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Does an LPA allow a donor to increase partnership borrowing on agricultural land?
Resource type: Ask
Published on 20-Mar-2017
I am acting on behalf of the owners of a parcel of land which is subject to an existing charge. The title is registered to three farming partners, one of whom has lost capacity. The three farmers wish to take further borrowing for the benefit of the partnership. There is in place a registered lasting power of attorney (LPA) in favour of the owner who has lost capacity and I would therefore assume that an order of the court of protection would be needed in order to consent to the charge. Is this the case? I would have thought that it would be possible to release further funds under the terms of the existing security - is this so? The lender has explained that the first charge pre-dates the Agricultural Tenancies Act 1995 - please can you confirm how this would affect the bank's security. Is there any way around the court of protection order as this will delay matters?
Anonymous (Private practice)
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