Retiring Tenant Frees 500-Acre Dorset Holding

02 July 1999

Retiring Tenant Frees 500-Acre Dorset Holding

SUCCESSFUL negotiation between the landlord and tenant brings more than 500 acres in Dorset to come to the market with vacant possession.

“The tenant wanted to retire and both parties got together and agreed a formula for the sale of the farm,” said Mark Grimes, Carver Knowles handling the sale jointly with FPDSavills.

Hooke Farm, near Beaminster, has the capacity for about 400 dairy cows in two units although currently 180 cows are milked with one range of buildings unused. By separate negotiation 1.5m litres of milk quota are available.

However the 530 acres of land, which include about 40 acres of semi-natural ancient woodland, is all ineligible for arable area aid and David Cross, FPDSavills values it at under £2000/acre.

As a whole the farm is guided at offers in excess of £1.3m but the agents also have lotted up. The lots include the main residential element, a period four-bed farmhouse, a range of traditional farm buildings and some paddocks, and both dairies apportioned with some land.

Also Mr Cross maintains that a number of farmers in the Home Counties are selling units with good houses to the residential buyers from London and buying a larger farm further west.

“In parts of Hampshire land is achieving up to £3000/acre with the 100-150 acre farms going to residential purchasers if they are in the right location,” he said.

Having agreed a sale and leaseback deal on about 830 acres, the majority of the Hanford Farms, Dorset (Land and Farms 5 Mar), Mr Cross now is offering East Farm, Hanford guided at offers in excess of £800,000. The 217-acre dairy farm includes dairying facilities for 150 cows and a pair of cottages.

In Somerset, David Hebditch, Humberts, maintains that the rising residential market often continues to prop up land values.

“We have more than doubled the number of non-agricultural buyers on our books in the region. A number of cash buyers are looking to change their environment including working from home. They see land in the west country as quite cheap compared to a house in Sussex.”

Now he is bringing on a number of units which traditionally would have come to the market two months earlier but uncertainty held potential vendors back.

These include three units averaging 300 acres. Near Liskeard, Cornwall, Liggars Farm a commercial 200-cow dairy unit is guided at £750,000. Hittesleigh Barton, near Exeter, Devon is a mixed 297-acre residential/commercial unit. The former dairy unit includes a five-bedroom farmhouse and 60 acres of woodland, guide price £680,000.

Also offering some alternative income potential Thorn Farm, Holsworthy, Devon includes 10 cottages suitable for holiday lets. The very well equipped dairy unit with two houses and a cottage is guided at £1.2m.

Also at a recent auction in Devon, Edmeston, near Modbury was knocked down at £760,000, auctioneers Luscombe Maye Hands Hughes quoted a pre-auction guide of £650,000-800,000. The 147-acre grass and arable unit included a period farmhouse and a range of traditional farm buildings.

The firm is taking Higher Chilley Farm, East Allington, near Totnes to auction in late July. The 118-acre farm includes a five-bedroom house and two blocks of accommodation land. It is for sale in three lots and the firms Charles Wreford-Brown said: “It is likely to interest those seeking a small farm and local farmers wishing to purchase land.”

HEADLINE: Factors Push Up Land Values

TEXT: COMMERCIAL farmland in the right location is strengthening in value as local farmer demand improves and amenity holdings in some areas are rising in value and returning to levels achieved two year ago.

“An acute scarcity of land for sale, low interest rates, a strong agricultural balance sheet and strong demand from non-farming purchasers is improving land values in these markets,” according to the recently published FPDSavills agricultural research briefing.

International

However in a wider context the survey of international farmland values shows that while the average value of British land peaked in 1997, it remained below the levels found in the industrial heartland of Western Europe, where pressure on land use is greatest. (see chart)

A contrast in value continues between the Western European countries and the Central and Eastern European countries (CEECs) which should reduce if farm profitability increases in the CEECs.

“Even if this profitability remains lower than in the EU countries because direct support is not paid on the same basis, convergence of economic conditions should be a powerful force for convergence of land values,” said Mike Bullen, FPDSavills research.

HEADLINE: Bare Land In Leics – Mixed Sale Results

TEXT: ABOUT 500 acres of bare land in Leics offered for sale by auction recently in three lots achieved mixed results.

Between Melton Mowbray and Oakham (Land and Farms 14 May) the grade 3 land was for sale due to retirement.

Lot one, 297 acres at Stapleford was knocked down at £2400/acre, following bidding from two main parties acting on behalf of neighbouring traditional estates.

“The land is likely to be let on a farm business tenancy,” said auctioneer Martin Shouler, Shouler & Son.

Next 61 acres at Whissendine sold to a neighbouring farmer for £135,000 (£2231/acre).

However 138 acres at Cold Overton was withdrawn having failed to make the reserve and negotiations are ongoing for a private treaty sale.