Agricultural-tie property secures a rosy future with mortgage finance

James Gaffney runs a fire and security alarm business in the South East. When Pippins Farm in East Sussex came on the market, James was keen to buy the property as he could relocate his business office and storage, have a home for his wife and parents, and he could see potential to develop an equestrian enterprise and other businesses on site.

Pippins Farm has 22 acres of pasture, three stables, a tack room and a timber agricultural building. The bungalow has an agricultural occupancy condition (agricultural tie) where the house must be occupied by people locally employed or last employed in agriculture or forestry.

Other mortgage brokers found lenders weren’t prepared to lend

James owns a large portfolio of buy-to-let residential properties and is accustomed to approaching mortgage brokers for residential property finance. However, when it came to finding finance for the purchase of Pippins Farm, James was drawing a blank.

The amount of land and the agricultural tie was a restriction for many lenders. James needed someone who could see the potential of the property and its agricultural, equestrian and other income streams to help him with his purchase plans.

Matthew Penfold at Batcheller Monkhouse, the agents selling the property, recommended James talk to Rob Lister of R&BS.

Market knowledge and expertise gets quick results

James said, “R&BS have access to the whole of the rural mortgage market and know the criteria of the individual lenders. They not only deal with traditional bank managers but also tap into underwriters and the heads of departments within banks to obtain opinions. Their knowledge of the market is therefore second to none.”

With this knowledge and relationships with rural and commercial lenders, Rob knew which lenders would react positively to the proposal.

“Rob produced a detailed business report showing just what the lenders needed. The detail and quality of the report was outstanding. Lenders could immediately see the potential. After Rob and I met with one suitable lender, our mortgage was approved within two hours,” said James.

A rosy future at Pippins Farm

The farm has previously produced apples which met the occupancy restriction. James and his wife Lauren will continue to grow apples and sell to local retailers and through farmgate sales. Lauren will introduce DIY liveries and grass lets, with an aim to providing full time livery and buying, breaking in and selling young horses in the future. Solicitors and land agents have confirmed that this activity complies with the occupancy condition.