Agricultural mortgages are designed for properties used for farming or other agricultural purposes. They cover a wide range of land types and farming activities:

• Types of Agricultural Properties: These mortgages can apply to farms, smallholdings, and land used for crops, livestock, or other agricultural purposes.
• Property Valuation: Lenders will assess the value of the land, the type of farming activities, and any buildings or infrastructure on the property, such as barns or machinery sheds.
• Income and Profitability: Lenders may evaluate the financial viability of the farming operation, including income from the land and any associated businesses. They might request detailed financial records and business plans.
• Specialist Lenders: Like equestrian property mortgages, agricultural mortgages are often provided by lenders with experience in the agricultural sector. They understand the complexities of farming and land valuation.

Agricultural Ties

Agricultural ties are conditions attached to the use of agricultural properties, particularly in rural areas:

• Purpose of Agricultural Ties: They are typically imposed to ensure that properties are used for agricultural purposes and not for general residential use. This is common in rural areas where properties were originally intended for farm workers.
• Planning Restrictions: Agricultural ties can affect your ability to use or alter the property. For example, they might restrict the property to being occupied only by someone engaged in agriculture or require planning permission for changes in use.
• Mortgage Implications: When applying for a mortgage on a property with agricultural ties, lenders will consider these restrictions as part of their assessment. They need to ensure that the property’s use complies with the conditions and that the borrower can meet the mortgage requirements.