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AGRICULTURAL TENANCIES

Contents

PART 1: AGRICULTURAL BUSINESS TENANCIES


(1) FARM BUSINESS TENANCIES
(A) Commentary
A: WHEN DOES THE AGRICULTURAL TENANCIES ACT 1995 APPLY?
1
2

Introduction
When does a tenancy begin?

B: STATUTORY REQUIREMENTS AND MEANING OF TERMS


1: FARM BUSINESS TENANCY
3
4

Meaning of farm business tenancy


Requirements to be met

2: CREATION OF A TENANCY
5
6
7
8
9

Meaning of tenancy
Formalities
Exclusive possession
Other requirements for a tenancy
Short fixed term tenancies

3: THE BUSINESS CONDITIONS


10
11
12
13
14
15
16

Meaning of the business conditions


Compliance with the business conditions required at all times
When farming ceases
Monitoring the business conditions
Meaning of farmed
The purposes of a trade or business
All or part of the land

4: THE NOTICE CONDITIONS


17
18
19
20
21
22

Introduction
Meaning of the notice conditions
Contents of the notices
When should the notices be given?
Service of notices
Defective notices

23 Exception to the notice conditions in the case of surrender and regrant


24 Agricultural character of the tenancy
5: THE AGRICULTURE CONDITION
25 Meaning of the agriculture condition
26 Relevance of the agriculture condition
27 Compliance with the agriculture condition
28.40
Primarily or wholly agricultural

C: TENANTS FIXTURES AND BUILDINGS


41 Tenants right to remove fixtures
42 Fixtures and buildings to which the right of removal applies
43.50
Comparison with the right of removal under the Agricultural Holdings Act 1986

D: RENT REVIEW
1: INTRODUCTION
51 Contractual and statutory rent review
52 Contractual formula for variation of rent
2: STATUTORY RENT REVIEW
53 General
54 The statutory review notice
55 Frequency of rent reviews
56 The review date in a statutory review notice
57 Amount of rent
58 Matters to be disregarded
59 Disputes procedures
60.70
Conduct of farm business tenancy rent reviews

E: TERMINATION OF FARM BUSINESS TENANCIES


1: INTRODUCTION
71 Security of tenure
2: TYPES OF TENANCY
72
73
74
75

Fixed term tenancies of more than two years


Fixed term tenancies of two years or less
Annual periodic tenancies
Other periodic tenancies

3: OPTIONS TO TERMINATE OR RESUME POSSESSION OF PART


76 Break clauses in tenancies for terms of more than two years
4: NOTICES
77 Form of notice to quit
78 Service of notice to quit
79.90
Service on agents

F: COMPENSATION PAYABLE TO TENANT FOR IMPROVEMENTS


1: INTRODUCTION
91 Tenants right to compensation
92 Meaning of tenants improvement
93 Meaning of routine improvement and fixed equipment
2: CONDITIONS OF ELIGIBILITY FOR COMPENSATION

(a) Improvements other than planning permission or routine improvements

94 Conditions relating to compensation for tenants improvements


95 Arbitration where landlord refuses or fails to give the required consent
96 The arbitrators powers

(b) Planning permission and routine improvements


97 Conditions relating to compensation for planning permission
98 Conditions relating to compensation for routine improvements
3: AMOUNT OF COMPENSATION
99 Improvements other than planning permission
100Planning permission
4: MISCELLANEOUS
101Settlement of claims for compensation
102Successive tenancies
103.120
Compensation on resumption of possession of part of the holding

G: DISPUTE RESOLUTION
121Particular provisions
122Residual arbitration
123Alternative dispute resolution
124.150
General provisions applying to arbitrations

H: DRAFTING TENANCY AGREEMENTS


151Which type of agreement to use
152Farm business tenancies and other agreements
153Agreement for a farm business tenancy of more than two years
154Agreement for a farm business tenancy of two years or less
155Agreement for a farm business tenancy grazing agreement
156Licence for grazing
157Non-business grazing tenancy agreement for horses
158Service of notices
159.200
Title matters

(B) Forms and Precedents


A: CHECKLISTS
1 Checklist of matters for consideration when preparing tenancy agreement
2 Checklist of matters for consideration on the relationship between the Agricultural Tenancies Act
1995 and the Landlord and Tenant Act 1954 Part II

B: FARM BUSINESS TENANCY AGREEMENTS


3
4
5
6

Farm business tenancy (long formmore than two years)


Schedule of rights excepted and reserved for use in a tenancy agreement
Farm business tenancy (short formtwo years or less)
Farm business tenancy (grazing)

C: AGREEMENTS THAT ARE NOT TO BE FARM BUSINESS TENANCIES


7 Grazing licence
8 Grazing tenancy for horses (non-business use)
9 Agreement for letting of land and buildings for use as riding stables or an equestrian centre (where
use is not primarily agricultural)

D: THE NOTICE CONDITIONS

10 Notice to landlord or tenant of farm business tenancy

E: RENT REVIEW
11 Farm business tenancystatutory rent review notice
12 Farm business tenancyagreement as to rent

F: TERMINATION OF FARM BUSINESS TENANCIES


13 Notice to terminate fixed term farm business tenancy of more than two years
14 Notice to terminate a farm business tenancy for a term of more than two years in exercise of a
provision contained in the lease or tenancy agreement
15 Landlords notice to terminate periodic farm business tenancy
16 Tenants notice to terminate periodic farm business tenancy

G: IMPROVEMENTS
17 Farm business tenancytenants request for consent to improvements
18 Farm business tenancylandlords consent to tenants improvements (other than planning
permission)
19 Farm business tenancylandlords consent allowing tenant to make an application for planning
permission
20 Farm business tenancytenants notice demanding that question of consent to improvements be
referred to arbitration
21 Farm business tenancytenants notice of intention to claim compensation for improvements

H: MISCELLANEOUS
22 Notice to tenant of change of landlord
23 Notice of intention to apply for the appointment of an arbitrator in relation to a dispute (other than a
dispute governed by particular statutory provisions as to rent, improvements or compensation)
24 Agreement to appoint an arbitrator to determine claims, questions or differences between landlord
and tenant in relation to rent, improvements, compensation or other disputes
25 Application for the appointment of an arbitrator to determine claims, questions or differences
between landlord and tenant

(2) AGRICULTURAL HOLDINGS


(A) Commentary
A: WHEN DOES THE AGRICULTURAL HOLDINGS ACT 1986 APPLY?
301Agricultural tenancies beginning on or after 1 September 1995
302Agricultural tenancies beginning before 1 September 1995

B: MEANING OF TERMS
303Tenancies subject to the Agricultural Holdings Act 1986
304Agricultural holding
305Agricultural land
306Contract of tenancy
307Agricultural tenancy
308Agriculture
309Livestock

C: SHORT TERM TENANCIES AND LICENCES


310Agreements that took effect as yearly tenancies
311Agreements to which conversion did not apply
312Conversion distinguished from mislabelling and sham

313Licences relating to farming partnerships

D: FORM AND TERMS OF TENANCY


1: REQUIREMENTS FOR WRITTEN TENANCY AGREEMENTS
314Creation
315Express and other terms
316Right to a written agreement
317The award on reference to arbitration
318Effect of landlords request for a written agreement on tenants ability to dispose of the holding
319The specified matters
2: TERMS AS TO FIXED EQUIPMENT

(a) Meaning of terms


320Meaning of fixed equipment
321The model clauses

(b) Referring terms to arbitration


322Reference to arbitration where terms inconsistent with model clauses
323Duties of the arbitrator
324Effect of the award in relation to terms as to fixed equipment
325Transitional provisions where liability for fixed equipment transferred

(c) Removal of fixtures


326Tenants right to remove fixtures and buildings
327Fixtures to which right of removal does not apply
328Conditions to be fulfilled by tenant

(d) Provision of fixed equipment by landlord


329Direction to carry out work to enable tenant to comply with statutory requirements
330Restriction where activity constitutes a substantial alteration of the type of farming
331Other restrictions on direction
332Tenants remedies
333Extension of time limit
3: TERMS AS TO RENT

(a) Arbitration
334Demand for referral
335Duty of the arbitrator
336Rent properly payable
337Current level of rents
338Matters to be disregarded
339Time when demand ceases to be effective
340Frequency of arbitration
341New holdings
342Variation of boundaries or terms

(b) Increases in rent for landlords improvements


343Notice of increase
344The specified improvements
345Restrictions on increases
346Application of provisions
347Disputes

(c) Reduction in rent


348Reduction in rent where notice is given to quit part of holding
4: TERMS AS TO DISTRESS

349Introduction
350Compensation to be set off against rent for purposes of distress
351Restrictions on distraint on property of third party
352Restriction on distraining agisted livestock

E: LETTINGS CONFERRING NO SECURITY OF TENURE


1: INTRODUCTION
353Excluding security
2: AGREEMENTS EXCLUDED FROM SECURITY WITH THE MINISTERS CONSENT
354Tenancies for less than a year
355Fixed term leases for a term of between two and five years
356Licences
3: TENANCIES FOR MORE THAN ONE BUT LESS THAN TWO YEARS
357No security of tenure
358Whether a tenancy of an agricultural holding
4: GRAZING AND MOWING AGREEMENTS
359Exemption from security
360Specified period of the year
361Contemplated use not actual use
362Buildings
5: LETTINGS TO EMPLOYEES
363No security where tenant is an employee of landlord
6: AVOIDING THE CREATION OF AN AGRICULTURAL HOLDING
364Prohibition on contracting out
365Agreement for surrender at future date
366Sham transactions
367Mislabelling

F: SECURITY OF TENURE
1: INTRODUCTION
368The machinery for conferring security of tenure
2: NOTICES AND COUNTER-NOTICES

(a) Notices to quit


369Length of notice
370Notice after arbitration of rent
371Notice after certificate of failure to farm in accordance with rules of good husbandry
372Notice relating to part of holding
373The specified objects in relation to a notice to quit part

(b) Tenants counter-notice


374Right to serve a counter-notice
3: CASES WHERE THE CONSENT OF A TRIBUNAL IS REQUIRED
375General considerations
376Specific matters
4: CASES WHERE NOTICE IS EFFECTIVE WITHOUT CONSENT

(a) General
377Exclusion of requirement for consent
378Tenants right to contest

(b) The Cases


379Case A
380Case B
381Case C
382Case D
383Case E
384Case F
385Case G
386Case H
5: SUCCESSION ON DEATH OF TENANT

(a) Right of succession


387Tenancies to which the succession provisions apply
388Right for close relative to apply for tenancy on succession

(b) Exclusion of right of succession on death


389Exclusion of succession to certain fixed terms
390Exclusion of succession where two successions have already occurred
391Exclusion of succession where there is a valid notice to quit subject to a tribunals consent
392Exclusion of succession where there is a valid notice to quit within certain cases
393Exclusion of succession in the case of smallholdings and certain trust property

(c) Procedure
394Time of application
395Single application
396Multiple applications
397Matters to be considered by a tribunal
398The new tenancy
6: SUCCESSION ON RETIREMENT

(a) The application


399Right of nominated person to apply
400Procedure for application

(b) Exclusion of the right of succession on retirement


401General
402Exclusion where there has been a previous retirement notice
403Exclusion where the retiring tenant is not aged 65
404Exclusion where there is a notice to quit

(c) Procedure after application


405Effect of notice to quit given after application
406Infirmity of retiring tenant
407Suitability of nominated successor
408Greater hardship qualification
409Refusal or withdrawal of application
410Effect of a direction
411.413 Terms of new tenancy

G: COMPENSATION PAYABLE TO TENANT


1: DISTURBANCE
414Tenants entitlement to compensation for disturbance
415Measure of basic compensation
416Requirements as to notices and valuation
417Subtenancies
418Notice to quit part of holding
419Additional compensation

420Termination in pursuance of an early resumption clause


2: IMPROVEMENTS BEGUN BEFORE 1 MARCH 1948
421Tenants entitlement to compensation for old improvements
422Old improvements for which compensation is payable
423Consent of landlord
424Measure of compensation
3: IMPROVEMENTS BEGUN ON OR AFTER 1 MARCH 1948

(a) Introduction
425Tenants entitlement to compensation

(b) Long-term improvements made with consent of landlord


426Long-term improvements to which consent of landlord is required
427Consent and compensation

(c) Long-term improvements made with consent of landlord or approval of tribunal


428Long-term improvements to which consent or approval is required
429Consent or approval
430Carrying out improvements
431Measure of compensation

(d) Short-term improvements


432The short-term improvements
433Consent and compensation for short-term improvements
4: TENANT-RIGHT MATTERS
434Tenants entitlement to compensation for tenant-right matters
435Meaning of tenant-right matters
436Acts in contravention of terms of tenancy
437Freedom of cropping
438Application to holdings occupied before 1 March 1948
439Measure of compensation
5: SPECIAL SYSTEM OF FARMING
440Tenants entitlement to compensation for special system of farming
441Notice of claim
6: MARKET GARDENS

(a) Entitlement to compensation


442Tenants entitlement to compensation for market garden improvements
443Market garden improvements
444Fixtures
445Incoming tenant

(b) Direction that holding is to be treated as a market garden


446Application for direction
447Evesham custom
448Protection of landlord

(c) Agreements
449Agreements as to compensation
7: DAMAGE BY GAME
450Tenants entitlement to compensation for damage by game
451Measure of compensation for damage by game
8: MILK QUOTA

452Tenants entitlement to claim


453Compensation payable
454Request for arbitration
455Agreement of standard quota or tenants fraction
456Notice of claim and settlement
457Special provisions

H: COMPENSATION PAYABLE TO LANDLORD


458Deterioration of particular parts of holding
459General deterioration of holding
460Successive tenancies

I: PROCEDURES FOR SETTLEMENT OF CLAIMS


1: NOTICE AND AGREEMENT
461Procedure on termination of tenancy
462Agreement or arbitration
2: ENFORCEMENT
463Recovery of compensation etc
3: ARBITRATION
464Matters referred to statutory arbitration
465Appointment of arbitrator
466Conduct of arbitration
467Statement of case for county court
468.600
The award

(B) Forms and Precedents


A: AGREEMENTS AND LICENCES
101
Agreement for letting a farm from year to year with alternative repairing liabilities
102
The model clauses as set out in the Agriculture (Maintenance, Repair and Insurance of
Fixed Equipment) Regulations 1973
103
Lease of a farm for two years or more
104
Agreement for letting farm from year to year containing the minimum statutory
requirements
105
Agreement for letting from year to year land to be cultivated as a market garden
106
Agreement by tenant to permit landlord to enter holding in last year of tenancy for
purposes of cultivation
107
Clauses for tenancy agreement of hill farm tying sheep stock
108
General clauses for protection of quotas (excluding milk quota) or premium under
marketing schemes
109
Clause for protection of landlords milk quota attached to the holding and transferred to
the tenant for the duration of the tenancy

B: MATTERS ARISING DURING TENANCY


116Request to enter into written tenancy agreement where none exists
117Request to enter an agreement to supplement an existing written tenancy agreement
118Notice of intention to refer the terms of a tenancy to arbitration where no written agreement has
been entered into after a request
119Request to vary the terms of a tenancy agreement to comply with the model clauses relating to
maintenance etc of fixed equipment
120
Notice of reference of the terms of an existing agreement to arbitration on failure to agree
variation of terms to comply with the model clauses relating to fixed equipment
121
Request to landlord to provide, alter or repair fixed equipment

122
Notice of requirement for arbitration of a claim against the landlord on transfer to the
tenant of liability for maintenance or repair of fixed equipment
123
Notice of requirement for arbitration of the amount of compensation payable by the
tenant on transfer of liability for maintenance or repair of fixed equipment to the landlord
124
Notice requesting and specifying repairs to be effected by the tenant
125
Counter-notice requiring the question of the tenants liability to execute repairs or
replacements to be determined by arbitration
126
Notice requesting and specifying repairs to be effected by the landlord
127
Counter-notice requesting question of the landlords liability for repairs or replacements
to be determined by arbitration
128
Notice requiring the question of whether an item of fixed equipment is or was redundant
to the farming of the holding to be determined by arbitration
129
Agreement that specified fixed equipment is obsolete or redundant
130
Notice of demand for arbitration of rent payable
131
Memorandum of agreed increased rent, to be endorsed on a tenancy agreement
132
Notice requiring increase of rent on completion by the landlord of improvements
133
Memorandum of agreed increased rent in respect of improvements, to be endorsed on a
tenancy agreement
134
Notice of demand for arbitration of the question whether it is expedient to vary the terms
of the tenancy relating to permanent pasture
135
Tenants notice of intention to remove fixtures or buildings
136
Landlords counter-notice electing to purchase fixtures and buildings the tenant has given
notice of his intention to remove
137
Notice of change of landlord
138
Agreement to pay off arrears of rent in instalments

C: ARBITRATION
139
Checklist of matters relating to arbitration under the Agricultural Holdings Act 1986
140
Appointment of person to act as valuer and agent
141
Appointment of an arbitrator by agreement
142
Appointment by agreement of an arbitrator to determine all questions, including those not
specifically referable under the Agricultural Holdings Act 1986
143
Application to the President of the Royal Institution of Chartered Surveyors for
appointment of an arbitrator to settle a landlords claim for increase of rent on completion of
improvements
144
Application to the President of the Royal Institution of Chartered Surveyors for the
appointment of arbitrator to settle the terms of a tenancy on succession
145
Statement of a tenants case for arbitration of matters arising on quitting a holding
146
Statement of a landlords case for arbitration of matters arising on the tenant quitting the
holding
147
Arbitrators award
148
Statement by an arbitrator of a special case for the opinion of the county court

D: TERMINATION OF TENANCIES
149
Checklist relating to termination of agricultural holdings
150
Notice to tenant to pay rent
151
Notice to tenant to remedy a breach of the tenancy agreement by doing work of repair,
maintenance or replacement
152
Notice to tenant to remedy a breach of the tenancy agreement (not being a notice
requiring the doing of any work of repair, maintenance or replacement)
153
Notice to determine a lease or tenancy of two years or more at the end of the term
154
Notice to quit given by a landlord, without any special reason stated
155
Notice to quit given by a landlord, with endorsement of special reasons, where none of
the grounds in the Agricultural Holdings Act 1986, Schedule 3 Part I applies
156
Notice to quit by tenant
157
Landlords notice to quit land required for a non-agricultural purpose, pursuant to a
provision in the contract of tenancy
158
Notice to quit given by a tenant to his sub-tenant
159
Notice to quit given by a landlord relying on one of the special cases to be stated in the
notice under the Agricultural Holdings Act 1986, Schedule 3 Part I

160
Notice to quit given to the personal representatives of a sole or sole surviving tenant
161
Notice to quit part of a holding, given by the landlord
162
Tenants counter-notice under the Agricultural Holdings Act 1986 section 26(1) requiring
that the consent of an agricultural land tribunal be obtained
163
Tenants counter-notice accepting notice to quit part of a holding as notice to quit the
whole
164
Tenants notice contesting liability, following notice to quit under the Agricultural
Holdings Act 1986, Schedule 3 Part I Case D for non-compliance with a notice to do work
165
Tenants counter-notice, following notice to quit under the Agricultural Holdings Act
1986, Schedule 3 Part I Case D for non-compliance with notice to do work, requiring the consent of an
agricultural land tribunal to be obtained
166
Notice by tenant requiring reference to arbitration of questions (other than as to liability
to do work) arising from certain reasons stated in a notice to quit
167
Retirement notice, under the Agricultural Holdings Act 1986 section 49, on the grounds
of age or incapacity

E: AGRICULTURAL LAND TRIBUNAL


168
Checklist relating to applications to an agricultural land tribunal
169
Application for consent to the operation of a notice to quit
170
Reply to an application for consent to the operation of a notice to quit
171
Application to postpone the operation of a notice to quit
172
Reply to an application to postpone the operation of a notice to quit
173
Application for a certificate of bad husbandry
174
Reply to an application for a certificate of bad husbandry
175
Application for variation or revocation of a condition imposed by an agricultural land
tribunal when consenting to the operation of a notice to quit
176
Application for an agricultural land tribunal to direct a landlord to provide fixed
equipment
177
Reply to an application for a direction to provide fixed equipment
178
Application for approval of a long-term improvement
179
Reply to an application for approval of a long-term improvement
180
Application for a determination that the landlord has failed to carry out an improvement
within a reasonable time
181
Reply to an application for a determination that the landlord has failed to carry out an
improvement within a reasonable time
182
Application for a direction to treat an agricultural holding as a market garden
183
Reply to an application for a direction to treat an agricultural holding as a market garden
184
Application for a direction to avoid or relax a covenant against the burning of heather or
grass
185
Reply to an application for a direction to avoid or relax a covenant against burning of
heather or grass
188
Application for a direction and/or authorisation to carry out land drainage works
189
Reply to an application for a direction and/or authorisation to carry out land drainage
works
190
Notice by the applicant of his response to the Ministers report and recommendations
191
Application for variation of an order concerning land drainage
192
Application for a direction giving entitlement to a tenancy of an agricultural holding
succession on death
193
Reply to an application for a direction giving entitlement to a tenancy of an agricultural
holdingsuccession on death
194
Application for consent to the operation of a notice to quitsuccession on death
195
Reply to an application for consent to the operation of a notice to quitsuccession on
death
196
Notice of application for entitlement to a tenancysuccession on death
197
Reply to an application for a direction giving entitlement to a tenancy of an agricultural
holdingsuccession on death
198
Application for a direction giving entitlement to a tenancy of an agricultural holding
succession on retirement
199
Reply to an application for a direction giving entitlement to a tenancy of an agricultural
holdingsuccession on retirement
200
Notice of application for entitlement to a tenancysuccession on retirement

201
Demand for arbitration, following a direction by an agricultural land tribunal for grant of
a new tenancy, of variations in the terms and conditions of the new tenancy and/or the rent
202
Notice of the hearing of an application to an agricultural land tribunal
203
Request to an agricultural land tribunal for reference of a question of law to the High
Court
204
Notice to an agricultural land tribunal of intention to apply to the High Court for an order
directing the tribunal to refer question of law to the High Court

F: IMPROVEMENTS AND COMPENSATION CLAIMS


205
Checklist relating to claims by a tenant for compensation for improvements
206
Application by a tenant for written consent to long-term improvements
207
Landlords [notice of intention to give] consent to long-term improvements
208
Landlords notice to an agricultural land tribunal and his tenant that he proposes to carry
out himself improvements approved by the tribunal
209
Tenants notice of his intention to carry out mole drainage
210
Tenants notice of intention to claim compensation for continuous adoption of a special
system of farming
211Tenants notice of intention to claim more than one years rent as compensation for disturbance,
giving an opportunity to value stock etc
212
Landlords notice of intention to claim compensation for general deterioration of the
holding
213
Notice of intention to make a claim on termination of a tenancy, specifying the nature of
the claim
214
Tenants notice electing for compensation for certain tenant-right matters where the
tenant entered before 1 March 1948
215
Landlords notice requiring a tenant who entered before 1 March 1948 to elect whether he
will require compensation for certain tenant-right matters
216
Agreement between a landlord and tenant as to the compensation to be paid on
termination of the tenancy of an agricultural holding
217
Agreement between a landlord and the outgoing and incoming tenants as to the
compensation to be paid for improvements
218
Landlords consent to payment by the incoming tenant to the outgoing tenant of
compensation for old or new improvements
219
Tenants notice of occurrence of damage by game
220
Tenants notice of claim for compensation for damage by game, with particulars of the
damage, under the Agricultural Holdings Act 1986 section 20
221
Request for the making of a record of the condition of the holding [or tenants request for
a record of improvements, fixtures or buildings] under the Agricultural Holdings Act 1986 section 22
222
Demand for determination by arbitration, before the end of the tenancy, of the standard
(milk) quota under the Agriculture Act 1986, Schedule 1
223
Demand for determination by arbitration, before end of tenancy, of the tenants fraction
of standard (milk) quota under the Agriculture Act 1986 Schedule 1
224
Agreement between landlord and tenant, before the end of the tenancy, as to the amount
of the standard quota and/or the tenants fraction and/or the value of the milk quota under the
Agriculture Act 1986, Schedule 1
225
Tenants notice of intention to claim compensation for milk quota under the Agriculture
Act 1986 Schedule 1 on termination of his tenancy
226
Agreement between landlord and tenant as to the compensation to be paid for milk quota
under the Agriculture Act 1986, Schedule 1 on termination of the tenancy

PART 2: AGRICULTURAL RESIDENTIAL TENANCIES


(1) RENT (AGRICULTURE) ACT 1976
(A) Commentary
A: INTRODUCTION

601The application of the Rent (Agriculture) Act 1976


602Purpose of the Rent (Agriculture) Act 1976

B: THE PROVISIONS
1: BASIC REQUIREMENTS FOR PROTECTION
603Employment in agriculture
604Conditions for protection
605Consequences of protection
2: MEANING OF TERMS
606Relevant licence
607Relevant tenancy
608Qualifying ownership
609Qualifying worker
3: PROTECTED OCCUPIERS BY SUCCESSION
610Protection for successor
611Protected occupancy by succession
612Protection of an occupier who has been a protected occupier by succession
613Likelihood of a protected occupancy by succession
4: STATUTORY TENANCIES

(a) Introduction
614Becoming a statutory tenant

(b) Statutory tenancy by succession


615Statutory succession of the spouse of the deceased
616Statutory succession where there is no surviving spouse
617Security of a tenant by succession

(c) Terms of a statutory tenancy


618General
619Implied terms

(d) Rent under a statutory tenancy


620General
621Agreed rents
622Expiry of agreement
623Provisional rents
624Registration of a fair rent
625Notices of increase
626Restrictions on requirement to pay rent in advance
5: PLANNING PERMISSION
627Suspension of condition attached to planning permission
6: SUB-TENANTS
628General position of sub-tenants
629Further protection of sub-tenants

