The community of a small Scottish island must raise £1 million over the next 2 1/2 years to pay back some of the public money granted to buy the outcrop, it emerged yesterday.
Residents on the Isle of Gigha, which lies off Argyll on the west coast, learned late on Tuesday that they had been successful in their community bid to buy their home despite not making the highest offer.
All but £250 of their £4,000,250 sterling bid came from public funds and now the islanders must set about the task of paying a quarter of it back.
Champagne corks popped after news of the sale was announced. But as the celebrations died down, the community revealed details of the finances behind their new beginning.
It is understand that selling agents FPD Savills received four bids for the 3,400-acre island after it was put on the market by the owner, Mr Derek Holt.
The highest is understood to have been close to £5 million. However, Mr Holt chose to sell to the islanders, who formed the Isle of Gigha Trust to make the bid. The community received £3.5 million in funding from the New Opportunities Fund's Scottish Land Fund programme and £500,000 from the Highlands and Islands Enterprise's Community Land Unit. A further anonymous donation of £250 put them over the £4 million mark.
Now the islanders must begin raising cash to repay £1 million to the Scottish Land Fund within two years from next March, when they officially take on ownership of the island.
At least £200,000 of that figure must come through their own fund-raising, while the rest can be raised through their business development plan.
Today a spokesman for the islanders, Mr Willie McSporran, said he was confident they could raise the cash.
He said some pledges of money had already been received the islanders would try and raise more through approaches to businesses, ex-residents and organisations. He added: "We are delighted we have got the island's ownership. However I would emphasise very strongly that we have to make the island work."
"We have a target to get to and I am sure we are capable of doing so as we have the support of the whole community." Some money is likely to be raised through the sale of island assets such as Achamore House.
However, there are no plans to sell the gardens which are considered a major tourist attraction.
The seven directors of the Trust will meet shortly to discuss the way forward. Mr McSporran said: "Consideration will be of selling the house, not the gardens. I have no intention of selling them but number one will be the house. In the longer term he said that the 110-strong community would like to see improvements to the island's cottages and more farms being established there.