When it comes to agricultural land, farm generational transfers are extremely popular. We find that many owners took over the family business from their parents and, after many years of hard graft, they now wish to transfer the business and land to their sons and daughters keeping the tradition alive. However, knowing how to go about this can be tricky, you may wish to initially consider:-
- Which of the family members you wish to transfer to. Who will be best to carry on the business?
- At what cost will you be making the transfer? Undervalue isn’t something that will prevent the transfer.
- How much capital you would like to retain following the transfer. It can be difficult striking a balance between giving your children and / or grandchildren a hand onto the business ladder but also making sure you have the funds you need to live comfortably.
It is important to be aware that often standard high street lenders will not loan where land is being sold by and purchased by members of the same family, traditionally this is perceived to be high risk. However, we are a different type of lender and we know exactly what you need.
The finance options we provide means you (the seller) can transfer the farm land to your family (the buyer) and still receive payment from this by way of a loan secured against the land. The farm will need to be able to support repayment of the loan over the agreed time period, but this means your plans of farm generational transfers can go ahead without the buyer having to pay in cash. For more information, contact us on 01732 252 399. Why not take a moment to check out our website to establish all the different lending services we offer and how to apply.