AHA 1986

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, 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 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 1986 tenancy.

The tenant under an AHA  1986 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 1986 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.

Rent reviews

The landlord or tenant has the right to a rent review 3 years after either the:

• start of a tenancy
• previous rent review

If land is added to or removed from a holding then the next rent review must be either at least 3 years from one of the following:

• the date the original tenancy began
• from the date of the previous rent review for the original tenancy

This rent review must happen even if the rent has changed to reflect changes to the amount of land on the holding.

What to do if a dispute arises

If a dispute arises between the parties relating to an Agricultural Tenancy (either a 1986 Act Tenancy or a Farm Business Tenancy) they can use third-party expert determination or arbitration procedures.

Arbitration is the private legal settlement of a dispute by an independent, professional arbitrator which can involve either of the following:

• a tribunal hearing where both sides present evidence and testimony
• both parties agreeing to resolve the dispute using written arbitration procedures, avoiding the time and costs of a hearing

If the parties can’t agree on the appointment of an arbitrator, either of them can apply to the President of the Royal Institution of Chartered Surveyors (RICS) to make an appointment on their behalf for an arbitrator to:

• decide a rent review dispute
• resolve a dispute other than a rent review

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