Gigha islanders set to land interest windfall

Published on Sunday 27 April 2003 01:00

THE residents of Gigha are on track to repay the £1m loan that allowed them to buy their island, and earns thousands of pounds in interest on the deal.

The islanders bought their seven-mile long island off the Mull of Kintyre last year with a 4.2m windfall from the government’s Land Fund.

But a condition of the buyout was that they repaid 1m in two years. In an effort to raise the money the islanders sold off some ground which has brought in more than 500,000. The sales have included six sites for islanders to build their own homes, the sale of land to a local housing association for affordable homes to rent and selling additional land for islanders to build cottage industry craft units. The 88 residents on God’s Isle, as it is known in Gaelic, have also raised more than 110,000 in a series of fund-raising events.

Next week, Achamore House, the huge mansion at the centre of the island, will go on the international property market. With an asking price of offers over 600,000 the sale of the mansion will take their total cash in the bank to well over 1m. But the government loan is not due to be repaid until March 15 next year so the islanders’ growing bank balance will bring them 30,000 interest at least.

Yesterday, Alan Hobbett, the islanders’ development officer, said: "We expect considerable interest in the sale of Achamore House and four acres of surrounding land. We are asking for offers over 600,000 but have advised it could sell for much more than that. Since the people of Gigha took over the island the airstrip has been maintained for light aircraft to land which will no doubt be an added attraction to some buyers.

"The income from the sale of land, the sale of Achamore and what the islanders have raised themselves will take us over the 1m we have to repay. But because we expect Achamore to be sold by the autumn, we should have at least a million sitting in the bank for about six months earning interest."