral but would like to be able to access savings in an emergency. 

Anything else I should bring?

We also own 30 odd sheep and some lambs.


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## Dinny (6 Mar 2013)

Hi tableend, how did you get on with your credit union. We are thinking of approaching them for a similar loan to finance the purchase of a holiday home


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## TableEnd (6 Mar 2013)

We have been approved. They said we had a good history borrowing and repaying. we have no other loads except our mortgage. They agreed that they don't lend for Agricultural/Mortgage purposes but they would bring it the credit committe. So they came back yesterday and said are application had been looked at favourably so they would proceed with the paperwork.
In any event we have discovered issues with the land we were looking at so don't think we will be putting in an offer after all.
Good luck with your application.


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## Dinny (6 Mar 2013)

thanks for the update


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