Tenancies and Farm Business Tenancies

20th July 2017
Tenancies and Farm Business Tenancies image

Agricultural Holdings Act/Tenancies

Agricultural Tenancies entered into before January 1996 are governed by the Agricultural Holdings Act of 1986. They are known as Agricultural Holdings Act (AHA) Tenancies and offer the tenant security of tenure. They also have beneficial terms for the tenant relating to reviewing the rent

AHA Tenancies ordinarily run for an agreed length of contractual term but then continue from year to year after that contractual term until brought to an end by the correct notice. The tenant then has an opportunity to challenge that notice and could bring proceedings in the Agricultural Land Tribunal. The Agricultural Land Tribunal (except in very limited circumstances) is obliged to let the tenant remain in occupation.

An AHA Tenancy also gives a right for someone who has worked closely with the tenant to claim succession of the tenancy upon the death of he tenant. There can be two applications for succession of any AHA Tenancy; it is easy to see therefore that an AHA tenancy can be in existence for many years and at least two generations. If the tenant is a company the tenancy could go on indefinitely

Worryingly, many farmers/ land owners did not even know that they were entering into AHA’s at the time of so doing as the legislation did mean that many agricultural licences were converted into AHA’s.

Compare AHA Tenancies with the Farm Business Tenancy (FBT) however. An FBT is an agricultural tenancy that was created after January 1996 when the Agricultural Tenancies Act 1995 came into force. This made the agricultural tenancy more akin to the tenancies that the rest of the commercial world was using. The FBT allowed the parties freedom to contract. The FBT is far more flexible in that the parties can readily agree what they want in relation to rent, rent reviews and term etc.

How can the above affect me?

If you are a tenant and have one of the above tenancies it is vital to understand which one so that you know your rights. If you have an AHA, you are probably in a very secure position and may be able to challenge any notice that is served. If you enter into an FBT it is important that you understand the terms that are being agreed and the ways in which the tenancy can be brought to an end.

If you are purchasing Freehold land that is subject to a tenancy it is vital that you know what type of tenancy affects the land. If it is an AHA Tenancy, chances are that you will have the current tenants on the land for some years to come without being able to increase the rent, which may affect the value of the land .An AHA Tenancy also has significant tax implications, it is important therefore to speak to someone who is suitably qualified to deal with such matters

If you want any advice in relation to AHA’s or FBT’s then please contact Gemma Mayer on 01775 722261 or email gemma.mayer@maplessolicitors.com or write to Gemma at 23 New Road Spalding Lincolnshire PE11 1DH.


Maples supporting Macmillan Coffee Morning image

Maples supporting Macmillan Coffee Morning

On 29th September 2017 Maples Solicitors LLP will be hosting a coffee morning as part of Macmillan’s “World’s Biggest Coffee Morning”.

Tea, coffee and cakes will be served from 10:00am until 1:00pm and all donations received will go to Macmillan Cancer Support to assist them with providing medical, emotional, practical and financial support to those facing cancer and their families.

At the same time, Maples will also be running a free Wills, Lasting Powers of Attorney and Probate clinic so that whilst you are in the office you may take the opportunity to discuss any of these with one of the Private Client Team with no obligation to commit. You can use the time to raise any questions you may have about making a Will, who you could appoint as Executors, whether you need a Power of Attorney or how a Power of Attorney works, for example.

Maples hope to see their existing clients join them for the coffee morning and very much look forward to meeting new people- everyone is welcome!

If you would like to discuss any matters in relation to Wills, Lasting Powers of Attorney or any Probate related matters prior to the coffee morning then please contact one of the lawyers in our private client team:-

Jane Mawer- jane.mawer@maplessolicitors.com
Jamie Dobbs- jamie.dobbs@maplessolicitors.com
Faye Blair- faye.blair@maplessolcitors.com

Or telephone the office on 01775 722261 and ask to speak with one of the team.

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Faye Blair LLB

Faye was excellent, sensitive and acted very well to the time constraints we faced. Great service and dealt with compassion at such sad times made the process less painful very professional.

Jamie Dobbs ACILEx

Over the last forty years I have cause to deal with many law firms both in a personal and professional capacity, including some ‘top’ London Companies. In all of those dealings I have never found anyone as proactive and so willing to offer help and advice as Jamie Dobbs. During the last two years Jamie guided my parents through the completion of Lasting Powers of Attorney. Helped myself with the use of the LPA and recently dealing with Probate and Estate Administration following their death.

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Claire Smith FCILEx

Claire Smith has been amazing in every way. I highly recommend her and I am so grateful for all her help. She’s professional on all levels, reliable, extremely organised and I will be recommending her to everyone. I’m very lucky to have had her representing me and I can’t thank her enough. She is an asset to Maples. Thanks so much Claire!

Anita Zaborniak

We found it a pleasure to deal with Anita Zaborniak, she was most helpful and informative and kept us up to date with the progress of the purchase of our new home. If we were to move again we wouldn’t hesitate to use Maples again.