Looking to transfer your farm to the next generation, possibly below market value, but wanting 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 against the 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 that in due course they can refinance with a conventional lender. Obviously, the farm needs to be able to support the expected conventional lender’s loan and your next generation should be capable of running the farm as well as you!

Lending Criteria

Loan size
£100,000 to £5,000,000
Location
England, Scotland and Wales*
Borrower
Sole traders, partnerships, limited companies
Loan to value limit
65%
Security
Agricultural land and property
Use of proceeds
Purchase farm from family plus working capital
Age limits
None, but may require a guarantor depending on farming experience
Repayment
Interest only, roll up and repayment options
Duration
Typical duration of 12 to 84 months

How Can We Help

  • Tick Generational Financing

    We will consider financing the transfer of your farm to the next generation, even if below market value

  • Tick Intelligent lending

    Unlike conventional lenders who won’t lend if you’re selling to a family member, we can lend against the open market value of the land

  • Tick Flexible

    We can allow you to withdraw some cash while your next generation gains ownership of the land, so that in due course they can refinance with a conventional lender

  • Tick Diligent

    Obviously, the farm needs to be able to support the expected conventional lender’s loan and your next generation should be capable of running the farm as well as you!

Application Form

    I agree to the terms & conditions found here

    Application Process

    Step 1

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    Step 8

    rail
    Step 1

    You decide to pass on your farm to the next generation, but also want to release some cash:

    • Research option and agree a transfer plan with the entire family
    • Business plan
    • Research different funding sources
    Step 2

    You contact us:

    • How much would you like and who is the money going to
    • What’s the security worth on the open market compared to the transfer value
    • When do you need the money
    • What existing debts are there
    • How will you repay us
    • Anything else we should know
    Step 3

    We send you a decision in principle for you to accept:

    • How much we can lend, the interest rate and any fees
    • Your only commitment at this stage is for any costs incurred on legal or valuation fees
    Step 4

    Your application goes to a dedicated loan officer:

    • They help and guides you through the process from start to finish
    • We instruct an independent valuation of the property
    • You appoint a solicitor to act for you
    Step 5

    Your loan officer asks for:

    • Information, such as bank statements, business accounts, tenancy agreements, your business plan, your team’s expertise, a net worth statement and the plan to repay our loan
    • We do credit and land registry checks and the solicitors complete normal conveyancing checks
    Step 6

    We visit you at the farm to:

    • Get to know you and your current business, as well as your new plans
    • Understand your repayment plan
    Step 7

    Your solicitor:

    • Explains everything in the documentation
    • You ask about anything you don’t understand
    • You sign to confirm having received independent advice, then sign the contractual paperwork
    • We sign, the loan completes and you receive the funds
    Step 8

    You build your business and repay our loan

    Case Studies

    Financing for Generational Take-over

    Two brothers had run the farm together for many years, but when one brother passed away, an acrimonious family dispute ensued with their non-farming son, who wanted paying out on his inheritance.

    read more