Overdraft requirements for coming growing season.

[capfits]

I don’t think I am
Everyone has choices to make as to what they think is right for them
But blaming others for the choices they made that’s wrong!!!

Come now, just behave.
What do you know of Scottish land law(and it's changes with little traps) and how that has affected glasshouse business decisions?

May I suggest a wee book for you to enlighten.
"The poor had no lawyers" by Andy Wightman.

 

[bobajob]

Whats the problem with that?

I don't own anything at the moment, so no different to renting like we do at present. Except the banks my landlord

I know somebody who bought their rented farm, he said he now pays the rent to a man in a pin stripped suit rather than a man in a tweed suit!

He said the man in the tweed suit was easier paid and he used to invest in the farm in fences and building repairs etc.
He is reasonably happy, said paying the mortgage is like paying into a pension that he may get back one day (or something to hand down to his kids).

The grass may not always be greener buying a farm and often paying to update and maintain buildings/ house etc

 

[glasshouse]

It didn’t really end well with sub-prime house mortgages though did it.
Why not land? You’d have to ask the banks that.

Sub prime has no relevance to the uk property market, it was an american disease which infected banks.
Houses are still being sold at as low as 5 % deposit even though they lnow its going to end badly

I don’t think I am
Everyone has choices to make as to what they think is right for them
But blaming others for the choices they made that’s wrong!!!

I havent blamed anyone
I just pointed out that the banking system in the uk ensures that buying land is very hard for first time buyers.
I can buy a £200k tractor tomorrow with 10% down
I can buy a £200k house with 5% down
But to buy a £200k piece of land they want 50% down
Which is the safer option?

 

[Old John]

What you going to do without BPS?

I don’t understand, how does notional rent pay anything? Income comes from either rent or from profit, I can’t say to the bank I have had a bad year and and only made £20/ac but it’s ok because I could have notionally let it out for £100/ac so just knock the other £80/ac off what I owe..

if you can only find 1% above your interest rate to pay off the purchase it’s 100 years to pay it off.. surely you need to find 5% above your interest rate to pay off a purchase in 20 years?

Does 5%+2.5% on £8k/ac not need to generate a profit of £600/ac to pay off debt plus interest over 20 years. And that’s before factoring in that the 5% has to come from tax paid income.

Don’t forget though, over the life of the loan, you are, on average , only borrowing half the money . Therefore it costs less than your figures.
8.5% on £4000/acre =£340/acre.

 

[B'o'B]

Sub prime has no relevance to the uk property market, it was an american disease which infected banks.
Houses are still being sold at as low as 5 % deposit even though they lnow its going to end badly

I havent blamed anyone
I just pointed out that the banking system in the uk ensures that buying land is very hard for first time buyers.
I can buy a £200k tractor tomorrow with 10% down

Financed by the tractor manufacturers who know they won’t sell much without it, and although it’s advertised as 0% in reality it isn’t it’s just built into the price which means they earn on the on finance as well as the machine.

I can buy a £200k house with 5% down

You acknowledge above that this won’t end well.

But to buy a £200k piece of land they want 50% down

Land is already at a silly price compared to its earning capacity, reducing the required deposit would only feed the bubble more.

Which is the safer option?
[/QUOTE]

 

[glasshouse]

I know somebody who bought their rented farm, he said he now pays the rent to a man in a pin stripped suit rather than a man in a tweed suit!

He said the man in the tweed suit was easier paid and he used to invest in the farm in fences and building repairs etc.
He is reasonably happy, said paying the mortgage is like paying into a pension that he may get back one day (or something to hand down to his kids).

The grass may not always be greener buying a farm and often paying to update and maintain buildings/ house etc

that tractor finance is not with the manufacturer, its a bank
You still can't explain the inconsistency between houses and land
Both are easily re possessed

 

[d williams]

Come now, just behave.
What do you know of Scottish land law(and it's changes with little traps) and how that has affected glasshouse business decisions?

May I suggest a wee book for you to enlighten.
"The poor had no lawyers" by Andy Wightman.

Admittedly I know nothing of Scottish law
But what I do know it’s not always somebody’s else fault that you can’t have everything you want

 

[d williams]

Sub prime has no relevance to the uk property market, it was an american disease which infected banks.
Houses are still being sold at as low as 5 % deposit even though they lnow its going to end badly

I havent blamed anyone
I just pointed out that the banking system in the uk ensures that buying land is very hard for first time buyers.
I can buy a £200k tractor tomorrow with 10% down
I can buy a £200k house with 5% down
But to buy a £200k piece of land they want 50% down
Which is the safer option?

Is that just Scotland where you have to put 50% down ??

