This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first rank mortgage on the real estate “Kalna Tirznieki”, located in Jaunpiebalgas parish, Cēsu region forCēsu rajona Jaunpiebalgas pagasta zemnieku saimniecība "JAUNKLEIVAS", registration No. 49501000016. The funding target for this project is € 10 700.00, which will be used in order to obtain working capital.
This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 46%, loan term of 24 months, with monthly manner of interest payments and full repayment of the principal at the end of the loan term.
The collateral consists of a land plot with a total area of 12.2 ha consisting both of agricultural and forest land. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 21 400,00 will be registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt free.
The current market value of the collateral is estimated at € 23 400 subsequently making loan to collateral value ratio (LTV) - 46%.
The demand for agricultural land currently in Latvia exceeds supply and 25% of farmers are forced to rent the land, as there is none available on the market. The price of agricultural land plots in the parish of the collateral ranges from € 1 750 EUR per ha to € 2 600 per ha. The average price of forest land keep increasing, on average being € 2 140 per ha.
The Borrower has been operating since 1991 and is engaged in growing of crops combined with farming of animals (mixed farming).
Borrower aims to repay the loan from incoming business revenues. For additional guarantee the owner of the farm is giving a personal surety in the full loan amount.