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When you are looking to purchase an asset as major as farmland, thorough planning and professional advice from an experienced broker are essential.
But considering the current climate in the UK’s residential and commercial property sector, what makes farmland a good investment opportunity right now?
Why Farmland is a Good Investment
Recent years have seen demand for agricultural land exceeding supply by a significant margin. This is something that is only expected to worsen with time, as the UK’s population grows, and the country becomes increasingly crowded.
Restrictions regarding what can and cannot be built on farmland have traditionally been off-putting for many investors. But with available space being wiped out at record pace across much of the country, the government is gradually relaxing its regulations on potential property finance developments on agricultural land.
Consequently, many investors have begun snapping up prime plots on a purely speculative basis, hoping they will soon be able to build residential and commercial properties for major capital gains.
Either way, farmland holds a great deal of potential as an immediate and long-term investment opportunity. The scarcer the availability of agricultural land becomes, the higher the price it will command for future buyers and developers.
How to Finance a Farmland Purchase?
Financing the purchase of farmland can be approached in a variety of ways. However, agricultural land investments are rarely supported by major High Street lenders who prefer to focus on more ‘conventional’ property purchases.
Bridging finance has become a popular choice for new and experienced investors, looking to pick up agricultural land as quickly and affordably as possible. Rather than waiting months for an application to be processed (and perhaps rejected), the dynamic nature of bridging finance is a better fit for the needs of investors.
Typical benefits of taking an agricultural and farm bridging loan over traditional forms of lending include:
- Rapid Access– Bridging finance can be arranged and accessed within a few days, enabling investors to take advantage of time-critical land purchase opportunities.
- BespokeSolutions – Every bridging loan is unique, tailored to meet the exact requirements of the applicant in question. All key terms and conditions are negotiable, ensuring the borrower gets exactly what they need at the time they need it.
- Affordability – Monthly interest payable on a bridging loan can be as low as 0.5%, if not significantly less. Repaid promptly, a bridging loan can be significantly more affordable than any comparable product.
- Versatility– Bridging loans can be taken out for any legal purpose, and can be secured against almost any type of property or land. Investors can therefore set their sights on non-standard properties and plots of land, which may be considered unmortgageable by traditional lenders.
The key to getting a good deal on an agricultural bridging loan lies in enlisting experienced broker support at an early stage.
Along with helping you choose the most appropriate product for your requirements, your broker will negotiate on your behalf to ensure you get an unbeatable deal from a top-rated lender.
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