Mixed farm mortgage finance for three holiday let conversions

Having had a positive experience working with Rob Lister at R&BS in the past, our client looked to him for help once again for help securing a mortgage for a holiday-let development. 

Due to shifting lender appetites and bank managers with limited understanding of farming and diversification, our clients' high-street bank rejected their funding application for a holiday-let development.

Robert and Richard Vant, and Richard’s son, Roger, farming a total of 500 acres on the North Downs in Kent. They run successful arable, 200-head of beef and over 400-head of sheep enterprises.

The project

They were first introduced to Rob Lister in early 2021, when they bought 25 acres of land the family had rented for the last 20 years. Sam Snart from Hobbs Parker represented the Vants, while Rob assisted in restructuring a mortgage and obtaining funds for land acquisition.

Their next project was to secure planning permission to convert three holiday lets on the farm, to allow the income to supplement the loss in farm subsidy payments. Their bank initially agreed in principle the further loan, but then their appetite changed. 

The challenge

Rob had kept in touch with the family since working with them in 2021, and remembering how helpful he had been then, Rob was the first port of call for the Vants to help find a new lender to continue the development project.

Rob says,

“Over the last 20 years in the industry, we have seen bank managers come and go, and bank lending appetites and policies change across all banks and lenders. In the three years it took to proceed with the development project, the Vants had seen two changes of bank manager  - with neither visiting the farm to see the operation and meet the Vant family - together with the increases in base rate. The existing lender went from a favourable position to lend to a straight decline.”

Our solution

Rob says,

“The Vants needed a new banking relationship with lenders who would understand their farming system, understand the way the business is developing and consider the new income from the holiday lets. We requested a staged drawdown to fall in line with the builders’ estimated plan of action, with 50-acres of additional security only being used for the build phases. We asked for 18-months interest-only to allow for a Spring 2025 launch, followed by a capital and interest facility for as long as possible under lenders’ policies.”

Putting a careful presentation, with updated figures clearly defining the existing and potential income, to the whole lending market, Rob again found a solution. The new lender is restructuring the existing mortgage facility from the previous bank, funding the development and providing a working capital overdraft facility. The new lender took the time to visit the site and to meet the Vants and Rob, so they could fully understand the business and its potential.

Robert Vant says,

“We met through an introduction from Sam Snart of Hobbs Parker nearly four years ago. Rob has been with us ever since, offering a first-class service in funding the purchase of land, and then the development of our three holiday lets. He remained with us while our bank's support waned. It is good to know that he is independent and, on our side, when looking at finance options."