When Edwin Castro won the Lotto back in 2022, he spent millions buying two California homes. He is said to have splashed a whopping $25.5 million buying a 13,500-square-foot mansion in the Hollywood Hills and another $47 million on a Bel Air mansion.
Throughout history, magnificent homes have been viewed as a symbol of wealth and architectural innovation. However, it costs a princely sum of money to run such homes.
From medieval castles to colonial estates, the vast majority of iconic buildings require constant maintenance to preserve their viability.
In this write-up, we’ve discussed how historic homes have been funded through the ages and tips to help you fund your historic property in our time. Read on!
1. Ancient Rome
In ancient Rome, wealthy Romans often owned single-family homes called domus and country estates (villas). Most of the funding came from individual families. The families got the money from land ownership, trade, and public contracts. Since there was no established banking system at the time, the wealthy would loan money amongst themselves.
The government also contributed to the funding of housing projects for ordinary citizens. They constructed apartment buildings called insulae to accommodate the growing urban population of lower and middle-class citizens.
2. Medieval Periods
Funding for historic homes mainly came from three sources – private wealth, religious institutions, and community effort. Feudal lords controlled large estates in which castles were built as both residencies and fortifications.
Wealthy merchants built grand manor houses and townhouses. Funding primarily came from land revenue and peasant labour.
The church also contributed to funding housing in the Medieval age by building cathedrals and almshouses (housing projects for the poor). The money came from tithes and charitable donations.
Lastly, kings would establish royal forests. These were designated areas set aside for the monarch’s hunting purposes. They built structures similar to manor houses for their wardens or keepers.
3. Renaissance and Early Modern Era
During the Renaissance era – from the 14th to 17th century – the banking system played a huge role in funding palaces and villas belonging to wealthy merchant families like the Medicis in Florence. Due to banking and trade, individual families amassed considerable wealth, which they used to fund their artistic endeavours and architectural projects.
The Medicis of Florence, for example, would commission works of art and architecture to display their wealth and power. This was some kind of self-promotion for their political influence.
4. The 18th and 19th Centuries
In an interview with CNN some years back, Ben Cowell, director general of the Historic Houses Association, noted that the owners of manor houses made money from renting land to tenant farmers. He also noted that the industrial revolution, mining, and railway helped investors replenish the family fortune and fund a country house way of life.
Sadly, thousands of country houses in the UK have been torn down. According to Cowell, the decline started in the 19th century due to agricultural depression, reduced farming rents and politicians turning against tenants.
However, the Finance Act in 1976 allowed owners to seek exemption from inheritance tax. In return, they would keep the properties open to the public and in good condition. This saved hundreds of historic houses in the UK, including some great historic Oxfordshire estates.
5. 20th and 21st Centuries
In the 20th and 21st centuries, funding for historic homes came from a combination of private investments, government support, and philanthropic efforts. For instance, The United States Federal government established a fund specifically for historic preservation, known as the Historic Preservation Fund (HPF). The fund aims to support the initiatives mandated by the National Historic Preservation Act of 1966.
Below are a few examples of private investment efforts aimed at funding historic homes:
- The Fulfords of Great Fulford: This Manor house in Devon has hosted Francis Fulford’s forebears for over 800 years. Built in 1530, the estate spans over 3,000 acres, and its funding comes from weddings, parties, and pheasant shoots. It’s famous for a 2004 British documentary titled The Fing Fulfords*** and fabulous ballroom ceiling.
- Burton Agnes Hall: This distinguished Elizabethan manor house is located in the East Riding of Yorkshire, England. It was built in 1598 and spans across 5,000 acres. It has been funded by admission charges, weddings, the Jazz and Blues Festival, a shop, and a cafe. It’s famous for its walled garden, which hosts over 3,000 plant species, giant chess, maze, snowdrops, and campanulas.
- Fingask Castle: This castle is the ancestral home to the Threiplands of Fingask Castle. Built in 1594, the Fingask Castle spans around 100 acres and has 33 rooms. It is funded through commercial activities, including weddings, subscription murals, parties, ceilidhs (traditional Scottish dances), musical revenue, and holiday lets. The estate is famous for its topiary trees, Fingask Follies, and life-size statues. Some of the prominent people to visit this historic home included King James VIII in 1716, Scottish novelist Sir Walter Scott, and Bonny Prince Charlie in 1745.
Tips for Financing Your Historic House
When you buy a historic home, you’ll encounter extra costs, such as hiring a home renovator, that are not included when buying a new property. Here are tips to help you when funding a historic home:
- Anticipate how location might impact your lending options: The historic home may be located in an area where financial institutions charge higher interest rates. As such, you may be required to obtain additional loan guarantees before your mortgage is approved.
- Consider extra fees: As stated earlier, you may incur extra costs when you buy the property. This includes legal fees, filing fees, and inspection costs.
- Ask if the historic house is insurable: Usually, insuring historic properties costs more than insuring a new house. They may require materials that are no longer in use. The National Trust Insurance Service has all the necessary details you need to know about insurance for historic properties.
- Get the historic property appraised: In this case, consult a professional appraiser. They will help you get an estimate of the highest price of the house, the insurable value, and the investment value.
Final Word
Maintaining historic homes has always required significant funding, evolving from private wealth and community support to modern investments and government aid. Thanks to initiatives like the 1976 Finance Act, many treasured properties – including notable historic Oxfordshire estates – have been preserved for public enjoyment. These estates stand as enduring symbols of heritage, showing how thoughtful funding and care can keep history alive for future generations.
