Release equity

[Benn]

Struggling to find definite answer online
can you release equity from agricultural land to use as deposits buy to
Lets,
And has anybody done it recently,
Wondering the average % pa.

land is debt free

cheers

 

[serf]

You say equity release as in the the Ponzi scheme where old people get their property robbed off them while they still live in it !
Don't you just mean Remortgage ?

 

[milkloss]

You say equity release as in the the Ponzi scheme where old people get their property robbed off them while they still live in it !
Don't you just mean Remortgage ?

Robbery either way!

 

[Benn]

? Ponzi scheme no
Robbery dont get what you mean robbing off who.

i mean can i draw equity out of our own owned land to use for a deposit to buy a buy to let property,

Land has been debt free for 40 years or more.

 

[chaffcutter]

Just take a loan using the land (or part of it) as security, keep it simple

 

[serf]

Robbery either way!

I'd say they are polls apart , ER you or your estate will get royally screwed ,
Standard mortgage with a decent LTV on a house if bought right will have a good chance of building you wealth for future

 

[crashbox]

? Ponzi scheme no
Robbery dont get what you mean robbing off who.

i mean can i draw equity out of our own owned land to use for a deposit to buy a buy to let property,

Land has been debt free for 40 years or more.

As per @chaffcutter , you can take a loan, and offer the land as security.

However, you will need to demonstrate a business case, and prove how the debt will be serviced/repaid, for example through the buy-to-let business model.

For purchasing land, max. typical loan will be 60% to 70% of the value of the asset(s) which the loan will be secured against.

Good luck with it.

 

[serf]

As chaffcutter says .

But you will still have to show relative income to get the funds regardless of security

 

[serf]

Snap

 

[SilliamWhale]

You still need to demonstrate good payability and those demands are getting tighter with the bank.

I'm in a bit of a pincer movement at the moment. Trying to convert a barn, my current place will easily cover any mortgage/ loan payments in future but still cannnot demonstrate absolute payability as it stands so computer says no. So I'd be surprised if your strategy works on the strength of asset value

 

[steveR]

AMC used to be far more flexible on the use of land as colateral, but possibly not so much these days as they became more "commercial"?

 

[Benn]

Cheers all,

it just i know of people taking equity out of the own dwelling and using the released equity as a deposit to buy a buy to let property,
Again you have to show tou can afford the repayments somehow,
Didnt know if the same could be done with owned land or
better to just use own dwelling (rather use land over own house.)

 

[steveR]

Cheers all,

it just i know of people taking equity out of the own dwelling and using the released equity as a deposit to buy a buy to let property,
Again you have to show tou can afford the repayments somehow,
Didnt know if the same could be done with owned land or
better to just use own dwelling (rather use land over own house.)

Not the money spinner and safe place to invest funds that it was....

 

[upnortheast]

Cheers all,

it just i know of people taking equity out of the own dwelling and using the released equity as a deposit to buy a buy to let property,
Again you have to show tou can afford the repayments somehow,
Didnt know if the same could be done with owned land or
better to just use own dwelling (rather use land over own house.)

Sounds like you need a chat with an accountant who will explain the pros & cons of various methods of raising funds against your existing assets.

 

[Still Farming]

LTV
Loan to Value