bernard
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Post by bernard on May 13, 2016 11:37:14 GMT
The land portion of the Newark listing (ie not the farmyard area etc) seems to be valued at 10k per acre. Obviously land values are highly specific to quality, location etc but I just thought I would throw out a couple of broad brush observations. Average price of farmland is claimed to be around 8k an acre at the moment according to KF, and seems to be in the process of dropping. Furthermore premiums seemed to have been obtained for farmand in large blocks,as opposed to smaller parcels. That said, the valuation report does note some recent sales of 'micro plots' which have achieved significantly higher figures. The plot is noted to be somewhat irregular. Is there anyone out there with knowledge of the farmland market that would care to opine on the valuation used here?
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Post by mrclondon on May 13, 2016 11:49:04 GMT
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mikes1531
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Post by mikes1531 on May 13, 2016 13:28:30 GMT
The problem for me is the fact that part of the site has been valued at £20k per acre.
15 acres at say £9k might represent a more realistic 90 day fire sale price. Even at £9k/acre, though, the total price would be £135k, and that ought to be just enough to repay investors in full, including accrued interest and FS fees. Presuming, of course, that it could be wrapped up in 90 days. That's probably unrealistically optimistic. On the other hand, if the borrowed money is used for the proposed construction, it might enhance the property value. And if the money wasn't spent because the borrower was waiting for a planning decision, the borrower would be able to repay the loan, though not the interest and fees, which would have to come from elsewhere (options include the sale of the property in its current state). Then again, if the borrower is waiting for planning permission before deciding whether the stable block will be a stable or a residence, why borrow the money and start paying interest now? Why not wait until they know what they're building?
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