C: SECURITY OF TENURE
1: ORDERS FOR POSSESSION
630Generally
631Powers of the court in discretionary cases
2: CASES WHERE THE COURT HAS A DISCRETION TO ORDER POSSESSION

(a) Case I
632Alternative accommodation not provided by the housing authority
633Suitable accommodation
634The conditions that must be fulfilled

(b) Case II
635Alternative accommodation provided or arranged by housing authority
636The accommodation

(c) Cases IIIX


637Case III: rent unpaid
638Case IV: tenants conduct
639Case V: deterioration of dwelling 1
640Case VI: deterioration of furniture
641Case VII: sale of property after tenants notice to quit
642Case VIII: unlawful assignment
643Case IX: dwellinghouse required by landlord as residence
644Case X: subletting at excessive rent
3: CASES IN WHICH THE COURT MUST ORDER POSSESSION
645Case XI: dwellinghouse required as residence for original occupier
646Case XII: dwellinghouse required as retirement home
647Case XIII: overcrowded dwellinghouse
4: NOTICE TO QUIT
648Notice to quit

D: REHOUSING BY THE LOCAL AUTHORITY


1: GENERAL
649Introduction
650The requirements
2: THE DUTY OF THE HOUSING AUTHORITY
651Procedure
652Provision of accommodation
653Enforcement of duty
654700
Notification of changes

(B) Forms and Precedents


301
Tenancy agreement under the Rent (Agriculture) Act 1976
302
Notice for a rent book for a statutory tenancy under the Rent (Agriculture) Act 1976
under which rent is payable weekly
303
Notice to increase or introduce payment of rent and rates under the Rent (Agriculture)
Act 1976 section 12
304
Notice to increase or introduce payment of rent and rates under the Rent (Agriculture)
Act 1976 section 14
305
Application for registration of a fair rent in the case of a statutory tenancy arising under
the Rent (Agriculture) Act 1976
306
General notice to quit
307
Notice of intention to take proceedings to recover possession of a dwellinghouse under a
protected shorthold tenancy
321
Application for rehousing of an occupier of a dwellinghouse under the Rent (Agriculture)
Act 1976

(2) HOUSING ACT 1988

(A) Commentary
A: INTRODUCTION
701The Housing Act 1988
701A.
The Housing Act 1996
702Transitional provisions
702A.
The Housing Act 1996: transitional provisions

B: QUALIFICATION FOR PROTECTION


703Basic requirements
704Agricultural worker condition
705Qualifying tenancy or licence
705A.
The Housing Act 1996: qualifying tenancy or licence
706Assured tenancy
707The transition to protection
707A.
The Housing Act 1996: the transition to protection
708Succession
709Licence or tenancy by substitution
709A.
The Housing Act 1996: licence or tenancy by substitution
710Sub-tenancies

C: STATUTORY TERMS
1: STATUTORY PROTECTION
711The nature of statutory protection
712Statutory periodic tenancy
2: TERMS

(a) Variation of terms and implied terms


713Variation of the terms of a statutory tenancy
713A.
The Housing Act 1996: variation of the terms of a statutory tenancy
714Implied terms

(b) Rent
715Introduction
716The initial rent and subsequent variation
717Statutory periodic or periodic tenancies
717A.
The Housing Act 1996: statutory periodic tenancies
718Rent assessment committee
718A.
The Housing Act 1996: rent assessment committee
719Effective date of rent increase
720Rent increase during employment
721Distress

D: SECURITY OF TENURE
1: ORDERS FOR POSSESSION
722Introduction
723Notice to commence proceedings
723A.
The Housing Act 1996: notice to commence proceedings
724Fixed term tenancies
724A.
The Housing Act 1996: fixed term tenancies
2: GROUNDS FOR POSSESSION

(a) General

725Generally
726Cases where the court must order possession
726A.
The Housing Act 1996: cases where the court must order possession
727Cases where the court has a discretion to order possession
727A.
The Housing Act 1996: Cases where the court has a discretion to order possession

(b) Re-housing by the local authority


728The general position
729The application
3: TERMINATION BY THE TENANT
730Periodic tenancies
731Fixed term tenancies
732Termination of employment

E: ASSURED SHORTHOLD TENANCIES


733Introduction
734Basic requirements
734A.
The Housing Act 1996: basic requirements
734B.
The Housing Act 1996: the exceptions
734C.
The Housing Act 1996: agricultural workers and prior notice
734D.
The Housing Act 1996: renewals
735Renewal of agreements
736Application of assured shorthold tenancies to agricultural employees
736A.
The Housing Act 1996: application of assured shorthold tenancies to agricultural
employees
737Rent
737A.
The Housing Act 1996: rent
738The rent assessment committees role
739Security of tenure
739A.
The Housing Act 1996: security of tenure
740Points for consideration

(B) Forms and Precedents


401
Tenancy agreement for an assured agricultural occupant or an assured shorthold tenant
under the Housing Act 1988
401.1
Tenants notice proposing that an assured tenancy be replaced by an assured shorthold
tenancy
402
Notice under the Housing Act 1988 section 8 seeking possession of a property let on an
assured agricultural occupancy
403
Form of notice for rent book for assured tenancy or assured agricultural occupancy under
which rent is payable weekly
404
Notice of intention to grant an assured shorthold tenancy where the tenancy meets the
conditions for an assured agricultural occupancy
405
Notice seeking possession of a property let on an assured shorthold tenancy
406
Notice under the Housing Act 1988 section 6 proposing different terms for a statutory
periodic tenancy
407
Application referring a notice under the Housing Act 1988 section 6(2) to a rent
assessment committee
408
Notice under the Housing Act 1988 section 13 by landlord proposing a new rent under an
assured periodic tenancy
409
Application under the Housing Act 1988 section 13(4) referring a notice proposing a new
rent under an assured periodic tenancy to a rent assessment committee
410
Application to a rent assessment committee under the Housing Act 1988 section 22(1) for
determination of a rent under an assured shorthold tenancy
411Notice by rent assessment committee requiring further information
412
Specified information on rents of assured tenancies and assured agricultural occupancies

PART 1: AGRICULTURAL BUSINESS TENANCIES

(1)

FARM BUSINESS TENANCIES

(A) Commentary
A: WHEN DOES THE AGRICULTURAL TENANCIES ACT 1995 APPLY?
1
Introduction
The Agricultural Tenancies Act 1995 (referred to in this part of the title as the 1995 Act) can only apply to a tenancy
which begins on or after 1 September 1995 1. A tenancy of an agricultural holding 2 which began before that date will
remain subject to the Agricultural Holdings Act 19863 (the 1986 Act).
The aim of the 1995 Act is to eliminate as quickly as possible tenancies having the protection of the 1986
Act. However, certain new tenancies beginning on or after 1 September 1995 which are special cases 4 will still have
the protection of the 1986 Act and cannot be farm business tenancies 5.
An arrangement such as a licence, which could have been converted into a tenancy protected by the 1986
Act6, is not so converted if the arrangement commences on or after 1 September 1995 7; any such arrangement that does
not amount in law to a tenancy will not fall to be dealt with by either the 1986 or the 1995 Act.
[1]
1
2
3
4

5
6
7

See the Agricultural Tenancies Act 1995 ss 2(1)(a), 41(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the meaning of agricultural holding see Paragraph 304 [2012] post.
As to the Agricultural Holdings Act 1986 (1 Halsburys Statutes (4th Edn) AGRICULTURE) see Paragraph 301 [2001] et seq post.
See the Agricultural Tenancies Act 1995 s 4. For details of the limited cases where the Agricultural Holdings Act 1986 applies to
new tenancies see Paragraph 301 [2001] et seq post. Other than under these limited exceptions there is no general ability to
contract back into the security of the Agricultural Holdings Act 1986.
See the Agricultural Tenancies Act 1995 s 2(1)(b). As to the meaning of farm business tenancy see Paragraph 3 [6] post.
Ie converted under the Agricultural Holdings Act 1986 s 2. This section relates to certain agreements for interests less than a
tenancy from year to year and certain licences: see Paragraph 310 [2026] et seq post.
See the Agricultural Tenancies Act 1995 s 4(1).

[2]
2
When does a tenancy begin?
Begin for the purposes of the 1995 Act does not necessarily mean the date upon which the agreement (if written) is
signed, or the date stated within the body of the agreement to be the commencement date of the term.
The tenancy begins on the day when, under the terms of the tenancy, the tenant is entitled to possession under
that tenancy1; this may be one of those dates, but it will not always be the case.
1

See the Agricultural Tenancies Act 1995 s 38(4) (1 Halsburys Statutes (4th Edn) AGRICULTURE)

[3][5]

B: STATUTORY REQUIREMENTS AND MEANING OF TERMS

1: FARM BUSINESS TENANCY


3
Meaning of farm business tenancy
A tenancy is a farm business tenancy 1 for the purposes of the 1995 Act if:
3.1
it meets the business conditions together with either the agriculture condition or the notice conditions 2; and
3.2
it is not a tenancy which cannot be a farm business tenancy3.
1
2
3

See the Agricultural Tenancies Act 1995 s 1(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the business, agriculture and notice conditions see Paragraphs 10 [14], 25 [30] and 18 [23] post respectively.
See the Agricultural Tenancies Act 1995 s 2 and Paragraph 1 [1] ante.

[6]
4
Requirements to be met
The requirements are, therefore, that:
4.1
it must be a tenancy1; and
4.2
it must meet the business conditions2; and
4.3
it must meet either the agriculture condition3 or the notice conditions4; and
4.4
it must begin on or after 1 September 19955; and
4.5
it must not be one of the special cases which still have the protection of the Agricultural Holdings Act 1986 6.
1
2
3
4
5
6

See Paragraph 5 [8] et seq post.


See Paragraph 10 [14] et seq post.
See Paragraph 25 [30] et seq post.
See Paragraph 17 [22] et seq post.
See Paragraphs 1 [1], 2 [3] ante.
See Paragraph 1 [1] ante and Paragraph 301 [2001] et seq post.

[7]
2: CREATION OF A TENANCY
5
Meaning of tenancy
Tenancy is defined as any tenancy other than a tenancy at will, and includes a subtenancy and an agreement for a
tenancy or subtenancy1. So, farm business tenancies can include:
5.1
fixed term tenancies of whatever length;
5.2
periodic tenancies, whether annual, six monthly, monthly or weekly;
5.3
contracts to enter into tenancies;
5.4
subtenancies.
The 1995 Act contains no equivalent to the magical conversion under the Agricultural Holdings Act 1986
which converts licences and informal arrangements into fully protected annual periodic tenancies 2. This means that, if
an arrangement is to come within the provisions of the 1995 Act, it must comply with the requirements for a properly
constituted tenancy3.
1
2
3

See the Agricultural Tenancies Act 1995 s 38(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). Fixed term tenancy means
any tenancy other than a periodic tenancy.
See the Agricultural Holdings Act 1986 s 2 (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 310 [2026] et seq
post.
As to the formalities and other requirements for a tenancy see Paragraph 6 [9] et seq post.

[8]
6
Formalities
The tenancy may be oral, written or created by deed provided that the general formalities required by law are complied
with in connection with the particular term granted 1.
1

As to the general requirements and formalities for the creation of a tenancy see vol 22(1) (1996 Reissue) LANDLORD AND
TENANT (Business Tenancies) and 27(1) Halsburys Laws (4th Edn Reissue) LANDLORD AND TENANT. There is no equivalent
for farm business tenancies of the right to a written tenancy agreement or the model clauses provided for by the Agricultural
Holdings Act 1986 ss 6, 7, Sch 1 (1 Halsburys Statutes (4th Edn) AGRICULTURE): see Paragraphs 316 [2043], 321 [2062] post
and Form 102 [3051] post.

[9]
7
Exclusive possession
Exclusive possession is of primary importance when considering whether a legal relationship is that of licensor and
licensee or landlord and tenant 1. A tenant must have the right to the exclusive possession of the land. If the occupation
is without exclusive possession, it will be a licence only. Whether an arrangement is a tenancy or a licence generally

depends on whether exclusive possession has, in fact, been granted; it does not depend upon the intention of the
parties2.
Exceptions include where the parties did not intend a contractual relationship at all; and where exclusive
occupation can be explained by reference to a relationship other than landlord and tenant, for example, a purchaser in
occupation before completion. It may be difficult to draw the line between reservations to the landlord and the retention
of a degree of control which means that exclusive possession has not been granted. The courts have been astute to
identify sham arrangements and will look at the substance of what is intended 3.
In practice it may be difficult to grant a licence which does not give the licensee exclusive possession, since
many forms of farming, notably arable cropping, by their very nature demand exclusive possession for the licensee. It
is hard to envisage circumstances in which a licensee could farm land for the production of cereals, for example,
without enjoying exclusive possession of the land on which the cereals were being grown 4.
However, as a farm business tenant will now have only limited security of tenure, there is less incentive for
landowners to attempt to set up a licence5 unless they wish, for whatever reason, to fall outside the 1995 Act.
[10]
1
2
3

4
5

See the series of cases including Street v Mountford [1985] AC 809, [1985] 2 All ER 289, HL; AG Securities v Vaughan,
Antoniades v Villiers [1990] 1 AC 417, [1988] 3 All ER 1058, HL.
As to the distinction between a tenancy and a licence, and the significance of exclusive possession, see also 27(1) Halsburys
Laws (4th Edn Reissue) LANDLORD AND TENANT para 6 et seq.
Most of the leading cases on sham arrangements involved residential lettings and, therefore, the courts have been keen to ensure
that there has been no avoidance of the security of tenure legislation. There are some indications in the cases that the courts may
not be so ready to find a sham where business arrangements have been entered into. As the aim of the Agricultural Tenancies Act
1995 (1 Halsburys Statutes (4th Edn) AGRICULTURE) is to treat farming as any other business, the courts may be more prepared
to let the parties reach their own agreement. As to sham arrangements and mislabelling see also Paragraphs 366 [2218], 367
[2220] post.
See eg Padbury v York [1990] 2 EGLR 3, a case on the Agricultural Holdings Act 1948 (repealed).
See Paragraph 9 [13] post.

[11]
8
Other requirements for a tenancy
A tenancy must be for a definite period (a fixed term) or for a period which is capable of being definite because either
party can terminate it at the end of the period (a periodic tenancy) 1. The parties, the parcels and the price must be
ascertained or capable of ascertainment without the need for further agreement between the parties 2.
There is no requirement in common law (or under the 1995 Act) that the tenant should pay a monetary rent 3.
There may be circumstances, therefore, where exclusive possession is given in return for the tenant undertaking
obligations in connection with repairs, for example, or keeping the land in good heart, and this may be a tenancy which
falls within the 1995 Act.
1
2
3

A letting for an indefinite period is void for uncertainty: see Prudential Assurance Co Ltd v London Residuary Body [1992] 2 AC
386, [1992] 3 All ER 504, HL where a lease granted until the land was required for a road widening scheme was held to be void.
As to certainty of term and other requirements see further vol 22(1) (1996 Reissue) LANDLORD AND TENANT (Business
Tenancies).
See Ashburn Anstalt v Arnold [1989] Ch 1, [1988] 2 All ER 147, CA.

[12]
9
Short fixed term tenancies
In circumstances where grazing agreements 1 or Gladstone v Bower agreements2 have in the past been used to avoid
security of tenure under the Agricultural Holdings Act 1986, short fixed term farm business tenancies will now be used.
Provided that such a business tenancy is for a term of two years or less, it will simply expire at the end of the fixed term
without the need for any notice or notice period3.
Standard short form farm business tenancy agreements can be used and standard notices exchanged
beforehand4. Alternatively, in appropriate cases, reliance may be placed on the agriculture condition 5.
1
2
3
4
5

See Paragraph 359 [2201] et seq post.


See Gladstone v Bower [1960] 2 QB 384, [1960] 3 All ER 353, CA and Paragraph 357 [2191] et seq post.
See the Agricultural Tenancies Act 1995 s 5 (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 73 [83] post.
See eg Forms 5 [451], 6 [501], 10 [701] post.
As to the agriculture condition see Paragraph 25 [30] et seq post.

[13]
3: THE BUSINESS CONDITIONS
10
Meaning of the business conditions
All farm business tenancies must meet the business conditions1, which are2:

10.1
10.2
1
2
3
4
5
6

that all or part of the land3 comprised in the tenancy is farmed 4 for the purposes of a trade or business5; and
that, since the beginning of the tenancy6, all or part of the land so comprised has been so farmed.
See the Agricultural Tenancies Act 1995 s 1(1)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See ibid s 1(2).
See Paragraph 16 [21] post.
See Paragraph 14 [19] post.
See Paragraph 15 [20] post.
See Paragraph 11 [15] post.

[14]
11
Compliance with the business conditions required at all times
The business conditions must be complied with at all times from the beginning of the tenancy 1. If it can be shown that
there has been any period, however short, when the business conditions were not complied with, the tenancy will not
and can never again be a farm business tenancy2.
If, however, following the period of non-compliance, the tenant has remained in possession and has paid rent
and then later the business conditions and the agriculture condition are both complied with, there may be circumstances
in which a new periodic farm business tenancy can be implied.
Non-compliance with the business conditions, for however short a period, without a new periodic farm
business tenancy being implied, will lead to loss of compensation for improvements for the tenant 3 and may endanger
the landlords right to obtain vacant possession4.
1
2
3
4

As to when a tenancy begins see Paragraph 2 [3] ante.


See the Agricultural Tenancies Act 1995 s 1(2)(b) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See Paragraph 91 [101] et seq post.
Upon non-compliance, the letting will fall outside the farm business tenancy regime. If business use commences again, that
letting does not come back within the Agricultural Tenancies Act 1995, but it may then be secured under the Landlord and
Tenant Act 1954 Pt II (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT). See Form 2 [306] post.

[15]
12
When farming ceases
If a question arises as to when a tenancy stopped being a farm business tenancy, it must be when there was the first
failure to comply with the business conditions. Once farming has ceased altogether, even if the intention is to start
again at some time in the future, the business conditions will have been broken. Difficult questions may arise as to
when farming has ceased1.
When deciding whether the business conditions have always been complied with, the burden of proof is on
the person who is trying to show non-compliance2.
1
2

Reliance on cases in analogous areas such as abandonment of agricultural uses under the Agricultural Holdings Act 1986 (1
Halsburys Statutes (4th Edn) AGRICULTURE) Act) should be cautious.
See the Agricultural Tenancies Act 1995 s 1(7) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[16]
13
Monitoring the business conditions
The following should be considered:
13.1 If the protection of the Landlord and Tenant Act 1954 Part II is excluded by an agreement approved by the
courts, there is little danger from non-compliance 1. It is not, however, clear that the courts would be prepared to
grant such an order where, on the face of the tenancy, it is a farm business tenancy.
13.2 Compliance with the business conditions may be monitored by controls in the tenancy agreement 2. A positive
obligation to farm part of the land for the purposes of a trade or business, with farm and trade or business
specifically stated to mean the same as in the 1995 Act 3 will, therefore, assist in ensuring compliance, provided
that there is no consent or acquiescence on the part of the landlord 4.
[17]
1

If, when farming has ceased, the letting then complies with the Landlord and Tenant Act 1954 s 23 (23 Halsburys Statutes (4th
Edn) LANDLORD AND TENANT) and if that Act has not been excluded by agreement approved by the court (see further vol 22(1)
- (3) (1996-1997 Reissue) LANDLORD AND TENANT (Business Tenancies)), there may be enhanced security of tenure for the
tenant under that Act. As to the relationship between the Agricultural Tenancies Act 1995 (1 Halsburys Statutes (4th Edn)
AGRICULTURE) and the Landlord and Tenant Act 1954 Pt II see Form 2 [306] post.
See the Agricultural Tenancies Act 1995 s 1(8) which provides that any use of the land in breach of the terms of the tenancy, any
commercial activities carried on in breach of those terms, and any cessation of such activities in breach of those terms, shall be
disregarded in determining whether at any time the tenancy meets the business conditions or the agriculture condition, unless the
landlord or his predecessor in title has consented to the breach or the landlord has acquiesced in the breach.

3
4

See Paragraphs 14 [19], 15 [20] post. Note, however, that user clauses may have an impact upon the determination of market
rent.
See note 2 above.

[18]
14
Meaning of farmed
The use of the word farmed in the definition of business conditions is new and may well lead to litigation. The 1995
Act does not contain an exhaustive definition of farmed, although it does contain this partial definition 1:
References in this Act to the farming of land include references to the carrying on in relation to land of any
agricultural activity.
The temptation to update and expand the definition of agriculture and agricultural has been resisted it
remains2 as in the Agricultural Holdings Act 1986 except for a minor amendment in the definition of livestock 3.
No attempt has been made to address directly questions of land used for set aside or whether, for example,
leasing of milk quota can be said to be farming. Farmed is a wider term than the carrying on of agricultural activities.
To farm does seem to connote, however, some activity and would not seem to cover buying or selling or leasing of
quotas or subsidies. These questions may be of particular importance if farm business tenancies and business tenancies
within the Landlord and Tenant Act 1954 Part II are to be used on the same farm or estate 4.
1
2
3

See the Agricultural Tenancies Act 1995 s 38(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See ibid s 38(1) and Paragraphs 308 [2016], 309 [2017] post.
Livestock includes any creature kept for the production of food, wool, skins or fur or for its use in the farming of land: ibid s
38(1). The additional words or the carrying on in relation to land of any agricultural activity (referred to in ibid s 38(2)) appear
in the Agricultural Holdings Act 1986 s 96(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Note that if a tenancy is a farm business tenancy it is excluded from the protection of the Landlord and Tenant Act 1954 Pt II
(23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT) by ibid s 43(1)(aa) as inserted by the Agricultural Tenancies Act
1995 s 40, Schedule para 10. See also Form 2 [306] post.

[19]
15
The purposes of a trade or business
The land must be farmed for the purposes of a trade or business. The farming activity must, therefore, be commercial
in nature and must not be an activity which is merely supplementing the income of the tenant; for example, selling
surplus vegetables grown primarily for the family1.
Grazing remains as an independent agricultural activity 2. It is likely, therefore, that the difficult questions in
relation to horses and businesses involving horses will be answered in the same way under the new legislation as under
the old3.
1

2
3

It is a question of degree. There is all the difference in the world between adding a small amount to ones earnings by buying or
selling animals and carrying on a trade or business of an agricultural nature: see Hickson & Welch Ltd v Cann (1977) 40 P & CR
218n at 220, CA; Wetherall v Smith (1980) 40 P & CR 205 at 213, CA.
See the definition of agriculture in the Agricultural Tenancies Act 1995 s 38(1) (1 Halsburys Statutes (4th Edn)
AGRICULTURE).
See Scammell & Denshams Law of Agricultural Holdings (7th Edn, 1989) pp 2729.

[20]
16
All or part of the land
At least part of the land must be farmed for the purposes of a trade or business. The rest of the land may be farmed for
hobby purposes or used for non-agricultural or non-farming activities, subject to the requirements of the notice
conditions1 and agriculture condition2.
There is no requirement as to the percentage of land which is to be farmed and there is no requirement that
the part farmed needs to be the same part throughout the life of the tenancy. However, to be safe from an accusation
that the business conditions have not been complied with at some stage, the tenant ought to ensure that, if he is
changing the area of land to be farmed, he allows for some overlap when both areas will be farmed.
Note that whilst only part of the land needs to be farmed throughout the life of the tenancy, it is necessary,
whether the agriculture condition or the notice conditions are relied upon, to show that the tenancy is primarily or
wholly agricultural3 at the outset. It is not possible to utilise the 1995 Act to avoid the provisions for protection of
business tenancies under the Landlord and Tenant Act 1954 Part II 4 where, from the outset, it is intended that farming
will only form a small part of the commercial activities on the land.
1
2
3
4

[21]

See Paragraph 17 [22] et seq post.


See Paragraph 25 [30] et seq post.
See Paragraph 28 [33] post.
See vol 22(1) - (3) (1996-1997 Reissue) LANDLORD AND TENANT (Business Tenancies).

4: THE NOTICE CONDITIONS


17
Introduction
All farm business tenancies must comply with the business conditions and either the notice conditions or the agriculture
condition. The agriculture condition alternative does not allow for diversification on any major scale and carries with it
the risk of slipping out of the farm business tenancy code and into the business tenancy code. It is likely, therefore, that
all professionally drawn agreements will use the notice conditions which allow for diversification and, provided that
the business conditions continue to be fulfilled, prevent the tenancy from leaving the farm business tenancy regime.
[22]
18
Meaning of the notice conditions
The notice conditions are1:
18.1 that, on or before the relevant day 2, the landlord and the tenant each gave the other a written notice 3;
18.2 that, at the beginning of the tenancy, having regard to the terms of the tenancy and any other relevant
circumstances, the character of the tenancy was primarily or wholly agricultural 4.
1
2
3
4

See the Agricultural Tenancies Act 1995 s 1(4) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See Paragraph 20 [25] post.
As to the contents of the notices see Paragraph 19 [24] post.
See Paragraphs 24 [29], 28 [33] post.

[23]
19
Contents of the notices
The 1995 Act requires two notices: one from landlord to tenant and one from tenant to landlord. The notices must be in
writing, regardless of whether the tenancy is written or oral. There is no prescribed form for the notices, but each notice
must1:
19.1 identify by name or otherwise 2 the land to be comprised in the tenancy or proposed tenancy; and
19.2 contain a statement to the effect that the person giving the notice intends that the tenancy or proposed tenancy is
to be, and is to remain, a farm business tenancy.
There is no requirement that the notices be signed, dated or acknowledged but all of these should be done for
evidential purposes.
1
2

See the Agricultural Tenancies Act 1995 s 1(4)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE). For a form of notice see
Form 10 [701] post.
It is advisable to use exactly the same description of the land and the same plan as will be used for the tenancy.

