What is an Agricultural Tied Property?
If you have searched for a home in the countryside, you may have come across the term "agricultural tie." An agricultural tie is a planning condition imposed by the local council to restrict who can buy and occupy a property built in open countryside where development would not usually be permitted.
This condition ensures that the property remains available for individuals working in agriculture or related industries. Jobs that typically qualify include dairy farming, livestock farming, fruit growing, and forestry. It is essential to note that properties with an agricultural tie are often valued lower than comparable properties without this restriction due to the limited pool of eligible buyers.
What is a Section 106 Agricultural Tie?
A Section 106 Agricultural Tie, also referred to as an Agricultural Occupancy Condition (AOC), Ag Tags, or Agri Ties, falls under Section 106 of the Town and Country Planning Act 1990. These ties outline specific conditions related to property ownership and occupation, ensuring that rural homes remain accessible to individuals employed in agriculture.
Can an Agricultural Tie Be Removed?
Yes, it is possible to remove an agricultural tie, but it requires meeting strict criteria. The most common method involves:
- Listing the property for sale at a price reflecting the agricultural tie for at least 12 months.
- Conducting a local needs assessment and reviewing the availability of affordable housing.
- If no eligible buyer is found and assessments show no demand for the property under the existing conditions, an application can be submitted to the Local Planning Authority to remove the tie.
- The local council will then decide whether to approve the removal.
It is important to remember that once an agricultural tie is removed, this change is irreversible.
Getting a Mortgage for an Agricultural-Tied Property
Financing an agricultural tie property requires specialist mortgage products due to the restrictions involved. Here are key factors to consider:
- Occupancy Compliance: Lenders require confirmation that the borrower meets the agricultural occupancy conditions.
- Property Valuation: Properties with agricultural ties tend to have lower market values, which can impact borrowing potential.
- Loan-to-Value (LTV) Ratio: Lenders may offer reduced LTV ratios to mitigate risk.
- Tie Wording: The specific wording of the tie must be reviewed by lenders, as conditions vary between properties.
- Local Authority Confirmation: Buyers must obtain confirmation that they meet the local authority's requirements to occupy the property.
How Prosper Home Loans Ltd Can Help
At Prosper Home Loans Ltd, we specialise in agricultural tie mortgages, offering expert guidance and tailored financial solutions. Our services include:
- Individual Assessment: We evaluate each case based on the property's specific conditions.
- Flexible Mortgage Terms: We offer competitive loan terms tailored to properties with agricultural ties.
- Expert Advice: Our team understands the complexities of agricultural tie mortgages, ensuring a smooth process for our clients.
Final Thoughts
Purchasing an agricultural-tied property can be a rewarding opportunity for those eligible under the conditions. However, due diligence is required to navigate the financial and legal implications. If you are considering buying such a property, Prosper Home Loans Ltd is here to assist you with the right mortgage solution.Contact us now.
Your home may be repossessed if you do not keep up repayments on your mortgage.
