8 October 1999

Take advantage of subsidies

MAKING use of the subsidies available enabled the vendor of an 859 acre estate in Scotland to generate an income which represents about a 6% return on the guide price of £950,000 for the whole.

"Moving from Yorkshire to the estate in 1993, the vendor has turned the unit from a dilapidated set-up to a profitable business which benefits from some excellent amenity," said Jon Lambert, John Clegg & Co.

Income at Forgandenny, near Perth is generated through numerous enterprises. Five cottages are let for holiday use or on assured shorthold tenancies for a figure in the region of £25,000/year.

About half the acreage on the estate is under trees with substantial new planting undertaken in 1994. Entered into the Farm Woodland Premium Scheme just under £20,000 is received in payments each year for another 10 years.

The woodland provides the basis for a pheasant shoot which is currently let to a syndicate for £4000/year. About 30 Roe deer are shot annually which is worth £2000-3000/year and two trout lochs are used for duck flighting

Agricultural enterprises include a flock of 540 ewes which graze the pasture, half of which is hill. The subsidy raised from the sheep totals £15,000/year.

Mr Lambert has lotted the estate into eight, which include the five-bedroom farmhouse with planning permission for an annexe, two ranges of farm buildings and 257 acres of woodland and pasture guided at £470,000. Most of the hill ground and some young and mature woodland, 550 acres, which is valued at £335/acre and a pair of cottages guided at £150,000 for the pair. &#42