While the industry has faced the challenge of finding valuers to visit properties during the lockdown period, UKAF’s ability to lend against agriculture land makes social distancing easier to maintain.
Some loans are proceeding based on a mix of red book valuations on land and barns, with an estimate on farmhouses.
The recent £260,000 loan was provided to borrowers who own a substantial farm with acreage, woodland, tenanted cottages and had a good track record of servicing debt.
The farm also includes 400 cattle and around 2,000 sheep.
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The specialist lender was able to offer the loan at 38% LTV, by negotiating with the borrower’s main, long-term lender to release part of its security over a couple of fields for UKAF’s first charge, topped up with a second charge against the remainder of the farm.
Louise Old, head of businesses development in the north east and Scotland at UKAF, commented: “We are thrilled to be able to assist our clients during lockdown and it is testament to our commitment to help the rural and agricultural communities across England, Scotland and Wales and our ability to commit capital to new loans during these challenging times.”
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