Purchases and remortgages
Farm finance covers new purchases of agricultural land and buildings, as well as remortgaging existing farms, whether to move to more suitable terms or to raise capital for investment, succession planning or other purposes.
Land, farmhouses and buildings
A farm mortgage may cover agricultural land, a farmhouse and outbuildings such as barns or storage. Lenders assess the property and its different uses when considering suitable security. Whether the loan is regulated requires a separate assessment of the borrower, the land used as or in connection with a dwelling, and any applicable exclusions.
Agricultural occupancy conditions
Some farmhouses have an agricultural occupancy condition restricting who may live there. The exact wording must be checked by your solicitor. Such conditions can affect valuation and lender availability, so identify them before arranging finance.
Tenancies and lets
If land or buildings are let to a tenant farmer under an agricultural tenancy, lenders will want to understand the type of tenancy, its length, and the rent it produces, as this affects both value and income assessment.
Diversified income (holiday lets, renewables, retail)
Many farms now generate income beyond traditional farming, such as holiday lets, renewable energy installations, farm shops or other rural enterprise. Lenders increasingly take diversified income into account, though each income stream is usually assessed on its own merits rather than assumed to continue indefinitely.
Valuation of farms
Farm valuations typically consider land quality and acreage, the condition of buildings, access and services, and any diversified income sources. A specialist rural valuer is usually needed, given the specific nature of agricultural property compared with standard commercial or residential assets.
Repayment profiles that match seasonal income
Farming income is often seasonal, tied to harvest cycles or subsidy payment dates. Some agricultural lenders offer flexible or seasonal repayment structures to reflect this, rather than requiring identical monthly payments throughout the year.
What lenders ask for
- Farm accounts and details of all income streams, including diversified income
- Details of the land, including acreage, use and any tenancies
- A specialist valuation of the land and buildings
- Details of any agricultural occupancy conditions
- A deposit or equity contribution, the level of which lenders set individually
Land bridging vs farm mortgage
A standard farm mortgage suits an established agricultural business with ongoing income. Where land is being bought quickly, without planning permission, or ahead of a longer-term plan, short-term land bridging finance may be more appropriate — see our land bridging page for more on that route.
Who provides the advice and how it is paid for
Commercial Services are referred to a third party. Neither The Mortgage Genie nor PRIMIS are responsible for the service received.
The Mortgage Genie does not provide commercial mortgage advice. Our team will discuss your requirements and, where appropriate, identify a suitable partner adviser. We will explain who they are and obtain your permission before sharing your details.
We do not charge for commercial mortgage advice, because we do not provide it. The specialist will disclose its own fees and how it is paid before you decide whether to go ahead.