Finance Options
Farm Finance Options – a quick guide. |
| |
| 1. |
|
Farm Finance, Rural
Finance
|
| 2. |
|
Agricultural
Loan, Loan for Agriculture, Loans for Agriculture |
| 3. |
|
Equestrian
Loan, Loan for Equestrian, Loans for Equestrian |
| 4. |
|
Farm
Loan, Farming Loan, Loan for Farming, Loan for Farmer |
| 5. |
|
Horticultural
Loan, Loan for Horticulture, Loan for a Garden Centre, Loan for a Nursery. |
| 6. |
|
Bridging
Loan, Bridging Finance |
| 7. |
|
Development Finance, Development loan, Finance for Development |
| Typical Finance Types,
uses and descriptions |
| Type |
Explanation |
Examples |
Purpose |
| Farm Finance & Rural
Finance |
An all embracing term we use to describe all types of farm and agricultural finance we offer in the rural and country business sectors and which can also be described as Agricultural Finance, Equestrian Finance, Farm Finance, Land Finance and Horticultural Finance. Finance can be provided for holiday complexes, caravan parks, caravan sites, properties with agricultural restrictions, land, buildings, working farms, non-working farms, nurseries, garden centres, smallholdings, estates, fisheries, farm shops and generally all types of rural type situations. |
A mortgage or re-mortgage, development finance, bridging finance, Asset Finance, Sale and Leaseback, loans. |
Any legal purposes including but not being limited to repaying debt, repayment of an overdraft, diversification, working capital, business start ups, reducing outgoings, purchases of any kind and development of property or development of business. The funding of a dream property
(here is a case study example of this type of farm finance)
Back to top
|
| Agricultural
Loan, Loan for Agriculture, Loans for Agriculture |
More commonly described as an Agricultural Mortgage, Mortgage for Agriculture, Agricultural Re-mortgage or Re-mortgage for Agriculture being a loan secured by a first charge over property in UK,England, Wales, Scotland or Northern Ireland. In some cases a loan may be secured by way of a second charge over this type of property. |
A longer term type of loan usually over ten to thirty five years with fixed and discounted rates available arranged on a capital and interest or interest only basis. |
Purchase of a farm, or the purchase of farms, purchase of land, the purchase of buildings and the refinance of these types of properties to provide capital for any legal purposes but typically to diversify, develop, repay other expensive debt, repay a bank overdraft, reduce outgoings or to buy other assets such as cattle or equipment.
Back to top
|
| Equestrian
Loan, Loan for Equestrian, Loans for Equestrian |
More commonly described as an Equestrian Mortgage, Equestrian Re-mortgage, Mortgage for Equestrian or Re-mortgage for Equestrian being a loan secured by a first charge over property in England, Wales, Scotland or Northern Ireland. In some cases a loan may be secured by way of a second charge over this type of property. The term can also cover shorter-term situations where a bridging loan or development finance may be more appropriate though these terms are separately described. |
A longer term type of loan usually over ten to thirty five years with fixed and discounted rates available arranged on a capital and interest or interest only basis. |
Purchase of a riding stables, the purchase of an equestrian centre, the purchase of a racecourse, the purchase of and, or the purchase of buildings and the refinance of these type of properties to provide capital for any legal purposes but typically to diversify, develop, repay other expensive debt, repay a bank overdraft, reduce outgoings or to buy other assets such as horses or equipment.
Back to top
|
| Farm
Loan, Farming Loan, Loan for Farming, Loan for Farmer |
More commonly described as a Farm Mortgage, Farm Re-mortgage, Mortgage for a Farm, Re-mortgage for a Farm. Mortgage for Farming or Re-mortgage for Farming being a loan secured by a first charge over property in England, Wales, Scotland or Northern Ireland. In some cases a loan may be secured by way of a second charge over this type of property. The term can also cover shorter-term situations wherre a bridging loan or development finance may be more appropriate though these terms are separately described. |
A longer term type of loan usually over ten to thirty five years with fixed and discounted rates available arranged on a capital and interest or interest only basis. |
Purchase of a Farm, the purchase of a smallholding, the purchase of a property with an agricultural restriction, the purchase of land, or the purchase of buildings and the refinance of these type of properties to provide capital for any legal purposes but typically to diversify, develop, repay other expensive debt, repay a bank overdraft, reduce outgoings or to buy other assets such as cattle, stock or equipment.
Back to top
|
| Horticultural
Loan, Loan for Horticulture, Loan for a Garden Centre, Loan for a Nursery. |
More commonly described as a Horticultural Mortgage, Horticultural Re-mortgage, Mortgage for a Nursery, Re-mortgage for a Nursery. Mortgage for Horticulture or Re-mortgage for Horticulture, Mortgage for a Garden Centre or Re-mortgage for a Garden Centre being a loan secured by a first charge over property in England, Wales, Scotland or Northern Ireland. In some cases a loan may be secured by way of a second charge over this type of property. The term can also cover shorter term situations wherre a bridging loan or development finance may be more appropriate though these terms are separately described. |
A longer term type of loan usually over ten to thirty five years with fixed and discounted rates available arranged on a capital and interest or interest only basis. |
Purchase of a Nursery, the purchase of a Horticultural or Growing Business, the purchase of a Garden Centre, the purchase of a property with an agricultural restriction, the purchase of land, or the purchase of buildings and the refinance of these type of properties to provide capital for any legal purposes but typically to diversify, develop, repay other expensive debt, repay a bank overdraft, reduce outgoings or to buy other assets such as stock or equipment.
Back to top
|
| Bridging
Loan, Bridging Finance |
This is a short-term arrangement whereby a loan is secured either by way of a first charge or second charge on property in England, Wales, Scotland or Northern Ireland. Usually, but not always, interest is rolled up or added to the account so that all the money is repaid by the end of the term, meaning that no monthly payments are made
|
|
If you have a property to sell and one to buy or one to buy for a quick turnaround this may be the type of finance for you. These facilities are essentially short term until a property is sold or other money comes in to repay the debt. In many cases, no interest is paid and this is added to the account to be repaid with the initial loan at the end of the term. Care is needed to select the right lender and in considering bridging finance you should be sure that there is a way out of the loan at the end of the term. Do not be misled into believing that bridging is the right way when other long-term finance might be available. It can be easy to get into bridging but harder to get out and for this reason you need the expertise that Farm and Country Finance has to offer you.
Back to top
|
| Development Finance, Development loan, Finance for Development |
This is another short-term arrangement whereby a loan is secured either by way of a first charge or second charge on property in England, Wales, Scotland or Northern Ireland. Usually, but not always, interest is rolled up or added to the account so that all the money is repaid by the end of the term, meaning that usually no monthly payments are made. |
|
This is another area where expertise is required because getting it wrong can be costly. If you have a property to develop and particularly new build the importance of professional advice cannot be over emphasised. With development, the property will be valued in its current state and on the basis that the work is completed.
The loan is based on the higher of the values though the lender will only permit a percentage of the current value to be drawn down. The remaining money will be drawn as the work progresses usually, but not always, in accordance with certification of the work done in stages by an Architect or similar professional. It is important with any new build to have some form of ten-year guarantee, such as an NHBC warranty or similar insurance backed warranty. If you decide to sell the property, you can bet that a solicitor will ask to see the guarantee and without it, your buyer is likely to find it difficult to obtain a mortgage. Also, if you subsequently want to borrow within ten years of completion (though our lenders will often take a view) the absence of a guarantee can make life difficult.
The good news is that we have a source for insurance backed warranty policies in retrospect and you can count on our guidance to always point you in the right direction with this type of finance.
Back to top
|
|
|
|
