Landowners advised to take advantage of low interest rates before it’s too late

2013 brought about some significant opportunities for landed estate owners and many have exploited these with very positive results. The opportunities are still there in 2014 and this could prove to be another exciting year if landowners are willing to grasp the nettle and push projects forward according to Giles Dobson of property agents Bidwells.

‘The Bank of England base rate is still at a very low level and this has translated into extremely low borrowing rates for many landowners. Property developers and small businesses may still be struggling to secure cheap borrowing. However, farmers and landowners are seen as relatively low risk and our experience has shown that, with the right advice, they can benefit from some incredibly cheap rates of borrowing. Landowners can also fix their rate of borrowing for five or even ten years, giving them security as to what their monthly repayments will be’ adds Dobson.

He continues, ‘clearly borrowing for the sake of borrowing, or borrowing to fund cash flow is ill advised. However, strategic, planned borrowing to fund a diversification project, property development or a land purchase should not be dismissed. It can also form part of a sensible Inheritance Tax Planning Scheme for landowners.

‘The recent changes in permitted development rights will also lead to significant opportunities for landowners and its consequences should not be underestimated. Likewise, a rising residential property market in many parts of the country and a much more buoyant economic outlook is presenting some very exciting opportunities.

‘So, 2013 was good news for many – with some proactive thinking, the right advice, and the ability to grasp that nettle, 2014 could be even better.’

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