[24]
20
When should the notices be given?
The notices must be given on or before the relevant day 1. The relevant day means the beginning of the tenancy 2 or, if
earlier, the day on which the parties enter into any instrument creating the tenancy (other than a contract to enter into a
tenancy on a future date)3.
Where under a contract for a tenancy 4 the tenant is entitled to possession immediately, notices need to be
given at that point even if, for example, a written lease or tenancy agreement is not drawn up for some weeks.
Similarly, where a written tenancy is entered into on one date, allowing the tenant into possession on a later date, the
notices must be exchanged on or before the earlier date.
There is no specific requirement that the notices be exchanged before the tenancy is entered into or the tenant
is entitled to possession, but it must be done at the latest on the same day and it is probably better to exchange notices
at least the day before to avoid evidential problems 5.
1
2
3
4
5

See the Agricultural Tenancies Act 1995 s 1(4) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See Paragraph 2 [3] ante.
See the Agricultural Tenancies Act 1995 s 1(5).
A tenancy granted pursuant to a contract is taken to have been granted when the contract was entered into: see ibid s 38(3).
Ibid s 1(4), which sets out the information to be contained in the notice, is drafted in such a way as to assume that the notices
will be exchanged first.

[25]
21
Service of notices
A notice is duly given1 if it is delivered to the recipient, left at his proper address 2 or given to him in a manner
authorised by a written agreement (between the giver and recipient of the notice) made at any time before the giving of
the notice. Service by fax is not sufficient without an express written agreement for service by such method 3.

Service by one of these methods on an agent or servant of the landlord responsible for the control of the
management of the holding, or an agent or servant of the tenant responsible for the carrying on of a business on the
holding, is sufficient service on the landlord or tenant respectively 4.
1

2
3
4

See the Agricultural Tenancies Act 1995 s 36(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE). Ibid s 36 applies to any notice
or other document required or authorised to be served under the 1995 Act: ibid s 36(1). See also Paragraphs 78 [89], 79 [90]
post.
Ie the last known address for an individual, or the registered or principal office if the intended recipient is the secretary or clerk
of a body corporate: see ibid s 36(4), (6).
See ibid s 36(3).
See ibid s 36(5).

[26]
22
Defective notices
A defective notice or the defective service of a notice is not necessarily fatal to the status of a farm business tenancy.
Provided that the agriculture condition1 is complied with at the outset, and at the time of challenge, and provided that
part of the land has been farmed for the purposes of a trade or business throughout its life 2, it will still be a farm
business tenancy.
1
2

See Paragraph 25 [30] et seq post.


See Paragraph 10 [14] et seq ante.

[27]
23
Exception to the notice conditions in the case of surrender and regrant
The notice conditions need not be complied with in respect of a farm business tenancy where 1:
23.1 the tenancy (the new tenancy) is granted to a person who, immediately before the grant, was the tenant under a
farm business tenancy (the old tenancy) which met the notice conditions; and either
23.1.1
the land comprised in the new tenancy is the same as the land comprised in the old tenancy, apart
from changes in area which are small in relation to the size of the holding and do not affect the
character of the holding; or
23.1.2
the old and new tenancies are both fixed term tenancies, but the term date under the new tenancy is
earlier than the term date under the old; and
23.2 otherwise, the terms of the new and old tenancies are substantially the same 2.
1
2

See the Agricultural Tenancies Act 1995 s 3 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Landlords should be aware of the danger of agreeing variations which in law amount to a surrender and regrant but do not fall
within the provisions of ibid s 3. Both notice conditions (see Paragraph 18 [23] ante) would need to be complied with at the time
of the regrant. If the new tenancy does not meet the notice conditions or the agricultural condition, it may inadvertently fall
within the protection of the Landlord and Tenant Act 1954 s 23 (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT):
see Form 2 [306] post.

[28]
24
Agricultural character of the tenancy
The second notice condition1 is that, at the beginning of the tenancy, having regard to the terms of the tenancy and
other relevant circumstances, the character of the tenancy is primarily or wholly agricultural 2.
Compliance with the notice conditions allows for diversification because the agricultural nature of the
tenancy is only to be considered at the beginning of the tenancy. Substantial diversification can then take place
provided that part of the land is always farmed, in order to comply with the business conditions 3.
It is particularly important in the case of a letting where there is some question over the extent of agricultural
use at the beginning of the tenancy that the tenancy is excluded from the security of tenure provisions of the Landlord
and Tenant Act 1954 Part II by an agreement approved by the court 4.
1
2

3
4

Ie the Agricultural Tenancies Act 1995 s 1(4)(b) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
The meaning of primarily or wholly agricultural is considered in connection with the agricultural condition: see Paragraph 28
[33] post. This requirement is to ensure that the farm business tenancy code is only available to businesses which are, at least at
the outset, essentially farming businesses and is not used to avoid the security of tenure of the Landlord and Tenant Act 1954 Pt
II (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT).
See Paragraph 10 [14] ante.
See the Landlord and Tenant Act 1954 s 38 as amended and Form 2 [306] post. See also Form 9 note 2 [664] post.

[29]
5: THE AGRICULTURE CONDITION
25

Meaning of the agriculture condition

The agriculture condition is that, having regard to:


25.1 the terms of the tenancy;
25.2 the use of the land comprised in the tenancy;
25.3 the nature of any commercial activities carried on on that land; and
25.4 any other relevant circumstances;
the character of the tenancy is primarily or wholly agricultural 1.
1

Agricultural Tenancies Act 1995 s 1(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[30]
26
Relevance of the agriculture condition
The agriculture condition is a sweep up provision designed to apply when notices have not been exchanged. It is
likely only to be relevant where:
26.1 there is an oral or written letting without professional advice; or
26.2 defective notices have been served; or
26.3 there has been an inadvertent surrender and re-grant 1; or
26.4 the nature of the letting is such that it is not worth the additional expense of the notices (eg a short term grazing
tenancy with a user clause confining use to grazing and/or mowing only).
1

Ie not within the provisions of the Agricultural Tenancies Act 1995 s 3 (1 Halsburys Statutes (4th Edn) AGRICULTURE) and
where fresh notices have not been served: see Paragraph 23 [28] ante.

[31]
27
Compliance with the agriculture condition
When assessing whether or not the agriculture condition has been complied with, any use of the land, any commercial
activities or any cessation of activities in breach of the terms of the tenancy agreement are to be disregarded save where
the landlord or his predecessor in title has consented or the landlord has acquiesced in the breach 1.
The requirement for compliance with the agriculture condition can be contrasted with that for the business
conditions. Any failure at any time during the life of the farm business tenancy to comply with the business conditions
means that the tenancy ceases to be a farm business tenancy even if, subsequently, the business conditions are complied
with again. In the case of the agriculture condition, however, the condition is fulfilled provided that the character of the
tenancy is primarily or wholly agricultural at the time the status is challenged, and past non-compliance is irrelevant. It
is possible, therefore, that a tenancy where valid notices have not been served can, where part of the land is farmed
throughout, slip into and out of the farm business tenancy regime and the Landlord and Tenant Act 1954 regime 2.
1
2

Agricultural Tenancies Act 1995 s 1(8) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 13 note 2 [18] ante.
In cases where there is doubt as to whether the agriculture condition is being complied with, the factors which may influence a
landlords decision as to termination of the tenancy, and the question whether it is in the landlords or tenants interest to assert
compliance or non-compliance, will need careful consideration.

[32]
2840
Primarily or wholly agricultural
Substantial diversification will not be permissible if the notice conditions have not been complied with, as the
obligation under the agriculture condition is for the character of the tenancy to be primarily or wholly agricultural.
Primarily or wholly agricultural is a new expression. Whilst cases under the Agricultural Holdings Act 1986 may be
of use, care should be taken in placing too much reliance upon them as the wording of the two Acts is different,
although sufficiently close in concept in some instances to make the old cases worth looking at 1.
The approach in the old cases to the question of assessing substantial use is likely to be an approach followed
under the 1995 Act: it is a matter of overall impression taking into account all relevant factors. Similarly, the terms of
the tenancy agreement, particularly if purposes are specified, are likely to be important.
Note that the agriculture condition does not use the word farmed. It is possible, therefore, for the whole of
the land comprised in the tenancy to be farmed 2 but for the tenancy still not to satisfy the agriculture condition.
[33]
1

In the Agricultural Holdings Act 1986 s 1(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE), a contract of tenancy is regarded
as a contract for an agricultural tenancy if (substantially) the whole of the land is let for use as agricultural land (see ibid s 1(4)
and Paragraph 305 [2013] et seq post); this is considered by reference to:
(a)
the terms of the tenancy;
(b)
the actual or contemplated use of the land at the time of the conclusion of the contract and subsequently; and
(c)
any other relevant circumstances.
Unlawful uses not permitted by the tenancy are to be ignored in making that assessment (see Kempe v Dillon-Trenchard (1951)
101 LJR 417, [1951] EGD 13), as they are in most cases under the Agricultural Tenancies Act 1995 (1 Halsburys Statutes (4th
Edn) AGRICULTURE): see ibid s 1(8).
See Paragraph 14 [19] ante.

[34][50]

C: TENANTS FIXTURES AND BUILDINGS


41
Tenants right to remove fixtures
Subject to certain exceptions 1, a tenant under a farm business tenancy has the right to remove any fixture affixed to,
and any building erected on, the holding by the tenant 2 and any fixture or building acquired by the tenant 3. This right
may be exercised at any time during the continuance of the tenancy or at any time after the termination of the tenancy
when he remains in possession as tenant4.
The tenant must immediately make good all damage to the holding that is occasioned by the removal of a
fixture or building5, and is obliged not to do any avoidable damage 6. There is no right to contract out of this statutory
provision7 and no substituted or alternative right8.
1
2
3
4
5
6
7
8

See Paragraph 42 [52] post.


See the Agricultural Tenancies Act 1995 s 8(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ibid s 8(5).
This would include where the tenant is holding over or has taken a new tenancy.
Agricultural Tenancies Act 1995 s 8(4).
Ibid s 8(3).
Except as provided by ibid s 8(2)(d) (see Paragraph 42.4 [52] post): ibid s 8(6).
Ibid s 8(7).

[51]
42
Fixtures and buildings to which the right of removal applies
The right of removal is specifically stated to apply to any fixture of whatever description affixed to the holding by the
tenant (or acquired by him) whether for the purposes of agriculture or not, and it also applies to any building erected
or acquired by the tenant1, but there is no right to remove the following 2:
42.1 a fixture affixed or a building erected in pursuance of some obligation;
42.2 a fixture affixed or a building erected instead of some fixture or building belonging to the landlord;
42.3 a fixture or building in respect of which compensation has been paid as a tenants improvement 3;
42.4 a fixture or building in respect of which the landlord has given consent 4 on condition that the tenant will not
remove it, and which the tenant has agreed not to remove.
1
2
3

See the Agricultural Tenancies Act 1995 s 8(1), (5) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ibid s 8(2). Cf the Agricultural Holdings Act 1986 s 10 (1 Halsburys Statutes (4th Edn) AGRICULTURE): see Paragraph 327
[2092] post.
As to the tenants right to compensation for improvements see Paragraph 91 [101] et seq post. Even if the tenant has the right to
claim compensation in respect of the fixture as an improvement, he has the option of removing the fixture instead of making the
compensation claim.
Ie consent under the Agricultural Tenancies Act 1995 s 17 to the provision of the fixture or building as a tenants improvement
(see Paragraph 94 [105] post). If a fixture or building is readily removable, the tenant may be better advised to provide it as a
tenants fixture rather than as an improvement, and so avoid possible problems with landlords consent and the compensation
provisions (see Paragraph 94 [105] et seq post).

[52]
43.50 Comparison with the right of removal under the Agricultural Holdings Act 1986
The 1995 Act is more favourable to tenants than the Agricultural Holdings Act 1986 1 because:
43.1 There is no pre-condition that the tenant must have complied with the terms and conditions of the tenancy and
paid all the rent due and owing before he can exercise his right of removal 2.
43.2 The right of removal is at any time during or after the currency of the tenancy whilst he remains in possession
as tenant3 with no obligation to serve notice on the landlord first 4.
43.3 The landlord has no entitlement to take the fixtures at a valuation 5.
1
2
3
4
5

See Paragraph 326 [2091] et seq post.


Cf the Agricultural Holdings Act 1986 s 10(3)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Tenancies Act 1995 s 8(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Cf the Agricultural Holdings Act 1986 s 10(3)(b).
Cf ibid s 10(4).

[53][60]

D: RENT REVIEW
1: INTRODUCTION
51
Contractual and statutory rent review
Under the 1995 Act there are three basic options:
51.1 The lease or tenancy agreement may contain an express statement that the rent is not to be reviewed during the
tenancy1.
51.2 The lease or tenancy agreement may provide that the rent is to be varied at a specified time or times during the
tenancy:
51.2.1
by or to a specified amount2; or
51.2.2
in accordance with a specified formula which does not require or permit the exercise by any person of
any judgment or discretion and which must not be upwards only3;
but that otherwise the rent is to remain fixed.
51.3 In the absence of such statement or provision in the instrument creating the tenancy, the statutory rent review
machinery4 will be applied5. However, if the parties choose a rent review formula which does not fall within the
statutory provision6 and if (but only if) both parties wish to follow that formula at the particular review, they are
not prevented from doing so, except that they cannot appoint an arbitrator to determine the rent payable on that
basis7.
1
2
3
4
5
6
7

See the Agricultural Tenancies Act 1995 s 9(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ibid s 9(b)(i).
See ibid s 9(b)(ii) and Paragraph 52 [62] post.
See Paragraph 53 [63] et seq post.
Agricultural Tenancies Act 1995 s 9.
Ie ibid s 9(b).
See ibid s 12(b).

[61]
52
Contractual formula for variation of rent
If the parties provide in the tenancy agreement for the rent to remain fixed unless varied (at a specified time or times
during the tenancy) in accordance with a specified formula, that formula:
52.1 must not preclude a reduction; and
52.2 must not require or permit the exercise by any person of any judgment or discretion in relation to the
determination of the rent of the holding 1.
The formula must permit a mathematical and identifiable calculation to be made with no human judgment
required. Determination by reference to indices would be a possibility under this option. Consideration should,
however, be given to whether the use of indices, such as the Retail Price Index, will bear a sufficiently close
resemblance to farm profitability or rental levels at the time of review. Care should therefore be taken in choosing this
option, particularly in respect of a medium to long term tenancy.
Initially concerns were expressed that the exercise of judgment in determining the commodities to be taken
into account for indices would prevent their use under this option. It is generally thought that the exercise of judgment
in the compilation of the indices will not fall foul of the requirements of the option provided there is no exercise of
discretion in the application of the indices to the rent.
Note that it is not possible to invoke the statutory rent review mechanism under the Agricultural Holdings Act
19862 under any of the options. If the contractual options are chosen, the parties should define the timing of reviews, if
applicable; the provision for review dates in Part II of the 1995 Act 3 applies to statutory rent review only.
1
2
3

See the Agricultural Tenancies Act 1995 s 9(b)(ii) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie under the Agricultural Holdings Act 1986 s 12, Sch 2 (1 Halsburys Statutes (4th Edn) AGRICULTURE). See Paragraph 334
[2116] et seq post.
See Paragraphs 55 [65], 56 [66] post.

[62]
2: STATUTORY RENT REVIEW
53
General
If there is no provision as to rent review complying with the requirements of the 1995 Act 1 and no other contractual
choice which the parties agree to follow through, the statutory rent review machinery must be applied 2. This requires
the rent to be fixed at the open market level with minimal disregards (ie tenants fixtures or improvements, tenants

actual occupation, tenants dilapidations)3. The statutory rent review will always apply to oral lettings since the agreed
alternative option must be included in a tenancy agreement for evidential purposes 4.
Such reviews cannot take place more often than once every three years unless there is a written agreement
providing for alternative rent review dates5. A trigger notice called the statutory review notice must be given 6.
1
2
3
4
5
6

See Paragraph 51 [61] ante.


See the Agricultural Tenancies Act 1995 s 9 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See ibid s 13 and Paragraphs 57 [68], 58 [69] post.
See ibid s 9.
See Paragraphs 55 [65], 56 [66] post.
See Paragraph 54 [64] post.

[63]
54
The statutory review notice
A statutory review notice1 must be given to trigger a statutory rent review from a review date 2 complying with the
statutory requirements. The statutory review notice is a notice in writing, given by the landlord or tenant under a farm
business tenancy to the other, requiring a referral to arbitration, in accordance with the statutory provisions, of the rent
to be payable as from the review date 3. There is no prescribed form for the notice other than that it must be in writing
and must specify the review date4.
1
2
3
4

This term is defined in the Agricultural Tenancies Act 1995 s 10(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the review date see Paragraph 56 [66] post.
See Paragraph 59 [70] post.
For a form of notice see Form 11 [702] post.

[64]
55
Frequency of rent reviews
The parties may agree in writing for rent reviews of whatever frequency they wish and from whatever date or dates
they wish1. The parties are free to provide for irregular review dates in the tenancy agreement and thus, for instance,
delay the first review for a number of years. They are able to choose the frequency of the review and/or the date in any
particular year when a review is to take effect, even if the review itself is to be in accordance with the statutory
formula. The agreement as to review dates must be made in writing, but need not be included in the tenancy agreement
itself.
If no such agreement is reached, a statutory rent review cannot take place before the end of a three year
period beginning with the latest of certain specified dates 2. Although three yearly reviews are familiar from the
Agricultural Holdings Act 1986, an agreement not to change the rent will start time running under the 1995 Act 3
whereas, under the 1986 Act, an increase or decrease in rent would be required to start time running again.
1
2
3

See the Agricultural Tenancies Act 1995 s 10(4), (5) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 56 [66]
post.
See ibid s 10(6)(b) and Paragraph 56.4 [66] post.
See Paragraph 56.4.4 [66] post.

[65]
56
The review date in a statutory review notice
In relation to a statutory review notice, the review date means a date which is specified in that notice and which
complies with certain requirements 1. The date must be at least 12 months but less than 24 months after the day on
which the statutory review notice is given 2, and:
56.1 if the parties have agreed in writing that the rent may be varied from a specified date or at specified intervals, it
must be a date as from which the rent could be varied under the agreement 3;
56.2 if the parties have agreed in writing that the review date for the purposes of Part II of the 1995 Act is to be a
specified date or dates, it must be the agreed date or one of those dates 4.
However, if no such agreement as to a review date has been made, then:
56.3 it must be an anniversary of the beginning of the tenancy 5 or (if the parties have agreed in writing that the
review date for the purposes of the 1995 Act is to be some other day) that other day of the year 6; and
56.4 it must not fall before the end of three years beginning with the latest of the following dates 7.
56.4.1
the beginning of the tenancy;
56.4.2
any date as from which a previous direction of an arbitrator as to the amount of the rent took effect;
56.4.3
any date as from which a previous determination (made by a person appointed otherwise than as
arbitrator) as to the amount of the rent took effect;
56.4.4
any date as from which a previous agreement in writing between the landlord and tenant 8, made since
the grant of the tenancy, as to the amount of the rent took effect.
[66]

2
3
4
5
6
7
8

See the Agricultural Tenancies Act 1995 s 10(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to the review date where
there is a new farm business tenancy of a severed part of the reversionary estate see ibid s 11, but note that a severance of the
reversion does not automatically create new tenancies: see Jelley v Buckman [1974] QB 488, [1973] 3 All ER 853, CA and 27(1)
Halsburys Laws (4th Edn Reissue) LANDLORD AND TENANT para 484.
See the Agricultural Tenancies Act 1995 s 10(3).
See ibid s 10(4).
See ibid s 10(5).
As to the beginning of the tenancy see Paragraph 2 [3] ante.
See the Agricultural Tenancies Act 1995 s 10(6)(a).
See ibid s 10(6)(b).
See eg Form 12 [703] post.

[67]
57
Amount of rent
On a reference made in pursuance of a statutory review notice, the arbitrator must determine the rent properly
payable1. This is defined2 as:
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, taking into account all relevant factors, including (in every case) the terms of the tenancy .
The terms of the tenancy include the user covenants and what the parties have agreed as to the review date 3, but not
terms relating to the criteria by reference to which the new rent is to be determined.
The open market value formula is based on the hypothetical landlord and the hypothetical tenant (who must
be willing rather than prudent and willing) 4, with a limited number of matters to be disregarded 5. The productive
capacity and related earning capacity of the holding are irrelevant in the statutory review.
1

2
3
4
5

See the Agricultural Tenancies Act 1995 s 13(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). The rent properly payable is
as at the review date (and not the date of reference to arbitration as provided under the Agricultural Holdings Act 1986 (1
Halsburys Statutes (4th Edn) AGRICULTURE)).
Agricultural Tenancies Act 1995 s 13(2).
Ie factors which are relevant for the purposes of ibid s 10(4)(6) (see Paragraphs 56.156.4 [66] ante): ibid s 13(2).
Cf the Agricultural Holdings Act 1986 s 12, Sch 2 (see Paragraph 336 [2118] et seq post).
As to the matters to be disregarded see Paragraph 58 [69] post.

[68]
58
Matters to be disregarded
The arbitrator must disregard any effect on the rent of the fact that the tenant who is a party to the arbitration is in
occupation of the holding; and he must not fix the rent at a lower amount by reason of any dilapidation or deterioration
of, or damage to, buildings or land, that was caused or permitted by the tenant 1.
The arbitrator must also disregard any increase in the rental value of the holding due to tenants
improvements2, with the exception of the following 3:
58.1 any tenants improvement provided under an obligation which was imposed on the tenant by the terms of his
tenancy (or any previous tenancy) and which arose on or before the beginning of the tenancy in question;
58.2 any tenants improvement to the extent that any allowance or benefit has been made or given by the landlord in
consideration of its provision; and
58.3 any tenants improvement to the extent that the tenant has received any compensation from the landlord in
respect of it.
1
2
3

See the Agricultural Tenancies Act 1995 s 13(4) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the meaning of tenants improvement see ibid s 13(5) and Paragraph 92 [102] post.
Ibid s 13(3).

[69]
59
Disputes procedures
The statutory rent review notice must require the rent to be payable in respect of the holding to be referred to
arbitration1. The landlord and tenant may, under an agreement made after the service of the review notice, either
appoint an arbitrator or appoint a third party to determine the question of the rent (otherwise than as arbitrator) on an
agreed basis2.
If no such agreement is made either party may, at any time during the period of six months ending with the
review date, apply to the President of the Royal Institution of Chartered Surveyors for the appointment of an arbitrator 3.
From then on, the resolution of a dispute is governed by Section 30 of the 1995 Act and the Arbitration Acts 4.
Disputes procedures for farm business tenancies are not subject to a separate code 5.

2
3
4
5

See the Agricultural Tenancies Act 1995 s 10(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 54 [64] ante.
This is similar to the Agricultural Holdings Act 1986 s 12(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE): see Paragraph
334 [2116] post.
See the Agricultural Tenancies Act 1995 s 12(a), (b) and Form 24 [743] post.
See ibid s 12 and Form 25 [745] post.
See Paragraph 124 [145] post. As to the Arbitration Acts 19501979 (2 Halsburys Statutes (4th Edn) ARBITRATION ) see
generally vol 3(1) ARBITRATION AND ALTERNATIVE DISPUTE RESOLUTION .
Cf the Agricultural Holdings Act 1986: see Paragraphs 335 [2117] et seq, 464 [2546] et seq post.

[70]
6070
Conduct of farm business tenancy rent reviews
The combined effect of the introduction of the open market formula and the provisions as to the resolution of disputes
will ensure that farm business tenancy rent reviews are conducted more in accordance with the procedures applicable to
arbitrations in respect of commercial lettings of business and industrial premises 1. Some consequences of this are that:
60.1 other arbitrators awards are likely to be inadmissible 2;
60.2 only the information available on the open market which can be determined objectively will be available in
setting the rent3;
60.3 there are much more limited discovery provisions 4;
60.4 with the wide variety of terms and conditions applicable to new tenancies, care will need to be taken when
adducing evidence of comparables to evaluate properly their comparability.
1
2
3

As to rent review generally see 27(1) Halsburys Laws (4th Edn Reissue) LANDLORD AND TENANT para 261 et seq and see vols
22(1) - (3) (1996-1997 Reissue) LANDLORD AND TENANT (Business Tenancies)
Land Securities plc v Westminster City Council [1993] 4 All ER 124, [1993] 1 WLR 286.
See Royal Exchange Assurance v Bryant Samuel Properties (Coventry) Ltd [1985] 1 EGLR 84; Dennis & Robinson Ltd v
Kiossos Establishment [1987] 1 EGLR 133, 54 P & CR 282, CA; and FR Evans (Leeds) Ltd v English Electric Co Ltd (1977) 36
P & CR 185.
See WJ Barton Ltd v Long Acre Securities Ltd [1982] 1 All ER 465, [1982] 1 WLR 398, CA; Cornwall Coast Country Club v
Cardgrange Ltd [1987] 1 EGLR 146; Electricity Supply Nominees Ltd v London Clubs Ltd [1988] 2 EGLR 152; and Temple &
Crook Ltd v Capital and Counties Property Co Ltd [1990] 2 EGLR 129.

[71][80]

E: TERMINATION OF FARM BUSINESS TENANCIES


1: INTRODUCTION
71
Security of tenure
The only security of tenure for farm business tenants is:
71.1 Fixed term tenancies of more than two years will continue as annual periodic tenancies unless determined by
notice to quit complying with the statutory provisions 1.
71.2 The notice requirements for annual periodic tenancies are fixed by statute and the notice period is longer than
the period under common law2.
71.3 Break clauses in leases for terms of more than two years are subject to statutory stipulations as to the length of
notice3.
1
2
3

See the Agricultural Tenancies Act 1995 s 5 (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 72 [82] post.
See ibid s 6 and Paragraph 74 [84] post.
See ibid s 7 and Paragraph 76 [86] post.

