Informal tender....what does it mean?

[emdanmum]

Not sure if I've posted this in the right place.........any alternatives greatly recieved!
There is a stable block and grazing for sale near us, and it's for sale by informal tender at 85,000 pounds-what does this mean?
It's a very vague idea at the moment,but if I did become serious, does anybody know what mortgage options would be available for the purchase of land? Is it similar to that of a house or would I need a business loan (I'd rent some of the stables out)?
Any advice will be helpful

With this method of land sale the land is generally marketed with a date for sale by which purchasers must have submitted an open or a sealed bid. Offer envelopes are opened as they are received. Bidders may be invited to increase their bids, after being informed that a higher bid has been received following the closing date for initial bids.

The advantages of the Informal sales process are that it:

formalises the sales process and creates a procedural surety around it.
allows the agent to establish a clearer indication of the seriousness of the buyer (he may be asked for proof of funds).
allows that agent to put all the guess work on the side of the buyer by asking them to name their maximum price If an acceptable offer is not received by the end date the land may then revert to a Private Treaty method of sale.

Sorry I took the above from a good website as I know nothing about this.

You wouldnt have a business loan as you are not a business. Renting out the stables doenst make you a business either. Your income say £25 per week per stable isnt going to cover the mortgage is it?

You would have to raise the money on the security of your home depending on the equity I would assume.

Seriously I would do a bit of market research on the needs of tack requirements in the area as it may already be swomped. Assuming the going rate £25 per week plus extras if you offer additional services. I would recommend formal agreements with payments in advance.

Thank you..... that makes informal tender a lot clearer!
There are 11 stables in all. If I went into it seriously I'd expect to rent out 10, at 20 pounds per week. There does appear to be a demand in our area.
I didn't make it clear about the reason for mentioning business. We have a tyre business, so are already self employed-wasn't sure if the renting stables would be classed as business or not.
I wasn't sure whether a loan could be secured against the land/buildings or whether it'd have to be secured against a house. Do you/anybody know?
Thank you

try the money section they may be more savy money experts there.

We have an agricultural loan for a huge re-mortgage which is secured on the farm. We did it through the agricultural business manager of our bank as many mortgage companies cannot do it nor give the same rates.

I would e-mail your account first - I find this is always a good start as its completely factural and will give you the pitfalls of bringing in the stables to the existing business.

Thanks for that....will re-post!