Farmland bucks trend and fuels surge in short term loans
Lucrative farmland snapped up by property developers during the second half of 2010 has fuelled a boom in short term loans.
There has been a rise in the number of clients looking to increase their land banks through the purchase of farmland and quick access to cash is the key dealmaker, say national lending experts at Bridging Finance Limited.
The cost of farmland has been rising over the past decade with demand from non-farmers outstripping supply. Property consultancy Savills reported farmland prices per acre have shot up by 120 per cent over the past five years.
Manchester based lender Bridging Finance Limited has seen a surge in interest from developers who need a bridging loan to buy farmland.
Chris Baguley, managing director of Bridging Finance Limited, said:
Weve always focused on lending to clients of lawyers and accountants who need money quickly to fund a deal or a property investment. In the second half of 2010 weve seen a rise in the number of developers who need quick access to cash to buy land from landowners seeking a quick sale. Prices have been driven up by investors and lifestyle buyers. This trend is set to increase as farmland is bucking the trend and is like gold dust.
We recognise the true value of land and were often able to make up to 100 per cent funding available with supporting security. Were happy to lend on land with or without planning permission or agricultural restrictions.
This flexible lending criteria is appreciated by the market and has helped us grow our business in a climate where cash is king.
In the last 12 months, Bridging Finance Limited has forged deals on behalf of law firms and accountants including UHY Hacker Young, Pannone, and Berg Legal.