Full Description
Farm Sale and Leaseback with Buyback Option
Type
This is a large, up market farming estate comprising of cottages, traditional farm buildings along with 300 acres of land.
Situation
This client needs to sell 100 acres of land to rent back over 10 years at 30% discounted terms with an option to buy back at the same 30% discount to Open Market Value.
Numbers
Approx valuation £6k/acre (subject to valuation report)
100 acres = £600k
Purchase price 70% = £420k approx.
10 years FBT @8% of purchase price
=£33,600 p.a
Exit
Grant option to buy back at 50% of term FBT or before expiry of 10 year FBT for 70% OMV (subject to valuation report), thereby offering capital gain opportunity.
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