End of Tenancy Claims - Tenant

Question 1

What are the main end of tenancy claims by the tenant?

Answer 1

Tenants Improvement
Tenants Fixture
Growing Crop
Tenants Pasture

Question 2

What is the difference between a tenants Improvement and Fixture

Answer 2

Tenants Improvements require Landlords Consent

Question 3

What is the basis of Value of an Fixture

Answer 3

Value of the fixture to an incoming tenant.

This is calculated by working out the costs of building the fixture and then depreciating it over the remaining life of the fixture.

Question 3

What is the basis of Value of an Improvement

Answer 3

Increase in value of the holding as a result of the improvement.

This is calculated by first assessing the likely increase in rental value and then capitalising this at an appropriate Yield for the remaining useful life of the improvement.

Question 4

How would a tenant claim compensation for an improvement?

Answer 4

Within two months of the termination date, the tenant must serve notice on the LL of his intention to claim and the basis.

If the parties are unable to agree the amount of compensation within 8 months of the termination date, either party may refer the matter to arbitration

Question 5

How would a tenant claim compensation for a Fixture?

Answer 5

Firstly, the tenant has the right to remove a fixture at any point or 2 months after the termination date, providing they give the LL two months notice of their intention.

The landlord then has the option to serve a counter notice of his intention to purchase the fixture from the tenant.

If this cannot be agreed within 8 months, either party may refer the matter to arbitration.

Question 6

What is the process for calculating the claim for a Fixture?

Answer 6

Build Costs

Less repairs

Divided by remaining useful life.

Question 7

Agricultural Build Costs

Answer 7

General purpose portal frame = £300/m2
Dutch Barn = £115/m2
Cubicle Shed = £400/m2
Grain Store = £150/m2
Silage Clamps = £200/m2

Question 8

Growing Crops

Answer 8

Growing Crops are value on the basis of cost of establishment:
- Seed
- Fertiliser
- Cultivations
- Acts of husbandry

Question 9

It is vital to know the various cultivations

Answer 9

Winter Crop:
Winter
- Plough
- Fertiliser
- Combi Drill
- Spray
Spring
- Top Dressing
- Spray
- Roll

No Ploughing:
- Spray
- Subsoil
- Disc Harrow x 2
- Combi Drill
- Harrow
- Spray x 2-3

Question 10

Example Valuation of Growing Crop of Winter Wheat

Answer 10

Cultivations:
Sub-soil - £35/ac
1 Plough - £38/ac
Fert spreading - £10/ac
Combi Drill - £36/ac
Spray - £8/ac

Seed cost - £30/ac

Fertiliser cost - £115/ac

Spray cost - £100/ac

Question 11

Tenants Pasture basis of value

Answer 11

Two methods

1. Cost Basis
   - Where no crop has been taken
   - Value is the reasonable cost of seed sown, cultivations etc
   - (Similar to growing crop)
2. Face Value Basis
   - Where 1 or more crops have been taken by mowing or grazing
   -