Transferring a family farm to the next generation is a pivotal moment that ensures the continuity of agricultural heritage. However, this process often presents financial challenges, especially when conventional lenders hesitate to finance intra-family transactions.
At UK Agricultural Finance we address these challenges by offering tailored financial solutions for farm generational transfers
Understanding The Challenges
Succession planning in farming involves more than the transfer of land; it encompasses the seamless handover of operations, knowledge, and values. Financial hurdles, such as inheritance tax liabilities and the need for capital to support retiring family members, can complicate this process.
Traditional lenders often base loans on the sale price, which, in family transfers, may be below market value, limiting available capital for the outgoing generation.?
UK Agricultural Finance’s Approach
At UK Agricultural Finance we offer a solution by lending against the open market value of the land, irrespective of the family-discounted sale price. This approach enables the retiring generation to access necessary capital while facilitating ownership transfer to the successors. The next generation can then refinance with conventional lenders at a later stage, ensuring financial flexibility.
The key features of our farm generational transfer service include:
- Flexible Financing – Loans ranging from £100,000 to £5,000,000, with terms between 12 to 84 months, tailored to individual circumstances.
- Comprehensive Support – Assistance throughout the loan process, including on-site farm visits to understand unique needs and provide personalised solutions.
- Market-Value Lending – Ability to lend against the open market value, allowing the outgoing generation to retain capital while ensuring the farm remains within the family
For more information, and to secure the future of your family-run farm for generations to come, contact our team today!