--- title: "Equestrian land mortgage" description: "A mortgage for an equestrian property falls outside residential mortgage regulation under MCOB where less than 40% of the land is used as a dwelling by the borrower or their family, so more than 60% is in commercial or business use. In these circumstances, a standard residential or semi-commercial mortgage is not permitted, and the property must be funded using a commercial mortgage." url: "https://mortgagelane.com/guides/commercial-mortgage-guide/equestrian-land-mortgage" site: "Mortgage Lane" collection: "guides" date: "2026-04-13" author: "Joseph Lane" category: "Mortgage guide" reviewed: "2026-10-05" reading_time: "3 min" byline: "Joseph Lane" author_credentials: "CeMAP · FCA authorised firm" language: "en-GB" robots: "index,follow" --- # Equestrian land mortgage A mortgage for an equestrian property falls outside residential mortgage regulation under MCOB where less than 40% of the land is used as a dwelling by the borrower or their family, so more than 60% is in commercial or business use. In these circumstances, a standard residential or semi-commercial mortgage is not permitted, and the property must be funded using a commercial mortgage. A mortgage for an equestrian property falls outside residential mortgage regulation under MCOB where less than 40% of the land is used as a dwelling by the borrower or their family, so more than 60% is in commercial or business use. In these circumstances, a standard residential or semi-commercial mortgage is not permitted, and the property must be funded using a commercial mortgage. [Commercial mortgage](https://mortgagelane.com/definitions?term=commercial-mortgage) Commercial An asset-backed loan secured against commercial, semi-commercial or large-scale investment property, assessed on income sustainability, asset risk and valuation methodology rather than personal affordability alone. [Read the full definition of Commercial mortgage](https://mortgagelane.com/definitions?term=commercial-mortgage) Back to overview [Commercial Mortgage Guide](https://mortgagelane.com/guides/commercial-mortgage-guide) Related definitions [Mortgage](https://mortgagelane.com/definitions#def-mortgage) · [Semi-commercial mortgage](https://mortgagelane.com/definitions#def-semi-commercial-mortgage) ## Equestrian land mortgage A mortgage for an equestrian property falls outside residential mortgage regulation under MCOB where less than 40% of the land is used as a dwelling by the borrower or their family, so more than 60% is in commercial or business use. In these circumstances, a standard residential or semi-commercial mortgage is not permitted, and the property must be funded using a commercial mortgage. This applies to equestrian properties where the land and facilities are used for activities such as livery, schooling, training, breeding, competitions, or other income-generating equestrian businesses. ### When an Equestrian Property Becomes Commercial An equestrian property is typically treated as commercial where: - More than 40% of the overall use is non-residential or business related - There is regular income generation from equestrian activities - Facilities extend beyond private leisure use Examples include: - Livery yards - Riding schools - Training and competition yards - Breeding or stud farms - Equestrian centres with arenas, stabling, and grazing land Once this threshold is exceeded, the loan falls outside MCOB and must be assessed under commercial lending criteria. ### Loan-to-Value (LTV) Commercial mortgages for equestrian property are typically available at up to 65-75% loan-to-value, depending on the asset mix and income profile. LTV is influenced by: - Proportion of land used for equestrian business versus residential use - Quality and permanence of facilities (arenas, stables, gallops) - Type and stability of income - Size, location, and alternative use potential of the land Properties with strong residential elements and transferable land value are more likely to achieve higher leverage. ### Affordability and Lending Assessment Affordability is assessed on a commercial, income-led basis, not personal income multiples. Lenders will review: - Historic trading accounts or income evidence - Livery or lesson income sustainability - Diversification income (events, clinics, storage, grazing licences) - Cost structure and seasonality Debt Service Coverage Ratios (DSCR) are applied conservatively due to income volatility common in equestrian businesses. ### Valuation Methodology Valuation of equestrian property is specialist and often multi-layered: - Land value, assessed per acre - Residential value, where a main dwelling is present - Commercial value, reflecting income-generating facilities Valuers typically apply vacant possession assumptions, with income used to support value where it is sustainable and transferable. Highly specialised or over-developed equestrian facilities may be valued more conservatively. ### Equestrian mortgage criteria Commercial lenders will closely assess: - Degree of specialisation and re-sale risk - Planning status and permitted use - Quality and condition of equestrian facilities - Environmental and land-use considerations - Reliance on owner involvement Equestrian properties that could revert to agricultural or lifestyle use tend to attract stronger lender appetite. Where an equestrian property exceeds the 40% commercial use threshold under MCOB, it must be funded using a commercial mortgage. With borrowing typically available at up to 75% LTV, commercial equestrian finance is suitable for livery yards, riding schools, and other equestrian businesses, provided income sustainability, land value, and alternative use potential are aligned with lender risk criteria. ## Talk it through with an adviser Speak to a Mortgage Lane adviser about your circumstances and the next steps. Published: 2026-04-13 Last reviewed: 2026-10-05 Source: https://mortgagelane.com/guides/commercial-mortgage-guide/equestrian-land-mortgage