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Post by yesorno on Aug 24, 2017 12:53:15 GMT
What's the best way to get money for a field? We have 5 years left on the mortgage and owe around 6k. The land I've seen is for sale at 65k for 10 acres. We don't have a lump sum to put down as a deposit so would require the full amount. Can anyone give us any advice please? It would be a dream come true but unfortunately unless we win the lotto the dream will never happen :-(. Thanks in advance
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Post by gillwales on Aug 24, 2017 15:54:50 GMT
You could raise a second mortgage. Be honest with what you want the money for, the loan will be secured against your house not the land so be certain you can pay it back at a higher rate of interest than we have at the moment. Be realistic, add yup all of your outgoings, and I do mean all. Deduct from your income, I know this sounds very basic; but it is surprizing how much stuff you leave out when working out money. Also work out how many more years you will be working. Can you make it pay for itself by taking in a livery? How much do you pay out for livery at the moment? Will you need to fence it or put stables on it? Will you get permission? Has it got water ? ( That can be expensive to lay on and you really need water ) Is the electric near by or will you need to sort that out separately ; by generator or solar power. Land costs to keep and I would make certain your insurance covers it 3rd party. TBH You are always likely to get your money back so it is probably a good buy. Don't forget all of the legal costs and land transfer fees.
Good luck
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Post by Land on Aug 24, 2017 22:09:00 GMT
You can't borrow against the land, for a mortgage you need a building. The best way would be remortgaging but you'll be paying back a decent amount of interest on a mortgage of £65,000 and your payments will shoot you from what they are now (repaymentns higher at the start of a product).
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Post by honeypot on Aug 24, 2017 23:26:16 GMT
We remortgaged our house, but we had a lot of equity to buy an unmortgagable property with land. It took some tinkering, it the cheapest way to do it. I would go a see a couple of financial advisors, do you really want a bigger mortgage and to be paying it off for the next 20 years. Its easy enough to find livery, or rent a field it may not be perfect but you can walk away if circumstances change. We built a house, so we are lucky that the gamble paid off but I would rather have a cosy home than buy a field for the ponies.
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