Professional Services Spring into action ahead of 2021
farmland sales season • Take action to ensure good position
• Make sure documentation is to hand
• Prepare information ahead of time
F
armers looking to sell agricul- tural land in 2021 are advised to act now to capitalise on the
spring sales market. Now is the ideal time to begin prep-
arations and iron out any potential pro- belsm to ensure an effective launch fol- lowed by a smooth sale, says Andrew Fallows, head of rural agency at land agents Carter Jonas.
“That will put you in a strong po- sition to move quickly when buyers become more active and other land becomes available. If you don’t plan, you may miss opportunities and the process can be drawn out over many months. “We are already seeing prospective
clients who are planning to sell in the spring rather than this winter, so the market could become busy and those who have prepared well will be in the box seat.”
Prepare early
A big merit of early preparation is the ability to showcase farms at their best. Photographs can be taken while the landscape still looks green and leafy which will help design an attractive set of particulars to showcase the prop- erty.
Mr Fallows says time should be al-
lowed to appoint a strong sales and le- gal team – and to begin gathering infor- mation about the property in advance of marketing. Early discussions with your accountant are also vital to fully understand your tax liability. “Having the right people advising and ironing out any issues will put you in the strongest position to proceed,” he says. “This includes preparing informa- tion ahead of time, such as creating a legal pack.”
Farmland should be photographed when it is at its best
Starting early also gives sellers the opportunity to work with agents to add value. “Thinking ahead and actually securing planning permission on re- dundant buildings, for example, can un- lock signifi cant and immediate value.” As well as buildings, investigating the potential for mineral reserves and renewable energy diversifi cations pre- sent opportunities to increase market value. “These things take time but are well worth it,” says Mr Fallows.
Common pitfalls
Four common barriers must be avoided or overcome to en- sure a hassle-free sale. They are overage negotiations, bor- rowing applications, back- ground information and the title position of a farm.
Providing buyers with Ru- ral Payments Agen- cy plans,
entitle-
ment statements and environmen- tal stewardship agreements in a data room saves time in the due dil- igence process too,
Andrew Fallows expects the farmland market to
become busier.
says Mr Fallows. Farms not registered with the Land Registry can also put the brakes on the process and a tightening of borrow- ing rules is also contributing to slow- er transactions where mortgages are involved.
Lengthy searches
Solicitors carrying out necessary searches can also delay a sale, with some taking up to 12 weeks to be re- turned. That said, while Covid and Brexit have created market uncertain- ty, next year is likely to present some opportunities for sellers.
“With a delayed budget from the Chancellor, we are in a period where the tax environment at present is set- tled so buyers and sellers know where they are. This, in itself, is a compelling reason to progress a sale or purchase,” says Mr Fallows.
At the same time, the govern- ment’s clear intention to use support environmental measures on farms means diversifi ed
businesses
and those with varied landscapes or features will be well-placed to continued on p26
DECEMBER 2020 • MIDLAND FARMER 25
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