Wanting to carry on but past will haunt us.

[Elb]

Here we go not sure how to word all this.
looking at applying for a fbt in near future. Mixed farming with off farm income and wife’s diversity.
we have stock 200 ewes. And 40k in sale stock. 30k in machinery all paid for no loans no finance no overdraft and 50k in the bank.
I’m very cautious of applying for a fbt as I’ve very poor credit this is due to a family farm break up and was stuffed with loads of old debt which caused a bankruptcy.
Wife has a clear credit history and the business is run as a ltd company.
Im concerned that where as our bussiness plan and capital demand will be met when they credit check me it’s going to be a blank no as history is going to dictate this.
Any advice is much appreciated.
we want to farm as we are both young with young family and it’s our way of life.
just don’t know where to go with this.
Many thanks.

 

[Norfolk Itch-Ants]

Well I wouldn't worry too much.... applying for a farm tenancy is not like applying for a mortgage in the sense that it's much more personal.
The right Landlord and/or agent will take your explanation for the credit score into account rather than 'computer says no'
Good luck with your future applications

 

[Johnnyboxer]

If you want a 'clean sheet', so to speak
Make your wife the sole director of ltd co and applicant

She can then employ you as PAYE workman, using your Personal tax allowance as salary value - i.e. £12500 divided by 12 per annum

 

[BELOWAVERAGE]

Well I wouldn't worry too much.... applying for a farm tenancy is not like applying for a mortgage in the sense that it's much more personal.
The right Landlord and/or agent will take your explanation for the credit score into account rather than 'computer says no'
Good luck with your future applications

With respect, I don't think you've a clue what your talking about.

 

[Formatted]

A landlord won't give an LTD a tenancy and they will probably credit check both of you but they won't do a credit check until they've done interviews and made a decision. Its probably at that point you want to just spell out your previous poor history, they'll find out anyway and if they like you enough it won't matter.

If you have £50,000 in the bank you'll be in a much better situation than the average applicant; although you should apply for a position of strength not desperation so make sure you sound resolute and confident on viewing days and in interviews.

 

[Suffolk Serf]

An FBT to a Ltd company shouldn’t be an issue. The idea of an FBT is that the agreement can be anything that both parties agree to, without a default position of an AHA tenancy.
A Ltd co on an AHA is though even harder on a landlord than an AHA tenancy with an individual.

 

[PSQ]

Does credit history expire after a period of something like 6 years?

 

[betweenthelines]

"Ltd" is an abbreviation of "Limited Liability" which among other things, means it's easier for "the business" to go bankrupt and the individual owners to walk away without any problems. Most Landlords like their tenants to be fully committed to their farm and not able to walk away relatively unscathed if things get tough. Landlords aren't stupid either and will look into both your and your OH history and will be wary of you, given your history.

With the cash and stock you have behind you, it might be an idea to just build gradually from annual tenancies, or even share or contract farming

 

[yellow belly]

I farm as a ltd company and have no problem with landlords letting to ltd co

most fbts are now rent in advance so the landlords risk is is reduced
prior to 1976 most tenancies per rent in arrears during the 1930s it was the only way a landlord could get a tenant and became tradition

 

[BELOWAVERAGE]

Here we go not sure how to word all this.
looking at applying for a fbt in near future. Mixed farming with off farm income and wife’s diversity.
we have stock 200 ewes. And 40k in sale stock. 30k in machinery all paid for no loans no finance no overdraft and 50k in the bank.
I’m very cautious of applying for a fbt as I’ve very poor credit this is due to a family farm break up and was stuffed with loads of old debt which caused a bankruptcy.
Wife has a clear credit history and the business is run as a ltd company.
Im concerned that where as our bussiness plan and capital demand will be met when they credit check me it’s going to be a blank no as history is going to dictate this.
Any advice is much appreciated.
we want to farm as we are both young with young family and it’s our way of life.
just don’t know where to go with this.
Many thanks.

Sell the lot and use the money for a deposit for a mortgage on some land.

 

[Flat 10]

Sell the lot and use the money for a deposit for a mortgage on some land.

And then do what?