[81]
2: TYPES OF TENANCY
72
Fixed term tenancies of more than two years
Fixed term tenancies of more than two years will not come to an end on the term date 1 merely by effluxion of time. If a
party wishes such a tenancy to end on its term date he must give the other party written notice of his intention to
terminate the tenancy on that date at least 12, but less than 24, months in advance 2.
Either party may serve the notice. If no such notice is given, the tenancy will continue after the term date as
an annual periodic tenancy on the same terms and conditions (so far as applicable) as the original fixed term 3. It is
likely that the courts will find such a continuation tenancy to be contractual in nature 4. Once such a fixed term
tenancy has become an annual periodic tenancy the method of termination is as for those tenancies which have been
annual periodic tenancies from the outset5. It is not possible to contract out of these provisions 6.

1
2
3
4

5
6

See the Agricultural Tenancies Act 1995 s 5(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See ibid s 5(1) and Form 13 [711] post.
See ibid s 5(1).
Cases under the Landlord and Tenant Act 1954 Pt II (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT) have
considered this point in the context of the continuing obligations of original tenants and sureties. The consensus is that the
continuation tenancy extends the contractual term with a statutory variation to the method of termination. See for example City
of London Corpn v Fell [1993] QB 589 at 604, CA; affd [1994] 1 AC 458, HL. If this analysis is correct in the context of
tenancies continued by the Agricultural Tenancies Act 1995 s 5, the tenant continues to have an estate rather than simply a
personal licence to occupy.
See Paragraph 74 [84] post.
See the Agricultural Tenancies Act 1995 s 5(4).

[82]
73
Fixed term tenancies of two years or less
Fixed term tenancies of two years or less require no notice to bring them to an end. They will simply expire on the term
date by effluxion of time. Such tenancies will effectively replace grazing agreements and Gladstone v Bower tenancies1
and other short term tenancies previously used to avoid granting the tenant security of tenure under the Agricultural
Holdings Act 19862. If a short fixed term is used, particularly where it is used because the land has to be back in hand
by a particular date, care must be taken to ensure that the term is properly two years or less.
Similarly, if a tenant is expecting a fixed term of more than two years, it must be remembered that, for the
purposes of ascertaining the length of term, the commencement date cannot be before the agreement is entered into,
regardless of what is stated to be the length of the term in the body of the agreement 3. A tenant may inadvertently end
up with a term of two years or less, not because that was the intention of the parties but because the signing and dating
of the agreement is delayed.
1
2
3

See Gladstone v Bower [1960] 2 QB 384, [1960] 3 All ER 353, CA and Paragraph 357 [2191] et seq post.
See Paragraph 353 [2171] et seq post.
See Roberts v Church Comrs for England [1972] 1 QB 278, [1971] 3 All ER 703, CA and Keen v Holland [1984] 1 All ER 75,
[1984] 1 WLR 251, CA.

[83]
74
Annual periodic tenancies
Notice is required to terminate tenancies which have been tenancies from year to year from the outset as well as those
which were originally fixed term tenancies of more than two years, but which are continuing after the end of the fixed
term. Any notice to quit where a farm business tenancy is a tenancy from year to year will be invalid 1 unless:
74.1 it is in writing;
74.2 it is to take effect at the end of a year of the tenancy; and
74.3 it is given at least 12 months but less than 24 months before it is to take effect.
Either party may serve such a notice. It is not possible for the parties to contract out of these provisions 2, and
the statutory requirements override the common law rule that notice to quit in respect of an annual periodic tenancy
must be of at least six months duration and take effect at the end of the year of the tenancy.
A notice given in the last year of a tenancy for a fixed term of more than two years, to expire on the first
anniversary of the term date, is not invalid merely because it is given before the term date 3.
1
2
3

See the Agricultural Tenancies Act 1995 s 6(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Forms 15 [713], 16 [714]
post.
Ibid s 6(1).
Without this provision there could have been difficulty as strictly the tenancy would not yet be a tenancy from year to year
within ibid s 6, and the provisions in ibid s 5 for termination of a fixed term tenancy envisage notice to quit terminating on the
term date.

[84]
75
Other periodic tenancies
Other periodic tenancies are not governed by the 1995 Act and common law rules must be complied with, unless there
are specific provisions in the tenancy agreement as to the length of the notice. The length of the notice at common law
for periodic tenancies for periods of less than a year is the length of one period of the tenancy; the notice must expire at
the end of a period of the tenancy. Attempts by a landlord to exclude the ability of a tenant (or vice versa) to serve a
notice to quit a periodic tenancy are void 1.
1

As to terminating periodic tenancies see further 27(1) Halsburys Laws (4th Edn Reissue) LANDLORD AND TENANT para 204.

[85]
3: OPTIONS TO TERMINATE OR RESUME POSSESSION OF PART

76
Break clauses in tenancies for terms of more than two years
In fixed term tenancies of any length, it may be in the interests of both the landlord and the tenant to have the ability to
break the term and bring the tenancy to an end. In the absence of a break clause in favour of a landlord, generally the
only way in which such a tenancy can be terminated by the landlord during the fixed term period is by forfeiture 1. The
parties have freedom of contract to agree an open break clause, an event based break clause, a clause which enables
the landlord to get back all or part of the land, or a clause which allows breaks only at defined times 2.
Where a farm business tenancy is a tenancy for a term of more than two years, any notice to quit the holding,
given in pursuance of any provision of the tenancy, will be invalid unless:
76.1 it is in writing; and
76.2 it is given at least 12 months but less than 24 months before the date on which it is to take effect 3.
Contracting out of this requirement is not permitted 4. Any attempt to provide in a break clause for a shorter
period of notice will probably not render the break clause void, but the exercise of the option to break in accordance
with such provision will be ineffective.
[86]
1
2

3
4

As to methods of determination and forfeiture see further 27(1) Halsburys Laws (4th Edn Reissue) LANDLORD AND TENANT
paras 498, 502 et seq.
There is a question over whether a tenancy for, say, ten years which allows the landlord or tenant to break every year is really a
fixed term tenancy. There has been discussion on the point under the Landlord and Tenant Act 1954 Pt II (23 Halsburys Statutes
(4th Edn) LANDLORD AND TENANT), where the approval by the court to agreement to exclude the protection of that Act can
only be given where the proposed tenancy is to be granted for a term of years certain. The problem identified by the courts is
being able to say that a term is certain where the landlord has an option to break. The authorities are not clear (see eg Scholl
Manufacturing Co Ltd v Clifton (Slim-Line) Ltd [1967] Ch 41, [1966] 3 All ER 16, CA; Nicholls v Kinsey [1994] QB 600, CA),
but in any event are concerned with the particular wording of the Landlord and Tenant Act 1954 and the policy behind the ability
to contract out.
In the Agricultural Tenancies Act 1995 (1 Halsburys Statutes (4th Edn) AGRICULTURE), the term used is fixed term
tenancy not term of years certain. Fixed term tenancy is defined in ibid s 38(1) as any tenancy other than a periodic tenancy
and it is likely that the courts would conclude that a fixed term with a break clause is a fixed term tenancy for the purposes of the
Act; ibid s 7 clearly envisages fixed term tenancies with break clauses.
See ibid s 7(1). For a form of notice see Form 14 [712] post. For limited exceptions see ibid s 7(2), (3).
See ibid s 7(1).

[87]
4: NOTICES
77
Form of notice to quit
There is no prescribed form in the 1995 Act for a notice to quit 1. The common law rules must be complied with and the
notice must be reasonably clear and certain, leaving the tenant in no doubt as to what the notice means and when the
tenancy is to terminate. Inconsequential or minor inaccuracies will not necessarily invalidate the notice if a tenant of
ordinary intelligence would not be misled by it2.
1
2

For forms of notice to terminate a farm business tenancy see Forms 13 [711]16 [714] post.
As to the form and construction of a notice to quit see further Hill and Redmans Law of Landlord and Tenant (18th Edn) para A
[2342] et seq.

[88]
78
Service of notice to quit
Any notice given under the 1995 Act is duly given 1 to a person if:
78.1 it is delivered to him; or
78.2 it is left at his proper (ie in the case of an individual, last known 2) address; or
78.3 it is given to him in a manner authorised in a written agreement 3 between the parties prior to the service of the
notice.
Notices to a body corporate should be given to the clerk or secretary of the body and the proper address is its
registered or principal office 4.
If the freehold of land subject to a farm business tenancy changes hands then, until the tenant has received
notice of the change and notice of the name and address of the person who has become entitled to receipt of the rents
and profits, the tenant may continue to serve notices on the original landlord and the tenants notices will be deemed to
have been given to the landlord under the tenancy5.
1
2
3
4

See the Agricultural Tenancies Act 1995 s 36(1), (2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ibid s 36(6)(b).
This agreement may, but need not, be incorporated into the tenancy agreement. Service by fax is not effective unless it is
pursuant to an agreement: ibid s 36(3).
Ibid s 36(4), (6)(a).

Ibid s 36(7). For a notice of change of landlord see Form 22 [741] post.

[89]
7990
Service on agents
Service on agents1 is possible in the following circumstances:
79.1 a notice to a landlord is properly served if given to an agent or servant who is responsible for the control of the
management of the holding;
79.2 a notice to a tenant is properly served if given to an agent or servant who is responsible for the carrying on of a
business on the holding.
In each case the notice must be served in accordance with one of the methods set out in Paragraph 78 above.
1

See the Agricultural Tenancies Act 1995 s 36(5) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[90][100]

F: COMPENSATION PAYABLE TO TENANT FOR IMPROVEMENTS


1: INTRODUCTION
91
Tenants right to compensation
Subject to compliance with the statutory requirements 1, a tenant under a farm business tenancy is entitled, on quitting
the holding on the termination of his tenancy, to obtain from his landlord compensation for any tenants improvement 2.
The tenant is entitled to compensation in accordance with these provisions notwithstanding any agreement to the
contrary3. Before a tenant is entitled to compensation the tenancy must be terminated and the tenant must be quitting
the holding.
There is no right under the 1995 Act to compensation for anything other than tenants improvements 4; any
other form of compensation is a matter for agreement between the parties 5.
1
2
3
4

See Paragraphs 92 [102], 94 [105] et seq post.


See the Agricultural Tenancies Act 1995 s 16(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ibid s 26(1).
Note that ibid s 16(3) expressly states that the provisions contained in the Agriculture Act 1986 s 13, Sch 1 (1 Halsburys
Statutes (4th Edn) AGRICULTURE) for compensating outgoing tenants in respect of milk quota (see Paragraph 452 [2511] et seq
post) do not apply in relation to a farm business tenancy. Following the recent case of Cottle v Coldicott (HM Inspector of Taxes)
[1995] STC (SCD) 239 (in which it was held that milk quota is a separate asset for the purposes of capital gains tax), there is
now some doubt whether milk quota will be treated as an intangible advantage (see Paragraph 92 [102] post) and therefore
compensatable. A tenant is well advised to seek an alternative compensation entitlement from the landlord before the tenancy
begins and before introducing milk quota to the holding. As to milk quota see eg Form 3 schedule 11 [384], Form 5 schedule 4
[463] post.
Cf the Agricultural Holdings Act 1986 Pts V, VI ss 6082, Schs 710 (1 Halsburys Statutes (4th Edn) AGRICULTURE): see
Paragraph 414 [2381] et seq post.

[101]
92
Meaning of tenants improvement
Tenants improvement means1:
92.1 any physical improvement which is made on the holding by the tenant by his own effort or wholly or partly at
his own expense; or
92.2 any intangible advantage2 which:
92.2.1
is obtained for the holding by the tenant by his own effort or wholly or partly at his own expense; and
92.2.2
becomes attached to the holding.
A tenant is not entitled to compensation in respect of any physical improvement which is removed from the
holding, or any intangible advantage which does not remain attached to the holding 3.
In relation to applications for consent to an arbitrator 4, physical improvements are divided into routine
improvements5 and other physical improvements. Physical improvements may also be fixtures 6. Intangible advantages
are divided into planning permissions and others, with planning permissions having their own compensation rules 7.
The new category of intangible advantages recognises that value may be added to a holding by things such as
planning permissions and licences and designations which become attached to the holding. Milk quota may also be an
intangible advantage if it can be said to become attached to the holding 8. Anyone letting a dairy farm or taking a
tenancy of a dairy farm should take professional advice on appropriate clauses to deal with milk quota protection and
compensation.
[102]
1

See the Agricultural Tenancies Act 1995 s 15 (1 Halsburys Statutes (4th Edn) AGRICULTURE).

2
3
4
5
6
7
8

Intangible advantage includes planning permission, but there are separate rules relating to compensation for this: see Paragraph
97 [108] post.
See the Agricultural Tenancies Act 1995 s 16(2).
See Paragraph 95 [106] post.
As defined in the Agricultural Tenancies Act 1995 s 19(10): see Paragraph 93 [104] post.
See ibid s 8 and Paragraph 41 [51] et seq ante.
See Paragraphs 97 [108], 100 [114] post.
The decision of Chadwick J in Faulks v Faulks [1992] 1 EGLR 9 would seem to indicate that milk quota does become attached
to the holding, but this case now has to be read in the light of the Special Commissioners decision in Cottle v Coldicott (HM
Inspector of Taxes) [1995] STC (SCD) 239 where, for capital gains tax purposes, quota was treated as a separate asset from the
land. See also Paragraph 91 note 4 [101] ante.

[103]
93
Meaning of routine improvement and fixed equipment
Routine improvement means1 any tenants improvement which:
93.1 is a physical improvement made in the normal course of farming the holding or any part of the holding; and
93.2 does not consist of fixed equipment or an improvement to fixed equipment.
If the provision of an improvement is prohibited by the terms of the tenancy, then that improvement is not included as a
routine improvement.
Fixed equipment includes any building or structure affixed to the land and any works constructed on, in,
over or under land, and also includes anything grown on land for a purpose other than use after severance from the
land, consumption of the thing grown or its produce, or amenity2.
1
2

See the Agricultural Tenancies Act 1995 s 19(10) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and see also Paragraph 98
[110] post.
Ibid s 19(10).

[104]
2: CONDITIONS OF ELIGIBILITY FOR COMPENSATION
(a) Improvements other than planning permission or routine improvements
94
Conditions relating to compensation for tenants improvements
The landlords written consent to the provision of the tenants improvement is a mandatory pre-requisite for
compensation1, and there can be no contracting out of this requirement 2. Accordingly, the tenant who fails to secure his
landlords written consent before undertaking an improvement runs the risk of losing his entitlement to compensation if
the landlords consent is then refused.
The consent may (but need not) be given in the tenancy agreement 3 and it may be conditional or
unconditional4. Any condition must be that the tenant agrees to a specified variation to the terms of the tenancy, and
this variation must be related to the tenants improvement in question 5. Thus conditions limiting compensation or
providing for a write-off, for example, are forbidden.
1
2
3
4
5

See the Agricultural Tenancies Act 1995 s 17(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Forms 17 [721], 18 [722]
post. As to compensation for planning permission or routine improvements see Paragraphs 97 [108], 98 [110] post.
See ibid s 26(1).
Ibid s 17(2).
Ibid s 17(3).
Ibid s 17(3), (4).

[105]
95
Arbitration where landlord refuses or fails to give the required consent
The general rule is that if the landlord refuses consent, the tenant may, before making the improvement, go to
arbitration and the arbitrator may substitute his consent for the landlords 1. The tenant has a right to give written notice 2
demanding a referral to arbitration if the landlord:
95.1 refuses consent3; or
95.2 fails to give consent within two months of a written request from the tenant 4; or
95.3 requires, as a condition of giving consent, any variation in the terms of the tenancy 5, which is unacceptable to
the tenant.
The tenant has no right to serve notice requiring arbitration if he has already provided, or begun to provide,
the improvement6.
There is a time limit for giving such notice of two months following the landlords notice refusing consent (or
requiring a variation) or, if the landlord does not respond to the request, four months from the date of the written

request7. In default of agreement the arbitrator falls to be appointed by the President of the Royal Institution of
Chartered Surveyors 8.
1
2
3
4
5
6
7
8

See the Agricultural Tenancies Act 1995 s 19(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See Form 20 [724] post.
Agricultural Tenancies Act 1995 s 19(1)(a).
Ibid s 19(1)(b).
Ibid s 19(1)(c).
Ibid s 19(2). Cf routine improvements: see Paragraph 93 [104] ante and Paragraph 98 [110] post.
Ibid s 19(3).
Ibid s 19(4).

[106]
96
96.1

The arbitrators powers


The arbitrator may determine whether it is reasonable for the tenant to provide the proposed improvement
having regard to the terms of the tenancy and any other relevant circumstances (including the circumstances of
the tenant and the landlord)1. This may include their financial and personal circumstances. Thus, for example,
the ability of the landlord to pay the compensation, the landlords proposed use of the holding after the
expiration of the farm business tenancy and the specialist nature of the improvement are, presumably, all
relevant considerations.
The arbitrator may approve unconditionally the provision of the improvement, or withhold his approval; but he
may not impose any condition or vary any condition required by the landlord 2.
Once an improvement (other than a routine improvement) is under way it is too late to make an application for
the appointment of an arbitrator 3, and in a case where an arbitrator has already been appointed, but the
improvement is started before he makes his award, he may not make an award, except as to costs 4.

96.2
96.3

1
2
3
4

See the Agricultural Tenancies Act 1995 s 19(5) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See ibid s 19(6).
See ibid s 19(9)(a), (b). As to routine improvements see Paragraph 93 [104] ante and Paragraph 98 [110] post.
See ibid s 19(9)(c).

[107]
(b) Planning permission and routine improvements
97
Conditions relating to compensation for planning permission
The landlords written consent is a mandatory pre-condition for compensation 1. There is no alternative of applying for
arbitration. The consent should therefore be obtained before the application for planning permission is made. If the
landlord refuses his consent to the planning permission, the tenant is still free to apply for the permission and to seek
the arbitrators approval to the physical improvement or change of use in question. However, if the tenancy were to
terminate before the physical improvement or change of use had been effected, the tenant would not be entitled to
compensation.
The landlords consent to the making of the application for planning permission must be expressed to be
given2 for the purpose:
97.1 of enabling a specified physical improvement 3 lawfully to be provided; or
97.2 of enabling the tenant lawfully to effect a specified change of use.
Compensation is only payable if the physical improvement has not been completed or the change of use
effected4. This is to ensure that the tenant who has been unable to complete the improvement or effect the change of use
before the tenancy comes to an end is compensated. As with physical improvements, a landlords consent may be
unconditional or on condition that the tenant agrees to a variation in the terms of the tenancy, but any conditions must
relate specifically to the physical improvement or the change of use being sought and cannot, for example, relate to the
level of compensation5.
[108]
1
2
3
4
5

See the Agricultural Tenancies Act 1995 s 18(1)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See ibid s 18(1)(b) and Form 19 [723] post.
Ie a specified physical improvement falling within ibid s 15(a).
See ibid s 18(1)(c).
See ibid ss 18(2), (3), 26(1).

[109]
98
Conditions relating to compensation for routine improvements
Compensation for routine improvements 1 is intended to cover many of the tenant-right matters for which
compensation has been payable under the Agricultural Holdings Act 1986 2

In the same way as for other physical improvements, the landlords written consent must be given before
compensation3 is payable; however, if the landlord refuses or fails to give unconditional consent, it is still possible for
the tenant to serve notice requiring arbitration (and for an award to be made) after he has begun or, indeed, already
provided the routine improvement 4.
Consent may be given expressly in the tenancy agreement 5. If the tenant has to go to arbitration, the arbitrator
may deal both with consent to the routine improvements and to the compensation payable in respect of them 6.
[110]
1

2
3
4
5

The Agricultural Tenancies Act 1995 s 19(10) (1 Halsburys Statutes (4th Edn) AGRICULTURE) contains a wide definition of
routine improvements (see Paragraph 93 [104] ante); they would include eg acts of husbandry such as ploughing, rolling,
harrowing, making a seed bed, drilling, fertilising, spraying and generally promoting an arable crop, as well as sub-soiling, mole
drainage and many other matters which appear in the Agricultural Holdings Act 1986 s 65, Sch 8 (1 Halsburys Statutes (4th
Edn) AGRICULTURE).
See Paragraph 434 [2446] et seq post.
Under the Agricultural Tenancies Act 1995 ss 16, 17: see Paragraphs 91 [101], 94 [105] ante.
See ibid s 19(2), (9) and Paragraph 96.3 [107] ante.
Ibid s 17(2). It is possible that consent may also be implied for certain routine improvements if, for instance, there are positive
obligations to farm to a certain standard or in accordance with the rules of good husbandry. In most cases, consent and
compensation for routine improvements are likely to be relevant only for improvements carried out in the final year of the
tenancy.
See Paragraph 101.3 [115] post.

[111]
3: AMOUNT OF COMPENSATION
99
Improvements other than planning permission
The amount of compensation payable to the tenant in respect of any tenants improvement (other than planning
permission), is the amount equal to the increase attributable to the improvement in the value of the holding at the
termination of the tenancy as land comprised in a tenancy 1 subject to the following provisos:
99.1 Where there is a written agreement under which the tenant receives any benefit or allowance in consideration of
providing the improvement, the compensation is reduced by the proportion which the value of the benefit bears
to the amount of the total cost of providing the improvement 2.
99.2 Compensation is reduced by any grant aid, again by the proportion which the amount of the grant bears to the
amount of the total cost of providing the improvement 3.
99.3 Where a physical improvement has involved a change of use for which planning permission has been obtained,
any value attributable to that permission may be taken into account in valuing the physical improvement or the
intangible advantage obtained as a result of the change of use 4.
The aim behind the compensation provisions is to ensure that the landlord is not unjustly enriched at the
expense of the tenant, or vice versa. The compensation is determined at the termination of the tenancy, so that
circumstances at that time such as the value to an incoming tenant, the need for updating and additional expenditure for
future use would be taken into account. The valuation of routine improvements 5 is the same as for other physical
improvements.
[112]
1

2
3
4
5

See the Agricultural Tenancies Act 1995 s 20(1), (5) (1 Halsburys Statutes (4th Edn) AGRICULTURE). In the absence of a clear
value for an improvement, the basis for valuation will presumably be the capitalised value of the increased rent which the
landlord would receive for the rest of the lifetime of the improvement, and it is likely that problems in connection with valuation
and capitalisation will arise.
Ibid s 20(2).
Ibid s 20(3).
Ibid s 20(4).
See Paragraph 98 [110] ante. For many routine improvements there will be a clear value of eg a crop.

[113]
100
Planning permission
This is a similar valuation provision 1 but it covers the situation where the improvement has not yet been carried out.
The amount of compensation is to be equal to the increase attributable to the fact that the relevant development is
authorised by the planning permission in the value of the holding at the termination of the tenancy as land comprised in
a tenancy. The relevant development is defined as meaning the physical improvement or change of use specified in
the landlords consent2. Similar provision is made for reducing proportionately the compensation where a benefit has
been given or allowed to the tenant in consideration of the obtaining of the planning permission by the tenant 3.
1

See the Agricultural Tenancies Act 1995 s 21(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). Similar problems of
capitalisation therefore apply (see Paragraph 99 note 1 [113] ante).

2
3

Ie the consent given in accordance with ibid s 18(1)(b) (see Paragraph 97 [108] ante): ibid s 21(2).
See ibid s 21(3). Cf ibid s 20(2) (see Paragraph 99.1 [112] ante).

[114]
4: MISCELLANEOUS
101
Settlement of claims for compensation
Mandatory arbitration1 under the Arbitration Acts2 is subject to the following rules:
101.1 A trigger notice must be given making the claim before the end of the period of two months beginning with the
date of the termination of the tenancy3. This provision applies to all tenants improvements including routine
improvements and planning permissions.
101.2 If the claim has not been settled by written agreement between the landlord and tenant, and no arbitrator has
been appointed by agreement following service of the trigger notice 4, either party may, after the end of four
months from the end of the tenancy, apply to the President of the Royal Institution of Chartered Surveyors for
the appointment of an arbitrator5.
101.3 If such an application for the appointment of an arbitrator relates to compensation for a routine improvement
and is made at the same time as an application for the appointment of an arbitrator to consider the giving of
consent for that improvement6, the same arbitrator must be appointed7 and only one fee8 is payable.
101.4 There are provisions for postponing the trigger notice where the tenant lawfully remains in occupation of part
of the holding after termination of a farm business tenancy9.
[115]
1
2
3
4

5
6
7
8
9

See the Agricultural Tenancies Act 1995 ss 22(1), 30 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the Arbitration Acts 19501979 (2 Halsburys Statutes (4th Edn) ARBITRATION) see generally vol 3(1) ARBITRATION AND
ALTERNATIVE DISPUTE RESOLUTION .
See the Agricultural Tenancies Act 1995 s 22(2) and Form 21 [725] post.
The agreement appointing an arbitrator must be made after the notice under ibid s 22(2) is given (see ibid s 22(3)(b)) and so
cannot be included in the original tenancy agreement. For an example of an agreement to appoint an arbitrator see Form 24 [743]
post.
Ibid s 22(3). There is no prescribed form except that the information specified in ibid s 22(2) must be included. See Form 25
[745] post.
Ie an application under ibid s 19(4): see Paragraph 95 [106] ante.
Ibid s 22(4).
Ie the fee payable under ibid s 30(2).
See ibid s 22(5). Cf the Agricultural Holdings Act 1986 s 83 (1 Halsburys Statutes (4th Edn) AGRICULTURE): see Paragraph 464
[2546] et seq post.