 

[B'o'B]

that tractor finance is not with the manufacturer, its a bank
You still can't explain the inconsistency between houses and land
Both are easily re possessed

I’m sure there are various different finance options on tractors. I know that some of the finance companies are operated by the same parent company as the machinery manufacturers. Are they offering the same interest rates to borrow for a tractor as land?

It would appear AMC currently requires only 30% down on land. I did suggest you asked the banks why they operate as they do in an earlier post. I imagine that they might say houses are retail finance were as Ag land is business lending or some such.

 

[d williams]

I’m sure there are various different finance options on tractors. I know that some of the finance companies are operated by the same parent company as the machinery manufacturers.

It would appear AMC currently requires only 30% down on land. I did suggest you asked the banks why they operate as they do in an earlier post. I imagine that they might say houses are retail finance were as Ag land is business lending or some such.

Maybe it’s 50% because the lender realises the earnings of said land and therefore want to limit liability

 

[Chae1]

I know somebody who bought their rented farm, he said he now pays the rent to a man in a pin stripped suit rather than a man in a tweed suit!

He said the man in the tweed suit was easier paid and he used to invest in the farm in fences and building repairs etc.
He is reasonably happy, said paying the mortgage is like paying into a pension that he may get back one day (or something to hand down to his kids).

The grass may not always be greener buying a farm and often paying to update and maintain buildings/ house etc

If he bought it as a sitting tenant he'll only have paid 2/3rds of market value.

If he can pass it to his family its on a SLDT. There history. Lucky to get a 5 year lease now.

 

[d williams]

If he bought it as a sitting tenant he'll only have paid 2/3rds of market value.

If he can pass it to his family its on a SLDT. There history. Lucky to get a 5 year lease now.

Is that the same for and I’m presuming that there’s a lot of 3 generation tenant coming to a end ?
Are there other options being put forward for long term tenant like share farming or other options??
Or Is this more to do with the way the Scottish government imposes legislation

 

[Chae1]

Is that the same for and I’m presuming that there’s a lot of 3 generation tenant coming to a end ?
Are there other options being put forward for long term tenant like share farming or other options??
Or Is this more to do with the way the Scottish government imposes legislation

Some landlords are buying the SLDT tenancies back off farmers at 1/3 of the market value of the land.

These guys will then be going on short term leases.

The SNP were hoping to be able to force landlords to sell farms to long term tenants. This is completely unfair in my opinion.

I'm aure they would also get rid of the inheritance tax benefits from land and any other tax benefits for hardworking people.

 

[d williams]

Some landlords are buying the SLDT tenancies back off farmers at 1/3 of the market value of the land.

These guys will then be going on short term leases.

The SNP were hoping to be able to force landlords to sell farms to long term tenants. This is completely unfair in my opinion.

I'm aure they would also get rid of the inheritance tax benefits from land and any other tax benefits for hardworking people.

Could you explain sldt please ???

 

[Gordy1]

Great post that & ive lost most of the faith in the one weve been with for over 50years poss far too long
Thinking of moving is it much hassle? anyone care to comment?

No hassle at all?

 

[Bossfarmer]

Surely you are still having to finance the £30k every year, doesn't matter what it will look like in 25yrs looking back.

but your paying the interest instead of tax?

 

[jendan]

I’m sure there are various different finance options on tractors. I know that some of the finance companies are operated by the same parent company as the machinery manufacturers. Are they offering the same interest rates to borrow for a tractor as land?

It would appear AMC currently requires only 30% down on land. I did suggest you asked the banks why they operate as they do in an earlier post. I imagine that they might say houses are retail finance were as Ag land is business lending or some such.

AMC usually only go to 50% loan to red book valuation.Sometimes 60% with a very profitable business,but their affordability tests are tighter than the other high street banks.They leave the borrower alone,not requiring annual accounts.

 

[B'o'B]

AMC usually only go to 50% loan to red book valuation.Sometimes 60% with a very profitable business,but their affordability tests are tighter than the other high street banks.They leave the borrower alone,not requiring annual accounts.

I was just going by their online mortgage calculator which gives quotes upto 70% of asset value with no other securities. If you put in over that it just says they won’t calculate it. Not a proper test I’ll grant you.

 

[glasshouse]

If he bought it as a sitting tenant he'll only have paid 2/3rds of market value.

If he can pass it to his family its on a SLDT. There history. Lucky to get a 5 year lease now.

That is incorrect
All 91 act leases can be passed on

 

[glasshouse]

Is that the same for and I’m presuming that there’s a lot of 3 generation tenant coming to a end ?
Are there other options being put forward for long term tenant like share farming or other options??
Or Is this more to do with the way the Scottish government imposes legislation

scottish leases are not limited to 3 generations