Whether you're looking to fund a new venture, or simply looking for a more economic deal, there are a number of things to consider when financing all or part of the farm.
Instructing a solicitor who specialises in agricultural property will ensure you receive practical legal advice from a professional who understands your business and will see that your new mortgage is completed as smoothly and efficiently as possible.
A summary of the legal process:-
Reviewing the title deeds
The Bank will require your solicitor to report to them the title deeds to the farm. During this part of the process your solicitor will:
Submitting and reviewing the results of any necessary searches
The Bank will require searches to be submitted against the property. Such searches will usually include a local search, an environmental search and, where relevant, a water and drainage enquiry.
Amongst other things, these searches will reveal:
Reviewing the mortgage offer, the survey/valuation and raising any enquiries
The Bank will instruct a chartered surveyor to value the property, to ensure it represents good security for the level of borrowing. Once available, the valuation report will be sent to your solicitor who will consider this against all of the documentation reviewed to date. Your solicitor may revert to you should he/she need to iron out any discrepancies.
Signing the mortgage deed and submitting pre-completion searches and the report on title
Your solicitor will advise you on the the main terms of the mortgage deed and you will then be asked to sign and return the deed. Your solicitor will then submit his/her final report on title to the Bank and this will also act as a request for funds. It may take 7 days for the Bank's securities department to process the report. During this time it is sometimes the case that you are required to speak to or meet with your relationship manager to agree and fix final rates for the new facility.
Once the report on title has been processed, your relationship manager will be issued with a 'safe to lend' and funds will be made available to you. Your solicitor can then complete the mortgage and deal with post completion matters, including registering the mortgage with the Land Registry.
Things you can do at the outset:
We find it comforting when a client's bank and accountant are specialists in the Agricultural Sector, knowing that they are receiving proactive advice from experts in the discipline. In the same way we hope that our specialist knowledge in dealing with the financing of agricultural property will allow the transaction to proceed with minimal fuss. There are often complications peculiar to agricultural property and we always seek to find the simplest, quickest and most effective way to achieve a speedy conclusion.
We produce a range of insights and publications to help keep our clients up-to-date with legal and sector developments.
Sign up