[116]
102
Successive tenancies
There are similar provisions for rollover to those in the Agricultural Holdings Act 1986 with a proviso that if
compensation is payable at the end of a farm business tenancy which is then renewed, the tenant does not get
compensated again on the expiration of the second or subsequent one 1.
The right of rollover does not apply if the subsequent tenancy is not a farm business tenancy (for instance
because the new tenancy does not meet the requirements of the 1995 Act and falls to be treated as a business tenancy
under the Landlord and Tenant Act 1954). The new tenancy must also be of the same holding although the de minimis
rule may apply.
If the tenant remains in occupation of the holding following termination of the tenancy he has no entitlement
at that time to compensation for improvements 2 although the landlord and tenant can agree that the tenant should be
entitled to such compensation even if he is to remain in occupation under a new tenancy. The likely value of the
tenants compensation claim at the end of the subject tenancy and the likely value on termination of a subsequent
tenancy should be taken into account by the parties before such an agreement is made.
1
2

See the Agricultural Tenancies Act 1995 s 23 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie under ibid s 16.

[117]
103120 Compensation on resumption of possession of part of the holding
Where either1:
103.1 the landlord resumes possession of part of the holding, pursuant to a provision in the tenancy agreement; or
103.2 following a severance of the reversion, a person entitled to a severed part of the reversionary estate resumes
possession of part of the holding by virtue of a notice to quit2 that part;

the statutory provisions relating to compensation apply as if that part were a separate holding 3, and the amount payable
in respect of a tenants improvement provided for the relevant part is to be equal to the increase attributable to that
improvement in the value of the original holding4.
There are additional rules where the reversion has been severed, enabling the arbitrator to apportion the
compensation between the several landlords and for the tenant to require the compensation to be assessed as if the
reversionary estate had not been severed 5.
1
2
3
4
5

See the Agricultural Tenancies Act 1995 s 24 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie a notice under the Law of Property Act 1925 s 140 (37 Halsburys Statutes (4th Edn) REAL PROPERTY).
See the Agricultural Tenancies Act 1995 s 24(1).
See ibid s 24(2), (4). As to the meaning of the original holding see ibid s 24(5). As to planning permission see ibid s 24(3).
See ibid s 25.

[118][140]

G: DISPUTE RESOLUTION
121
Particular provisions
Provision is made in the 1995 Act for statutory arbitration in the following circumstances:
121.1 The landlord or tenant may by means of a written notice given to the other require that the rent to be paid after a
review date be referred to arbitration1.
121.2 Where the landlord has refused or failed to give consent (or attached a condition to his consent) to a tenants
improvement, the tenant may by written notice demand that the question be referred to arbitration 2.
121.3 Any claim by the tenant for compensation for any improvement made on termination of a farm business
tenancy is to be determined by arbitration3.
1
2
3

See the Agricultural Tenancies Act 1995 s 10(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 54 [64] ante;
but see also ibid s 12(b) and Paragraph 59 [70] ante as to the appointment of a third party.
Ibid s 19(1) and Paragraph 95 [106] ante.
See ibid s 22(1) and Paragraph 101 [115] ante.

[141]
122
Residual arbitration
The residual arbitration provisions 1 apply to any dispute (other than in relation to the matters referred to in Paragraph
121 above2) between the landlord and tenant under a farm business tenancy, if it is a dispute concerning their rights
and obligations under this Act3, under the terms of the tenancy or under any custom 4. Such a dispute must be
determined by arbitration5 unless the parties have made appropriate provision for an alternative dispute resolution
procedure in a written tenancy agreement, and refer the dispute to a third party under that provision 6.
The landlord or tenant may give notice in writing specifying the dispute and stating that, unless the parties
have appointed an arbitrator by agreement within two months from the date of giving the notice, he proposes to apply
to the President of the Royal Institution of Chartered Surveyors for the appointment of an arbitrator 7. Either party may
apply for the appointment of an arbitrator after the end of that period of two months, if none has been appointed 8.
[142]
1
2
3
4
5

6
7
8

See the Agricultural Tenancies Act 1995 s 28 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See ibid s 28(5).
Ie the Agricultural Tenancies Act 1995.
See ibid s 28(1).
The Arbitration Acts 19501979 (2 Halsburys Statutes (4th Edn) ARBITRATION) will apply to the resolution of these disputes:
see the Arbitration Act 1950 s 31(1). As to arbitration generally see vol 3(1) ARBITRATION AND ALTERNATIVE DISPUTE
RESOLUTION.
See Paragraph 123 [144] post.
See the Agricultural Tenancies Act 1995 s 28(2); for a form of notice see Form 23 [742] post and for a form of agreement see
Form 24 [743] post.
See ibid s 28(3) and Form 25 [745] post.

[143]
123
Alternative dispute resolution
The provision for the resolution of disputes by arbitration1 does not apply2 to any dispute if:
123.1 the tenancy is created by an instrument which includes provision for disputes to be resolved 3 by any person
other than the landlord, the tenant, or a third party appointed by either the landlord or tenant without the consent
or concurrence of the other4; and

123.2 either:
123.2.1
123.2.2

1
2
3
4
5

the landlord and the tenant have jointly referred the dispute to the third party under the provision; or
the landlord or the tenant has referred the dispute to the third party under the provision and notified
the other in writing of this, and the other has not given a notice under Section 28(2) of the 1995 Act
by the end of four weeks after such notification 5.

Ie the Agricultural Tenancies Act 1995 s 28 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See ibid s 29.
As to the meaning of resolved see ibid s 29(2).
See ibid s 29(1)(a).
See ibid s 29(1)(b).

[144]
124150 General provisions applying to arbitrations
Any matter which is required to be determined by arbitration must be determined by the arbitration of a single
arbitrator1. Despite the statutory nature of the arbitration, an arbitrator may be appointed by agreement between the
parties themselves, but in default of such agreement the President of the Royal Institution of Chartered Surveyors will
appoint the arbitrator on the application of either party 2. The application must be made in writing and must be
accompanied by such reasonable fee as the President may determine in respect of the costs of making the appointment 3.
If the arbitrator dies or becomes incapable of acting and no arbitrator has been appointed by agreement, either
party may apply to the President of the Royal Institution of Chartered Surveyors for the appointment of a new arbitrator
by him4.
Apart from the provisions of the Arbitration Acts 5 and the relevant case law, these are the only general
provisions which apply to all arbitrations under the 1995 Act6.
1
2
3
4
5

See the Agricultural Tenancies Act 1995 s 30 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See ibid ss 12, 19(4), 22(3), 28(3).
See ibid s 30(2) and Form 25 [745] post.
See ibid s 30(3).
The Arbitration Acts 19501979 (2 Halsburys Statutes (4th Edn) ARBITRATION) will apply to the resolution of these disputes:
see the Arbitration Act 1950 s 31(1). As to arbitration generally see vol 3(1) ARBITRATION AND ALTERNATIVE DISPUTE
RESOLUTION.
Ie arbitrations under either the Agricultural Tenancies Act 1995 s 28 or the specific provisions referred to in Paragraph 121 [141]
ante.

[145][200]

H: DRAFTING TENANCY AGREEMENTS


151
Which type of agreement to use
Consideration must first be given to the issue of whether the occupation is properly covered by the Agricultural
Tenancies Act 19951, or whether the Landlord and Tenant Act 19542, the Agricultural Holdings Act 19863, the Housing
Act 19884 or any other statutory code applies. Assuming that the use proposed is primarily or wholly agricultural (as
defined in the 1995 Act), the draftsman should then consider whether to grant a farm business tenancy, a licence, or
some other type of agreement.
1
2
3
4

See Paragraph 1 [1] et seq ante.


See Form 2 [306] post.
See Paragraph 301 [2001] post.
See Paragraph 701 [5601] et seq post.

[201]
152
Farm business tenancies and other agreements
If the landowner intends to grant exclusive possession 1 to the occupant for a business use which is to be primarily or
wholly agricultural2, then the agreement will normally be a farm business tenancy. The Agricultural Holdings Act 1986
provided an extensive statutory framework which governed many aspects of the relationship between landlord and
tenant3; but under the 1995 Act, by contrast, the parties are given substantial freedom of contract to negotiate the terms
of their tenancy agreements. As a result, many issues which did not arise under the old regime, must now be considered
and negotiated between the parties4.
In this part of the title, precedents are provided for a tenancy of more than two years 5, a tenancy of two years
or less6, a grazing tenancy agreement 7, a grazing licence8 and a non-business grazing tenancy agreement for horses 9.
These precedent documents all have a similar format. It should be noted that the Particulars at the beginning of each
Form are intended to include all details relevant to a particular case.

There is one further precedent for a tenancy agreement 10 which has a different format and which is included
to illustrate a possible form of tenancy agreement for a property with mixed agricultural and non-agricultural use,
where the predominant use will not be agricultural. This agreement for letting land and buildings for use as riding
stables or an equestrian centre is drafted on the basis that the property will be used for the purposes of a business within
the meaning of the Landlord and Tenant Act 1954 Part II, but that an application is made to the court 11 to exclude the
operation of the security of tenure provisions of that Act.
1
2
3
4

5
6
7
8
9
10
11

See Paragraph 7 [10] ante.


See Paragraphs 24 [29], 28 [33] ante.
See Paragraph 301 [2001] et seq post.
As to the terms of commercial leases generally see vols 22(1) - (3) (1996-1997 Reissue) LANDLORD AND TENANT (Business
Tenancies). Note that the Landlord and Tenant Act 1927 s 19 (as amended by the Agricultural Holdings Act 1986, the
Agricultural Tenancies Act 1995 and the Landlord and Tenant (Covenants) Act 1995) (23 Halsburys Statutes (4th Edn)
LANDLORD AND TENANT), which contains provisions as to covenants not to assign etc without consent, does not apply to farm
business tenancies (see the Landlord and Tenant Act 1927 s 19(4) as amended); in any event ibid s 19 will not have effect where,
as in the precedents in this part of the title, a tenancy agreement contains a clause prohibiting alienation absolutely. If a tenancy
were to be assignable, the provisions of the Landlord and Tenant (Covenants) Act 1995 (23 Halsburys Statutes (4th Edn)
LANDLORD AND TENANT) should be considered: see further vols 22(1) - (3) (1996-1997 Reissue) LANDLORD AND TENANT
(Business Tenancies)
See Paragraph 153 [203] and Form 3 [351] post.
See Paragraph 154 [204] and Form 5 [451] post.
See Paragraph 155 [205] and Form 6 [501] post.
See Paragraph 156 [206] and Form 7 [601] post.
See Paragraph 157 [207] and Form 8 [621] post.
See Form 9 [651] post.
Ie under the Landlord and Tenant Act 1954 s 38(4) (as inserted by the Law of Property Act 1969 s 5) (23 Halsburys Statutes (4th
Edn) LANDLORD AND TENANT). See also Form 2 [306] post.

[202]
153
Agreement for a farm business tenancy of more than two years
The precedent1 provided is fuller in form than the other tenancy agreements and includes specific provisions relevant to
fixed terms of more than two years 2. Although the precedent offers more choice, for instance with regard to rent
review3, repairing obligations4, and a greater range of agreements on the part of the tenant 5, the precedent must clearly
be tailored to the relevant circumstances, as many provisions may be inappropriate or inadequate to cover the facts or
the requirements of the parties in a particular case.
1
2

3
4
5

Ie Form 3 [351] post.


See eg Form 3 clause 12 [357] post which provides for the service of notices to comply with the Agricultural Tenancies Act 1995
s 7 (1 Halsburys Statutes (4th Edn) AGRICULTURE) on the exercise of an option to terminate the tenancy. See further Paragraphs
72 [82], 76 [86] ante.
See Form 3 schedule 5 [363] post.
See Form 3 schedule 6 [364] post.
See Form 3 schedule 7 [372] post.

[203]
154
Agreement for a farm business tenancy of two years or less
The precedent1 is designed for use in circumstances in which, under the Agricultural Holdings Act 1986, a Gladstone v
Bower agreement might well have been chosen to avoid security of tenure 2. It is intended to be for a short term and for
certainly no longer than two years. The reason for this is that such tenancies will expire at the end of the fixed term
automatically, without the need to give notice 3. The uses4 to which the tenant may put the holding are wider than those
in a grazing agreement 5, but the repairing obligations 6 are simple and are therefore likely only to be appropriate for
short term agreements and for holdings with no more than basic farm buildings.
1
2
3
4
5
6

Ie Form 5 [451] post.


See Paragraph 357 [2191] et seq post.
See Paragraph 73 [83] ante.
See Form 5 clause 3.4 [455] post.
See Form 6 [501] post.
See Form 5 clause 3.3 [454] post.

[204]
155
Agreement for a farm business tenancy grazing agreement
The precedent1 is intended for use in situations similar to those for which a grazing and mowing agreement for a period
of less than one year might previously have been chosen, to avoid security of tenure under the Agricultural Holdings

Act 19862. It is designed to be for a short term and certainly for no longer than two years so that it will expire at the end
of the fixed term automatically, without the need to give notice 3. The use of the holding is restricted to grazing and in
view of the simple repairing obligations 4, it is anticipated that the holding will comprise agricultural land, with or
without basic farm buildings.
1
2
3
4

Ie Form 6 [501] post.


See Paragraph 359 [2201] et seq post.
See Paragraph 73 [83] ante.
See Form 6 clause 3.3 [504] post.

[205]
156
Licence for grazing
If the proposed arrangement grants no more than non-exclusive occupation then it will not be a tenancy and will not
therefore fall within the provisions of the 1995 Act1. In these circumstances the precedent for a grazing licence may be
used2.
This licence precedent is designed for use where the grazier is paying for the rights granted whether in
money or by discharging other obligations. It is not recommended that a licence be granted for proposed uses other than
grazing where non-exclusive occupation is intended.
1

Whether an arrangement is a tenancy or a licence depends on whether a right of exclusive possession has been granted. As with
attempts to avoid security of tenure under the Agricultural Holdings Act 1986 (1 Halsburys Statutes (4th Edn) AGRICULTURE)
(see Paragraph 353 [2171] et seq post), the courts will look carefully into arrangements in order to ascertain the true intentions of
the parties. If there is no true sharing of occupation then a court would be likely to hold that the arrangement constitutes a
tenancy rather than a licence: see Paragraph 7 [10] ante.
Ie Form 7 [601] post.

[206]
157
Non-business grazing tenancy agreement for horses
If the landowner wishes to grant exclusive possession of an area of land for the grazing of horses where the tenant will
not use the holding for the purposes of a trade or business, then the tenancy agreement should be based on the
precedent for a grazing tenancy for horses (non-business use) 1.
As the land is not to be used for the purposes of a trade or business, the occupation will not be covered by any
statutory regime and the parties have total freedom to decide on the terms of the tenancy between them. At the end of
any term granted to the tenant, the tenant will have no continuing rights of occupation. This will not, however, be the
case if, at any stage during the term, the tenant starts to use the holding for the purposes of a trade or business and the
landlord acquiesces to such use.
1

Ie Form 8 [621] post.

[207]
158
Service of notices
Where the parties intend to the tenancy to be a farm business tenancy, they should consider exchanging notices to
comply with the notice conditions under the 1995 Act before entering into the tenancy agreement 1, in every case. If the
proposed use is restricted to agriculture and the agreement contains a strictly drawn user covenant, then the draftsman
might take the view that notices need not be exchanged 2, but if the risk of consent or acquiescence by the Landlord to
any breach of the user covenant is high (which may possibly be more likely in the case of a longer term tenancy), or if a
non-agricultural use is one of those permitted, then it is recommended that notices are exchanged in accordance with
Section 36 of the 1995 Act3.
Notices should be served strictly in accordance with that section, unless the parties have entered into a written
agreement before the giving of the notice authorising an alternative manner of serving the notices 4. The precedents for
farm business tenancy agreements contain provisions which extend the methods of service 5 for all notices apart from
the notice condition notices (which must be served before the completion of the agreements).
1
2
3
4
5

See Paragraph 17 [22] et seq ante and Form 10 [701] post.


See Paragraph 25 [30] et seq ante.
See Paragraph 21 [26] ante.
See the Agricultural Tenancies Act 1995 s 36(2)(c) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See eg Form 3 clause 20 [361], Form 5 clause 12 [461] post.

[208]
159200 Title matters
The landlords freehold title to a holding should be checked for covenants, easements, mortgages and any other
restrictions1. Where appropriate, additional tenants covenants should be included in the tenancy agreement to cover

compliance with such matters. Where necessary, the consent of any mortgagee or other third party should be obtained
to the grant of the tenancy.
1

A search of the index map will disclose whether or not the title is registered; if so, office copies of the register, filed plan and any
documents referred to on the register may be obtained form the Land Registry. See further vol 25(1) (1995 Reissue) LAND
REGISTRATION.

[209][300]

(B) Forms and Precedents


A: CHECKLISTS
1
Checklist of matters for consideration when preparing tenancy agreement 1

Parties

1.1
1.2

Is the landlord the sole freehold owner of the farm?


Does any other party need to join in the agreement to give consent?

Holding

2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8

Is the holding to be the whole or part of a farm?


Does the tenant require a right of way? If so, consider extent of right of way and terms for contribution
towards maintenance.
Is there a description of the holding, schedule of hectares and plan?
What types of building are on the holdingeg farmhouses, cottages, etc?
Are any of them already occupied? If so, on what terms?
Are any sporting rights to be granted or reserved?
Are any fixtures or fittings included?
Are there any public easements, rights of way etc affecting the holding?

Term and relevant legislation

3.1
3.2
3.3

Is the tenant already in occupation?


What term date is required?
Will the tenancy be a special case within the Agricultural Tenancies Act 1995 Section 4, so that the
Agricultural Holdings Act 1986 may apply to it2?
If the Agricultural Holdings Act 1986 cannot apply, will the tenancy otherwise meet the conditions 3 for a
farm business tenancy under the Agricultural Tenancies Act 1995 (see Use and Notices below)?

3.4
[301]

Rent and outgoings

4.1
4.2
4.3
4.4
4.5
4.6

What is the initial rent?


When is the rent to be paid?
Is the rent to be in advance or arrears?
What outgoings are there?
Is VAT to be charged on the rent4?
Is the agreement to contain any statement or provision as to rent review 5?

Use

5.1
5.2

5.3

Will the tenant farm as sole trader/in partnership?


What is the intended agricultural use:
5.2.1
Will all or part of the land be farmed for the purposes of a trade or business 6?
5.2.2
What is the nature of any intended commercial activities 7 and where will they be located?
5.2.3
Will the character of the tenancy be primarily or wholly agricultural 8 for the purposes of the
Agricultural Tenancies Act 1995?
Is there a prohibition against use as market garden?

Tenants agreements

6.1

What is the position with regard to the outgoing tenants compensation claims 9?

6.2
6.3
6.4
6.5
[302]

Is there a water abstraction licence?


Is there to be a personal residence restriction on the farmhouse?
Who is to occupy the cottages and on what terms?
Is there to be any restriction on the tenant setting land aside or using the area as a forage area under IACS 10?

Repairs

7.1
7.2
7.3
7.4
7.5
7.6

Who is to repair?
Extent of liabilities?
Are the model clauses11 to be used? If so, as currently in force or as amended from time to time?
Are there any redundant buildings?
Liability to decorate?
Should there be a schedule of condition?

Insurance

8.1
8.2
8.3
8.4
8.5

Who is to insure buildings?


If the landlord is to insure, will the tenant be required to reimburse premiums?
What risks are to be covered?
Level of insurance?
Insurance against employee and public liability?

Tenants fixtures

Description of any tenants fixtures12?

10

Redundant buildings

Description of redundant buildings?

11

Break clause

11.1
11.2
11.3

Is there to be a break clause?


If so, in whose favour?
On the occurrence of what events?

12

Resumption of part of the holding

Is there to be a power of resumption of part each year during the tenancy? If so, is there to be a limit on the percentage
of the holding to be taken in any year?
[303]

13

Quotas and premiums

13.1
13.2

Is there any milk quota or any other EU quota or premium attached or apportioned to the holding?
If so, is any such quota or premium to be made available/transferred to the tenant for the duration of the
tenancy and, if so, on what terms?
If milk quota is to be transferred, identify the interested parties who will need to consent to the transfer.
Is the tenant a registered producer of milk quota? If so, is he to use the holding for milk production, and what
arrangements are to be made for any of his milk quota which becomes attached to the holding?

13.3
13.4

14

Notices

14.1
14.2

Have the landlord and tenant given to each other written notice to comply with the Agricultural Tenancies Act
1995 Section 1(4)(a)13?
If not, is it intended that such notices (which, to meet the notice conditions of the 1995 Act, must be given on
or before the day on which the written tenancy agreement is entered into or, if earlier, the day on which the
tenant is entitled to possession) should be served 14?

15

Improvements and items to be purchased

15.1

Is the tenant to be permitted to carry out any improvements and, if so, on what terms? Consider the tenants
right to compensation on termination of the term 15.
Is the tenant to be obliged to carry out any improvements as a term of the lease? If so, consider the effect on
the tenants right to compensation on termination.
Consider whether the landlord should have the right to purchase items such as silage, straw, seeds, fertilisers,
sprays etc on termination. If so, on what basis of valuation, and are the items to be valued under the
Agricultural Tenancies Act 1995 or outside that Act?

15.2
15.3

16

Landlords title

16.1

Are there any covenants, easements or other matters within the landlords freehold title which should be
included in the tenancy, with appropriate covenants imposed on the tenant?
Is the consent of any third party (eg a mortgagee) required to the terms of the tenancy?

16.2
[304]
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

This checklist is intended to help in compiling an accurate and comprehensive summary of the parties requirements prior to the
preparation of a tenancy agreement.
See Paragraph 301 [2001] post.
See Paragraph 4 [7] ante.
As to VAT and rent see generally Information Binder: Property [1] (VAT and Property).
As to rent review see Paragraph 51 [61] ante.
As to the business conditions see Paragraphs 10 [14], 15 [20] ante.
As to the agriculture condition see Paragraph 25 [30] ante.
See Paragraphs 24 [29], 28 [33] ante.
As to the Evesham custom see Paragraphs 301.5 [2001], 447 [2482] post.
Ie the integrated administration and control system referred to in the Integrated Administration and Control System Regulations
(currently 1993/1317 as amended).
As to the model clauses see Paragraph 321 [2062] and Form 102 [3051] post.
As to tenants fixtures see Paragraph 41 [51] et seq ante.
As to the notice conditions see Paragraph 17 [22] et seq ante.
See Paragraph 20 [25] ante.
As to compensation see Paragraph 91 [101] et seq ante.

[305]

2
Checklist of matters for consideration on the relationship between the Agricultural Tenancies Act 1995 and the
Landlord and Tenant Act 1954 Part II1

1
Circumstances when an intended farm business tenancy might fall within the protection of the
Landlord and Tenant Act 1954 Part II
1.1
1.2
1.3
1.4

Failure at any time since the beginning of the tenancy to comply with the business conditions of the
Agricultural Tenancies Act 1995 (the 1995 Act), ie that all or part of the land comprised in the tenancy is
farmed for the purposes of a trade or business2.
Where valid notices to comply with Section 1(4)(a) of the 1995 Act have been served, but the character of the
tenancy was not primarily or wholly agricultural at the beginning of the tenancy 3.
Where defective notices have been served and, at the time of testing, the character of the tenancy is not
primarily or wholly agricultural.
Where notices have not been served and, at the time of testing, the character of the tenancy is not primarily or
wholly agricultural.

[306]

2
Methods of ensuring that the Landlord and Tenant Act 1954 Part II will not apply to an intended
farm business tenancy
2.1

2.2
2.3

Ensuring that, in accordance with the business conditions of the 1995 Act, some part of the land comprised in
the tenancy is farmed for the purposes of a trade or business at all times; that valid notices to comply with
Section 1(4)(a) of the 1995 Act are served, and that the character of the tenancy is primarily or wholly
agricultural at the outset4.
Ensuring that continuing compliance with the business conditions can be achieved by control clauses in the
tenancy agreement rather than by day to day monitoring 5.
Ensuring that, even if it is not a farm business tenancy, the tenancy will not fall within the provisions of the
Landlord and Tenant Act 1954 (the 1954 Act). Examples of tenancies which will not be protected as a
business tenancy under Part II of the 1954 Act are:
2.3.1
a tenancy at will6;
2.3.2
a tenancy granted for a term certain not exceeding six months (unless it contains a provision for
renewing or extending the term beyond six months, or the tenant has been in occupation for a total
period of more than 12 months)7;
2.3.3
a tenancy to be granted for a term of years certain, in respect of which the court authorises an
agreement to exclude the provisions of Sections 24 to 28 of the 1954 Act 8.

2.4

Having a separate tenancy of non-agricultural commercial buildings and/or land (either within or excluded
from the provisions of the 1954 Act) to ensure that the tenancy of the rest of the land is primarily or wholly
agricultural at the outset9.

[307]
1
2

3
4
5
6

7
8
9

As to the Landlord and Tenant Act 1954 (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT) see further vols 22(1) - (3)
(1996-1997 Reissue) LANDLORD AND TENANT (Business Tenancies).
See the Agricultural Tenancies Act 1995 s 1(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE). The burden of proof is on the
person asserting failure to comply if the business conditions are fulfilled at the time the question is asked in any proceedings:
ibid s 1(8).
As to the agricultural character of a tenancy see Paragraph 24 [29] ante.
As to the business and notice conditions see Paragraphs 10 [14] et seq, 17 [22] et seq ante.
As to monitoring the business conditions see Paragraph 13 [17] ante.
See Wheeler v Mercer [1957] AC 416, [1956] 3 All ER 631, HL; Manfield & Sons Ltd v Botchin [1970] 2 QB 612, [1970] 3 All
ER 143; Hagee (London) Ltd v AB Erikson and Larson [1976] QB 209, [1975] 3 All ER 234, CA; Javad v Aqil [1991] 1 All ER
243, [1991] 1 WLR 1007, CA.
See the Landlord and Tenant Act 1954 s 43(3) (as amended by the Law of Property Act 1969 s 12).
See the Landlord and Tenant Act 1954 s 38(4) (as inserted by the Law of Property Act 1969 s 5).
See Paragraph 24 [29] ante.

