10 tips for funding your rural property

Rural mortgage consultants, Rural and Business Specialists Ltd, have prepared their top ten tips for funding rural properties to help potential buyers avoid pitfalls and set them on the road to rural-property-purchase success:

Decide on the type of property you’re looking for - be prepared to look at several options.

Consider the purpose of the property – as your home, to run a new business or expand an existing enterprise.

Consider the potential - investigate planning permission, and research any new business income.

Consider all capital costs – investigate building/development costs, planning permission, stock for your business etc.

Consider all the costs of purchase – stamp duty, legal fees, lenders fees, moving.

Ensure that you have enough deposit or equity available - 25-30% is normally required and ensure that it is readily available. And remember most successful buyers are ready to move.

Can you afford the mortgage - a mortgage over 25 yrs will cost approximately £6.60 per month, per thousand pounds of borrowed capital - inclusive of capital and interest.

Be prepared to convince a lender - if you are planning to run a new commercial enterprise or expand an existing business it is advisable to undertake a full detailed business plan in advance.

Appoint a solicitor with expertise in agricultural and rural property conveyancing.

Respond to all correspondence immediately and keep the pressure on your solicitor at all times.

Jim Richards of R&BS Ltd, says: “Buying a property in the countryside is not always as straight forward as it may seem, especially for those seeking to establish a new business venture, but it doesn’t have to be complicated

“Providing you follow a logical structure and enlist the help of professionals that understand the rural property environment, you could have the keys to your rural property sooner than you thought was ever possible.”