Mortgages on Crofted Land

[stevep]

Does anybody have any experience of trying to obtain a mortgage on land that is crofted?

[dragonfly]

Jim Macmillan (http://www.croftsales.co.uk/) should be able to advise you

[j4bberw0ck]

Mainstream lenders (by which I mean any in the High Street or their online operations) won't lend on croft land because they can't get good title to the land if they have to force a sale.

The situation is different depending on whether you're a tenant of the croft you want to buy or whether you're buying it as a non-tenant. The only way to get a "normal" mortgage is to apply to the Crofter's Commission to get the land or the house decrofted but you need specialist advice as to how to handle it - if you decroft the whole land you lose (AFAIK) the right to get certain grants and financial assistance if you want to carry on working the land. You can de-croft just the house and the garden and leave the land crofted.

Get specialist advice though because I'm sure there are circumstances in which (if you buy the croft) the Crofter's Commission will judge that you have become the landlord of a croft with a vacant tenancy and they have the right in law to give that tenancy to another crofter (who would pay you rent) - that's why lenders won't lend on crofts!

[j4bberw0ck]

This has some outline information (http://www.crofterscommission.org.uk/downloads/PURCHASING.pdf)

[iain]

Get in touch with Macleod & Macallum in Inverness,they are the top people in crofting law.Derrick Flynn is the man. 01463 239393