[308][350]

B: FARM BUSINESS TENANCY AGREEMENTS


3
Farm business tenancy (long formmore than two years)1

PARTICULARS
(a)

Date:
(insert date)2

(b)

The Landlord:
(name) [of (address) or whose registered office is at (address)]

(c)

The Tenant:
(name) [of (address) or whose registered office is at (address)]

[(d)

The Surety:
(name) [of (address) or whose registered office is at (address)]]

(e)

The Holding:
the property known as (describe the property) extending to approximately (number) hectares shown
[for identification purposes only] edged [red] on the attached plan (and [more particularly]
described in schedule 1)3

[351]

(f)

The Term:
a term of (number) years [and (number) months] starting on (date) from which date the Tenant will
be entitled to possession of the Holding (the Commencement Date) and ending on (date)4

(g)

Basic Rent:
(insert amount) per year payable [by (number) equal instalments] [in advance r in arrear] [on
(date)]

[(h)

Dates for payment of Rent:


(insert details of payment dates) in each year of the Term]

[(i)

First payment of Rent due:


on [(date) or the date of this Agreement]]

[(j)

Last payment of Rent due (in advance):


on (date)]

[(k)

Increases in Basic Rent:


from (date) to (date) (insert amount)
from (date) to (date) (insert amount)
from (date) to (date) (insert amount)
or

Basic Rent reviewed on:


the (number) anniversary [and each (number) anniversary] of the Commencement Date]5

(l)

Interest Rate:
(number)% above the base rate of (name) Bank plc

(m)

Dispute resolution:
by [Expert] [or] [Arbitrator] [at the option of the [Landlord] in accordance with clause 14]6

[(n)

The Expert:
(name) of (address)]7

[(o)

Milk Quota:
(number) litres of [wholesale or direct sales] milk quota8 with a butterfat base of (number)%
attached to the Holding at the Commencement Date]

[(p)

Break clause:
to expire on the [(number)] [and the (number)] [anniversary or anniversaries] of the
Commencement Date]9

[(q)

Frequency of external maintenance obligations:


every (number) years from the Commencement Date]10

[(r)

Frequency of internal maintenance obligations:


every (number) years from the Commencement Date]11

[352]
THIS FARM BUSINESS TENANCY AGREEMENT is made on the Date set out in the Particulars BETWEEN:
(1)
The Landlord named in the Particulars (the Landlord);
(2)
The Tenant named in the Particulars (the Tenant); [and
(3)
The Surety named in the Particulars (the Surety) 12]
IT IS AGREED as follows:

Definitions and interpretations

In this Agreement except where specifically defined in schedule 16 13 the words and phrases used have the meaning
assigned to them by the Agricultural Tenancies Act 1995 (the 1995 Act) and otherwise as set out in schedule 16.

Letting14

The Landlord lets [with [full or limited] title guarantee] the Holding to the Tenant for the Term [subject to any earlier
right of termination set out in clause 12 15] TOGETHER WITH the rights set out in schedule 2 but EXCEPTING AND
RESERVING to the Landlord the rights set out in schedule 3 SUBJECT ALSO to the rights and other matters affecting
the Holding [including the Title Matters16 (if any) set out in schedule 4].
[353]

Rent and other Outgoings

3.1

The Tenant agrees to pay to the Landlord the following sums (which are reserved as rent):
3.1.1
the Basic Rent [as varied from time to time in accordance with schedule 5 17] on the Rent Days the
first payment (or a duly apportioned part of it) to be made on the date set out in the Particulars;
3.1.2
the Insurance Rent payable upon production by the Landlord to the Tenant of the demand for the
premium or premiums due;

3.1.3

[3.4

interest at the Interest Rate on all monies payable by the Tenant to the Landlord under this
Agreement where they are not paid by the Tenant within 7 days of the due date for payment for the
period from the due date to the date of actual payment 18;
3.1.4
on demand the amount payable by the Landlord to any outgoing tenant as compensation for
improvements or tenant right matters or as compensation for milk quota under the Agriculture Act
1986 Schedule 1 including any costs and expenses incurred by the Landlord relating to such
compensation19; and
3.1.5
any other sums which may become due from the Tenant to the Landlord under this Agreement.
The Tenant will make all payments due under this clause 3 in full on the due date without making any
deduction or set off of any kind from them.
The Basic Rent will not be reviewed during the Term.]20

Repairing obligations

3.2

The [Landlord and the] Tenant [respectively] agree[s] to observe and perform the repairing obligations set out in
schedule 621.
[354]

Tenants [and Suretys] agreements

5.1
[5.2

The Tenant agrees to observe and perform the agreements set out in schedules 7 and 8 22.
The Surety agrees and covenants with the Landlord that the Tenant will observe and perform all the
obligations undertaken by the Tenant in this Agreement and that if he fails to do so the Surety will indemnify
the Landlord against all losses, damages, costs and expenses incurred by the Landlord as a result of that
failure (and any concession or forbearance by the Landlord to the Tenant will not release or reduce the
Suretys obligations under this clause 5).]

Landlords agreements

The Landlord agrees to observe and perform the agreements set out in schedules 8 and 9.

Forfeiture

The Landlord will have the right to forfeit this Agreement upon the happening of any of the events set out in schedule
1023.

[8

Consent to cultivation in the last year

The Landlord gives his consent to the Tenant farming and cultivating the Holding and to produce a crop in the last year
of the Tenancy [in accordance with a cropping schedule to be agreed in advance with the Landlord].]24

[9

Milk Quota and Quota

The provisions of schedule 11 will apply to any Milk Quota or other Quota.]25

10

Tenants fixtures and buildings

The fixtures and buildings specified in schedule 12 belong to the Tenant and may be removed by him in accordance
with the 1995 Act26.
[355]

11

Compensation for improvements and purchase of assets on termination of agreement

11.1

The Tenants improvements 27 listed in Part I of schedule 13 are Tenants improvements to which Part III of
the 1995 Act applies as supplemented.
In consideration of the benefit provided to the Tenant as set out in Part II of schedule 13, the Tenant agrees to
carry out the works set out in Part II of schedule 13 within 3 months of the Commencement Date and agrees
that any compensation which he is entitled to receive in respect of such works on termination of the Term will
be reduced by the appropriate amount calculated in accordance with Section 20(2) of the Act.]
Except as provided for in clause 8 and in this clause 11 [and paragraph 1.5 of schedule 11] nothing contained
in this Agreement is to be deemed to be a consent to any improvement entitling the Tenant to compensation
under Part III of the 1995 Act.

[11.2

11.3
11.4

11.4.1
11.4.2
11.4.3

The landlord will on termination of the Tenancy pay for by valuation the items set out in Part III of
schedule 13.
The valuation is to be made by 2 professional valuers, one to be nominated by the Landlord and
one to be nominated by the Tenant prior to the termination of the Tenancy.
If the 2 valuers so nominated fail to agree the valuation by a date 2 weeks after the date of
termination of the Tenancy (the Interim Valuation Date), the valuation is to be made by an
independent expert to be appointed in default of agreement, on the application of either party, by

11.4.4
11.4.5

the President for the time being of the Royal Institution of Chartered Surveyors; the experts fees
will be borne as he directs and the experts decision will be final and binding on the Landlord and
on the Tenant.
If the valuation shall not have been agreed or determined in accordance with clauses 11.4.2 and
11.4.3 above by the Interim Valuation Date, the Landlord will on the Interim Valuation Date pay to
the Tenant the Landlords valuers assessment of the value.
Any sum in respect of the valuation not paid on the Interim Valuation Date will bear interest from
that date to the date of actual payment at the Interest Rate.

[356]

12

Break clause28

[12.1

[The Landlord or The Tenant or Either party] will have the right to terminate this Agreement by serving on
the [Tenant or Landlord or other] not less than 12 months but less than 24 months prior written notice of his
intention to do so, such notice to expire on any of the anniversaries referred to under the heading Break
clause in the Particulars.

or/and
12.2

12.3

The Landlord will be entitled on the death of the Tenant or (in the case of more than one joint tenant) on the
death of [any or the last] of them to terminate this Agreement by serving on his personal representatives not
less than 12 months but less than 24 months prior written notice of his intention to do so, such notice to
expire at the end of a year of the Tenancy.]
The Landlord will be entitled (in the event of being reasonably satisfied that the Tenant is incapable by reason
of physical or mental incapacity of farming the Holding in accordance with the obligations contained in this
Agreement) to terminate this Agreement by serving on the Tenant not less than 12 months but less than 24
months prior written notice of his intention to do so, such notice to expire at the end of a year of the Tenancy.

[13

Termination of part29

13.1

The Landlord will have the right at any time during the Term to terminate this Agreement in respect of any
part of the Holding not exceeding (number) hectares in any one year for [any purpose or any non-agricultural
purpose] by serving on the Tenant not less than 12 months but less than 24 months prior written notice of his
intention to do so, such notice to expire at the end of a year of the Tenancy].
If at any time the period of notice referred to in clause 13.1 is in breach of any Enactment there will be
deemed to be substituted in that clause the minimum period of notice required by such Enactment.]
The resumption of possession of part of the Holding pursuant to clause 13.1 will not terminate the Term
except in respect of the land taken.]]

[13.2
[13.3
[357]

14

Dispute resolution30

14.1

The provisions of this clause 14.1 will apply if [it is provided in the Particulars to this Agreement or the
Landlord elects] that an Expert is to resolve disputes.
14.1.1
In the event of any dispute arising under this Agreement between the parties (other than a dispute in
respect of Rent or consent for improvements or compensation) the same is to be determined by the
Expert named in the Particulars who will act as an independent expert and not as an arbitrator and
who will be appointed on the joint written application of both parties or on the written application
of either party; and if such Expert shall die or be unwilling to act then by such other expert as may
be appointed on the application of either party by the President of the Royal Institution of Chartered
Surveyors.
14.1.2
The appointment of such Expert must specify that:
14.1.2.1 the Experts decision will be made following representations in writing by the parties;
and
14.1.2.2 the costs of the Expert will be borne as directed by the Expert; and
14.1.2.3 the Experts decision will be final and binding on all parties.
The provisions of this clause 14.2 will apply if [it is provided in the Particulars to this Agreement or the
Landlord elects] that an Arbitrator is to resolve disputes:
14.2.1
In the event of any dispute arising under this Agreement between the parties either party may give
to the other a notice in writing specifying the dispute and requesting that agreement be reached on
the identity of an Arbitrator to be appointed to determine the dispute in accordance with the
Arbitration Acts 1950 to 1979.
14.2.2
If no Arbitrator has been appointed by agreement within 2 months of the notice referred to in clause
14.2.1 then either the Landlord or the Tenant may make written request to the President of the
Royal Institution of Chartered Surveyors for him to appoint an Arbitrator who will then determine
the matter in dispute.

14.2

[358]

15

Redundant buildings and fixtures

15.1

If at any time or times either the Landlord or the Tenant desires to treat any building or other fixture on the
Holding (other than any included already or deemed to be included in schedule 15) as redundant to the proper
requirements of the Holding then in default of agreement that party will be entitled on giving one months
notice in writing to the other to refer such question to an Expert or Arbitrator appointed in accordance with
clause 14; and if it is agreed or if the Expert or Arbitrator awards that such building or other fixture is to be
treated as redundant then as from the date of such agreement or award (as the case may be) the building will
be deemed to be included in schedule 15 and neither the Landlord nor the Tenant will be obliged to repair it
after that date.
The buildings or other fixtures included or deemed to be included in schedule 15 are to be treated as
redundant and are to be disregarded for all purposes of this Agreement (save as provided in this clause 15 and
save to the extent that they fall to be considered at rent review when they will be treated as not existing).
The Tenant may use the buildings and fixtures included or deemed to be included in schedule 15 at his own
risk and without any obligation to carry out any repairs to them but subject to an obligation to keep them in a
clean and tidy condition provided that the Landlord has the right at any time at his own expense to enter and
repair them or remove them.
Nothing contained in this Agreement is to create any liability on the part of either the Landlord or the Tenant
to:
15.4.1
maintain, repair or insure (except against employers or public liability risks) buildings or fixtures
which the Landlord and the Tenant may from time to time agree in writing that neither party will be
liable to maintain, repair or insure;
15.4.2
execute any work if and so far as the execution of such work is rendered impossible (except at
prohibitive or unreasonable expense) by reason of subsidence of any land or by the blocking of
outfalls which are not under the control of either the Landlord or the Tenant.

15.2
15.3

15.4

[359]

16

Nature of tenancy

The tenancy granted by this Agreement is and is intended to be a farm business tenancy within the 1995 Act 31.

17

Whole agreement

This Agreement contains the whole agreement between the Landlord and the Tenant concerning the Holding.

18

Restrictions on liability of landlord and tenant

18.1

The Landlord will not be liable to the Tenant in respect of:


18.1.1
any act, neglect, default or omission of any tenant or owner or occupier of any adjoining or
neighbouring land or of any representative or employee of the Landlord (unless acting in
accordance with the express authority of the Landlord); or
18.1.2
the defective working, stoppage or breakage of or leakage or overflow from any pipe or other
outlet; or
18.1.3
the obstruction by any third party of the areas over which rights are granted by this Agreement.
The Landlord and the Tenant will not be liable to the other for breach of any term of this Agreement to the
extent that its performance or observance is or becomes impossible or illegal.

18.2
[360]

19

No implied easements

The Tenant will not be or become entitled to any easement, right, quasi-easement or quasi-right except those rights (if
any) set out in schedule 2.

20

Notices

20.1

For the purposes of the Landlord and Tenant Act 1987 the Landlords address at which notices and
proceedings should be served is set out in the Particulars of this Agreement or is such other address as may
from time to time be notified by the Landlord to the Tenant in writing 32.
Notices or other documents required or authorised to be given under the 1995 Act may be sent by ordinary
first class post or recorded delivery at the address given for the party in this Agreement or in a manner
provided for in Section 36 of the 1995 Act33.

20.2

21

Agreement for tenancy (stamp duty certificate)

It is certified that there is no prior agreement for tenancy to which this Agreement gives effect 34.

22

Testimonium

[The Landlord and the Tenant [and the Surety] have signed this Agreement or have given authority to their duly
authorised agents to sign this Agreement on the Date set out in the Particulars as witness to the agreements set out in it.
or
The Landlord and the Tenant [and the Surety] have executed this Agreement as a deed and have given authority to their
respective solicitors or other duly authorised agents to date and deliver it, such Date set out in the Particulars being
conclusive of delivery.]35
[361]

SCHEDULE 1
Description of the Holding
[and (where applicable) details of specific restricted use36]
(give full details of the property eg in columns under the headings set out below)
(1) [Ordnance Survey or
National Grid] Number

(2) Hectares

(3) Description

[(4) Restricted Use]

SCHEDULE 2
Rights granted to the Tenant
[1

A right of way for the Tenant, his agents and authorised persons at all times with or without vehicles, plant,
machinery or animals over the track [shown for the purpose of identification only] coloured [brown] on the
attached plan.]
(insert any further rights required to be granted to tenant)37

SCHEDULE 3
Rights excepted and reserved to the Landlord
(insert details: see eg the rights set out in Form 4 [421] post)38
SCHEDULE 4
Title Matters
(insert details of any matters affecting the Holding eg wayleaves, pipelines, cables, covenants etc
including, where available, dates and parties to the relevant deed or agreement)39
[362]

SCHEDULE 5
Variation of Basic Rent40
[Option 1:
The Basic Rent will be increased during the Term as set out in the Particulars.
or Option 2:
1
2

The Basic Rent will be reviewed on the [anniversary or anniversaries] set out in the Particulars.
On each date upon which the Basic Rent falls for review the Basic Rent will be varied by applying the
following formula:
X = BR x (A)
Where:
X
BR
B

=
the revised rent payable after the review;
=
the amount of Basic Rent payable immediately prior to the date of such review;
=
the all Items figure of the Index of [Retail Prices published by the Department for
Education and Employment or any successor Authority (the RPI figure) published in respect of
the last complete month immediately prior to the date of this Agreement (or immediately prior to
the date of the last review of the Basic Rent as the case may be)];

A
3

=
the RPI figure published for the last complete month immediately prior to the date upon
which the Basic Rent falls for review.
In the event of the reference base used to compile such Index changing after the date of this Agreement the
figure taken to be shown in the Index after the change will so far as reasonably practicable be the figure
which would have been shown in the Index if the reference base current at the date of this Agreement had
been retained.
The Landlord will give written notice to the Tenant of any variation to the Basic Rent as soon as possible
after the date upon which the Basic Rent falls for review (but the Tenants liability to pay any reviewed Basic
Rent from the Review Date will not be affected by any failure on the part of the Landlord to give such written
notice)41.

or Option 3:
The Basic Rent will be reviewed on the [anniversary or anniversaries] set out in the Particulars and will in respect of all
other matters be subject to the statutory rent review provisions contained in Part II of the 1995 Act.
or Option 4:
The Basic Rent will be subject to the statutory rent review provisions contained in Part II of the 1995 Act.]
[363]

SCHEDULE 6
Liability for repair42
[Option 1: Model Clausesexcept as varied
The provisions as to repair as set out in paragraphs 1 to 11 of the Schedule to the Model Clauses 43 will apply to this
Agreement save as specifically varied by the following provisions: (the following are examples of possible variations)

[1

Period farmhouse
(include provision identifying such farmhouse)
1.1
The Tenant will put, keep, maintain and replace or repair and leave clean and in good tenantable
repair, order and condition all and any parts of the farmhouse including fixtures and fittings the
responsibility for repair of which fall upon the Tenant under the terms of the Model Clauses.
1.2
The Tenant will paint or effectively treat all such parts of the farmhouse and fixed equipment
(referred to in paragraph 1.1 of this schedule) as under the Model Clauses fall to be so painted or
treated by the Landlord (without reimbursement of the costs of such work from the Landlord).
1.3
For the avoidance of doubt the Tenant will paint, treat and otherwise decorate such parts of the
farmhouse (referred to in paragraph 1.1 of this schedule) as required under the provisions of the
Model Clauses.
1.4
The Landlords liability to repair the farmhouse and fixed equipment under the Model Clauses will
be limited to maintaining the same in [no worse condition than at present as evidenced by the
photographs or the schedule of condition in schedule 14 44 to the extent that the same records the
state and condition of the part of the Holding in want of repair].

[364]

Modern buildings [and cottages]


(include provision identifying such buildings/cottages)
2.1
The Tenant will put, keep, maintain and replace or repair and leave clean and in good tenantable
repair, order and condition the modern buildings [marked on the attached plan] and the cottages on
the Holding together with all fixtures and fittings in them and will comply with both the Landlords
as well as the Tenants repairing and redecorating obligations contained in the Model Clauses.
2.2
The Tenant will paint or effectively treat all such parts of the buildings (referred to in paragraph 2.1
of this schedule) as under the Model Clauses fall to be so painted or treated by the Landlord
(without reimbursement of the costs of such work from the Landlord).
2.3
For the avoidance of doubt the Tenant will paint, treat and otherwise decorate such parts of the
buildings, cottages and fixed equipment (referred to in paragraph 2.1 of this schedule) as required
under the provisions of the Model Clauses.

[365]

Traditional buildings
(include provision identifying such buildings)

[3.1
3.2

The Tenant will maintain the traditional buildings and the fixtures and fittings in them in no worse
condition than at present as evidenced by the photographs or the schedule of condition in schedule
1445.
For the avoidance of doubt the Tenants liability to maintain the traditional buildings will include
the parts of such buildings and fixed equipment which under the Model Clauses would be the
responsibility of the Landlord.

or
3.1
3.2

The Landlord will not be liable for the repair, maintenance, decoration or otherwise of the
traditional buildings and the fixtures and fittings in them.
The Tenant will be liable only to ensure that the traditional buildings and fixtures and fittings in
them are maintained in a wind and watertight condition.]

[366]

Other buildings
Neither party will be liable to maintain or repair (insert description identifying the buildings) but such
buildings are not to be treated as redundant. The Tenant will at his own risk and without liability on the
Landlord be free to make such use as he wishes of them but will not damage or remove the same or the
material of which they are constructed.

Other fixed equipment


(include provision identifying such fixed equipment and consider particular provisions for the following:
private water supply
effluent control
irrigation plant and equipment
tile drainage
field walls (as opposed to hedges)
woodland walls and fences
electrical supplies (especially rewiring)
desirable improvements)]

[367]
or Option 2: Model ClausesTenant takes on all Tenants and Landlords liabilities
The Tenant will comply with all the liabilities to repair, maintain, decorate, renew and replace the fixed equipment upon
the Holding imposed by the Model Clauses upon the Landlord and the Tenant.
[368]
or Option 3: Model ClausesTenant full repairing

TENANTS AGREEMENTS RELATING TO REPAIR AND REPLACEMENT OF FIXED EQUIPMENT


To put, keep, maintain and replace or repair and leave clean and in good tenantable repair, order and condition the
farmhouse, cottages and farm buildings and fixed equipment on the Holding together with all fixtures and fittings in
them and without prejudice to such obligations:
(1)

To keep clear and in good working order and condition all irrigation reservoirs and sewage disposal systems
including domestic foul water drains and underground mains, septic tanks, filtering media, cesspools liquid
manure tanks, roof-valleys, eaves-guttering, downpipes, gulleys and grease-traps.

(2)

To repair and maintain and keep clear and in good working order all land drains on the Holding.

(3)

To repair, replace and renew all covers, tops and vents to manholes, inspection chambers and sewage disposal
systems.

(4)

To replace and renew all other items of fixed equipment not otherwise mentioned in this schedule 6.

(5)

To replace or repair and adequately to paint, gas-tar or creosote as may be proper all items of fixed equipment
(except tenants fixtures and buildings set out in schedule 12) and to do any work where such replacement,
repair or work is rendered necessary by the wilful or negligent acts or omissions of the Tenant or any member
of his household or any of his employees, contractors, licensees or invitees.

[369]

(6)

At the intervals (if any) specified in the Particulars for external maintenance obligations (but otherwise as
often as may be necessary in order to prevent deterioration and in any case at intervals of not more than 5
years) properly to clean and paint with at least two coats of a suitable quality paint and properly and
adequately to gas-tar, creosote or otherwise effectively treat with a preservative material all outside wood and
iron work of the farmhouse, cottages and farm buildings, the inside wood and iron work of all external
outward opening doors and windows and the externally exposed interior of structural steel work of opensided farm buildings which have been previously painted, gas-tarred, creosoted or otherwise treated with
preservative material, or which it is necessary in order to prevent deterioration of the same so to paint gas-tar
creosote or treat with preservative material.

(7)

At the intervals (if any) specified in the Particulars for internal maintenance obligations (but otherwise as
often as may be necessary and in any case at intervals of not more than 7 years) properly to clean, colour,
whiten, paper or paint to the satisfaction of the Landlord and as the Landlord may direct the inside of the
farmhouse, cottages and farm buildings including the interior of all external doors and windows of the farm
buildings which have been previously so treated and in the last year of the Term to limewash the inside of all
buildings which previously have been limewashed.

(8)

Not to remove or alter but to maintain in good stockproof condition any fence, hedge or other boundary on
the Holding.

(9)

To cut out, trim and/or lay as appropriate a proper proportion of the hedges in each year of the Term so as to
maintain them in good and sound condition not lower than stockproof height and to fill gaps by suitable
replanting.

[370]
(10)

To dig out, scour and cleanse all ponds, watercourses, ditches and grips as may be necessary to maintain them
at sufficient width and depth and to keep clear from obstruction all field drains and their outlets.

(11)

When using any sprays to take all reasonable care to ensure that adjoining hedges, trees and crops are not
adversely affected and to make good or replant as necessary should any damage occur and so far as possible
to select and use chemicals whether for spraying, seed dressing or any other purposes whatever which will
cause the least harm to game birds and other wild-life, other than vermin or pests.

(12)

If the last year of the Term however determined is not a year in which such painting, gas-tarring, creosoting
or other treatment as is mentioned in paragraph (6) of this schedule is due to be carried out to pay to the
Landlord at the end of such last year [one-fifth] of the estimated reasonable cost in respect of each year that
has elapsed since such last painting, gas-tarring, creosoting or other such treatment was completed.

(13)

If the last year of the Term however determined is not a year in which such cleaning, colouring, whitening,
papering, painting or other treatment as is mentioned in paragraph (7) of this schedule is due to be carried out
to pay to the Landlord at the end of such last year [one-seventh] part of the estimated reasonable cost of such
work in respect of each year that has elapsed since such last cleaning, colouring, whitening, papering,
painting or other such treatment was completed.]

[371]

SCHEDULE 7
Tenants agreements46
1

To pay interest on Rent after expiry of refusal

If the Landlord refuses to accept Rent because an event referred to in schedule 10 has occurred and the Landlord does
not wish to waive his rights of forfeiture under that schedule then such unpaid Rent will nevertheless bear interest at the
Interest Rate for such period as it may be reasonable for the Landlord to refuse to accept such Rent until the date upon
which the Landlord accepts such Rent.

To pay Outgoings

2.1
2.2

To pay and discharge all Outgoings at the times when they become due.
If at any time the Holding is not separately assessed for any Outgoings the Tenant will pay to the Landlord on
demand a fair proportion to be conclusively determined by the Landlord (except in case of manifest error) of
any assessment which includes the Holding or any part of it.

2.3
2.4

Not without Consent (which will not be unreasonably withheld or delayed) to make any claim for relief in
respect of any Outgoings where to do so might prejudice the actual or future entitlement to relief of the
Landlord or any future occupier of the Holding.
Not without Consent (which will not be unreasonably withheld or delayed) to agree with the relevant
Authority any rating or other assessment in respect of the Holding or any part of it and to consult with the
Landlord and to give due weight to his representations in the negotiations for any such assessment or any
appeal against any such assessment.

