Farm Loan vulture fund

Fireside Solicitor

Any advice gladly on this one. Neighbours cousin helped her uncle for years on the farm and the man died last year with no family. The cousin got the place in the will about 90 acres, bad cottage and 40 bullocks and no one has any problem.... but there is a loan on it to a vulture fund and they are kicking up now.

To pay the fund mean selling about 40 acres and he’d be left with 50 and the stock. The man is 60 and hasn’t much else and is a decent skin. He can’t face the hassle with the vulture fund and he can’t bring himself to sell the 40 acres as he thinks there will be problems down the road with whoever buys it.

Anyone any experience of having to split a farm - he is saying he would prefer to sell and buy land on his own but sure that’s the same problem all over. Any practice advice appreciated.

Separately it is shocking to see the pressure and behavior of these vulture funds. Fair play to NAMA for letting them loose.

cute geoge

IT must be a sizeable loan if it will take 40 acres to pay it off .

Fireside Solicitor

The original from what she tells me was about 180k he used to buy some of it off his brother way back as was a row in the family. He then lost his job in the bad times and between interest on interest and solicitors bills it’s up at about 300k at this stage and going one way.

_Brian

Why would he think there might be problems with whomever buys it ??

His choice seems sell the 40 or wait and the vulture fund will sell the lot.

Has he contacted them to see what payments could work or are they just looking for settlement ??

Fireside Solicitor

Am getting this second hand but they want the 300k to walk away. The solicitor is owed another 10k for dealing with them. The Land isn’t great and she had an auctioneer look at it and he knows the score so whether he can be trusted or not don’t know.

The job now is convincing this man to let it off.

I told her it was fairly simple put up a good fence and get the maps redone with a surveyor and land registry and that’s it. He has some stupid notion that he will be selling to a trouble maker who will be making his life difficult down the road.

_Brian

Sounds like this guy has his head as deep in the sand as last owner.

If the debt has accrued to this stage then letting some land go may be the solution.

Mooooo

I'd say get his own solicitor and accountant. If the the original loan was secured on land etc there is likely to be insurance on the loan also. The estate would have paid out any remaining debt or made provisions for it. I dunno doesn't quite add up

duffysfarm

Separately it is shocking to see the pressure and behavior of these vulture funds. Fair play to NAMA for letting them loose.[/QUOTE]


to be honest its hard to agree with this in this case in particular. some one borrowed money, gave land as security and now the bank is looking for repayment of the loan. this is how business works and as far as i can see from reading the opening post no one is losing their home or home farm. if some one gifted me a farm of 90 acres with some cattle and it meant i had to sell some to pay of a bank that was owed the money i would not be crying about it

wrangler

He'll probably lose the agriculture relief concession on the forty acres as well , as he won't be keeping it for six years, so might have to sell more land to pay the tax

atlantic mist

go to a bank and refinance loans and pay of the investment company (vulture) fund off

lease out land (guaranteed yearly income), sell stock to help reduce loan

loans are passed on just like assets

300k for 90 acres- some deal

A good solicitor and an accountant who specialises in farming is what’s needed. As another poster has said, inheritance tax will also be a problem.

The loan could be a smaller problem than the tax!