Arable farm purchase

Since David Chennells’ father bought the 60-acre Highlands farm in 1947, the farm has grown to 1,000 acres. David took on the farm in 1970 and is keen to leave a farming legacy for each of his four daughters. 

When nearby Montpeliers Farm came on the market the family knew that it would help achieve that aim.

The family’s land agent recommended R&BS

David now farms with one of his daughters, Janice. To finance the new farm purchase, their land agent Tim Cooper of Whirledge & Nott advised they work with Rob Lister at R&BS. Rob could look at a finance options from several providers to make sure they found the most suitable and most competitive deal.

Mr Cooper said: “We’ve worked with Rob on a number of occasions. We choose him because he is independent of any banks or lenders. He has a proven track record of tailoring agricultural loans to individuals and their businesses and constantly achieves great results for our clients.”

The family needed a long-term capital and interest repayment mortgage that was not only competitive on fees and interest rate margins, but which also gave them flexibility for the future. No early repayment penalties and few covenants were therefore an essential consideration for any bank offer.

R&BS prepared lending proposals, approached banks and negotiated offers

With only one month to secure an offer, Rob prepared a detailed lending proposal and using his knowledge and experience in the agricultural lending market, approached five of the most competitive banks. 

Four of the banks returned quickly with indicative offers, and with the personal relationship with the lender also being a key driver for the family, Rob and the Chennells met with each of the four bank managers. Rob looked at how the lenders met the Chennells’ needs for competitiveness, flexibility and a good banking relationship.

David Chennell said: “Each bank’s terms and conditions needed deciphering, so we could be sure we were achieving the most economical solution for the business. Rob’s expertise was a great help in securing the right deal for us.”

As a well-established business, with an excellent spread of income, demonstrable serviceability and a firm asset base R&BS were able to negotiate on the bank offers. We secured a mortgage deal with the Chennells’ existing bank but with a more competitive margin, reduced fees, fewer covenants and a longer-term commitment than they had originally offered.