Agricultural

The IPD (Investment Property Databank) Let Land Index measures total returns to direct investment in tenanted farm land, the index shows 5 year (2001 2005) annualised total returns of 13.2%, with particularly impressive returns of 19.5% in 2002.

On let land non - agriculatural income is becoming increasingly important to sustain existing rents and in some cases, increase them.  Invetsors continue to seek out opportunities within the let land sector, in many cases however the traidtional source of income from agriculture has diminished.

Our consultants have wide ranging experience in dealing with agricultural land and buildings investment for a number of uses.  In many cases a hands on approach is essential in agricultural investment funding and we will be happy to visit the site of investment to get a better idea of the mortgage rates and terms that are achievable for a particular proposition.

The tenant will be the main influence in the funding decision and the better the quality of the tenant the better the terms of the commercial investment mortgage.

Investors wishing to purchase an agricultural property can expect to pay Bank Base Rate + 1.5% to 3%, at a loan to property value up to maximum of between 75% and 80%.

The maximum term of an agricultural commercial investment mortgage will tend to be 25 years.