YRPS Insight: Edition Eight - Flipbook - Page 14
TRANSFORMING
A BLANK CANVAS
When marketing property, I often put in sales/letting particulars that ‘the property represents a blank canvas which will respond
well to immediate management’. Enquirers, and indeed clients, often wonder what I mean by this. I’m fortunate enough to be
able to explain to them - using first-hand knowledge, whilst also detailing with credibility - that although hard work and money
maybe required, costs can, in some cases, be recouped via grants, and in any event the hard work and investment would be
worthwhile.
The phrase is true to any land manager, be them a new purchaser and ingoing tenant or a recent owner occupier, where a farm
has been taken back in hand. Perhaps through no fault of the vendor, or outgoing tenant a property can soon fall into disrepair
- be it as a result of old age or perhaps a gradual lack of interest. Consequently, on the face of it, the property now presented to
the market/landlord represents the blank canvas.
A farm whereby the land has been well managed with regular applications of fertiliser, and stocked appropriately, will command
premium prices - be it rental or sale. The immediate benefits of historic good management will be reaped by the in goer, however,
in theory they will pay for such benefits, and, to maintain the land/property at the level in which they take it on will also bear a
cost, whilst perhaps not getting such an immediate response.
On the other hand, a property which comes to the market in disrepair may, in theory, cost less, this is not to say that the
potential is not there. I took the tenancy of a 180 Ac farm in 2016. The first thing I did was soil test the whole farm and apply
heavy doses of Lime and P and K, the response was immediate, and as the benefits of lime are long lasting, hopefully they are still
in place! The second thing I did was apply for a hedgerows and boundaries grant - this was the first of three agreements I have
had - whilst I also have a Mid-Tier Stewardship agreement in place. In total, I have grant funding in place for 1,000m of stone
walling, 476m of top wiring and 237m of fencing.
A consequence of this is that aside from the farm now been stockproof, the fields can be individually managed and grazed
accordingly. The ability to utilise stock to graze efficiently not only benefits the animals but undoubtably helps the land. As well
as this, regular pasture topping at the right time will greatly improve the land; organic matter from the topped grass will break
down into the soil, the new growth is better for livestock and hugely helps the aesthetic look of the farm.
The practical experience gained from turning a property around in four years has, I hope, given clients (be them ingoing tenants,
vendors, purchasers and owner occupiers) the confidence to take on any blank canvas. The rewards of which are incredibly
satisfying, need not cost a fortune and will undoubtably add value to the property you are entrusted with managing.
Harry Morshead | harry.morshead@youngsrps.com
AMC
STRAIGHTFORWARD FINANCE
The AMC (Agricultural Mortgage Corporation) have been providing loans to farmers and rural businesses for
the last 90 years with loans of £4.3 billion currently lent out to farmers and landowners across the UK.
The AMC is a specialist arm of Lloyds Banking Group, providing long term, secured mortgages to farmers and other
rural businesses. Because of this, the AMC understand the unique nature of running a farm or rural business as well
as the challenges facing the agricultural sector at the moment, whether that be the un-precedented weather
conditions facing arable farmers over the last 12 months, fluctuating potato or milk prices,
or the uncertainty surrounding Brexit and expected changes to farm subsidy payments.
Loan Purpose
AMC loans are available to support any agricultural, horticultural, equine or other commercial land-based business for
any business purpose. Examples could include purchasing additional land or property, buildings or equipment,
machinery or improvements, restructuring existing debt, provision of working capital, diversification or
renewables projects. Loans can be drawn down without the need to move day to day business banking.
Flexible Terms
Loans can be taken out on fixed, or variable rates, on a repayment or interest only basis, or
a combination to suit you. Repayments can be made monthly, quarterly or half yearly.
One off set up fee
A negotiable setting up fee applies depending on the size of the loan. This is a one-off fee to include payment for
the valuation, which is paid at the start of the loan. There are no annual/periodic reviews, or annual charges.
Long term lending
Loans can be taken out for terms of 5 – 30 years, with the option to extend or roll over if required. If a fixed rate
is chosen there will be no further reviews throughout the term of the loan, so long as repayments are met.
Loans can be passed down the generations if they have not been repaid in full
when the borrower dies, allowing natural succession of farming businesses.
Loan Amount
AMC loans are available for a minimum of £25,001. There is no maximum loan amount.
Personal Service
As AMC agents we work directly with farmers, landowners and the AMC to help to put applications together,
ensuring that you have a local contact “on the ground” to discuss applications, and put forward
necessary documentation on your behalf to the AMC’s credit team for their consideration.
Interest Rates
Interest rates are competitive. If you are thinking of restructuring your business or borrowing money to
fund a purchase then we would be happy to discuss AMC loan options with you, to see if they
would suit your requirements and provide you with indicative rates.
Our AMC Agents
We have AMC agents based in our offices covering the North of England, Yorkshire and Scotland.
For a confidential discussion please contact us today.
Joanne Metcalfe | joanne.metcalfe@youngsrps.com
2016
14
2020
* There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan.
However, if interest rates rise, a fixed rate loan will remain at the same rate.