This 4-bed bungalow farmhouse smallholding for sale is a great opportunity for a family wanting to bring a dated livestock farm back into modern operation.
Based in Monmouth, Monmouthshire, Wales this is a dairy farm in need of a new owner and is on the market currently for sale (December 2020).
The bungalow
The property is generally described as being in good condition but in need of a little modernisation.
The bungalow farmhouse residence was built around 25 years ago.
(This investment prospect is open only subject to an Agricultural Occupancy Restriction.)
There are 4 bedrooms (1 master with ensuite) and a family bathroom. Again, this would be an advantageous set-up for a young family.
There is panelled radiator heating throughout and a fireplace in the living room (gas-fuelled).
Adjacent to the bungalow is a double garage and a lean-to store. Lawned gardens also sit beside the property.
Buildings
The farm buildings are plentiful and diverse, ranging from a traditional stone barn with driveway to implement stores, covered yards, shed, stables and milking parlours, plus more…
…effectively there are MORE THAN sufficient outbuildings to supply the needs of a livestock farm of this size.
Land
The land forms an ‘L’ shaped course surrounding the property, the bungalow being positioned in the corner angle.
7 plots in total comprise the smallholding spanning some 50+ acres with roadside frontage along the entire length.
The land is mostly pasture and naturally fertile clay loam. (It could also be converted into arable)
The ‘hook’ of the ‘L’ shape cups a neighbouring campsite which has an interconnecting track leading to the bungalow.
What could it be used for?
The property is a livestock farm and is without any existing consents for change of use.
However, there is this development uplift clause within the small print.
The clause entitles the vendor to receiving money from the buyer if there is an increase in property value, usually within 25 years of the transaction.
The vendor can in some cases receive as much as 50% of the uplift upon the granting of planning consent.
In many cases such as clause can outstrip the potential benefit on offer to the buyer – and if ‘seen late’, can really scupper the value of the investment.
In which case, this property is probably best acquiring for continuing as a livestock farm – subject to modernising the buildings.
The price?
£650,000 (Guide)
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This is a very diligent review. The Uplift or Hope clause is probably a deal-breaker on this property because so much genuine hard work will need to be invested to make it viable. The contracts for this property will require careful negotiation and scrutiny to ensure that a realistic price is paid and the buyer’s eyes are truly wide open when proceeding with a sale.
The Uplift clause will need to clearly lay out its triggering mechanism, percentages due, the duration for which the clause remains active on the purchased property, and how payment should be made.
This isn’t as easy as it seems as these clauses can remain active for over 80 years! 😱😱😱
Also, they can kick in at the moment you get planning permission, meaning you would have to cough up the cash within 28 days!
They can be a real recipe for contention and of course, you will need skilled negotiation in your interest to vary this clause, set it aside, or reduce the selling price.
If you are interested to know what is exactly going on with this mysterious clause, you can probably see it published in the Land Registry documents.
Not the greatest incentive, but if you are going to run a basic dairy or mixed arable farm, working with what you have got then this could be an opportunity.