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The IPD (Investment Property Databank) Let Land Index measures total
returns to direct investment in tenanted farm land, the index shows
5 year (1997 – 2002) annualised total returns of 10.5%, with particularly
impressive returns of 19.5% in 2002.
Our consultants have wide ranging experience in dealing with agricultural
land and buildings investment for a number of uses. In many cases a
hands on approach is essential in agricultural investment funding and
we will be happy to visit the site of investment to get a better idea
of the mortgage rates and terms that are achievable for a particular
proposition.
The tenant will be the main influence in the funding decision and the
better the quality of the tenant the better the terms of the commercial
investment mortgage.
Investors wishing to purchase an agricultural property can expect to
pay Bank Base Rate + 1% to 3%, at a loan to property value up to maximum
of between 75% and 100%.
The maximum term of an agricultural commercial investment mortgage
will tend to be 25 years.
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