What is an agricultural tie?

An agriculture tie is also defined as an Agriculture Occupancy Condition(AOC) or ag tie which is a legal restriction that limits property occupants.  Such agriculture ties were started to enable farms to get the planning permission for dwellings on family lands including farmworkers.

These are the legally enforceable conditions placed on the property by a local council. They can be anything from minimum lot sizes to maximum building heights, but they must be in place for any development to go ahead. The most common type of agricultural tie is one that limits the height of buildings or the size of land parcels, which means that if you want to build a bigger house than what’s allowed under your current planning permission, you will have to get it changed. The other main type of agricultural tie is one that requires the developer to provide some form of mitigation, such as planting trees or creating open space. This kind of tie is often used when there is concern about noise and light pollution, and also where there might be issues with water quality or flooding risk.

Post topics:

What is an agricultural tie?

What effect does it have on the property?

How do I know whether my existing plans need changing?

Can I appeal against a tie?

How can you get a mortgage for a property with an agricultural tie?

Case study examples

FAQs


What effect does it have on the property?

The effects of these types of ties vary depending on the location and the specific tie being applied. For example, a tie limiting the height of buildings may mean that the value of your home drops because it doesn’t meet the expectations of buyers who are looking at homes with higher ceilings. However, this could also work in favour of the buyer, as it gives them more choice over their purchase. A tie requiring the provision of open space or tree planting could affect the value of the property, but it could also give the buyer more choice over how much greenery they want around their new home. It all depends on the specifics of the tie.


How do I know whether my existing plans need changing?

You should check with your local authority to find out exactly what requirements apply to your property. You can then compare those against the information you already have about your property, including its boundaries and zoning restrictions. If you think that your plans don’t match up with the rules, you can ask your local planning officer to review your application and make changes if necessary.


Can I appeal against a tie?

Yes, you can appeal against a tie – but only if the tie was imposed without good reason. To successfully challenge a tie, you would need to show that it wasn’t justified by the needs of the community, or that it had been imposed unfairly. In practice, this usually involves showing that the tie has caused harm to the applicant, either financially or otherwise.


How can you get a mortgage for a property with an agricultural tie?

If you’re thinking about buying a farmhouse or rural property, you’ll probably want to take into account the fact that you won’t be able to buy a mortgage for it unless you can prove that the property meets certain criteria such as market rent. These include having enough room for farming activities, and not being subject to any agricultural ties. There is no legal definition of ‘agricultural use’, so lenders will look at the purpose of the property itself rather than just the structure. They will also consider whether the property is zoned for agricultural purposes and whether it has access to farmland. If none of these things is true, the lender will likely refuse to offer you a loan.

However, if you are able to demonstrate that the property meets the criteria for agricultural use, you should still be able to get a mortgage. Lenders will generally accept that the property is suitable for farming, even though it isn’t currently doing so. They will also assume that the land will continue to be used for farming once you move in, provided that you can provide evidence to support this claim.


Case study examples

Bungalow with an agricultural tie and 22 acres – Pipkins Farm has a bungalow, 22 acres of pasture, three stables, a tackroom and a timber agricultural building. The bungalow has a strong agricultural tie. It had been purchased from an old lady who wanted to turn it into a fire and security alarm business and set up apple, livestock and equestrian enterprises. A request for clarification confirmed that the proposed development complied with the minimum building height requirement and a commercial mortgage had been granted by a high street bank.

A self-built house would be ideal if you could afford one! Our clients’ property was too small to allow them to construct a new residence so they decided to live in their existing home until they were able to move into a larger dwelling. They had run an equestrian business on their site as well as both working in the food industry. They achieved planning permission for their new home with an equestrian occupancy condition, but could not find any lenders willing to lend against it. However, when R&B S approached us to see if we could assist them, we rapidly located a bank that was happy to offer finance against the property.

House with agricultural tie – our client found her dream house on a rural estate and asked her current bank for a loan. This has been approved in principle. But when the valuation was done, the valuer found it that there was an agricultural tie. She had exhausted her options for funding the purchase. We were able to find her two mortgage offers from lenders who she was confident would be willing to help out our client.


FAQs

What is the full form of AOC?

AOC means Agricultural Occupancy Condition which is a type of agriculture ties supervised by local planning authority. How does an AOC affect my ability to borrow money? The main effect of an AOC is that you cannot get a mortgage on the property without first proving that the property is suitable for agricultural use. You may need to seek professional advice before deciding whether or not your property is eligible for an AOC.


Can I buy a property with an AOC?

Yes, but only if the property is suitable for agricultural use. If you have a property with an AOC then you must prove that the property is suitable for agricultural use. This usually involves providing evidence such as a farmhouse plan; proof of agricultural income; a letter from a farmer confirming that the land is being farmed; or a statement from the local planning authority stating that the land is suitable for agricultural use.


What is an agricultural dwelling?

An agricultural dwelling is a property where at least 50% of the floor area is used for agricultural purposes. An agricultural dwelling can include buildings such as barns, sheds, outbuildings, greenhouses etc.


How do I apply for an AOC?

You will need to contact your local planning authority to obtain more information about how to apply for an AOC. There are many different types of AOCs available depending on the requirements of the local planning authority. For example, some AOCs may require you to provide a farmhouse plan showing all the rooms within the building. Others may require you to provide a letter from the farmer confirming that the land is being farmed. Some AOCs may even require you to provide a letter from the local planning authority stating that the land is suitable for agricultural use.


When will the local council offer a certificate of lawfulness?

The local planning authority should issue a certificate of lawfulness after completing its assessment of the proposed use of the land. Once this is issued, you can proceed with buying the property.


What is an agricultural restriction?

An agricultural restriction is a legal agreement between the owner of the land and the local planning authority. It restricts the use of the land for non-agricultural purposes. In order to gain approval for an agricultural occupation, the property needs to meet certain criteria. These criteria are set out in the Local Plan and will vary according to the specific circumstances of each case. The best way to understand what is required for an agricultural occupation is to speak to a specialist solicitor who specialises in advising clients regarding agricultural restrictions. In addition, you should also check the relevant section of the Land Development Act 1985 to see what conditions apply to the particular development.

While talking about agriculture restrictions there are some common topics that you may be looking for such as ‘mortgage for a property with agricultural restriction’, remortgage for a property with agriculture restrictions, a loan for a property with agricultural restrictions, finance for a property with an agricultural restriction. There are also some more agricultural restrictions that we have discussed above.