Land Mortgages

If you are thinking about purchasing land or need to re-finance your existing plot Access Commercial Ltd can help. We work with all the land mortgage lenders in the UK and can provide up to 100% mortgages and finance solutions tailored to your specific needs. Our land finance department offers help and advice with all aspects of land purchase so contact us today to discuss how we can help you.

Land Finance Information

Commercial mortgages are available to purchase land for many different types of developments. Land mortgages can be obtained from a range of commercial lenders including banks and building societies and are available for purchasing land in both Greenfield and Brownfield site areas, although more stringent conditions may be applied to the latter by lenders.

Most lenders will offer a mortgage of up to 70 percent of the land’s valuation, but in some cases 100 percent mortgages may be available.

Land Mortgage Options

Two broad categories of land mortgage exist - "own use" and "investment".

‘Own Use’ Mortgages

The more common type of land mortgage is the ‘own use’ mortgage which is aimed at those buying land to be used for running some kind of business. An ‘own use’ mortgage can be used to buy land for many different purposes, for example:

Farmers:

Extra pasture or arable land to add to a farm’s existing holdings.
Woodland for commercial timber exploitation.

Property Developers:

Building plots for residential development.
Sites for development of retail outlets.
Sites for development of industrial and warehouse units.
Leisure facilities, e.g. golf courses.

Investment Mortgages

An investment mortgage is used to buy land that is to be rented to a third party in order to generate income, rather than being used directly by the borrower. Examples include:

Land with fishing or shooting rights.
Grazing land for horses.
Car parks.

Rural Land Tax Advantages

The market for forestry and farm land is buoyant at present, partly because these types of land are exempt from inheritance tax if owned for more than 2 years. In addition, capital gains tax reliefs can be obtained and, in the case of forestry, income is also free from tax liability.

Summary

Commercial mortgages can be used to purchase land for virtually any kind of development.
Land mortgages are divided into two types - "own use" and "investment".
The purchase of forestry and farm land offers certain tax concessions.