Agricultural Law and Valuations

 

Since the introduction of farm business tenancies on 1st September 1995 Robert Rhys has advised many landlord and tenant clients on their rights and obligations. For landlords farm properties have been successfully let often privately, but sometimes through a public formal tender and letting procedure.

 

With non-agricultural activity in mind it is important that before the start of the tenancy the notice condition is reciprocally complied with to preserve the status of the agreement as a farm business tenancy when agriculture may play a decreasing part over time and the agreement might otherwise drift into the realm of the Landlord and Tenant Act 1954 (commercial business tenancies) with potential unwanted consequences.

 

Whilst farm tenancies under the Agricultural Holdings Act 1986 since 1st September 1995 can no longer be created save in respect to succession agreements, 1986 Act tenancies will continue to exist for many years to come. Such agreements normally carry lifetime security of tenure and have their own rent review formula such that the same property let on farm business tenancy terms could achieve a different and usually a higher rent.

 

The 1986 Act is prescriptive whereas farm business tenancies under the Agricultural Tenancies Act 1995 permits much greater freedom of contract for example, regarding the length of a tenancy (monthly, set number of years, year to year), the user clause, repair liability and future rental levels (if agreed at the outset).

 

Other work arising under farm business tenancy agreements include:-

• Preparation of rental tenders for prospective tenants

• Records of condition

• Rent reviews

• Landlord improvement consents

• Part possession and other notices

• Memorandums of agreement and assisting solicitors with deeds of surrender (e.g. preparation of Head of Terms)

• Compensation claims arising during and at the termination of tenancy on behalf of both landlords and tenants

Meanwhile, as other examples, agricultural holdings lettings under the 1986 Act may given rise to:-

• Damage by game compensation claims

• Notices to do work

• Provision of fixed equipment matters

• Tenancy succession

• Compensation for disturbance, improvements and Tenant Right matters

• Dilapidations claims both during and at the end of the tenancy

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Grass Keep, Contract Farming and Other Agreements

• Preparation of contract farming agreements and grazing / mowing licences

• Common Law recreational tenancies

• Business tenancies in the rural context