Lincolnshire test for let arable farm market

A productive arable farm with a lifetime tenant is set to test the investment market in Lincolnshire.

Summercroft and Oxmarsh Farms at New Holland near Barton upon Humber has 388 acres of level Grade 3 land in large field sizes of up to 116 acres. It lies on the south bank of the River Humber, close to a port handling bulk cargo and timber.

The lifetime Agricultural Holdings Act tenancy is on a full repairing and insuring basis at a current rent of £24,500 a year.

Two detached three-bedroom dwellings are included – the farmhouse and a bungalow, with the latter sublet on an Assured Shorthold Tenancy. The land is drained by a network of dykes on Newchurch 2 soils.

This is a deep stoneless calcareous clay soil, carrying a wheat and oilseed rape rotation.

The guide price of £1.5m puts the farm at 55% of vacant possession value and is expected to attract long-term institutional investors or an individual looking for an inheritance tax-free home for cash, said Strutt & Parker’s Charlie Evans.

“The guide price is £1.5m – you can’t get a 388-acre arable farm anywhere in the country for that,” said Mr Evans.

Farm buildings include grain storage and general-purpose buildings, a five-bay steel portal frame building with cladding and a concrete floor, a dutch barn, former pig housing, a chemical store and a traditional brick barn.

The single payment entitlements are owned by the tenant and are not included in the sale. (Strutt & Parker 020 7629 7282; J H Walter 01522 504 304)

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