'Mixed-use' rate - Stamp Duty Tax
Jack Keats | 06.03.2019
15.12.2017 Kerry Dovey
We all know farmers don’t like selling land to release capital. Re-financing is often the better option to raise cash to invest in your farming business. Whether it is to buy more land or convert redundant buildings, allowing a bank to take a charge over your assets is an obvious choice to release funds.
Having been in practice for over 15 years, I often find clients are puzzled as to why their solicitor has asked them so many questions about their farm, especially if they have lived there for generations. This is, I believe, because many landowners don’t necessarily understand the process required for charging their land to a bank.
This article gives an overview of the procedure that solicitors must undertake before those important draw down facilities are available.
If a bank takes a charge over your property, your solicitor will be instructed by not only the landowner but also in most cases by the bank as well. There are strict regulations a solicitor is required to adhere to and the process is akin to if you were buying your farm for the first time. Unfortunately, the fact that you have been in occupation of your land for many years is of no comfort in the security process.
Your solicitor needs to check the legal title, carry out searches and raise any enquiries with you to clarify any issues which a bank may not be able to lend on. Some of the common issues I have encountered in carrying out security work over farmland are as follows:
Following the completion of a charge, it will then be registered at the Land Registry or, if your property is unregistered, it will trigger a first registration at the Land Registry. If you are taking out a charge in the name of a company, it must also be registered at Companies House.
The rural services team at Moore Blatch is highly experienced in dealing with landed estates, farms and land, so we are adept at making the process of charging your property to a bank as painless and as stress free as possible.