Mortgage lenders for rural properties with shared access?

[Dylan121]

Hi everyone. Anyone know of mortgage lenders who are sympathetic to rural situations with properties sharing access roads with family members? The family member sometimes use the road to gain access to their land or farm sheds further along the road.

Surely there is SOMEONE who would lend on this situation otherwise all rural/farming/family houses and children would be stuffed and unable to get a mortgage on farm houses.

 

[ISCO]

I would have thought that as long as the title shows the correct easements for all parties who use the access road with repairing obligations then all lenders would accept the property as security.

 

[Widgetone]

Our house in the sticks has a drive owned by the farm that we have permanent right of access over to our property. Iirc, noted as such on the deeds.
We had a mortgage with HSBC years ago and then Halifax with no issues.

 

[Andy26]

Should be no problem as said above as long as the rights of way are recorded.

Our neighbour has a right of way through long term use on a very short part of our drive, on their title deeds its just a signed statement by the previous owner and they have a high street mortgage lender.


So its not a specialist lender you need, but to check the title register with the Land registry and note any easements, you may have to obtain documents in the 'copy filed' section form the land registry. Any solicitor could do this in under an hour (they have commercial access to the Land registry so can download the copy filed bits instantly).

 

[AR Enviro]

Yea as above, lenders want to see unquestionable rights of way to the property.

Another thing is that farming family members are very good at building houses in stupid places that are unsellable in the future, next to farmyards are a no-go for most lenders now.

 

[Kidds]

Shared access does not prevent you getting a mortgage as long as you can prove you have that right of access. Loads of places have shared access including my son's house, he has a mortgage.

 

[suffolksmallholder]

I had an interview with Nat West to borrow a substantial sum to purchase a derelict rural property.
For a short period of my life I was very cash rich.
If you tick the right boxes you will be fine.
Ask. Simples.
SS

 

[Dylan121]

I've contacted several lenders. The right of way on the deeds are fine but when they ask who owns the land and the sheds up the road and I say "father" they don't like the fact that it's a family member and decline to proceed.

Their objection is if there was a default on the mortgage it may have to be repossessed and then when selling it to get back the funds the father might kick up a fuss and not like it that someone else will own the house and make things difficult. For example block the road with a tractor or trailer or something like that. Not that it would ever happen but they say it is more risk for them.

I'm actually really struggling to find a lender that is willing to proceed.

 

[d-wales]

I've contacted several lenders. The right of way on the deeds are fine but when they ask who owns the land and the sheds up the road and I say "father" they don't like the fact that it's a family member and decline to proceed.

Their objection is if there was a default on the mortgage it may have to be repossessed and then when selling it to get back the funds the father might kick up a fuss and not like it that someone else will own the house and make things difficult. For example block the road with a tractor or trailer or something like that. Not that it would ever happen but they say it is more risk for them.

I'm actually really struggling to find a lender that is willing to proceed.

Tell them you don't know who lives up the road

 

[Still Farming]

I've contacted several lenders. The right of way on the deeds are fine but when they ask who owns the land and the sheds up the road and I say "father" they don't like the fact that it's a family member and decline to proceed.

Their objection is if there was a default on the mortgage it may have to be repossessed and then when selling it to get back the funds the father might kick up a fuss and not like it that someone else will own the house and make things difficult. For example block the road with a tractor or trailer or something like that. Not that it would ever happen but they say it is more risk for them.

I'm actually really struggling to find a lender that is willing to proceed.

Just get a legal easement drawn to say you have access and then proceed with Mortgage possibly??

 

[Andy26]

I've contacted several lenders. The right of way on the deeds are fine but when they ask who owns the land and the sheds up the road and I say "father" they don't like the fact that it's a family member and decline to proceed.

Their objection is if there was a default on the mortgage it may have to be repossessed and then when selling it to get back the funds the father might kick up a fuss and not like it that someone else will own the house and make things difficult. For example block the road with a tractor or trailer or something like that. Not that it would ever happen but they say it is more risk for them.

I'm actually really struggling to find a lender that is willing to proceed.

Sounds like a poor excuse, Father is more likely to find ways of not defaulting on the mortgage in this case.

 

[DanielBennett]

You could do with talking to a broker who understands farming and lenders who get it too. Let me know if you want a connection with someone who fits this.

 

[Kidds]

I've contacted several lenders. The right of way on the deeds are fine but when they ask who owns the land and the sheds up the road and I say "father" they don't like the fact that it's a family member and decline to proceed.

Their objection is if there was a default on the mortgage it may have to be repossessed and then when selling it to get back the funds the father might kick up a fuss and not like it that someone else will own the house and make things difficult. For example block the road with a tractor or trailer or something like that. Not that it would ever happen but they say it is more risk for them.

I'm actually really struggling to find a lender that is willing to proceed.

"Buy" the access off father then sell it back?
I think lenders have such a big stack of "ordinary" property customers that they can pick and choose. It means they skip anything that isn't straightforward and just move on to one off the "ordinary" pile. It could well be the road isn't even the real issue.

Have you tried a broker? They seem to know where to look

 

[ISCO]

Try Handelsbanken, they claim to deal with unique situations like this.

 

[Still Farming]

Try Handelsbanken, they claim to deal with unique situations like this.

Thought those Icelandic banks went bang years ago with Local Authorities investments???

 

[ISCO]

Thought those Icelandic banks went bang years ago with Local Authorities investments???

Handelsbanken still active and looking for business.

 

[Kidds]

Handelsbanken still active and looking for business.

If you are talking millions, they don't seem to deal with mortals.

 

[ISCO]

If you are talking millions, they don't seem to deal with mortals.

They do also deal with lesser unique transactions.

 

[ISCO]

They are worth a try if stuck as at least they have managers you can talk to.
The mass lenders will reject matters such as these as they are out of the ordinary to them. Plenty of standard business about for them.

We own our farm road with cottage having a right of way over part. It has not stopped the cottage owner mortgaging their property. The same risk would apply if the cottage came for sale in that we could block road etc. to try and buy a cheap property.

If the deeds are correct then I can't see why no lender will proceed.

 

[Dylan121]

You could do with talking to a broker who understands farming and lenders who get it too. Let me know if you want a connection with someone who fits this.

Do you know of lenders who would be sympathetic to this scenario?
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