Loan secured for phase two of building project on organic pig farm
In summer 2019, Carter Jonas were instructed by AMC (Agricultural Mortgage Corporation) to visit an organic pig farm and apple pressing facility near Princes Risborough. Having secured planning permission for a new dwelling at the farm, the owners were looking to re-package an existing mortgage and for a new loan facility enabling them to build phase one of their new home.
Our professionals were able to secure a loan offer from AMC, a 20-year facility, part of which was agreed on a fixed rate of interest, and part on a variable rate.
The valuation was undertaken by our Rural specialists based in Oxford, who considered the value of habitat sensitive downland, established orchards, grassland and arable land, together with both the current and expected end value of the farm with the new build farmhouse. The loan completed in October 2019.
In June of this year, because of AMC’s favourable interest rates, our professionals were instructed once again as the applicants wanted to press on with phase two of their house build, with a view to completing the project by spring 2021.
The second facility was at risk of tipping the balance in respect of loan to value threshold, however with some careful consideration and a phased draw-down of funds, to coincide with progress of the new build, the second facility was approved on a competitive fixed-term loan.
The second loan was completed in September 2020 and the building project is currently underway.
For further information, please contact:
Christopher Rhodes
Partner, Rural Valuation
07801 666139
christopher.rhodes@carterjonas.co.uk
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