Another Busy Year For Land & Farms Teams
Moody House Farm situated within the Yorkshire Dales National Park is set to attract investment buyers. The 167 acre Dales farm is let by virtue of an Agricultural Holdings Act Tenancy 1986 and offers the buyer 50% relief from Inheritance Tax with the potential that 100% of the value could be relievable. Since being launched to the market two weeks ago, the Bedale office have had a surge of interest from all over the country with the first Viewing Day, earlier this week being well attended.
George F White have retained clients interested in acquiring properties subject to tenancy and demonstrates that Sale and Leaseback is making a comeback albeit mainly through private deals. George F White are currently instructed on such deals which were widely used by institutional and traditional investors back in the 1970’s and 1980’s. Sale and Leaseback allows a landowner to extract capital from his holding by selling it subject to being granted a tenancy on it. When previously used, the leaseback was usually under an AHA succession tenancy, leading to a discount of between 45% and 50% on vacant possession values. Now things are different with discounts much smaller because the terms of the tenancies are much shorter.
The rise of land not only as a desirable but also safe investment in a continually volatile economy has brought more private investors into the market whilst others continue to invest to shelter against Inheritance Tax. The trend of sale and leaseback is set to continue as people want to invest but not necessarily farm.
As farmland values continue to rise the amount of land for sale has fallen. Sales of commercial blocks of arable land within the North Yorkshire region are regularly topping out at values in excess of £8,000 per acre however, in certain areas, where there is more competition values are exceeding £10,000 per acre. A block of arable land situated to the north of Northallerton has just completed within the last month and there had been a good level of interest shown from the local farming community.
Elsewhere, a sale has been agreed on a compact block of pasture land near Kirkbymoorside in excess of the £100,000 guide price with a great deal of interest having been expressed from the local market. Meadow land extending to 13 acres situated in Bishopdale was auctioned in July and sold for £7,000 per acre.
The Bedale office of George F White are about to launch a smallholding situated to the south of Doncaster. The property, extending to approximately 60 acres will be offered for sale by private treaty as a whole or in up to 5 lots. The lots include the farmhouse together with a range of traditional buildings with potential for alternative use, arable land in lots from 8 acres to 20 acres and a strategic plot of land fronting the A57 with development potential.