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R&BS reveals tips for funding rural properties

Amanda Jarvis

January 10, 2006

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

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

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

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

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

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

7. 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.

8. 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.

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

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

Jim Richards of R&BS Ltd, said: “Buying a property in the countryside is not always as straightforward 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.”


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