R&BS reveals tips for funding rural properties
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.”