A guide to getting a mortgage to buy a country estate with 50, 100, 500, or even 1,000 acres
A browse through Country Life magazine or the websites of high-end estate agents shows how many castles or country estates with 50, 100, 500, or even 1,000+ acres are for sale.
Two stunning properties for sale include the Corby Case grade 1 listed estate in Cumbria, which is currently for sale and has 711 acres, and a country house in Cowden, Edenbridge, Kent, which has over 100 acres.
These properties have a mixture of outbuildings, a lodge with staff flats, and woodland. While securing mortgages on properties like these is possible, the process can be challenging if you don't know which lenders to approach.
Securing a mortgage to purchase those unique properties with land, outbuildings, stables, or commercial elements like weddings or festivals is possible. Still, the number of lenders willing to issue mortgages will be restricted.
Aaron Strutt, product director at Trinity Financial, says: "There are high street lenders and smaller building societies issuing mortgages on country houses with lots of land, although some can be put off if the estate has commercial elements.
"Some private banks are more used to issuing property with land mortgages to wealthier clients, which means they are used to working with land owners. They are more comfortable when some of the estate is being sold or there is resurrecting."
Property will land mortgages
Yes, it is possible to buy a property with 50, 100, 500 or 1,000+ acres using a mortgage, but several factors could influence the process:
1. Property type - Residential vs Agricultural
Residential vs. Agricultural: If the land is primarily residential with a house on 50-100 acres, securing a mortgage is often more straightforward. However, securing a mortgage can be more complicated if the property is mainly agricultural or rural land without a home, as many lenders have stricter requirements for agricultural land. This may well mean a commercial mortgage is required.
2. Country house mortgage options
Fixed-rate: High-street mortgage lenders and some private banks offer fixed-rate and variable-rate mortgages. Some private banks will issue fixed-rate funding based on the client and the overall deal.
Tracker rates: Trinity Financial has access to one private bank that only offers tracker rates but has a strong track record of lending against country homes and estates. Another private bank provides mortgages to high-net-worth clients with properties over 100 acres; these clients often have working farms and significant running costs.
3. Deposit required for a county home
Larger properties usually require a larger deposit - often 25% or more, depending on the lender and the type of property. Some private banks will issue lower deposits and larger mortgage loans subject to overpayments being built into the mortgage contract. One private bank offers 10% deposits to wealthier clients.
4. Property with land mortgage terms
Loan Size: The total loan amount will play a role in the type of loan you can obtain. Large-acreage loans can be more complex to underwrite, especially if the property is located in a rural area with limited comparable sales.
5. Subject to valuer comments
Property appraisal: The lender will require a thorough inspection of the property and land to determine the market value of the property. This can be more challenging with large properties or rural land since the appraisal is based on comparables, which might be scarce in more remote areas.
6. Credit rating and financial standing
As with any mortgage, the lender will evaluate your credit score, income, and overall financial stability. Rural or large-acreage properties might require a higher level of financial qualification to account for any additional risks, such as lower resale value or difficulty in land management.
7. Agricultural mortgage restrictions
Agricultural mortgage restrictions refer to limitations or conditions imposed on properties with agricultural land or related activities. These restrictions are typically designed to reduce property use, often leaving buyers with questions about securing mortgages. Many lenders are happy to work around them, depending on the restriction.
Getting a property with land mortgage - Conclusion
Yes, it is possible to buy a large parcel of land (50-100 acres) with a mortgage, but the specific details will depend on the type of land, its intended use, and your financial situation. If you are considering such a purchase, it's important to research your financing options and speak with lenders who specialise in rural or large-acreage properties to understand the terms and requirements.
Call Trinity Financial on 020 7016 0790 to secure a mortgage for a larger property with land, or send an enquiry with a link to the property you are buying
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