- Agricultural Ties
- Restricted Use Properties
- Agricultural Restrictions
- From 10% Deposit
- No Credit Scoring Application for Some Lenders
- Common Sense Underwriting
- Interest Only and Repayment
Agricultural Tie Mortgages
A property with an Agricultural Tie (also called an Agricultural Restriction) can sometimes be difficult to mortgage.
The main reason for this is that the Planning Authority has imposed a condition on who can live at the property. This is usually when the property would not normally have been granted planning consent and/or the Planning Authority wish to ensure that the property is occupied by a person employed locally in agriculture.
As a result of this restriction, mortgage lenders tend to take the view that should the property be sold, e.g. if it needs to be repossessed following failure to meet the mortgage payments, the market for new purchasers of the property would be restricted to only those that could satisfy the agricultural tie and it therefore will be more difficult to sell when compared to a standard property.Read More >>
The agricultural restriction can take a number of forms and a mortgage lender will ask the solicitor performing the conveyancing to confirm that the occupant(s) of the property will satisfy the agricultural tie. It is therefore advised that you check the exact nature of the tie and whether you can satisfy it, before you decide to proceed with a purchase.
A typical example of how an agricultural tie is worded is as follows:
“the occupation of the dwelling shall be limited to a person solely or mainly employed in the locality in agriculture as defined in section 336(i) of the Town and Country Planning Act 1990 or in forestry, or a widow or widower of such a person, including any dependents of such a person, residing with them. “
We have also found more restrictive ties whereby the occupier of the property has to work in specific types of agriculture such as Market Gardening or be involved in Equestry.
Sometimes there maybe a repossession clause in the definition of the agricultural tie which will waive the tie if the property cannot be sold for a set period e.g. 6 months. This clause can make it easier to obtain a mortgage.
At RockHopper we are often approached by clients who tell us they are frustrated that they are unable to find a mortgage lender for the property they wish to buy with an agricultural tie. We typically find that their Bank may have said they will not consider properties with agricultural restrictions or they may require a large deposit which could be as high as 50% of the property value.
At RockHopper we work with Lenders that can look to assist clients with as little as a 10% deposit for properties with agricultural ties.
We appreciate everyone’s particular situation is unique, which is why we look at every enquiry on a case by case basis.
If you would like to see whether we can help you raise a mortgage on a property with an agricultural restriction, do get in touch for a free no obligation quotation.