Agricultural Holdings Act 1986 Notice To Quit

Under the Agricultural Holdings Act 1986 (‘AHA’) any tenancies created will allow agricultural holdings to be let by the land owner to a tenant. Agricultural holdings can include land and buildings used for horticulture, livestock, grazing and various other uses, but the use must be commercial in nature. Rent reviews under AHA tenancies are dealt with by the Act. These tenancies usually have lifetime security of tenure and those granted before 12 July 1984 also carry statutory succession rights, on death or retirement. This means a close relative of a deceased tenant can apply for succession to the tenancy within 3 months of the tenant’s death. In this article, agricultural holdings act 1986 notice to quit, we take a look at the process and mechanism involved.

Free Initial Telephone Discussion

For a free initial discussion on how we can advise you on the implications of terminating your tenancy under the agricultural holdings act 1986, get in touch with us today. We will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.

Can anyone grant a tenancy under the act?

Any landowner can grant an AHA tenancy.

The tenant under an AHA tenancy may have succession rights, i.e. when the tenant dies or retires, a close relative may take on the tenancy. Applying for succession stops any notice to quit given by the landlord on the tenant’s death.

In some circumstances, two tenancies by succession can be granted, so it’s possible for the tenant’s family to work the holding for 3 generations. Farmers with a tenancy granted before 12 July 1984 can also name an eligible successor such as a close relative who can apply to take over the holding when they retire. For this to come into effect, certain criteria must be met.

Only tenancies created before 31 August 1995 can be AHA tenancies. Except in limited situations, it is not possible to create new AHA tenancies now, although previously unwritten tenancies can still be put into writing. Only tenancies created before 12 July 1984 carry succession rights. AHA tenancies have to be for a term of years, or run from year to year.

It should be remembered that tenancies can be written or unwritten, although greater clarity on the terms of the agreement comes from having the tenancy in writing.

Notice To Quit

The grounds upon which an AHA tenancy may be terminated are specified in the 1986 Act and are far from straightforward. The burden is on the landlord to ensure he can comply with the grounds that are described in the 1986 Act.

To terminate an AHA tenancy, a landlord must serve a notice to quit under Section 25 of the 1986 Act. If the tenant is unwilling to accept the notice to quit, he may serve a counter-notice under Section 26(1) and in doing so refer the notice to quit to the First Tier Tribunal (“the Tribunal”) or, if appropriate, the Agricultural Land Tribunal (Wales). The Tribunal will have to decide whether to consent to the landlord’s notice to quit, having regard to the conditions specified in Section 27(3) of the 1986 Act. Specifically, the Tribunal will have to establish that the landlord’s proposal to terminate the AHA tenancy is in the interests of :

• good husbandry
• sound management
• agricultural research
• allotments
• greater hardship
• non-agricultural use

The Tribunal may also refuse consent if “in all the circumstances it appears to [the Tribunal] that a fair and reasonable landlord would not insist on possession”.

What are the grounds for Terminating a Tenancy?

The AHA 1986 outlines the 8 specific grounds where a landlord can bring the tenancy to an end:

Case A: “the tenant has attained the age of sixty-five,….suitable alternative accommodation is available…or will be available for him.

Case B:   “the land is required for use, other than agriculture.”

Case C:   “the tenant… was not fulfilling his responsibilities to the farm in accordance with the rules of good husbandry.”

Case D:, “the tenant, has failed to comply with a notice…to pay rent due.”

Case E: “the commission had materially prejudiced the interest of the landlord in the agricultural holding by the tenant of a breach, which was not capable of being remedied.”

Case F:    “the tenant …had become insolvent

Case G:   “the death of a person who immediately before his death was the sole (or sole surviving) tenant

Case H: “the Minister certifies in writing that the notice to quit is given in order to enable him to use or dispose of the land for the purpose of effecting any amalgamation…”

The landlord has the opportunity to rely on more than one case notice to increase the likelihood of bringing an AHA tenancy to an end. However, ending a tenancy based on the grounds above tend to be onerous as there are stringent tests in place to test the validity of each case. Therefore, the burden is on the landlord to prove that the grounds for an AHA tenancy to be terminated have been complied with.

How We Can Help

Our team is well versed in dealing with all the various aspects of the agricultural holdings act 1986, and we are here to help in any way we can.

We will explain clearly the legal issues and provide open, honest and professional advice.

How to Contact our Agricultural Law Solicitors

It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of reducing risk, saving you money and ensuring you achieve a positive outcome.

To speak to our Agricultural Law solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in News Tagged as