Turning Dreams into Reality
4
We can all identify with the frustration of losing out on a property deal - especially when it may thwart your business ambitions.
unencumbered (unsecured) property grants a bank security over an area of land or farm in order for the borrowers to meet their loan to value requirements. In my experience acting as an agent for the Agricultural Mortgage Corporation plc (AMC) this has been absolutely vital in a number of purchasing situations where the eventual owner did not think they had a chance of acquiring any land.
owever, prospective land purchasers in the farming sector do have some help at hand.
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A prime example of this relates to a farm purchase in Ayrshire where the purchaser’s relatives owned a farm which was not secured to any bank and by granting AMC a security over the Title the new farm was purchased without any cash deposit.
The ability for some lenders to use third party securities in relation to the purchase of land has proven to be a key factor in recent years providing land buyers with restricted cash deposits the opportunity to secure land.
It is, of course, a requirement for all purchasers to meet affordability criteria at stress test levels and there is every likelihood that legal fees will be elevated as a result of the additional securities work and separate legal representation.
The concept of third party security is used where a family member or other connected party with
The concept of third party securities is relatively straightforward once understood and has proved to
