Can you get a mortgage on an equestrian property?

Is it hard to fund an equine business?

Keeping horses can be challenging at times – likewise, funding an equine business can be a challenge too… but it is doable – we help people do it every week. Finding the right finance is key to long term success (and happiness!).

Can I get a mortgage with an overage on my land?

The vendor wants an overage on the land in case it’s ever developed in future. As it’s currently greenbelt and I have no intention of building on it, I’m not concerned. However, my mortgage broker has informed me I’ll be unable to get a mortgage with this condition in place, as it will make the property more difficult to sell (i.e. a higher risk).

Can I get a mortgage for agricultural tied property?

However, as the conditions are often difficult to meet, an agricultural tied property can often be difficult to sell. For this reason, it makes it difficult to find a mortgage for such a property as banks and lenders do not want to be encumbered with a unsellable property if the mortgage defaults.

Can I get a mortgage for an equestrian or agricultural property?

Getting a mortgage for a house with a large area of equestrian or agricultural land (usually over 10 acres), stables and/or barns or buildings can be a challenge. Lenders or their valuers will often classify such properties as commercial so a residential mortgage isn’t possible. Commercial lending is different to residential lending.

Is your horse business engaged in for profit?

The profitable operation of a horse activity obviously is sound evidence that it is engaged in for profit, but the reverse is not necessarily true. Losses during the first years of a horse enterprise are not unusual and may not be an indication it is not engaged in for profit.

Can you buy agricultural land with an AOC?

All development of agricultural land is strictly controlled. It’s quite possible to buy a property with an AOC if, say, one partner works in agriculture e.g. a farm worker in the area and the other happens to “work in the City”. The City worker could get the mortgage on his/her income and the partner, the farm worker, would satisfy the AOC.

Can I get an acreage loan for my property?

Unfortunately, not all lenders will approve an acreage loan if the block of land is more than 10 hectares or you intend to generate income through farming and commercial activity. As with all types of property, banks are mainly concerned about the “marketability” of the property so location will affect your eligiblity for approval.

What are the conditions for buying a property with no acrage?

The conditions depend on the property. Some properties with no acrage have an AOC and hav been given them to try and ensure affordable housing for agricultural workers, not to provide them with land on which to work. some have a geographical restriction where th purchaser must prove locality (for the same reason).

Is a horse farm mortgage the best option for your business?

There is a lot of avenues to secure finance for your horse business. You may be surprised to discover that mortgage may be the best option for your business. The concept of horse farm mortgage will hereafter be discussed. Why Horse Farm Mortgage?

How do I get a loan for a horse farm?

Consider the following avenues which grant loans for horse farmers. Some providers usually offer loans to horse farms. These loan providers offer specific loans to areas such as equipment purchase, farm improvement, and livestock. They also provide mortgage services for real estate purchases.

Why hire an equine loan broker?

Some of them even ride competitively and are as comfortable handling a horse as handling your financial service needs. Understands the many different elements of the pleasure horse industry Offers a variety of special mortgage and commercial loan programs that fit the equine industry like a well-worn and comfortable saddle

Can I get a farm loan for an equestrian facility?

When obtaining farm property loans, many companies fail to include equestrian facilities in the list of properties they provide loans to. United Farm Mortgage is set apart from other companies because we don’t exclude equestrian facilities and welcome boarding, training, or personal horse properties of all descriptions.

Can I get a mortgage on an equestrian property?

Getting a mortgage for a house with a large area of equestrian or agricultural land (usually over 10 acres), stables and/or barns or buildings can be a challenge. Lenders or their valuers will often classify such properties as commercial so a residential mortgage isn’t possible.

Should you buy property for horses?

The guiding rule when buying property for horses is never to assume that just because the land is agricultural you will be able to build your dream yard on it. Kevin Prince is a land agent with Carter Jonas and has 18 years’ experience buying, selling, and valuing equestrian properties and farmland.

Do current losses in a horse business result in future profits?

THE SUCCESS OF THE TAXPAYER IN OTHER ACTIVITIES. If the taxpayer has a history of turning unprofitable activities into money-making enterprises, this is evidence that current losses in a horse venture may eventually result in future profits. However, the courts in recent hobby loss cases have not considered this factor.

When is a horse enterprise not engaged in for profit?

Losses during the first years of a horse enterprise are not unusual and may not be an indication it is not engaged in for profit. If the losses continue well beyond the early years, this can be evidence that it is not an activity engaged in for profit.

Why do some properties have an AOC and some don’t?

Some properties with no acrage have an AOC and hav been given them to try and ensure affordable housing for agricultural workers, not to provide them with land on which to work. some have a geographical restriction where th purchaser must prove locality (for the same reason).

Should you buy or rent a 100 acre horse farm?

If you are interested in purchasing a 100 acre horse farm complete with buildings, fencing, paddocks, etc. you can often save nearly 50% of the reconstruction cost; but there is little market for renting such a property.

Can you get an acreage loan for a horse and cow?

There is no hard and fast rule. It’s not uncommon for owners of acreage to have a couple of cows, horses, chickens and even a small veggie patch. The trick to getting approved for an acreage loan at residential rates is showing the lender evidence that these farming activities are for personal use and consumption only.

Can I get a mortgage for 100 acres of vacant land?

Thanks! There are only a handful of lenders who can consider vacant land greater than 40 hectares or roughly 100 acres. Usually, they only lend up to 80% of the property value for vacant lands of this size however, it can go up to 90-95% LVR if assessed as a hobby farm.

Can you get an acreage loan for farming?

It’s not uncommon for owners of acreage to have a couple of cows, horses, chickens and even a small veggie patch. The trick to getting approved for an acreage loan at residential rates is showing the lender evidence that these farming activities are for personal use and consumption only.

Why choose equine finance?

Understands the many different elements of the pleasure horse industry Offers a variety of special mortgage and commercial loan programs that fit the equine industry like a well-worn and comfortable saddle Helps equine-related service people like veterinarians and trainers with their financial needs