 

[Flat 10]

Here we go not sure how to word all this.
looking at applying for a fbt in near future. Mixed farming with off farm income and wife’s diversity.
we have stock 200 ewes. And 40k in sale stock. 30k in machinery all paid for no loans no finance no overdraft and 50k in the bank.
I’m very cautious of applying for a fbt as I’ve very poor credit this is due to a family farm break up and was stuffed with loads of old debt which caused a bankruptcy.
Wife has a clear credit history and the business is run as a ltd company.
Im concerned that where as our bussiness plan and capital demand will be met when they credit check me it’s going to be a blank no as history is going to dictate this.
Any advice is much appreciated.
we want to farm as we are both young with young family and it’s our way of life.
just don’t know where to go with this.
Many thanks.

My LL just looked at evidence of current assets which you have and puts you as said ahead of many people. Well done and don’t worry.

 

[BELOWAVERAGE]

And then do what?

I'd be classed as a slower payer than a lot of folk, BUT, I get round to everyone eventually (some times takes a while) but I know two people who have gone bankrupt, the one I saw in market one day buying ewes, I was buying the sh1te out of the culls to tup, he was buying the best, spoke to him everything seemed fine about 6 weeks later I heard he'd gone bankrupt, the other has done it twice, both nice chaps who I like, but when you go bankrupt you run out on people and your responsibility's, its just wrong to me, I've been desperately short of money at times, and that would have been an easy way out, but its some thing I couldn't do, if he bought some land, firstly he wouldn't have to face all those land agents, who would probably be laughing at him behind his back saying he's no chance, whilst also leading him on, and secondly, if he try's it again he'll loose everything, and thirdly its HIS and no one else's, he says he's off farm income and his wife has diversified so they can build on that and it'll all be theirs.

 

[Flat 10]

I'd be classed as a slower payer than a lot of folk, BUT, I get round to everyone eventually (some times takes a while) but I know two people who have gone bankrupt, the one I saw in market one day buying ewes, I was buying the sh1te out of the culls to tup, he was buying the best, spoke to him everything seemed fine about 6 weeks later I heard he'd gone bankrupt, the other has done it twice, both nice chaps who I like, but when you go bankrupt you run out on people and your responsibility's, its just wrong to me, I've been desperately short of money at times, and that would have been an easy way out, but its some thing I couldn't do, if he bought some land, firstly he wouldn't have to face all those land agents, who would probably be laughing at him behind his back saying he's no chance, whilst also leading him on, and secondly, if he try's it again he'll loose everything, and thirdly its HIS and no one else's, he says he's off farm income and his wife has diversified so they can build on that and it'll all be theirs.

I wasn't talking about going bankrupt. If he sells all his stock and machinery to buy land he hasn't the means to farm it. And he says he wants to farm. I'm a tenant farmer. I could probably cash in and buy a few acres but why would I? Wouldn't be enough to earn a living. I'd rather buy a house.

 

[BELOWAVERAGE]

I wasn't talking about going bankrupt. If he sells all his stock and machinery to buy land he hasn't the means to farm it. And he says he wants to farm. I'm a tenant farmer. I could probably cash in and buy a few acres but why would I? Wouldn't be enough to earn a living. I'd rather buy a house.

Of course he has, chri.st there's plenty of us started with nothing, you've just got to work at it.

 

[BELOWAVERAGE]

I wasn't talking about going bankrupt. If he sells all his stock and machinery to buy land he hasn't the means to farm it. And he says he wants to farm. I'm a tenant farmer. I could probably cash in and buy a few acres but why would I? Wouldn't be enough to earn a living. I'd rather buy a house.

And one other thing (I've got one on me) he seems to be doing bl.oody well for some one who's just been bankrupt, why do you need £30,000 of machinery for a few ewes, I wonder if all of them he owes money too are doing as well ? salted away perhaps ? like I said I've got one on me, no offence meant to op.

 

[betweenthelines]

OP reckons he has a nett worth of £120k but a bankruptcy in his background.

Why would anyone be suspicious of him?

 

[Elb]

Mite be getting shot down here.
but we run a separate company from the original family partnership and that was ltd.
the net worth is in the company which is where I’m coming from not me personally.
it was done to spread risk from original past falls outs between other members of the family 12 years ago and it was done by separate advice as accountant could see issues arisin 4 years ago a d thank god we did or be in a worse mess now.

 

[Mixedupfarmer]

And then do what?

Rent it out?

 

[serf]

oh the irony !