# Loan to buy agricultural land



## OkeyDokey (4 Jun 2019)

My brother in law is a PAYE worker and wishes to buy land for his horses. The land cost is approximately 250k. He has 180k on deposit and wishes to borrow 70k.

He contacted his bank and they said that he must submit a 5 year business with his application. Writing business plans is not his area of expertise and he has the means from his PAYE job to service the loan.

Since the amount he is borrowing is less than 30% of the land value is this a necessary requirement? Would a broker help with the application?


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## noproblem (4 Jun 2019)

I wonder how the borrowing chat went with the Bank manager. What exactly did he ask for? A few acres for the horses, etc, etc. Of course they want to know how they're going to get their money back and he obviously asked them with a plan in mind. Now they want a few answers. How much land are we talking about, near a town, out the country, good land, etc, etc?


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## RichInSpirit (5 Jun 2019)

Pay an accountant to do a simple business plan for the purposes.


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## JohnJay (5 Jun 2019)

unless he is Michael O'Leary, he will be a long time making 70k (not to mention 250k) on any farming operation, especially horses. Its good to see that the banks have learned from their mistakes of the past and are now doing their due diligence on the money they lend.


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## demoivre (5 Jun 2019)

JohnJay said:


> unless he is Michael O'Leary, he will be a long time making 70k (not to mention 250k) on any farming operation, especially horses. Its good to see that the banks have learned from their mistakes of the past and are now doing their due diligence on the money they lend.



Op's brother in law will have a LTV of 28% and the loan can be financed by his PAYE income !


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## RedOnion (5 Jun 2019)

If he wants a business loan, he needs a business plan - so it'll need to stack up.
If he doesn't want to do a business plan, or it doesn't stack up, then he can get a personal loan to fund his hobby. At personal lending rates.


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## OkeyDokey (6 Jun 2019)

Thanks all. He didn't consider engaging with an accountant for a business plan. He works in the equine sector so he knows what he's getting in to. He was approved for a personal loan at 8% but we're hoping that a commercial loan will be at a lower rate,


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