Tenants Improvements under AHA86 Flashcards
What part of the AHA 1986 governs Tenants power to claim compensation for improvements?
Section 64
What are the timescales for a Tenant claiming compensation for improvements?
Tenant must serve notice on the Landlord within 2 months of the termination of the tenancy stating their intention to claim compensation (under s83)
If no agreement can be made then 8 months following the expiry of the notice the matter shall be determined by arbitration (sch 11)
What improvements can qualify for compensation?
Landlord must have provided written consent to improvements (s67) and those qualifying are found under Part II of Sch 7 of the Act - known as ‘Long term Improvements’
What if a Landlord is not willing to provide consent for improvement requested by Tenant?
Part II improvement requests which are disputed can be referred to Agricultural Land Tribunal (if works not commenced). Dispute can relate to both actual request or the consent conditions proposed by Landlord (s67(3)).
Landlord can serve a notice on ALT & T within one month of receiving written direction, proposing to carry out work themselves. Would then be Ls improvement (s13) and L could therefore potentially charge higher rent to reflect the improvement.
If L does not proceed with above. T = unconditional consent to carry out improvement.
What is the difference between Conditional and Unconditional consent?
If the L & T agree to a conditional consent then they will be the compensation terms that have been agreed (s67(2)), such as written down to £1 over no. of years. (It over rights unconditional consent provisions under the act)
Unconditional consent allows the T to use their rights under s64 to determine the matter of compensation for the improvement on termination. The amount of compensation payable is governed under s66(1)
When the tenancy is terminated and the Tenant wants to claim compensation, how is this determined/calculated?
If Unconditional the statutory basis for compensation for improvement applies under s66 =
“equal to increase attributable to improvement in value of ag. holding as a holding” +
having regard to
Character, Situation, Average requirements of Ts reasonably skilled in husbandry
