You may think so, but I would say those who are on to a good thing are those that have a farm bought and paid for and handed to them on a plate.I would say anyone with aha tenancy is on a good thing really, the rent paid for the farm as a whole often equates to what would be a commercial rent for the house only. They haven’t had to buy the farm in the first place, you can’t have your cake and eat it.
Tenants have to finance the landlords summer parties and foreign holidays.It's not only the amount of rent it is the fact that certainly on many tenancies it is in advance. As you know, it may be months before there is anything to sell from that land, so the working capital requirement is substantial.
Arent you lucky that the labour govt made it possible for you to have a low rent and to ultimeately buy your farm at a huge discountI agree anyoneone who inherits a lot of money wether it’s cash, houses or land is very fortunate. Before we purchased the farm we had an aha and the rent for decent sized farmhouse and 200ac was about half what a similar sized house would be on its own! We are in an expensive area though so not the same everywhere. We also spent a lot of our own money improving it over years, some tenants don’t want to spend a penny on their buildings thinking the landlord should pay for every last nail, I don’t get that attitude when you’re probably going to be there for decades, a new shed is easily justified on a reducing ownership basis. The moaners are the ones who don’t progress usually(slight generalisation but hope you get my point).
If you want to farm sheep or just farm, you need to move to france or australia/nz.We’ve tried for a few farms and as we had built up a flock while still in full time work getting the funds wasn’t a problem.
Biggest problem is finding the farms, length of tenancy but the biggest problem was the high rent.
We could break even at £120 an acre and would have to make money by doing loose work and shearing, but round here (Devon) rents are now in excess of £150 (Someone even paid £220/acre a year back) and its just not worth it.
We sold our flock this winter as there was no point holding onto it if we weren’t going to get our own farm
My father got a lucky break in the form of an aha on his great uncles farm where he worked from a young age. They agreed a rent between themselves and uncle still kept a hand in on his farm.
Fast forward 30 years and with uncle long deceased his daughter wanted us out, she and her agent turned up with news that they wanted the split the farm up for tax purposes, suggesting that father take a handout to leave, retire early and enjoy life. Dad wasn't so keen, he had not long lost mother and the farm was all he had, plus I myself had put my time in too and deserved a bite at it.
It became a very miserable time for us, land agent was out every month finding faults, putting the frighteners on with wild dilapidation claims, I recall a meeting to discuss my succession, I was told the only way I'd have it, is on a two year fbt. We got the tfa involved, that went down like a lead balloon.. Agent's are funny like that.
Meetings got more and more heated, threats got bigger and at one meeting in particular dad got clobbered with a handbag. I think it was worse because we were related.
In the end I came up with a solution (more to save Dad the upset than to appease them) we let them split it up, they get the house and buildings and we get some land as compensation plus I get succession of the rest on the aha, most importantly though, no dilapidation claim.
It worked, we moved to our small holding down the road and they had the buildings on the market within 6 months they sold to a developer for not very big money, Its all houses now.
Do I miss it? Hmm A big cold house that they wouldn't spend on with outdated unworkable buildings..... Not a chance.
Dealing with the unknown was the worst part, a 2 year fbt was worth nothing, how can anyone reinvestment when you could be out on your ear in 2 years? They gave reassurance the tenancy would automatically renew every two years, but how could I be sure, particularly when from the outset it was clear they wanted us out.Well done, that can't of been an easy time.
Your dad had the aha? When was this?My father got a lucky break in the form of an aha on his great uncles farm where he worked from a young age. They agreed a rent between themselves and uncle still kept a hand in on his farm.
Fast forward 30 years and with uncle long deceased his daughter wanted us out, she and her agent turned up with news that they wanted the split the farm up for tax purposes, suggesting that father take a handout to leave, retire early and enjoy life. Dad wasn't so keen, he had not long lost mother and the farm was all he had, plus I myself had put my time in too and deserved a bite at it.
It became a very miserable time for us, land agent was out every month finding faults, putting the frighteners on with wild dilapidation claims, I recall a meeting to discuss my succession, I was told the only way I'd have it, is on a two year fbt. We got the tfa involved, that went down like a lead balloon.. Agent's are funny like that.
Meetings got more and more heated, threats got bigger and at one meeting in particular dad got clobbered with a handbag. I think it was worse because we were related.
In the end I came up with a solution (more to save Dad the upset than to appease them) we let them split it up, they get the house and buildings and we get some land as compensation plus I get succession of the rest on the aha, most importantly though, no dilapidation claim.
It worked, we moved to our small holding down the road and they had the buildings on the market within 6 months they sold to a developer for not very big money, Its all houses now.
Do I miss it? Hmm A big cold house that they wouldn't spend on with outdated unworkable buildings..... Not a chance.
Yes dad got the tenancy in 1974.Your dad had the aha? When was this?
They cant sue you for dilapidations unless there is s record of condition at the start, signed off by the secretary of state!