C
condato
Guest
Hello.
I've been presented with a bit of an opportunity, but don't know if I should take it. I would appreciate another opinion.
I bought a small farm a few years ago. It is laid out in 2 fields, one lying on either side of a private lane, which I share with one other farm which lies at the end of the lane. At one time, the two farms belonged to the one family and there are two small semi-derelict cottages on the properties. They are side by side, and one belongs to me.
The other farm has recently come up for sale, but not before the owner got planning permission for a site on the field nearest my cottage. I don't need the extra land, and I don't need to buy a site as I could apply for pp on my own land, but I would like to have sole access to the lane. I would also not be keen on having the new house right next to me.
The farmer whose land adjoins the property from the other side is also interested in buying the farm, and has aproached me to ask me to stop bidding against him. In return, he has promised to relinquish the right of way across my lane, and take access to the farm, and the new site, from his own land. The condition is that I agree to demolish my cottage, as it overlooks the building site.
Leaving issues of trust to one side, I am still in two minds as to my options. I have a mortgage out on the farm I already bought. I managed to talk the lenders into giving a mortgage on the cottage and the 11 acres which go with it. I've checked with them about building elsewhere on the land, and they say that the mortgage is tied into the cottage and that if I were to build elsewhere I would have to re-negotiate a mortgage on the new house, and take out a higher-interest land loan on the rest. So knocking down the cottage is going to cost me.
I'm also a bit concerned that perhaps the legal right of way would still exist, even if the farmer and I agreed to extinguish it, and that if he sold on the site, the new owners might ressurrect the right of way down my lane.
The final part of my problem is financial. I have an income of c 50k a year. I have the current mortgage of 85k (repayments 430ish per month) and the bidding on the other farm stands at 63k at present and God knows where it will end. I reckon I can afford to buy it, but would also I be able to actually manage to raise the cash to build on it myself?
I presently live at home, rent-free. I'm putting the maximum amount into the SSIA, but have no significant savings or assets otherwise.
Any advice would be appreciated.
Thanks in advance
C
I've been presented with a bit of an opportunity, but don't know if I should take it. I would appreciate another opinion.
I bought a small farm a few years ago. It is laid out in 2 fields, one lying on either side of a private lane, which I share with one other farm which lies at the end of the lane. At one time, the two farms belonged to the one family and there are two small semi-derelict cottages on the properties. They are side by side, and one belongs to me.
The other farm has recently come up for sale, but not before the owner got planning permission for a site on the field nearest my cottage. I don't need the extra land, and I don't need to buy a site as I could apply for pp on my own land, but I would like to have sole access to the lane. I would also not be keen on having the new house right next to me.
The farmer whose land adjoins the property from the other side is also interested in buying the farm, and has aproached me to ask me to stop bidding against him. In return, he has promised to relinquish the right of way across my lane, and take access to the farm, and the new site, from his own land. The condition is that I agree to demolish my cottage, as it overlooks the building site.
Leaving issues of trust to one side, I am still in two minds as to my options. I have a mortgage out on the farm I already bought. I managed to talk the lenders into giving a mortgage on the cottage and the 11 acres which go with it. I've checked with them about building elsewhere on the land, and they say that the mortgage is tied into the cottage and that if I were to build elsewhere I would have to re-negotiate a mortgage on the new house, and take out a higher-interest land loan on the rest. So knocking down the cottage is going to cost me.
I'm also a bit concerned that perhaps the legal right of way would still exist, even if the farmer and I agreed to extinguish it, and that if he sold on the site, the new owners might ressurrect the right of way down my lane.
The final part of my problem is financial. I have an income of c 50k a year. I have the current mortgage of 85k (repayments 430ish per month) and the bidding on the other farm stands at 63k at present and God knows where it will end. I reckon I can afford to buy it, but would also I be able to actually manage to raise the cash to build on it myself?
I presently live at home, rent-free. I'm putting the maximum amount into the SSIA, but have no significant savings or assets otherwise.
Any advice would be appreciated.
Thanks in advance
C
