Renting out farmland surrey / hants how much per acre ?

[phib]

I am looking at a house at the moment that has 80 acres of grade 3 grassland that if I buy I would like to rent out for circa 10 years. It has some good quality farm land and was run as a succesfull sheep farm until renently.

It is based on the Surrey / Hnts border, does any one have any ide what I might be able to rent it out for ?

Thanks
Phib

[netherfield]

Minimum of £40 per acre,then it depends on what sort of tenancy you agree i.e. who is responsible for the walls/fencing repairs and gates,who pays if it needs reseeding in the near future.

A lot depends on who needs land right now

Don't get into a full agricultural tenancy agreement or you may be stuck with the farmer forever.

And don't forget this is classed as unearned income and Mr Brown will want his slice of the pie,although maintenance can be deducted against tax.


Advice from a local letting agent could be your best bet.

Edited by netherfield on Thursday 23 July 16:50

[phib]

Forgive my ignorance but I assume it is £40 per month ?

Thanks for the advise

Phib

[mechsympathy]

phib said:

I am looking at a house at the moment that has 80 acres of grade 3 grassland that if I buy I would like to rent out for circa 10 years. It has some good quality farm land and was run as a succesfull sheep farm until renently.

Aren't there regulations for buying farms that mean you actually have to farm it?

[C Lee Farquar]

Only if it has an agricultural tie, which are mainly on modern houses.

[netherfield]

Per annum.

Agricultural land is not a money making project re rental,it's more a case of buying and hanging on until it increases in value.

I bought 25 Acres @ £1100 per acre 7 years ago as an investment,now worth between £4000 to £5000 or if split up for Horse people maybe £10,000.

It has a sitting tenant with a full agricultural tenancy,this ceases when he either dies or retires,he cannot pass this to his family of which he none anyway, or sell the tenancy.

The tenant has intimated he will no longer require the land within the next 2/3 years because he is barely making profit and can see no future in farming.

The original buying price would have been about 3 times as much without the tenant.

This is in Yorkshire so your situation could be quite different.

Edited by netherfield on Thursday 23 July 22:37

[wiffmaster]

We have a grazing agreement with a local farmer. He has access to around 70 acres of grassland and only pays around £3000 a year. This is in commuter belt area in the SE. Grazing rights only mind, we still have full access and all other rights. After tax and fencing repairs it barely washes its face. The main advantage is that the cows act as organic lawnmowers; hence we don't have to spend £1000s getting the grass cut each year!

As a rental prospect farmland is pretty crap. The returns when you calculate cost-to-purchase against cost-to-rent are shocking. The prospects as a long term investment, however, are rather better...

Edited by wiffmaster on Friday 24th July 01:16

[mechsympathy]

C Lee Farquar said:

Only if it has an agricultural tie, which are mainly on modern houses.

So have many farmers flogged off the old farmhouse and built something new then?

[Trommel]

mechsympathy said:

So have many farmers flogged off the old farmhouse and built something new then?

Yes, and if they haven't the estate that owns it often has.