Buying a rural property in 2025 can offer lifestyle benefits and long-term value—but if the home comes with an agricultural tie, Section 106 clause, or other planning restriction, mortgage options quickly become more limited.

These types of properties can look like great opportunities on the surface—often set in desirable countryside locations and offered at a discount compared to similar unrestricted homes. But the fine print matters. Here’s what borrowers and advisers should understand about securing finance on these properties.

What Is an Agricultural Tie?

An agricultural occupancy condition (often called an “ag tie”) is a planning restriction that means the property can only be lived in by someone employed—or formerly employed—in agriculture. It’s often imposed when permission was originally granted to build the house on farmland.

If the property has an ag tie:

• You must prove you meet the occupational criteria to live there.
• The market value may be lower than a similar unrestricted property.
• Lenders view these homes as having reduced resale potential.

What About Section 106 Restrictions?

A Section 106 agreement is a planning obligation under the Town and Country Planning Act 1990. In housing, it can:

• Restrict ownership or occupation to local residents.
• Limit who can buy the home (e.g. affordable housing schemes).
• Cap the resale value or impose affordability controls.

These restrictions are legal covenants and can materially affect mortgageability.

How Do Lenders Treat These Properties?

Most mainstream lenders will decline applications on properties with:

• Agricultural ties, unless the borrower meets the criteria and the property is of standard construction.
• Section 106 restrictions, especially where resale or eligibility is limited.

However, there are specialist lenders—and occasionally, flexible private banks or building societies—who will consider:

• High-quality borrowers with strong affordability.
• A clear legal report showing how the restriction works.
• A confirmed understanding of resale limitations and use.

Can the Restrictions Be Removed or Modified?

In some cases, yes. But this is not guaranteed and usually requires:

• A formal planning application to the local authority.
• Evidence that the restriction no longer serves its original purpose.
• A period of unsuccessful marketing (e.g. 6–12 months) with the restriction in place.

Lenders will generally require the restriction to still be in place at time of application, so any planning adjustments must be completed before seeking a mortgage.

What You’ll Need for a Mortgage Application

If you're pursuing a mortgage on a property with agricultural or planning restrictions, be prepared to supply:

• A copy of the planning agreement (from the land registry or local authority).
• A legal interpretation from your solicitor explaining the implications.
• Proof of employment in agriculture (for ag tie cases).
• A strong deposit—at least 25–30% is often expected.
• Willingness to pay slightly higher rates with a specialist lender.

When Specialist Advice Matters

This is a highly niche area of property finance. A broker who understands rural lending, legal overlays, and non-standard security can:

• Access lenders who’ll consider your case.
• Help mitigate down valuation risks.
• Ensure you don’t waste time applying to unsuitable banks.

At Willow Private Finance, we regularly support clients purchasing or refinancing properties with unique planning constraints. Whether it's a rural cottage with an ag tie, a Section 106-controlled resale, or a home with local occupancy rules, we know how to navigate the process with care.

Related Blogs You Might Like

• What to Know About Financing Unusual Properties in 2025
• Can You Get a Mortgage on a Thatched Cottage in the UK?
• How to Finance a Property with a Short Lease in 2025

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