John Amos & Co

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Sale and Leaseback

Last updated: Thursday, 4th April 2013, 14:02

It's some time since we made a sale of a farm on 'sale and leaseback'.  It does, however offer an excellent opportunity to realise serious capital for a landowner if required.

We all understand that a farmer's largest asset is virtually always the farm and of course during lifetime this is usually never realised.  There are any number of reasons why someone may wish to realise the equity of the dreaded "three 'D's".  Death, divorce and debt often strike first to the mind, but helping the children or family, diversification of interest or family or partnership division also often feature high on the list.

So how does it work?  A sale and leaseback introduces a cash buyer, who purchases the freehold and agrees to lease it back in whole or part to the owner, who continues to farm the holding whilst benefiting from the capital generated from the sale - simple!

More to the point it works!  We have an example of a 350 acre farm sold on such an arrangement 11 years ago.  The owner needed to satisfy the bank, but with no successor was happy to sell the farm and lease it back - a most harmonious arrangement that has continued to this day.

Whilst this arrangement may not suit everyone, it is extremely beneficial to a few.

Now for the good news!  If you have a landowner that might be interested in sale and leaseback, we have cash buyers waiting for such arrangements.  To investigate further, call John Amos FRICS FAAV on 01568 610007 for a confidential discussion and without obligation.

Sale and Leaseback

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