Q&As

Does an addition of new tenants to an existing lease under the Agricultural Holdings Act 1986 constitute a first assignment on retirement of the original tenant, or will it terminate the original agricultural tenancy and replace it with a farm business tenancy?

read titleRead full title
Published on LexisPSL on 15/08/2016

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Does an addition of new tenants to an existing lease under the Agricultural Holdings Act 1986 constitute a first assignment on retirement of the original tenant, or will it terminate the original agricultural tenancy and replace it with a farm business tenancy?
  • Case Study

Does an addition of new tenants to an existing lease under the Agricultural Holdings Act 1986 constitute a first assignment on retirement of the original tenant, or will it terminate the original agricultural tenancy and replace it with a farm business tenancy?

Case Study

The tenants of an Agricultural Holdings Act 1986 (AHA 1986) protected tenancy wish to add their sons as tenants. The existing tenants are the elderly, but the sons are doing most of the farming now. The Landlord agrees to the proposal. Can this arrangement be the first assignment on retirement or will it terminate the AHA 1986 tenancy and replace it with a farm business tenancy?

It is not uncommon for a tenancy with AHA 1986 to contain either an absolute or qualified (ie requiring the consent of the landlord) prohibition upon assignment.

If the tenancy agreement is silent upon the point, either party can refer the tenancy to the First-tier Tribunal (Property Chamber) (Agricultural Land and Drainage), or the Agricultural Land Tribunal in Wales, for arbitration so as to include a covenant by the tenant not to assign, sub-let or part with possession of the holding or any part of it without the landlord's consent in writing.

Although an assignment in breach of a covenant which restricts assignments will act to transfer the interest, assuming no waiver to have taken place, it would give

Popular documents