Land ownership and rights

[Still Farming]

Thing is the generations before wanted to possible look after all in will by doing these things but in essence splits families up more .
Sad.

 

[goodevans]

Thing is the generations before wanted to possible look after all in will by doing these things but in essence splits families up more .
Sad.

Controlling from beyond the grave

 

[David.]

Wanting to keep the estate together is not necessarily the same thing as treating everybody equally.

 

[Still Farming]

Wanting to keep the estate together is not necessarily the same thing as treating everybody equally.

Lot of money to buy out too?

 

[Sonoftheheir]

Thing is the generations before wanted to possible look after all in will by doing these things but in essence splits families up more .
Sad.

Possibly more to do with tax/ death duties at the time? Seems ridiculous for a farming family to build it up only for the persons farming it to have to buy it back again to carry on.

 

[David.]

This is my argument against the NZ model of selling the farm every generation to the next, job to see who benefits other than the banks. Over and over again.

 

[Sonoftheheir]

This is my argument against the NZ model of selling the farm every generation to the next, job to see who benefits other than the banks. Over and over again.

I didn’t know that

 

[Nearly]

I didn’t know that

Feeling any better?
Whatever happens, it could be worse.

 

[David.]

I didn’t know that

It's not compulsory that I know, of but it is how it seems to work down there if you believe what you read, they seem to find something contemptible about inheritance...

 

[lloyd]

Farming income and asset value have probably never been further apart.
Good luck and hope its worked out with little disruption to your business.

 

[Still Farming]

Possibly more to do with tax/ death duties at the time? Seems ridiculous for a farming family to build it up only for the persons farming it to have to buy it back again to carry on.

Same story all over The Country.
Boy stays on farm,building it up,girl goes and works in bank for instance, all ok ,until THE DAY , and both left equal shares ?
Sale or buy out ???
Sad

 

[midlandslad]

Has a rent been paid to the owner of the quarter share and if so since when?

 

[betweenthelines]

Sounds like the OP is having his cake and eating it in that he's farming someone else's land rent free AND wants to stop them selling it.

The joint owners should get the property valued as a whole, the majority owner should them buy out the other party for 25% of the valuation.

The majority owner then has 100% of the property, but for 25% of the cost. Poor job if he can't make it pay when basically getting the whole lot for 75% discount. If not, sell off a property or two. (I am assuming that there's no major debt secured on the property as I can't see a lender using shared ownership property as security)

 

[Exfarmer]

Sounds like the OP is having his cake and eating it in that he's farming someone else's land rent free AND wants to stop them selling it.

The joint owners should get the property valued as a whole, the majority owner should them buy out the other party for 25% of the valuation.

The majority owner then has 100% of the property, but for 25% of the cost. Poor job if he can't make it pay when basically getting the whole lot for 75% discount. If not, sell off a property or two. (I am assuming that there's no major debt secured on the property as I can't see a lender using shared ownership property as security)

We don't know the full facts, see it quite often where farmers sons , have put in all their lives working for Dad, on the premise they will inherit, only to find that people who have never put a days work in suddenly expect a big chunk. I have seen many farmers sons and daughters, very badly done by in this way. I just hope the poster finds a way to keep all parties happy.

 

[goodevans]

If it was a thousand pounds an acre it wouldn't happen so often

 

[gone up the hill]

Land agent and solicitors are involved, going through it all atm. The land is held as tenants in common and there is no stipulation in the deed of gift about selling. The only thing mentioned is the continuation of the farming partnership as the yearly tenants.

Although the tenancy doesn’t help tax wise for probate.

Just thought I’d see what others say on here, would certainly not take any FF advice over proper legal. But I appreciate all your words.

Probate value will not be market value.

1: You need to get 3 valuations, one from someone you appoint, one the other party appoints and 3 one from someone that the solicitor/ accountant recommends.

2 : Agree a value of the whole lot between you and the other party to work from.

3 : Decide what the 75% shareholder wants to keep based on their 75% of the open market valuation, then put to the 25% share holder that they have the other 25% of the assets which they can then either sell to you at an agreed price or keep it themselves or put the 25% on the open market.

If the above fails then the only answer is to sell the lot and split the cash.

 

[Nearly]

Sounds like the OP is having his cake and eating it in that he's farming someone else's land rent free AND wants to stop them selling it.

The joint owners should get the property valued as a whole, the majority owner should them buy out the other party for 25% of the valuation.

The majority owner then has 100% of the property, but for 25% of the cost. Poor job if he can't make it pay when basically getting the whole lot for 75% discount. If not, sell off a property or two. (I am assuming that there's no major debt secured on the property as I can't see a lender using shared ownership property as security)

If it's being valued for probate at the moment then it's still in the estate of the deceased so no rent is due to anyone YET.
If the person who is set to inherit 25% has said they'd like to sell, that's all that has happened so far.
OP is looking for any pointers towards a solution to keep the farm together.
Selling a property or two is often the worst option as it brings neighbours into the farmyard. I'd sell half my land off before I sold a cottage.

 

[Cowcorn]

Tread very carefully here, as i recall you mentioned that your family have been farming in your area since jesus was a boy, that has to give you some leverage if you can convince the other party that maintaining the family farm intact for future generations is what the dearly departed would have wanted. A fair price could be agreed and paid over say 10 years and the farming family members get to keep the land. A few good spud years should help ! Best of luck .

 

[betweenthelines]

62 acres is worth about £500,000 which is why the owner wants to sell.

Mortgage interest on £500,000 has got to be less than £50k/year, or a rental equivalent of about £200/acre for the whole unit

Plenty of farms paying that sort of rent.

And if you don't want to sell houses, rent out a couple at £1k month-that's half the mortgage paid.

 

[Nearly]

62 acres is worth about £500,000 which is why the owner wants to sell.

Mortgage interest on £500,000 has got to be less than £50k/year, or a rental equivalent of about £200/acre for the whole unit

Plenty of farms paying that sort of rent.

And if you don't want to sell houses, rent out a couple at £1k month-that's half the mortgage paid.

What about the family members living in the house?
£200 an acre rent equivalent in interest.
You're talking rubbish with someone elses money and life.
Nothing but a troll.