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.


How Banks are Cashing in on Wills image

How Banks are Cashing in on Wills

Recent headlines have reported how banks are now cashing in on Wills.

During the 1990s and early 2000s, banks offered customers low cost Wills (or sometimes even free Wills) but the small print allowed the bank to charge extortionate rates to act as Executors. It is reported that banks are expecting billions of pounds of revenue from their Will writing services and administering estates and in some cases their fees have been over £12,000 to administer an estate as they look to charge a fixed fee PLUS a percentage of the deceased’s wealth.

If you or a loved one has made a Will through a bank we would urge you to check who you have appointed as Executors and check any small print which you may have signed. If you are unsure then please speak with one of our lawyers in the Wills and Probate team who can look at your existing Will with you. It may be appropriate to make a new Will which revokes any previous Will you have made which could save your family thousands of pounds when your estate needs to be administered.

In the majority of cases, when someone has passed away we can provide the family with a quote of how much the legal fees will be so that there are no nasty surprises once the administration is complete.

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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.

Mike Pepper MA

Mike Pepper gave us excellent advice. He was always most helpful and accommodating giving lucid explanations every step of the way. Thank you Mike.

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