Lessons learnt in the refinancing of a farming partnership

The Commercial Property and Private Client team work together on the refinancing of a farming partnership in which the majority of the land to be charged was unregistered and had devolved by deeds of gift and testamentary disposition to the current partners.

The transaction involved unpicking the devolution of title, working out the effect of the will trusts and preparing a statement of truth evidencing devolution before being satisfied of our ability to confirm to the bank that first registration would be successful. Further complication arose when it appeared some of the other registered titles were still registered to deceased grandparents.

Lead partner, Penny Edgar, notes the lessons to be learned from this transaction are to persuade clients to submit voluntary registration applications following devolution on death and while the position is still clear in everyone’s mind. In this instance, the lack of registration delayed the refinancing for over 2 months and the clients regretted not having registered the land years before.