Q&As

Can a landlord and tenant agree the actual sum payable by way of compensation to the tenant for certain works?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 23/03/2017

The following Property Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • Can a landlord and tenant agree the actual sum payable by way of compensation to the tenant for certain works?

Can a landlord and tenant agree the actual sum payable by way of compensation to the tenant for certain works?

Part III of the Agricultural Tenancies Act 1995 (ATA 1995) contains provision for compensation to tenants for improvements upon the ending of a farm business tenancy.

The right to compensation is found in ATA 1995, s 16. ATA 1995, s 20 deals with the quantum of compensation for a tenant’s improvement which does not consist of planning permission.

The scheme of the section is to provide that the amount of compensation payable under section 16 shall be an amount equal to the increase attributable to the improvement in the value of the holding at the termination of the tenancy as land comprised in a tenancy, with various provisions for reductions based upon agreement. ATA 1995, s 20(4A) also makes provision for the parties to the tenancy to agree to compensation limits.

ATA 1995, s 22 expressly provides that arbitration will take place in the event that the parties cannot agree the amount of compensation in accordance with section

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