Farm Tender Value, 20 yr FBT, Herefordshire

[fodderfarm]

HI All,

Placing a tender for a 20 yr FBT in Herefordshire. Ex dairy farm, buildings ok (tatty) but need some work doing to bring up to spec for beef unit. 220 acres, mainly down to grass, some average leys, fencing needs some attention. Most ground within easy access of farm. No BPS entitlements are included with farm but all land is registered for BPS. It has the makings of a good stock farm with some investment and time.

3 bed house, which is in need of serious upgrading, but being advertised as fit for family. With uncertainty fro 2020 onwards what are your gut feelings for rental values post 2020?

 

[chipchap]

How long to first rent review/ break clause?

 

[wasted years]

Frankly you won't know about 2020 values til about 2020.
All else is guessing, but generally spreaking if you can't manage as the sitting tenant then a new one won't either.

 

[Clive]

HI All,

Placing a tender for a 20 yr FBT in Herefordshire. Ex dairy farm, buildings ok (tatty) but need some work doing to bring up to spec for beef unit. 220 acres, mainly down to grass, some average leys, fencing needs some attention. Most ground within easy access of farm. No BPS entitlements are included with farm but all land is registered for BPS. It has the makings of a good stock farm with some investment and time.

3 bed house, which is in need of serious upgrading, but being advertised as fit for family. With uncertainty fro 2020 onwards what are your gut feelings for rental values post 2020?

Don't forget the stamp duty payable on FBT's longer than 7 years - could be quite significant

 

[spin cycle]

doesn't depend on 'what it's worth' it depends how badly you or the competition want it.....2022 brings uncertainty but also opportunity as all those who tender face the uncertanty and so the one with 'the biggest' balls will probably win.....whether in doing so they over pitch and fail is another matter

good luck anyhow

 

[Surgery]

HI All,

Placing a tender for a 20 yr FBT in Herefordshire. Ex dairy farm, buildings ok (tatty) but need some work doing to bring up to spec for beef unit. 220 acres, mainly down to grass, some average leys, fencing needs some attention. Most ground within easy access of farm. No BPS entitlements are included with farm but all land is registered for BPS. It has the makings of a good stock farm with some investment and time.

3 bed house, which is in need of serious upgrading, but being advertised as fit for family. With uncertainty fro 2020 onwards what are your gut feelings for rental values post 2020?

Sorry to put a downer on proceedings but I would imagine with the local council selling off a lot of farms competition for this farm might well be strong and it could well be the owners thoughts time to cash in on someone else's misfortune , only you know what you can go too and if it works go for it !

 

[sleepy]

£130/acre

 

[chipchap]

£130/acre

................and pray what will the tenant live off?

 

[franklin]

The profit?

 

[spin cycle]

................and pray what will the tenant live off?

their partners off farm income.....if you are already renting a house for say 650/month then you can factor that in....then say 100/ac and you're aroung sleepys figure

 

[sleepy]

................and pray what will the tenant live off?

That's what it'll be if not more.

Until 2022 ish you can bank on BPS of about 75/acre, after that who the feck knows I'll worry about it when the time comes.

 

[fodderfarm]

How long to first rent review/ break clause?

Break clause actionable by both parties at year 5 and break clause actionable only by tenant at year 10, FBT for 20 years

 

[Flat 10]

Sad fact is that you are lucky to get offered a long enough term to make it worth while improving leys, fences and buildings.
Tell the land lord what you plan to do in the way of improvements. Ask for contribution/discount first year to make house habitable.

 

[Formatted]

£130/acre

Dream on.

3 Bedroom house = £8400
220 acres of sub = £18480
220 acres of rent = £11000
£37,880 yearly or £172 an acre

 

[fodderfarm]

some wide ranging views on the rent! I always thought that you didn't take into account the property and just valued the land and buildings? Talking to tenants on similar farms this seems to be the norm (older agreements) or are FBT now taking into account the house value?

 

[DRC]

some wide ranging views on the rent! I always thought that you didn't take into account the property and just valued the land and buildings? Talking to tenants on similar farms this seems to be the norm (older agreements) or are FBT now taking into account the house value?

That's just AHA tenancies. On FBTs the agents will probably even put a value on the view!

 

[Flat 10]

Dream on.

3 Bedroom house = £8400
220 acres of sub = £18480
220 acres of rent = £11000
£37,880 yearly or £172 an acre

Too much imo. Doesn't take into account hassle, late payment deductions of sfp. Pay them 75% max of that. Having said that I think your formula is the only way you will compete in a lot of circumstances.

 

[Wombat]

That's just AHA tenancies. On FBTs the agents will probably even put a value on the view!

And the fresh air as its much better in the countryside

 

[multi power]

some wide ranging views on the rent! I always thought that you didn't take into account the property and just valued the land and buildings? Talking to tenants on similar farms this seems to be the norm (older agreements) or are FBT now taking into account the house value?

Trouble is there is little connection between what it is worth and what people want to pay for it

 

[franklin]

There will always be someone.