Compassionate Agricultural Lending to Support a Generational Transfer
At UK Agricultural Finance, we understand that rural lending is never just about figures on a spreadsheet, especially when it comes to generational transfers. Behind every loan application is a story—of family, resilience, and the enduring bond between people and land.
In this recent case, we were pleased to support a multi-generational farming family in Cornwall as they took the next step in preserving a cherished family business. With deep roots in the local community and a strong attachment to their land, the borrowers were looking for a finance solution that could offer flexibility, stability, and respect for their long-term vision..
A Family Farm with Coastal Charm and Wartime Roots
The farm has been in the same family for many decades, originally purchased in the post-war years and lovingly developed over time into a diversified rural business. Today, the property comprises around 17 acres, including 14 acres of pasture and a further 2.5 acres dedicated to a well-established caravan park and caravan storage area.
Set in a spectacular location with direct access to the coastal path and beach, the site has built a loyal following over the years. Visitors return season after season, often with the next generation in tow—proof of the warm welcome and unique setting the family has created.
Also located on the site is the family home, which was excluded from the security for this loan.
Borrowers United by Family and Purpose
The borrowers are four members of the same family, representing two generations who live and work on the farm. Together, they manage the day-to-day operations of the property, with each playing an active role in the maintenance of the site and the running of the caravan park.
Although the farming operation is no longer active in its traditional sense, the land is rented to a neighbour for fodder production. A small number of animals remain on-site to help manage the grassland and maintain the land’s character. The caravan park continues to operate year-round, forming the backbone of the business’s income.
A Loan to Support Transition and Unlock Options
The purpose of the loan was to repay a maturing bank mortgage that had been in place for many years. Due to the age of the older generation, accessing high street lending was no longer a viable option. Our loan provided a way to unlock value from the farm and secure continuity for the business.
We provided a term loan of just over £100,000, over 84 months, with a loan-to-value (LTV) of under 40%—a reflection of the strong equity position and low risk. Security was taken over the farm and land associated with the caravan business (excluding the family home), offering a solid asset base for the facility. Affordability was assessed across all four borrowers using submitted financial records.
Compassionate Lending During Personal Loss
During the course of the loan process, the family sadly suffered a bereavement. As with all of our cases, we recognised the importance of proceeding with understanding and sensitivity. We adjusted our approach and timelines to support the borrowers during what was clearly a difficult period, ensuring that the facility could still move forward when the time was right for them.
At UK Agricultural Finance, we pride ourselves on being more than just a lender. We aim to be a supportive partner—especially when our borrowers are navigating both financial and personal challenges.
Sustainable Business Activity with a Clear Repayment Plan
The business is low-risk and well-established. The caravan park has operated successfully for over two decades and has a strong customer base. The storage area for touring caravans adds an additional income stream, and rental income from neighbouring land users contributes to the financial sustainability of the site.
The primary repayment route for the loan is through ad-hoc capital repayments from the caravan park’s trading income. However, the borrowers have also identified two alternative repayment strategies:
- Sale of a nearby field (not included in the loan security): A well-located parcel of Grade 2 arable land that is expected to achieve a strong market value if sold.
- Sale of an ex-machinery barn, located close to the main farm: The family is exploring the possibility of obtaining Class Q planning permission, with the intention of selling the plot as a residential site. Estimated value is in the region of £150,000.
Together, these options offer multiple secure and realistic exit routes, ensuring the loan is not only affordable but also well-supported by tangible assets.
Tracey’s Reflection: Lending with Heart
“From the moment I arrived at the farm, I could feel the warmth and pride that this family carries. The history, the connection to the land, and the care shown by each generation—it was all so real. The loss they suffered during the process only deepened my respect for their strength and unity. It’s a privilege to support families like this with finance that reflects not only their business needs, but their story.”
Looking Ahead
This case demonstrates that rural lending isn’t one-size-fits-all. The high street may turn away borrowers based on age or unconventional income streams—but at UK Agricultural Finance, we take the time to understand the full picture.
With low LTV, strong affordability, and clearly identified repayment strategies, this facility offers a responsible, secure way for a farming family to retain their land and continue their business into the next generation.
If you or your clients are looking for a lender who combines flexible structuring with a deep understanding of rural life, we’re here to help.