Looking to transfer your farm to the next generation, possibly below market value, butwanting to keep some of your capital? One of our loans might help you achieve this.
Conventional lenders won’t lend if you’re selling to a family member, but we can lend againstthe open market value of the land (rather than the potentially lower price you are selling at)so you can receive some cash and your next generation gains ownership of the land so thatin due course they can refinance with a conventional lender. Obviously, the farm needs to beable to support the expected conventional lender’s loan and your next generation should becapable of running the farm as well as you!
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Lending Criteria
£100,000 to £10,000,000
England, Scotland and Wales*
Sole traders, partnerships, limited companies, tenant farmers with a right to buy
65%
Agricultural land and property
A relevant business plan
None
Interest only, roll up and repayment options
Typical duration of 12 to 84 months
How Can We Help
Case Studies
Agricultural property loan: Funding a small equestrian business and family home
You might assume that agricultural property loans are only relevant to farmers, but there is lots of agricultural land in the UK that is owned and used by those outside of the traditional farming fraternity. One of the biggest sectors we support outside of farming is equestrian properties.
Equestrian property owners can struggle to obtain finance from high street due to issues such as age limits, complex planning requirements, and lending against unfinished property. In one such case, the high street was unable to lend against the incomplete farmhouse, despite the value of the land and existing facilities being of reasonable consideration.
The borrower ran an equestrian business which she had built up over many years to become her sole income. To further support the expanding business the borrower had purchased a small holding where she then wanted to add a dwelling, so she could be on-site to care for the broodmares and foals that were a part of the business.
They had been able to fund much of the work at the smallholding themselves through savings, family gifts and so on. They had been able to fund enough of the build to get the new residence watertight, but further funds were required to complete the property and make it liveable.
The planning permission was subjected to the condition of the residents of the property being employed by the equestrian business. This is not uncommon on equestrian properties of this type and was a condition that our team are very familiar with. UK Agricultural Finance was able to offer an agricultural property loan based on the value of the existing buildings, pastures, and facilities which ended up providing a low LTV of just 15%.
Financing for Development Project
Our client was a highly experienced developer, with many successful, large projects across the country, as well being a long-standing owner of a farm with outstanding environmental credentials. However, being in his late-60s and needing to release funds…