Water abstraction licences

3.1

On entering the Holding and subsequently during the Tenancy to take all necessary steps to preserve any
existing licence or any new licence granted for the Holding relating to water supply under any Enactment.
Not to jeopardise any such licence by any act or omission nor to surrender it without Consent but on
termination of the Term to take all necessary steps to transfer any such licence to the Landlord or at his
direction.

3.2
[372]

Use and management of Holding

4.1
[4.2

Throughout the Term to use and farm the Holding or part of it for the purposes of a trade or business 47.
To use and farm the Holding [throughout the Term] from the Commencement Date primarily for agricultural
purposes within the meaning of agriculture as defined by the 1995 Act as a [dairy or arable or livestock]
holding.

or
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11

Subject to paragraph 4.3 of this schedule to use and farm the Holding for agricultural purposes only [unless
the Landlord [in his absolute discretion] gives Consent [which will not be unreasonably withheld] to a nonagricultural use of part of the Holding]48.]
If a specific use for any part or parts of the Holding has been designated in [column 4] of schedule 1, to use
that part of the Holding for that purpose only throughout the Term.
Not to do or suffer to be done on the Holding anything which may be or become a nuisance or annoyance to
the Landlord or the owners or occupiers of any adjoining land.
Not to deposit or allow to be deposited any refuse, waste, redundant material or redundant machinery of any
kind on the Holding.
To cultivate the part of the Holding used for agriculture in accordance with the rules of good husbandry as
defined in the Agriculture Act 1947 Section 11.
In the last year of the Term to farm and cultivate the Holding in accordance with any written requirements of
the Landlord.
Not to use or permit the Holding or any part of it to be used for the camping or parking of vehicles or
caravans for the purpose of fairs, festivals, motor cycle or other vehicle coursing contests, rallies or any form
of public gathering.
Not to remove from the Holding any turf or top soil.
To supply a copy to the Landlord of any return or other form which the Tenant is required to make or
complete pursuant to any Enactment or as part of an application for any type of grant or subsidy.
To permit the Landlord to enter the Holding or any part, on giving to the Tenant (save in the event of an
emergency) reasonable notice, for the purpose of exercising any of the rights reserved to the Landlord by
schedule 3.

[373]

[5

IACS

5.1

Not to set aside more of the Holding than the minimum required as a condition of an application for arable
area payments under the Arable Area Payments Scheme in respect of crops grown on the Holding only and
not on any other land49.
Not to set aside any part of the Holding other than under the Arable Area Payments Scheme and on a basis to
be first agreed with the Landlord and not to import onto the Holding any set-aside obligations.
In the [first or second] year of the Term the Tenant will not claim the Holding as forage area for the purposes
of a claim for beef special premium, suckler cow premium or sheep annual premium and will co-operate with
the Landlord in signing and lodging (having regard to statutory time limits applicable) all necessary
documents and declarations to enable the Landlord to claim those premiums in that year.]

5.2
5.3

Notice of agricultural charges

To notify the Landlord in writing of any charge made under the provisions of the Agricultural Credits Act 1928
immediately on the completion of any document evidencing such charge 50.

Failure by Tenant to effect repairs

If the Tenant fails to execute repairs for which he is liable in accordance with schedule 6 within one month of receiving
from the Landlord a written request specifying the necessary repairs and calling on him to execute them the Landlord
may enter and execute such repairs and recover the reasonable costs from the Tenant immediately after the completion
of such repairs.
[374]

Alterations

8.1

Not to alter, remove or make additions to any building or other items of fixed equipment on the Holding [or
erect any new buildings or make any other improvements to the Holding without Consent]51.
Not to make any application for planning permission for development within the meaning of Section 55(1) of
the Town and Country Planning Act 199052 in respect of the Holding or any part of it.

8.2

Alienation, assignment and underletting

9.1

Not to assign, sublet, part with or share possession 53 or occupation of the whole or any part of the Holding or
take in livestock belonging to any third party or to grant to any third party any permanent or temporary rights
whatsoever provided that:
9.1.1
if the Tenant shares occupation of the Holding with the Tenants spouse [or child or children] this
will not operate as a breach of the terms of this schedule provided that no sub-tenancy is allowed to
arise;
9.1.2
the Tenant may permit persons working full time on the Holding to occupy any dwellings on the
Holding [on a basis which does not confer security of tenure for any period following expiry of the
Term provided that the Tenant obtains Consent to the agreement relating to any such occupation ]
[(but the Tenant will not be required to recover possession of any dwellings on termination of the
Term where the occupant has security of tenure under the provisions of the Rent (Agriculture) Act
1976 or the Housing Act 1988 Section 2554)].
At all times during the Tenancy personally to reside in the farmhouse on the Holding as the Tenants sole
residence.]
To prevent any new footpaths or other encroachments or easements from being made in or acquired over any
part of the Holding.

9.2
9.3
[375]

10

Preservation of game

[To take all reasonable steps to preserve and prevent the destruction of all wild birds included in the Wildlife and
Countryside Act 1981 Schedule 2 (including their nests and eggs).]

11

Notices received by Tenant

11.1

At all times immediately upon receipt of any notice, order, direction or other matter whatever affecting or
likely to affect the Holding to produce it for the Landlords inspection and to permit the Landlord to take a
copy.
To comply immediately with and give sufficient effect to every notice, direction or other matter whatever
affecting or likely to affect the Holding served or made by an Authority.

11.2

12

Legal Obligations and Necessary Consents

12.1
12.2

To comply with and to discharge the cost of all Legal Obligations and Necessary Consents.
Where any Legal Obligation requires the carrying out of works to the Holding the Tenant will (if and to the
extent required by this Agreement) apply for Consent and any Necessary Consents to carry out the works and
after obtaining them the Tenant will carry out the works to the reasonable satisfaction of the Landlord.
To indemnify the Landlord against all losses, claims or demands arising out of a breach of this Agreement by
the Tenant or in his use or occupation of the Holding or the state of repair of the Holding.

12.3

13

Damage to services

Where damage results from the laying of pipelines, sewers and other apparatus or from the erection of poles, pylons
and other apparatus to use any monetary compensation received to remedy such damage and fully to restore the
Holding or obtain a suitable indemnity from the statutory or acquiring Authority.
[376]

14

Death of Tenant

If the Tenant [or any of them or the last of them] dies during the Tenancy his executors or administrators or other
person or persons in whom any interest in the Tenancy is vested immediately after his death will within one month of
his death give notice in writing to the Landlord of such death and its date.

15

Set-off

To permit to be deducted from any amounts of compensation due from the Landlord to the Tenant under this Agreement
all sums due from the Tenant to the Landlord.

16

Yielding up on termination

16.1

On termination of this Agreement to yield up the Holding to the Landlord with vacant possession in a state of
repair, condition and decoration which is consistent with the proper performance of the Tenants agreements
in this Agreement.
If, subject to the Tenants rights under Section 8 of the 1995 Act 55, on termination of this Agreement the
Tenant leaves any fixtures, fittings or other items on the Holding, the Landlord may treat them as having been
abandoned and may remove destroy or dispose of them as the Landlord wishes and the Tenant will pay to the
Landlord on demand the cost so incurred with interest at the Interest Rate from the date of demand to the date
of payment and indemnify the Landlord against any and all resulting liability.
Immediately before termination of this Agreement if and to the extent required by the Landlord to reinstate
all alterations, additions or improvements made to the buildings or other fixed equipment on the Holding at
any time during the Term56.]

16.2

[16.3
[377]

SCHEDULE 8
Insurance57
[Option 1:
The provisions as to insurance set out in the Model Clauses will apply to this Agreement.
[378]
or Option 2:

Landlords insurance obligations

1.1

Subject to paragraph 1.2 of this schedule the Landlord will effect and maintain insurance of the Holding in
respect of:
1.1.1
damage or destruction to the fixed equipment on the Holding occurring in consequence of any of
the Insured Risks in a sum equal to the full reinstatement value of all buildings on the Holding
according to the Landlords estimate of such value from time to time;
1.1.2
the cost of demolition, shoring up and site clearance;
1.1.3
all architects, surveyors and other professional fees and incidental expenses in connection with the
reinstatement;
1.1.4
VAT on those amounts to the extent applicable and to the extent that the Landlord may not be able
to recover such tax from HM Customs and Excise 58;
1.1.5
third party and public liability;
1.1.6
liability under the Defective Premises Act 1972 and any other Enactment in respect of which the
Landlord requires insurance59; and
1.1.7
[2 years] loss of rent.
The Landlords obligations under paragraph 1.1 of this schedule:
[1.2.1
(for the avoidance of doubt) will not extend to the insurance of any Tenants fixtures or
improvements to the Holding made by the Tenant;]
1.2.2
are subject to any excess or limitation or other condition imposed by insurers; and
1.2.3
do not apply in so far as the Insurance Policies effected by the Landlord have become void or
voidable by reason of any act, neglect or fault of the Tenant or his servants or agents or licensees.
If the fixed equipment on the Holding (or any part of it) is destroyed or damaged consequent upon the
occurrence of any of the Insured Risks, the Landlord will as soon as reasonably practicable seek all
Necessary Consents for the purpose of reinstating the same and in the event of these being obtained the
Landlord will apply the insurance monies received for the said purpose, to the intent that such damaged or
destroyed fixed equipment should be reinstated with all reasonable speed to substantially the same nature,
quality and net internal area as before (or as close as the Landlord can reasonably provide).
The Landlord will when reasonably required to do so by the Tenant at the Tenants cost provide the Tenant
with copies of all Insurance Policies and will notify and provide the Tenant with details of any endorsements
or variations to them.

1.2

1.3

1.4
[379]

Tenants insurance obligations

The Tenant will:


2.1
not do or fail to do anything which will or may cause any of the Insurance Policies to be void or voidable and
will indemnify the Landlord against any losses, charges, costs or expenses (including any increase in
premium) resulting from any breach of this obligation;
2.2
notify the Landlord of the incidence of any Insured Risk or any other matter which ought reasonably to be
notified to the underwriters or insurance office with whom the Insurance Policies are effected;
2.3
comply with the conditions of the Insurance Policies and requirements of the relevant insurance office with
whom the Insurance Policies are effected;
2.4
notify the Landlord of any activity event or other matter occurring or anticipated to occur on the Holding
likely to affect the validity of the Insurance Policies;
2.5
effect and maintain insurance at all times during the Term in the joint names of the Landlord and the Tenant
to the full market value against the Insured Risks (or such other risks as the Landlord may from time to time
reasonably request) with an insurance company of a category approved by the Landlord in respect of:
2.5.1
live and dead stock;
2.5.2
meadow and clover;
2.5.3
hay, fodder, straw and other crops stored on the Holding;
2.6
produce to the Landlord on demand the insurance policy taken out pursuant to paragraph 2.5 of this schedule
with the receipt for the current premium;
2.7
in the event of loss or destruction of the items referred to in paragraph 2.5 of this schedule (or any of them)
immediately apply the full amount of the insurance monies received in the replacement of them;
2.8
keep an adequate number of fire extinguishers in the buildings on the Holding in good working order and to
take all other reasonable precautions to safeguard the Holding and any adjoining or neighbouring property of
the Landlord against fire and other risks.

[3

Vitiation of insurance

If the insurance monies under any of the Insurance Policies is wholly or partly irrecoverable by reason of any act,
neglect or default of the Tenant or any servant, agent or licensee (or any of them) the Tenant will pay to the Landlord on
demand the irrecoverable amount.]]
[380]

SCHEDULE 9
Landlords agreements
1

Quiet Enjoyment

If the Tenant observes and performs the Tenants agreements and obligations in this Agreement the Tenant may
peaceably hold and enjoy the Holding during the Term without any lawful interruption or disturbance from or by the
Landlord or any person claiming through, under or in trust for the Landlord.
(insert other provisions as appropriate)60
[381]

SCHEDULE 10
Forfeiture
Without prejudice to any other rights of the Landlord, in any of the cases set out in this schedule the Landlord may at
any time (and notwithstanding the waiver of any previous right of re-entry) re-enter the Holding whereupon this
Tenancy will absolutely determine but without prejudice to any right of action of the Landlord in respect of any
previous breach by the Tenant of this Agreement 61.
1

If the whole or any part of the Rent or any other sums lawfully due from the Tenant to the Landlord remains
unpaid 21 days after becoming due (in the case of the Basic Rent whether demanded or not).

2
[382]

If any of the Tenants agreements in this Agreement are not performed or observed.

If the Tenant:
3.1
proposes to or enters into any composition or arrangement with his creditors generally or any class
of his creditors; or

3.2
3.3

3.4

is the subject of any judgment or order made against him which is not complied with within 7 days
or is the subject of any execution, distress, sequestration or other process levied upon or enforced
against any part of his undertaking, property, assets or revenue; or
being a company:
3.3.1
is the subject of a petition presented or an order made or a resolution passed or analogous
proceedings taken for appointing an administrator of or winding up such company; or
3.3.2
an incumbrancer takes possession or exercises or attempts to exercise any power of sale
or a receiver or administrative receiver is appointed of the whole or any part of the
undertaking, property, assets or revenues of such company; or
3.3.3
stops payment or agrees to declare a moratorium or becomes or is deemed to be insolvent
or unable to pay its debts within the meaning of the Insolvency Act 1986 Section 123; or
3.3.4
without the prior Consent in writing of the Landlord ceases or threatens to cease to carry
on its business in the normal course; or
being an individual:
3.4.1
is the subject of a bankruptcy petition or bankruptcy order; or
3.4.2
is the subject of an application or order or appointment under the Insolvency Act 1986
Section 253 or Section 273 or Section 286; or
3.4.3
is unable to pay or has no reasonable prospect of being able to pay his debts within the
meaning of the Insolvency Act 1986 Sections 267 and 26862.

If any event occurs or proceedings are taken with respect to the Tenant in any jurisdiction to which the Tenant
is subject which has an effect equivalent or similar to any of the events mentioned in this schedule.

[383]

SCHEDULE 11
Quotas
The provisions of paragraph 1 of this schedule apply to the Milk Quota and the provisions of paragraph 2 of this
schedule apply to the Quota both as defined in schedule 16.

Milk Quota63

1.1

The Tenants agreements


The Tenant agrees:
1.1.1
to farm the Holding throughout the Term and to comply with any Enactment and any direction
made by the Landlord so as to ensure that the entirety of the Milk Quota continues to be attached to
the Holding (and to no other land) to the intent that it will be transferable to the Landlord or at his
direction on the termination of this Agreement;
1.1.2
not to charge or lease the Milk Quota;
1.1.3
not to do nor omit to do anything which results or may result in all of part of the Milk Quota being
reduced, lost, charged or removed from the Holding whether permanently or temporarily or
otherwise being unavailable to a future occupier of the Holding;
1.1.4
to co-operate with the Landlord on the termination of the Term in signing and lodging (in
accordance with all time limits that may be applicable) all necessary documents including any
required by any Authority to effect the transfer of the Milk Quota to the Landlord or as the
Landlord may direct;
1.1.5
that subject to paragraph 1.2 of this schedule, in the event of the Milk Quota or any part of it not
being transferred to the Landlord or at his direction upon the change of occupation consequent
upon termination of this Agreement, the Tenant will compensate the Landlord for all lawfully
recoverable losses thereby sustained including the cost to the Landlord of acquiring milk quota of
comparable butterfat base and usage to the Milk Quota or any such part;
1.1.6
that, if quantification of the whole or any part of the loss suffered by the Landlord in circumstances
referred to in paragraph 1.1.5 is impossible, the sum payable to the Landlord will be a sum equal to
any reduction in the value of the Holding consequent upon such loss.

[384]

1.2

Reductions
1.2.1

1.2.2

The obligations contained in paragraph 1.1 of this schedule will not apply in so far as the Milk
Quota has been subject to reductions imposed by any Authority unless such reductions are
cancelled or reinstated in part and, if cancelled or reinstated in part, the obligations will apply to the
extent of such partial cancellation or reinstatement.
If any such reductions referable to any period after the expiry of the Term result in the payment of
any compensation to the Tenant or to any partnership or company of which the Tenant is a member

or officer in which he has or had any interest (irrespective of when the same is paid) such
compensation will be treated as belonging to the Landlord and will be paid to the Landlord without
deduction immediately upon receipt.

1.3

Production
During the period from 31 March in the last 12 months of the Term to the end of the Term the Tenant will not
during any month produce any greater quantity of milk than one twelfth of the total production entitlement
permitted by any Authority for that 12 month period (or as specified in any milk production monthly profile
produced by any Authority whichever be the greater).

1.4

Prospective apportionment
The Tenant will at any time during the Term at the direction of the Landlord request a prospective
apportionment of the Milk Quota in relation to the Holding pursuant to the [Dairy Produce Quotas
Regulations 1994/672 Regulation 11 and Schedule 2 64] and will use his best endeavours to obtain the consent
of all interested parties (as described by the Dairy Produce Quotas Regulations [1994]) to the prospective
apportionment.

1.5

Landlords consent
The Landlord consents to the Tenant using the Holding or any part of it for the purpose of milk production
during the Term.

[385]

Quota

The Tenant agrees:


2.1
to preserve the benefit of any Quota transferred to or made available to the Tenant at the commencement of
the Term or subsequently as the occupier for the time being of the Holding;
2.2
on termination of the Term to transfer the benefit of the Quota or make the Quota available to the Landlord or
to any incoming occupier (as appropriate).

SCHEDULE 12
Tenants Fixtures and Buildings
(insert details) 65
[386]

SCHEDULE 13
[Part I
Tenants Improvements66
1

(list agreed improvements under the three headings set out below)

Date of Consent
2

Cost incurred by Tenant

Grant received by Tenant/Landlord

(consider traditional tenant right items which constitute routine improvements under the 1995 Act and
include basis of valuation)

Item
Basis of valuation
1
Residual value of fertilizers eg lime
2
Beneficial cultivations
3
Early crops

Part II
Improvements made in return for a benefit
Benefit

Improvement

Cost of improvement

Part III
Items to be purchased
Item
Basis of valuation
1
Winter feed and stores:
silage
[consuming value]
hay and straw
[market or consuming] value
2
Fertilizers, seed and sprays
[at cost]
3
Oils, greases, medicines and sundries
[at cost]]

[SCHEDULE 14
Schedule of Condition67
(insert details)]
SCHEDULE 15
Schedule of Redundant Buildings68
(insert details)
[387]

SCHEDULE 16
Definitions and interpretation
1

Definitions

1.1

Arable Area Payments Scheme means the general Arable Area Payments Scheme set down under the
Arable Area Payments Regulations [1995]69.

1.2

Arbitrator means an arbitrator appointed to act in accordance with the Arbitration Acts 19501979.

1.3

Authority means any statutory, public, local or other authority or any court of law or any government
department or any of their duly authorised officers.

1.4

Basic Rent means the sum set out as the Basic Rent in the Particulars or such other rent as may be payable
following review as prescribed by this Agreement.

1.5

Commencement Date means the date referred to as the Commencement Date in the Particulars.

1.6

Consent means an approval, permission, authority, licence or other relevant form of approval given by the
Landlord in writing.

1.7

Enactment means:
1.7.1
any Act of Parliament or
1.7.2
any European Community Legislation or decree or other supranational legislation or decree having
effect of law in the United Kingdom.

1.8

Expert means the person named in the Particulars or appointed in accordance with clause 14.1.

1.9

Holding means the land (including all buildings and fixed equipment on the land) described as the Holding
in the Particulars.

[388]
1.10

IACS means the Integrated Administration and Control System referred to in the Integrated Administration
and Control System Regulations [1993]70.

1.11

Insurance Policies means all insurance policies maintained by or on behalf of the Landlord in respect of
the Holding throughout the Term in accordance with the provisions of schedule 8.

1.12

Insurance Rent means the sums (including any excess payments) incurred by or on behalf of the Landlord
during the Term in discharging his obligations regarding insurance set out in schedule 8.

1.13

Insured Risks means fire, storm, tempest, lightning, explosion, riot, civil commotion, malicious damage,
impact, flood, bursting or overflowing of water tanks, burst pipes, discharge from sprinklers, aircraft and
other aerial devices or articles dropped from them (other than war risks) and such other risks as the Landlord
may from time to time reasonably require to be covered.

1.14

Interest Rate means the percentage rate above the base lending rate from time to time of the bank specified
in the Particulars or such other bank being a member of the Committee of London and Scottish Bankers as
the Landlord may from time to time nominate or if that base lending rate cannot be ascertained then such
alternative rate as the Landlord may reasonably specify; and whenever interest is payable at or by reference
to the Interest Rate it will be calculated on a daily basis.

[389]
1.15

Landlord includes any successor to the Landlord named in the Particulars.

1.16

Legal Obligation means any obligation from time to time created by any Enactment or Authority which
relates to the Holding or its use and includes without limitation obligations imposed as a condition of any
Necessary Consents.

1.17

Milk Quota means the milk quota set out in the Particulars.

1.18

Model Clauses means the Schedule to the Agriculture (Maintenance, Repair and Insurance of Fixed
Equipment) Regulations 1973/147371 as amended.

1.19

Necessary Consents means planning permission and all other consents, licences, permissions and
approvals whether of a public or private nature which are relevant in the context.

1.20

Outgoings means all rates, taxes, charges, duties, assessments, impositions and outgoings of any sort which
are at any time during the Term payable whether by the owner or occupier of property and includes charges
for electricity, gas, water, sewerage, telecommunications and other services (but not any tax payable by the
Landlord on the Rent or on any dealing with the Landlords interest in the Holding).

[390]
1.21

Particulars means the particulars page set out at the beginning of this Agreement.

1.22

Quota means all quota or other right of production or right to payment or subsidy whether under any
scheme for the production or marketing of agricultural produce or otherwise or any right of or restriction on
production or the use of the Holding for farming or any licence or consent required for such production or use
(other than Milk Quota) which is now or at any time in the future may be allocated, transferred or made
available to the Tenant in respect of the Holding.

1.23

Rent means all sums reserved as rent by this Agreement.

1.24

Rent Days means the dates set out in the Particulars for payment of Rent in each year of the Term.

1.25

Review Date means the dates for review of the Basic Rent set out in the Particulars.

1.26

Tenancy means the tenancy granted by this Agreement.

1.27

Tenant includes any successor to the tenant named in the Particulars.

1.28

Term means the term of the tenancy granted by this Agreement which will commence and expire on the
dates set out in the Particulars72.

1.29

Title Matters means the matters set out in schedule 4.

1.30

VAT means Value Added Tax and includes any future tax of a like nature.

1.31
[391]

1995 Act means the Agricultural Tenancies Act 1995.

Interpretation

In this Agreement unless the context otherwise requires:


2.1
words importing any gender include every gender;
2.2
words importing the singular number include the plural number and vice versa;
2.3
words importing persons include firms companies and corporations and vice versa;
2.4
references to numbered clauses and schedules are references to the relevant clause in or schedule to this
Agreement;
2.5
reference in any schedule to this Agreement to numbered paragraphs relate to the numbered paragraphs of
that schedule;
2.6
where any obligation is undertaken by two or more persons jointly they are to be jointly and severally liable
in respect of that obligation;
2.7
any obligation on any party not to do or omit to do anything is to include an obligation not to allow that thing
to be done or omitted to be done;
2.8
any party who agrees to do something will be deemed to fulfil that obligation if that party procures that it is
done;
2.9
the headings to the clauses, schedules and paragraphs of this Agreement will not affect the interpretation;
2.10
any sum payable by one party to the other will be exclusive of VAT which will where it is chargeable be paid
in addition to the sum in question at the time when the sum in question is due to be paid;
2.11
any relevant perpetuity period will be 80 years from the date of this Agreement;
2.12
any reference to an Enactment includes reference to that Enactment as amended or replaced from time to time
and to any subordinate legislation or byelaw made under that Enactment.
(signature (or common seal) of landlord: tenancy agreement)
(signature of tenant: counterpart)
[(signatures of witnesses)]73
[392]
1

2
3
4

6
7
8

9
10

As to stamp duty see Information Binder: Stamp Duties [1] (Lease or Tack) and (Duplicate or Counterpart). See also clause 21
[361] and note 34 below. A tenancy for a fixed term of more than 21 years must be registered at the Land Registry: see vol 25(1)
(1995 Reissue) LAND REGISTRATION .
Note that the Agricultural Tenancies Act 1995 (1 Halsburys Statutes (4th Edn) AGRICULTURE) provides that the tenancy begins
on the day on which under the terms of the tenancy the tenant is entitled to possession: see ibid s 38(4) and Paragraph 2 [3] ante.
The holding should be described accurately and by reference to a plan, with details set out in schedule 1 [362].
The term is assumed to be for a fixed period of more than two years. It should not start before the date on which the agreements
are completed, but can be expressed to start at a later date. Note that under the Agricultural Tenancies Act 1995 s 5 a term of
more than two years will not come to an end automatically on its term date: see Paragraph 72 [82] ante. If either party wishes to
terminate the tenancy on that date, a notice to comply with ibid s 5 must be served: see Form 13 [711] post. In the absence of
such a notice the tenancy will continue as an annual periodic tenancy on the terms of the original tenancy so far as applicable:
see ibid s 5(1).
The draftsman should consider the appropriate rent review option for the tenancy in question, bearing in mind the rent review
periods which the parties would prefer and what is permitted under ibid ss 9, 10: see Paragraph 53 [63] et seq ante. Note that it is
not a permissible option to invoke the provisions of the Agricultural Holdings Act 1986 s 12, Sch 2 (1 Halsburys Statutes (4th
Edn) AGRICULTURE): see Paragraph 334 [2116] et seq post.
As to dispute resolution see further clause 14 [358] and note 30 below.
A particular expert may be chosen in certain circumstances under the Agricultural Tenancies Act 1995 (see ibid ss 12(b), 28 and
29 and Paragraph 123 [144] ante), in which case the name and address of the chosen expert should be included.
If there is no milk quota attaching to the holding, the description in the Particulars at [352], clause 9 [355], schedule 11
paragraph 1 [384] and the definition in schedule 16 paragraph 1.17 [390] should be deleted. As to milk quota generally see
further vol 2(2) (1998 Reissue) AGRICULTURE Paragraph 17 [38] et seq.
As to the operation of the break clause see clause 12 [357] and Paragraph 76 [86] ante.
As to external maintenance see schedule 6 option 3 para (6) [370].

