Tenancy Right to Buy

If you’re a tenant farmer and have a right to buy your land, we may be able to help with a loan based on the open market value of your land, rather than the actual discounted purchase price.

Many conventional lenders assess their loan on the lower of the discounted purchase price and the open market value, making raising sufficient capital difficult. Our loan could allow you to buy your land and then apply to a conventional lender for a cheaper refinancing, once the six or twelve months have passed that they typically require before using the land’s open market value to assess the loan.

Lending Critera Overview

Loan size
£100,000 to £5,000,000
Location
England, Scotland and Wales
Borrower
Tenant farmers with a right to buy
Loan to value limit
65% of the open market value
Security
Agricultural land and property
Before taking out a loan from us, it’s important to familiarise yourself with our Terms & Conditions.

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step 8

rail
Step 1

You find out that you have the right to buy your farm:

  • Research purchase option and its value
  • Business plan for the farm
  • Research different funding sources
Step 2

You contact us:

  • How much would you like and what is the purchase price
  • What’s the security worth on the open market
  • When do you need the money
  • Any existing debts
  • How will you repay us
  • Anything else we should know
Step 3

We send you a decision in principle for you to accept:

  • How much we can lend, the interest rate and any fees
  • Your only commitment at this stage is for any costs incurred on legal or valuation fees
Step 4

Your application goes to a dedicated loan officer:

  • They help and guides you through the process from start to finish
  • We instruct an independent valuation of the property
  • You appoint a solicitor to act for you
Step 5

Your loan officer asks for:

  • Information, such as bank statements, business accounts, tenancy agreements, your business plan, your team’s expertise, a net worth statement and the plan to repay our loan
  • We do credit and land registry checks and the solicitors complete normal conveyancing checks
Step 6

We visit you at the farm to:

  • Get to know you and your current business, as well as your new plans
  • Understand your repayment plan
Step 7

Your solicitor:

  • Explains everything in the documentation
  • You ask about anything you don’t understand
  • You sign to confirm having received independent advice, then sign the contractual paperwork
  • We sign, the loan completes and you receive the funds
Step 8

You build your business and repay our loan