Supporting a Complex Generational Transfer with Restructuring Finance

When a farm passes from one generation to the next, the transition is rarely simple. That’s why at UK Agricultural Finance, we specialise in supporting borrowers through these complex generational transfer periods with restructuring finance that’s tailored to their business, their land, and their future.

In this recent case, we were approached, via Premier SE Funding, to support a borrower facing exactly this kind of challenge: taking the reins of the family farm after the passing of his father, managing a web of inherited property and businesses, and looking to bring clarity and structure to a business in need of strategic redirection.

Managing the Farm Through Probate & Generational Transfer

Our borrower has worked on the family farm for nearly three decades. In 2017, he officially took over its day-to-day running, and following the recent death of his father, he has become the sole operator of the business. With his mother no longer involved in the farming operation, the responsibility has shifted entirely to him at least for now.

The farm is a diverse and active operation, with a strong mix of arable, pig and sheep enterprises. In addition to the farming activity, the property includes a number of commercial elements: a café, a farm shop, a car park, and other retail units. There are also buildings let to third parties and regular entertainment activities hosted at the farm, which together contribute to a growing network of income streams.

However, with probate still ongoing and much of the estate, including significant acreage and residential property tied up in the process, the business found itself in a difficult interim period. As the borrower described it, the farm’s finances were “in a muddle”.

The Need for Flexible Restructuring Finance 

The borrower approached us with a clear set of goals: to repay existing debts, to restructure the business in a more professional and profitable manner, and to redevelop elements of the commercial property to improve customer appeal and rental income.

To support these objectives, we provided a bridging loan of approximately £500,000, structured over three tranches and a 36-month term. The loan is secured across five titles that form part of the wider commercial complex. At around 50% loan-to-value, it’s a high-quality asset-backed facility with well-defined repayment strategies and a compelling long-term vision.

Crucially, the multi-tranche structure gives the borrower phased access to funding, with mechanisms built in to release additional capital once probate is complete. This means the borrower can get started on critical redevelopment and debt restructuring now, without having to wait for the full estate to be released.

Immediate Impact: Repaying Debt and Investing in Growth

The first tranche of the loan is being used to clear outstanding supplier debts and restructure legacy liabilities, providing breathing room for the borrower to focus on operations rather than cashflow pressures.

Subsequent tranches will fund the remodelling and modernisation of the farm shop and café, both of which are central to the site’s appeal as a rural retail and leisure destination. Additional investment is earmarked for improving agricultural infrastructure, including upgrades to the piggeries, helping to drive efficiency and profitability in core farming operations.

Through this finance package, the borrower has been able to work closely with his accountant to create a clearer, more robust business plan with diversified income and realistic financial projections. This proactive approach will also support long-term refinancing once the business is on a more stable footing.

Future Income Streams and Strong Exit Strategy

One of the key strengths of this case is the borrower’s forward-thinking approach to revenue and repayment. Beyond traditional farming, the business is developing multiple income streams, including:

• Rental income from commercial and residential units.

• Improved profitability from the upgraded farm shop and café.

• Letting of unused buildings to third parties.

• Entertainment activities hosted on site.

Post-probate, the borrower is expected to inherit approximately 175 acres, including 100 acres of arable land and 25 acres of pasture used for sheep and pigs. Some of this land is also under stewardship, contributing to sustainability goals and longer-term subsidy income.

As part of a carefully considered exit strategy, the borrower has identified several viable repayment routes:

• Refinancing with a long-term lender once probate is complete and financial accounts have improved.

• Sale of land (circa £500k) that local engineers are interested in purchasing.

• Sale of a barn and land to a neighbouring property owner for conversion to residential use.

• Personal mortgage secured against a residential property (valued at approx. £2.5 million), which the borrower will fully own after probate.

This range of options gave us confidence in the borrower’s ability to meet obligations and provided the flexibility needed to proceed constructively.

Supporting the Generational Transfer

Succession in farming is never just about business, it’s about families, identity, and continuity. Once probate is finalised, the farm partnership will continue, now including the borrower’s wife as a partner alongside his mother in a minority role.

Our finance enables the borrower to maintain operations during this transitional phase, invest in long-term improvements, and ultimately take the business forward with greater control and clarity.

Ryan’s View: Navigating Complexity with Confidence

“Farming is a long-term endeavour, and this case shows how complex those long-term commitments can become, especially when life throws in probate, legacy debt, and the emotional weight of generational change. We worked closely with the borrower and broker to structure a facility that supports both immediate needs and future ambitions. It’s exactly the kind of lending I’m proud to be involved in, personal, professional, and proactive.”

Looking Ahead From Restructuring Finance 

At UK Agricultural Finance, we specialise in lending that understands the real world of farming. From probate delays to diversified business models, we offer flexible funding that helps rural enterprises thrive.

If you’re navigating a generational handover, business restructuring, or simply need a lender who understands the land, we’re here to help.

Get in touch with your local Business Development Manager to find out more.