Buying house with 9 acres, but bank will only lend for house with 2 acres

B

boxtroll

Registered User
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Hi All,

Looking for some advice as getting different views from solicitors, brokers and auctioneer. Currently buying a house in rural ireland with circa 9 acres of land. Broker has advised that the bank will only offer mortgage on house with maximum 2 acres, so we will need to split the folio into two, and fund the land purchase separately.( which is fine)
Solicitors advice is that we need to get the vendor to do the split, but we bear the cost of this (which is fine by me). Auctioneer has said this split should be done when we register the transfer with land registry, and his client shouldn’t have to do anything. Broker has said similar to solicitor.
I’ve engaged a surveyor to take care of the split mapping etc, as this will have to be done either way.

Just unsure of the normal process here and don’t want to scare off the vendor or delay the sale. Any help or advice is really appreciated as to when the folio should be split.
 
Went through this last year, split was done by us. I can't see how it's the responsibility of the vendor, as a cash buyer wouldn't need to split the foilio.
By the way, different banks will mortgage different amounts of land. AIB will take 5 acres with the house if you want. It depends on your situation and what security you are comfortable with putting forward.
 
Thanks for the reply. So at what point was the split done? When you register the change with the land registry?
 
boxtroll said:
Thanks for the reply. So at what point was the split done? When you register the change with the land registry?
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That's correct. You'll need to have an engineer draw up the area on a land registry compliant map and submit.
 
boxtroll said:
I’ve engaged a surveyor to take care of the split mapping etc, as this will have to be done either way.
Click to expand...
Be very careful in how you do this. Walk the land with the surveyor (and ideally vendor too) to make sure that the split is done in the most sensible manner. At some point the house and the surrounding land may be sold separately and you will want to make this as easy as possible for yourself. Make sure that road and utility access for both land parcels is separate if possible. Make sure you know where the septic tank is and where the percolation area is and that this is not split across the land parcels. Make sure the maps drawn up are accurate to the greatest degree possible.

I have a relative selling an ex farmhouse where the surrounding farmland was poorly split from the main house. There is ambiguity between the boundaries on the ground and the land registry maps too. The owner of the surrounding farmland is very co-operative but even still the process is taking up a lot of time and fees to solicitors and surveyors.
 
I wonder why banks have drawn this definition for house and piece of land for mortgage. Maybe they have to draw the line somewhere and don't want mortgages to be used for commercial or agricultural purchases
 
joe sod said:
I wonder why banks have drawn this definition for house and piece of land for mortgage. Maybe they have to draw the line somewhere and don't want mortgages to be used for commercial or agricultural purchases
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Inevitable and understandable consequence of this nonsense.

‘Landmark’ decision High Court finds in favour of farmer on land sale

The farmer had wished to restructure his debt, rather than have to sell his farm to repay borrowings.
www.farmersjournal.ie
 
Home loans are for homes and not land. I am sure the bank would consider a commercial type loan with an interest rate loading.
 
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