Agricultural mortgages are available to those wishing to buy their first farm, extend their existing farm, or purchase rural property or land for another purpose.
Finding the right rural property or piece of farmland can be a challenge. Not only do we have a shortage of rural land, but prices have also sky rocketed since the recession. According to areportby Savills, the value of farmland increased by 277% between 2006 and 2016.
With demand currently so high, if you do come across the perfect property or piece of land, you’ll want to seize the opportunity and snap it up as quickly as possible. Unless you have the money to purchase the land or property outright, you will probably require a farm mortgage for your purchase.
What is an agricultural mortgage?
Agricultural mortgages are designed to help with the purchase of farmland, farm buildings, and other agricultural properties.
Just a few of the property-types that they can be used to purchase include:
- Working farms
- Equestrian facilities
- Country estates
- Renewable energy sites
- Other rural businesses
In some instances, you may also be able to use an agricultural mortgage to fund the conversion or expansion of a rural building, purchase assets for business growth, or raise funds to consolidate debts.
Agricultural mortgages work in much the same way as regular mortgages, with lenders usually loaning up to 80% of the value.
How to get an agricultural mortgage
Agricultural mortgages can be acquired from most high street banks, as well as from more specialist rural lenders.
Specialist lenders usually have many years of experience in the agricultural industry and a greater understanding of its challenges and opportunities.
It’s important to shop around when looking for an agricultural mortgage to ensure that you receive the best advice, support, rates, margins, fees and terms.
If you require financial help in acquiring a mortgage, then a commercial bridging loanmay be the flexible short-term funding solution that you’re looking for.
Get in touch with our team here at Richmond Asset Finance by calling 0113 288 3277 to discuss your requirements and find out more about our commercial bridging loans.