LL & T

Question 1

What is the basis of reviewing the rent under the AHA 1986?

Answer 1

What a prudent and willing landlord would let the holding to a prudent and willing tenant taking into account all relevant factors including the terms of the tenancy, condition of the holding, Productive Capacity, Related Earning Capacity and Comparable Rents

Question 2

What is meant by Productive Capacity

Answer 2

The productive capacity of the holding (taking into account fixed
equipment and any other available facilities on the holding) on the
assumption that it is in the occupation of a competent tenant practising
a system of farming suitable to the holding.

Question 3

What is meant by Related Earning Capacity

Answer 3

The the hypothetical tenant can be expected to profit from the proposed farming system.

Question 4

How is the rent review calculated in practice?

Answer 4

The rent properly payable is calculated by producing a budget of the proposed farming system and the divisible surplus is split 50:50 to calculate the rent.

Question 5

What frequency can the rent be reviewed?

Answer 5

No more than every 3 years may the rent be referred to arbitration.

Question 6

How is the rent reviewed?

Answer 6

Either the landlord or the tenant can “demand” that the rent “properly payable” in respect of the holding “from the next termination date” is determined by arbitration or by a third party.

This is achieved by serving a s.12 notice which lasts 12-24 months.

Question 7

What is Scarcity

Question 8

What Key Date were succession rights abolished

Answer 8

12 July 1984 and onwards - No Succession Rights

Question 9

How many successions available if granted before 12th July 1984

Answer 9

Original Tenant
Lifetime

Son 1st
Lifetime

Grandson 2nd
Lifetime

Question 10

What are the tests for succession

Answer 10

Eligibility:
- Close Relationship
- Livelihood
- Commercial Unit (being abolished 1st Sept 2024)

Suitability:
- Training, practical experience
- Age, physical health
- LLs views

Question 11

When can an applicant apply for succession

Answer 11

Death
Retirement
(If he fails to succeed on retirement, he cannot re-apply on death)

Question 12

Who is a close relative for succession?

Answer 12

• Wife or husband
• Sibling
• Child
• Person treated as a child

Question 13

What is the principal source of livelihood test?

Answer 13

In at least 5 out of the 7 years ending with the date of death/date of retirement notice,
the applicant’s agricultural work on the holding or a unit of which the holding forms part provided his principal source of livelihood.

Reduced to 3 years if at uni or college

Includes spousal income

Question 14

What is the commercial unit test?

Answer 14

What other land, beyond the subject holding the succession application relates to, is being farmed by the applicant/partnership/farming company
the applicant is linked to.

‘Commercial Unit’ = a unit capable, when farmed under competent
management, of producing a net annual income equivalent to the average
annual earnings of two full time male agricultural workers.

Periodic FBTs, FBTs less that 5 years and licences are excluded.

Question 15

What are the grounds for possession under the AHA

Answer 15

A - Age - Retirement
B - Barns - Non Ag Use
C - Bad husbandry
D - Debt - T failed to comply with a notice to pay rent
E - Irremediable Breach
F - Fucked - Bankrupt
G - Gone - Death

Question 16

What section of the ATA covers rent reviews

Answer 16

Section 10

Question 17

What is the basis of rent review

Answer 17

The parties to a written farm business tenancy agreement can agree that:

1. There will be no rent review.
2. There will be a ‘stepped’ rent, i.e. that specified levels of rent will apply during specified periods.
3. The rent will vary according to an agreed formula.

Question 18

What is the statutory arbitration procedure?

Answer 18

The review date must be no less than 12 months but no more than 24 months after the day on which the statutory review notice is served.

The rent at which the holding might reasonably be expected to be let on the open market by a willing landlord to a willing tenant, subject to specified matters which are to be disregarded.

Question 19

Notice to Quit for a FBT?

Answer 19

Fixed 2 years or less
- Automatically terminate at the end of the term.

Fixed Term of 2 years or more
- 12 month notice required before the expiration of the contractual period.
- If not the tenancy will become a periodic FBT

Periodic Tenancies
- At least 12 months notice

Question 20

What are the keys dates for determining a farm tenancy

Answer 20

AHA 1986
- Any tenancy granted before 1st September 1995
- Succession rights if granted before 12th July 1984

ATA 1995
- On or after 1st September 1995

Question 21

What is the arbitration process

Question 22

What is the difference between residential tenancies under the Housing act and Rent Act

Answer 22

Rent Act:
- Subject to regulated rents known as Fair Rents set by the Rent Officer
- Can not be reviewed more than every 2 years
- Lifetime security and succession rights
Housing Act:
- No regulation of rent (every 52 weeks)
- No security beyond the fixed term

Question 23

Can you explain succession for Rent Act tenancies?

Answer 23

The succession rules were changed by the HA 1988 where succession depends if the OG tenant died before or after the 15th January 1989.

Died before 15th Jan 1989 - 2 successions available

Died after 15th Jan 1989 - 2 or 1 successions available

Question 24

What section of the ATA covers Termination

Answer 24

Section 5

Tenancies of more than 2 years shall continue as a periodic tenancy unless at least 12 months before the term date a written notice has been given with the intention of terminating the tenancy.

Question 25

What section of the AHA covers termination

Answer 25

Section 25
Grounds for possession - Sch 3

Question 26

How did you deal with end of tenancy compensation in your case study?

Answer 26

The ATA makes no provisions for repairing obligations or dilapidations. Only what is agreed in the tenancy agreement.

In reality it was agreed there would be no dilapidations claims on the basis the tenant did not make any claim for improvements.

Question 27

What is the difference between a tenants improvement and fixture?

Answer 27

Tenants improvements have been given landlords consent whereas Fixtures have not.

Question 28

What is the basis of valuation for an improvement

Answer 28

The increase attributable to the improvement in the value to the holding.
s. 66 of the 86 Act

Increased rental value - £2,000
YP x expected remaining life @xYield = increase in value to the holding

Question 29

What is the basis of valuation for a fixture

Answer 29

s.10 of the AHA gives the tenant the right to remove fixtures from the holding.

Hey may do this at any time during the tenancy or before the expiry of 2 months from the termination date.

Must have served at least 1 months notice on the landlord stating his intention.

The LL may serve a counter notice before the expiration of the Ts notice electing to purchase the fixture.

The basis is the fair value of the fixture to an incoming tenant:

depreciation for remaining life expectancy and less repairs.