11

As to internal maintenance see schedule 6 option 3 para (7) [370].

[393]
12

13
14

15
16

17

18
19
20
21

22

In a medium to long term tenancy the landlord may prefer to insist on a surety before agreeing to grant the tenancy to the tenant.
The Agricultural Tenancies Act 1995, which allows for diversification from strict agricultural activities, is intended to allow the
parties to agree a more commercial type of tenancy than permitted under the Agricultural Holdings Act 1986, and it is common
practice to require a suitable surety before commercial leases are granted.
For definitions see schedule 16 [388].
Clause 2 [353] contains the operative terms. The rights granted to the tenant are to be set out in schedule 2 [362] and matters
excepted and reserved to the landlord are to be set out in schedule 3 [362]: see notes 37, 38 below. A lease or tenancy agreement
may be expressed to be made with a full or limited title guarantee, if the landlord is willing to do so; as to the covenants for title
implied by including these words see the Law of Property (Miscellaneous Provisions) Act 1994 (37 Halsburys Statutes (4th
Edn) REAL PROPERTY), vol 25(1) (1995 Reissue) LAND REGISTRATION Paragraph 121 [2181] et seq and vol 35 (1997 Reissue)
SALE OF LAND Paragraph 474 [599]. If a title guarantee is to be given, the title should be fully investigated : see Paragraph
159 [209] ante.
As to the operation of the break clause see clause 12 [357] and Paragraph 76 [86] ante.
For medium to long term tenancies it is advisable for both parties to consider title matters affecting the holding and its uses. Such
matters as existing wayleaves, pipelines, covenants etc which may affect the tenants quiet enjoyment of the holding, or which
the intended use under the proposed tenancy may jeopardise, should be considered and revealed to the tenant. Wherever
possible, to try to ensure compliance with covenants and restrictions, copies of relevant documents should be supplied to the
tenant.
As to variation of rent see Paragraph 53 [63] et seq ante and the four options in schedule 5 [363]. If provisions for rent review
are to be included, then clause 3.4 [354] should be deleted; if clause 3.4 [354] is included, schedule 5 [363] and the words in
brackets in clause 3.1.1 [354] should be deleted.
As to the interest rate see the Particulars at [352] and schedule 16 paragraph 1.14 [389].
As to tenant right matters see Paragraph 434 [2446] et seq post and as to the provisions of the Agriculture Act 1986 Sch 1 (1
Halsburys Statutes (4th Edn) AGRICULTURE) see Paragraph 452 [2511] et seq post.
See note 17 above.
Under the Agricultural Holdings Act 1986, the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations
1973/1473 as amended (the so called model clauses) were deemed to be incorporated into every tenancy of an agricultural
holding except as specifically provided otherwise: see Paragraph 321 [2062] and Form 102 [3051] post. There is no comparable
provision under the Agricultural Tenancies Act 1995. The parties have complete freedom of contract. A number of alternatives
are included in schedule 6 [364], but by way of example only.
For the tenants agreements see schedule 7 [372] and for the insurance provisions see schedule 8 [378]. The landlords
agreements are to be set out in schedule 9 [381].

[394]
23
24

25
26
27
28

29

30

31

For the forfeiture provisions see schedule 10 [382].


For the tenant to be entitled to compensation in respect of routine improvements made in the normal course of farming and
therefore including many (though not all) traditional tenant right matters, the landlord must give his consent in writing: see
Paragraph 98 [110] ante. If the landlord refuses consent, the tenant can apply to an arbitrator for consent even after he has begun
the improvement. Consent is set out in clause 8 [355]. Note, however, that the definition of routine improvements does not
cover all the tenant right matters for which the tenant was entitled to receive compensation under the Agricultural Holdings Act
1986 Sch 8 Pt II: see Paragraph 434 [2446] et seq post. If the landlord wishes to agree to pay for such additional matters, specific
provisions should be added in schedule 13 [387]. Parties should be aware of the fact that husbandry obligations may imply
consent to carry out the routine improvements necessary to comply with such obligations.
As to milk quota see schedule 11 [384] and vol 2(2) (1998 Reissue) AGRICULTURE Paragraph 17 [38] et seq.
As to tenants fixtures see Paragraph 41 [51] et seq ante; details are to be set out in schedule 12 [386].
As to tenants improvements see Paragraph 91 [101] et seq ante and note 24 above; details are to be set out in schedule 13 [387].
As to break clauses see the Agricultural Tenancies Act 1995 s 7 and Paragraph 76 [86] ante. Where such a break clause is
included in a registrable lease, a note will be entered on the register referring to the option to bring the lease to an end on service
of notice complying with the clause.
The parties are free to negotiate as to resumption of part whether for non-agricultural purposes or otherwise. Subject to
compliance with the Agricultural Tenancies Act 1995 s 7 as to the notice period for resumption of possession under the fixed
term (see Paragraph 76 [86] ante), there is no similar requirement in the 1995 Act to the need to satisfy the Agricultural Holdings
Act 1986 s 31 (see Paragraph 372 [2245] post).
When selecting the alternative forms of wording in clauses 14.1 and 14.2 [358], note that details under the heading Dispute
resolution in the Particulars at [352] must be completed accordingly. Clause 14 [358] is intended to take advantage of the
limited opportunity for the parties to agree to the appointment of their own expert or arbitrator for resolution of disputes
provided by the Agricultural Tenancies Act 1995 s 29(1)(a) (see Paragraph 123 [144] ante). Note however that either party has
the ability to refer the matter back to an arbitrator appointed under ibid s 28 if he so chooses.
See Paragraph 3 [6] ante.

[395]
32
33

Clause 20.1 [361] is required where dwellings are included in the tenancy.
Any notices exchanged by the parties in order to comply with the notice conditions set out in the Agricultural Tenancies Act
1995 s 1(4), should be served strictly in accordance with ibid s 36, unless before service of those notices, the parties enter into a
written agreement under ibid s 36(2)(c) specifying an alternative method of service. Once the initial notice condition notices
have been exchanged and the tenancy agreement has been signed and dated, all further notices can be served under the extended

34

35
36
37
38
39
40
41

42
43

44
45
46

provisions agreed between the parties as set out in clause 20.2 [361]: see Paragraph 158 [208] ante. For a form of notice to
comply with ibid s 36(7) see Form 22 [741] post.
A lease that is not preceded by an agreement must contain a certificate to that effect for stamp duty purposes: see the Finance Act
1994 s 240 (41 Halsburys Statutes (4th Edn) STAMP DUTIES). See further Information Binder: Stamp Duties [1] (Guide to
Stamp Duties).
As to the statutory requirements for valid execution of a deed see vol 12 (1994 Reissue) DEEDS, AGREEMENTS AND
DECLARATIONS.
As to the relevance of restricted use see Paragraphs 24 [29] et seq, 158 [208] ante.
For alternative clauses granting easements and other rights see vol 13(1) EASEMENTS AND PROFITS A PRENDRE Form 13 [5601]
et seq.
A suggested schedule of exceptions and reservations is set out in Form 4 [421] post, but see also vol 13(1) EASEMENTS AND
PROFITS A PRENDRE Form 13 [5601] et seq.
As to Title Matters see note 16 above.
As to rent review generally see Paragraph 53 [63] et seq ante and notes 5, 17 above.
Review of the Basic Rent by reference to the retail price index is one option considered permissible under the Agricultural
Tenancies Act 1995 s 9(b)(ii). However, the parties should consider whether they are content to accept that the RPI is unlikely to
reflect changes in farming profitability over a long term.
As to repair generally see also vols 22(1) - (3) (1996-1997 Reissue) LANDLORD AND TENANT (Business Tenancies).
As to the Model Clauses see note 21 above and Paragraph 321 [2062] and Form 102 [3051] post. Although these clauses are
not deemed to be incorporated into a farm business tenancy, there is no reason why the parties should not choose to incorporate
them expressly.
This form allows for a schedule of condition to be included as schedule 14 [387].
See note 44 above.
See clause 5 [355].

[396]
47

48

49

50
51

Note that it is important to include the agreement set out in schedule 7 paragraph 4.1 [373] to ensure, so far as possible,
continuing compliance with the business conditions. Any use in contravention of this provision can be disregarded under the
Agricultural Tenancies Act 1995 s 1(8) when determining whether or not there has been compliance, unless there has been
consent or acquiescence on the part of the landlord to the breach: see Paragraph 13 [17] ante.
If a non-agricultural purpose is to be one of the permitted users then schedule 7 paragraph 4.2 [373] should be amended
appropriately. The parties should exchange notices under the Agricultural Tenancies Act 1995 s 1(4), where a non-agricultural
use is included as one of the permitted purposes. Note ibid s 1(4)(b) in particular: see Paragraph 24 [29] ante.
Where the holding is registered as eligible under IACS (as defined in schedule 16 paragraph 1.10 [389]), consider whether the
landlord wishes to restrict the tenants ability to set land aside under the Arable Area Payments Scheme (see schedule 16
paragraph 1.1 [388]). Schedule 7 paragraph 5.1 [374] is intended to stop the tenant from dumping on the holding set-aside,
which relates to crops grown on other land. This may be appropriate particularly if the tenant sets aside on a rotational basis.
If the landlord intends to make a claim for beef special premium, suckler cow premium or sheep annual premium and if the
tenancy commences or is due to terminate between January and July in any year then he should consider restricting the right of
the tenant to claim the holding as his forage area in any relevant year.
As to the Agricultural Credits Act 1928 (1 Halsburys Statutes (4th Edn) AGRICULTURE) see vol 25(1) (1995 Reissue) LAND
CHARGES Paragraph 81 [551] et seq.
Note that deletion of the agreement contained in schedule 7 paragraph 8.1 [375] or the giving of consent by the landlord to
alterations or other improvements could result in the tenant being entitled to compensation for improvements on termination of
the tenancy: see Paragraph 94 [105] ante. Inclusion of this provision, however, will not prevent the tenant from claiming such
compensation in respect of other matters outside the scope of this restriction. Neither will its inclusion prevent the tenant from
applying to an arbitrator under the Agricultural Tenancies Act 1995 s 19 for consent to an improvement: see Paragraph 95 [106]
ante and note 56 below.

[397]
52
53

54
55
56

As to the meaning of development within the Town and Country Planning Act 1990 s 55 as amended (46 Halsburys Statutes
(4th Edn) TOWN AND COUNTRY PLANNING) see vol 41 TOWN AND COUNTRY PLANNING Paragraph 9 [915].
This provision has been very restrictively drawn to prohibit not merely assignment and underletting but also sharing possession
and occupation of the holding. This is to prevent a tenant entering into partnership with a third party, possibly on terms where the
tenant is merely a sleeping partner with little day to day control over the farming. See also Paragraph 152 note 4 [202] ante.
As to security of tenure for agricultural dwellings see Paragraphs 601 [5001] et seq, 701 [5601] et seq post.
As to the tenants right to remove fixtures see Paragraph 41 [51] et seq ante.
Under the Agricultural Tenancies Act 1995, it is not possible to add to or take away from the compensation provisions where the
Act provides for compensation concerning a particular matter. The Landlord and Tenant Act 1927 (23 Halsburys Statutes (4th
Edn) LANDLORD AND TENANT) contains provisions with a similar effect and practitioners negotiating commercial leases have
often included a provision requiring the tenant to reinstate all alterations, additions and improvements made to premises during
the term. This has been allowed by the courts, despite the fact that it in effect prevents the tenant from obtaining compensation
for improvements.
Note, however, that there is a risk that this could fall foul of the Agricultural Tenancies Act 1995 s 26(1), as an attempt to
avoid the compensation provisions of that Act and could therefore be held to be unenforceable.
Note also that this clause does not relate to all matters for which the tenant is entitled to compensation on termination of the
term under the Agricultural Tenancies Act 1995.

57
58
59

Under the Agricultural Tenancies Act 1995 there is no provision similar to the model clauses providing for insurance
obligations: see note 21 above.
The supply of land under an agricultural lease is exempt from VAT unless the landlord or a relevant associate of the landlord
elects to waive exemption from VAT. As to VAT in relation to leases see Information Binder: Property [1] (VAT and Property).
As to a landlords liability for negligence see 27(1) Halsburys Laws (4th Edn Reissue) LANDLORD AND TENANT para 386.

[398]
60
61

62
63

64
65
66
67
68
69
70
71
72
73

For examples of other covenants which might be required from a landlord see vols 22(1) - (3) (1996-1997 Reissue) LANDLORD
AND TENANT (Business Tenancies).
There is no requirement for a notice period of at least one month for the provision to be valid, as there is under the Agricultural
Holdings Act 1986: see Parry v Million Pigs Ltd (1980) 260 Estates Gazette 281. As to the law of forfeiture generally see vol
vols 22(1) (1996 Reissue) LANDLORD AND TENANT (Business Tenancies).
As to the Insolvency Act 1986 (4 Halsburys Statutes (4th Edn) BANKRUPTCY AND INSOLVENCY) generally see vol 3(2) (1995
Reissue) BANKRUPTCY AND INDIVIDUAL VOLUNTARY ARRANGEMENTS .
See note 8 above. This precedent includes provisions to protect the landlords milk quota where it is attached to the holding. The
parties may require alternative provisions suitable to the circumstances for instance if the tenant has milk quota registered in his
name or for his benefit. It is unclear whether the tenant would be entitled to compensation for milk quota as an intangible
advantage under the Agricultural Tenancies Act 1995 s 16: see Paragraph 91 note 4 [101] ante. As to milk quota generally see
further vol 2(2) (1998 Reissue) AGRICULTURE Paragraph 17 [38] et seq.
The regulations current as at the date of the tenancy agreement should be specified. At the date of this volume they are the Dairy
Produce Quotas Regulations 1994/672 as amended.
As to tenants fixtures see clause 10 [355] and Paragraph 41 [51] et seq ante.
As to tenants improvements see clause 11 [356] and notes 24, 27 above.
As to the schedule of condition see schedule 6 at [364], [366].
As to redundant buildings see clause 15 [359].
The regulations current as at the date of the tenancy agreement should be specified. At the date of this volume they are the
Arable Area Payments Regulations 1995/1738 as amended.
The regulations current as at the date of the tenancy agreement should be specified. At the date of this volume they are the
Integrated Administration and Control System Regulations 1993/1317 as amended.
See Form 102 [3051] post.
The meaning of Term is restricted to the original term specified in the Particulars, but the term of the tenancy will automatically
be extended by statute in the absence of a notice to comply with the Agricultural Tenancies Act 1995 s 5: see note 4 above.
A lease for 3 years or less (including a periodic tenancy) taking effect in possession may be created by parol or by writing which
need not be executed as a deed: Law of Property Act 1925 ss 52(2)(d), 54(2) (37 Halsburys Statutes (4th Edn) REAL PROPERTY)
and the Law of Property (Miscellaneous Provisions) Act 1989 s 2(5)(a) (37 Halsburys Statutes (4th Edn) REAL PROPERTY). As
to the statutory requirements for valid execution of a deed see vol 12 (1994 Reissue) DEEDS, AGREEMENTS AND
DECLARATIONS.

[399][420]

4
Schedule of rights excepted and reserved for use in a tenancy agreement

SCHEDULE1
Rights excepted and reserved
1

Minerals and other underground resources

All mines, minerals, quarries, stones and sand, chalk, flints, marl, peat, brick, earth, clay, gravel, turf, petroleum and its
relative hydrocarbons and all other gases and substances in or under the Holding 2 of a kind ordinarily worked or
removed by underground or surface working with power to the Landlord and all persons authorised by him to enter on
the Holding to search for, win, dress and make merchantable and carry them away from the Holding and from
neighbouring land over any roadways on the Holding or over any other part of the Holding and to execute all incidental
works including the right to let down the surface of the land the Tenant being paid reasonable compensation for all
damage caused by the exercise of such power.

Water resources

The right for the Landlord and all persons authorised by him to enter the Holding and (subject to the provisions of the
Water Resources Act 19913) to take water from any stream, spring or other source of supply on or under the Holding by
means of boreholes, pipes or otherwise PROVIDED that sufficient water is left for the Tenant for the Permitted
Purpose4.
[421]

Easements wayleaves and other contracts

The right to grant any wayleave, contract, easement or licence to any public or local authority or public utility company
or other company or persons with the right to authorise servants and agents of such parties with or without vehicles,
animals, machinery and plant to enter upon the Holding and carry out their works (subject to the payment of reasonable
compensation for damage provided a claim in writing is made by the Tenant to the Landlord within a reasonable time
from the occurrence of the damage) together with the benefit of all such contracts, agreements for easements or
licences and all rents and other payments reserved.

Timber

All timber and other trees (except fruit trees), saplings, pollards and underwood with liberty for the Landlord and all
persons authorised by him to enter upon the Holding in order to inspect, mark, fell, cut and carry them away and to
replant them and to cart them from the Holding and from neighbouring land over any roadways on the Holding or over
any other part of the Holding without making any payment to the Tenant for such use.

Sport5

5.1

All game, deer, wildfowl, woodcock, snipe and other wild birds listed in the Wildlife and Countryside Act
1981 Schedule 2 their nests and eggs and all fish together with the exclusive right for the Landlord and all
persons authorised by him to go upon the Holding:
5.1.1
to rear, preserve, shoot, kill and take them away; and
5.1.2
to shoot, hunt, hawk, sport and fish on or over the Holding.
(Subject to the Ground Game Act 1880 and the Ground Game (Amendment) Act 1906) the right for the
Landlord and all persons authorised by him to kill, shoot and take away rabbits, hares, pigeons or any other
pests.

5.2
[422]

Access

The right for the Landlord and all persons authorised by him with or without vehicles, animals, machinery and plant to
enter6 onto any part of the Holding at all reasonable times:
[6.1
to inspect the state of repair and condition of the Holding;]
[6.2
to inspect or to gain access to or to carry out any works to any neighbouring land of the Landlord;]
6.3
for the purposes set out in this schedule; and
6.4
for all other reasonable purposes.

Rights in respect of service media

Without prejudice to the generality of other rights reserved by this schedule the right to run pipes, drains, conduits,
cables, wires or other works (either already existing or any new ones) for the benefit of any other property of the
Landlord and the right to carry out works for the benefit of such land the Tenant being paid reasonable compensation
for all damage caused to him by the exercise of such rights.

Rights of way

All rights of way (if any) used or enjoyed up to and including the date of this Agreement across any part of the Holding
whether by the Landlord or any other party in respect of other property of the Landlord.

Wayleave agreements

The benefit of all wayleave agreements entered into by the Landlord and existing at the date of this Agreement and all
rents and other money payable under them and the power to carry out on the Holding at the Landlords cost anything
required to be done by the Landlord under such agreements.
[423]
1

2
3
4
5
6

This Form gives examples of the rights which a landlord may wish to except and reserve in a farm business tenancy (or other
grazing tenancy) agreement, and may be used as schedule 3 in Form 3 at [362] ante, Form 5 at [462], Form 6 at [510] or Form 8
at [630] post. For further examples of such rights see vol 13(1) (1996 Reissue) EASEMENTS AND PROFITS A PRENDRE . Where
mines and minerals are expressly excepted then, if the lease is registrable, a note (stating that such mines and minerals are
excluded from the registration) will be included in the property register of the title.
The Holding should be described accurately and defined in the tenancy agreement.
As to the Water Resources Act 1991 (49 Halsburys Statutes (4th Edn) WATER) and the right to abstract water see vol 13(1)
(1996 Reissue) EASEMENTS AND PROFITS A PRENDRE Paragraph 41 [5236].
The Permitted Purpose should be defined in the tenancy agreement.
See also vol 13(1) (1996 Reissue) EASEMENTS AND PROFITS A PRENDRE Forms 81 [5764]83 [5766].
There are no similar rights of entry to the holding reserved to the landlord in the Agricultural Tenancies Act 1995 (1 Halsburys
Statutes (4th Edn) AGRICULTURE) as in the Agricultural Holdings Act 1986 s 23 (1 Halsburys Statutes (4th Edn)
AGRICULTURE).

[424][450]

5
Farm business tenancy (short formtwo years or less)1

PARTICULARS
(a)

Date:
(insert date)2

(b)

The Landlord:
(name) [of (address) or whose registered office is at (address)]

(c)

The Tenant:
(name) [of (address) or whose registered office is at (address)]

(d)

The Holding:
the land known as (describe the property) extending to approximately (number) hectares shown
[for identification purposes only] edged [red] on the attached plan and [more particularly] described
in schedule 13

(e)

The Term:
a term [of (number) [months or years] starting on (date) or starting on (date) and expiring on
(date)]4

[451]

(f)

Rent:
(insert amount) [for the Term or per year or from (date) to (date) [and (insert amount) from (date)
to (date)]]
payable [by [2] equal instalments] [in advance or in arrear]

(g)

Date[s] for payment of Rent:


(insert details of payment date or dates) [in each year of the Term]

(h)

Interest Rate:
(number)% above the base rate of (name) Bank plc

(i)

Permitted Purpose:
the trade or business of [growing arable crops or livestock breeding and rearing or dairy farming or
(specify)]5

[(j)

Milk Quota:
(number) litres of [wholesale or direct sales] milk quota6 with a butterfat base of (number)%
attached to the Holding at the Commencement Date]

[(k)

The Expert:
(name) of (address)]7

[452]
THIS FARM BUSINESS TENANCY AGREEMENT is made on the Date set out in the Particulars BETWEEN:
(1)
The Landlord named in the Particulars (the Landlord)
(2)
The Tenant named in the Particulars (the Tenant)
IT IS AGREED AS FOLLOWS:

Definitions and interpretations

In this Agreement except where specifically defined in schedule 6 the words and phrases used have the meaning
assigned to them by the Agricultural Tenancies Act 1995 (the 1995 Act).

Letting8

The Landlord lets [with [full or limited] title guarantee] the Holding to the Tenant for the Term together with the rights
set out in schedule 2 subject to existing rights and other matters affecting the Holding during the Term and excepting
and reserving to the Landlord the rights set out in schedule 3 the Tenant paying by way of rent:
2.1
the Rent;
2.2
the Insurance Rent; and
2.3
Interest as defined in schedule 6.
[453]

Tenants agreements

The Tenant agrees with the Landlord:

3.1

Rent
To pay the Rent and the Insurance Rent on the days and in the manner required by this Agreement and in
default to pay Interest as defined in schedule 6.

3.2

Outgoings
To pay all rates, taxes and outgoings whatever relating to the Holding during the Term (except tax payable by
the Landlord on the rents received).

3.3

Maintenance
[3.3.1
3.3.2
3.3.3
3.3.4

To keep the farmhouse, cottages, buildings and fixed equipment on the Holding in no worse state of
repair, order and condition than that in which they are at the date of this Agreement as evidenced by
the attached schedule of condition9.]
To keep all ditches and drains clean and free from obstructions.
To keep all fences, hedges and gates in proper stockproof condition.
Not to remove or alter any fence, hedge or other boundary on the Holding.

[454]

3.4

Use and management of the Holding


3.4.1
[3.4.2
3.4.3
3.4.4
3.4.5
3.4.6
3.4.7
3.4.8

Throughout the Term to use and farm the Holding or part of it for the purposes of a trade or
business10.
Throughout the Term to use and farm the Holding for agricultural purposes only 11.]
[Without prejudice to clause 3.4.2 not or Not] at any time during the Term to use the Holding other
than for the Permitted Purpose set out in the Particulars.
To farm the Holding in accordance with the rules of good husbandry as defined in the Agriculture
Act 1947 Section 11.
Not to break up or convert into arable any part of the Holding shown in schedule 1 as permanent
pasture.
Not to do or suffer to be done on the Holding anything which may be or become a nuisance or
annoyance to the Landlord or the owners or occupiers of any adjoining land and to indemnify the
Landlord against any claim by third parties in respect of any breach of this clause.
To supply a copy to the Landlord of any return or other form which the Tenant is required to make
or complete pursuant to any Enactment or as part of an application for any type of grant or subsidy.
To permit the Landlord to enter the Holding or any part on giving to the Tenant (save in the event of
an emergency) reasonable notice.

[455]

3.5

Alienation
Not to assign, sublet, part with or share possession or occupation of the Holding or any part of it 12.

3.6

IACS13
3.6.1
3.6.2
3.6.3

Not to set aside more of the Holding than the minimum required as a condition of an application for
arable area payments under the Arable Area Payments Scheme in respect of crops grown on the
Holding only and not on any other land.
Not to set aside any part of the Holding other than under the Arable Area Payments Scheme and on
a basis to be first agreed with the Landlord and not to import onto the Holding any set-aside
obligations.
In the [first or second] year of the Term not to claim the Holding as forage area for the purposes of
a claim for beef special premium, suckler cow premium or sheep annual premium and but to cooperate with the Landlord in signing and lodging (having regard to statutory time limits applicable)

all necessary documents and declarations to enable the Landlord to claim those premiums in that
year.

3.7

Alteration of buildings
Not to alter, remove or make additions to any building or other item of fixed equipment or erect any new
buildings or other item of fixed equipment or make any other improvements to the Holding without the prior
written consent of the Landlord14.

[456]

3.8

Legislation
3.8.1
3.8.2
3.8.3

3.9

Quota15
3.9.1
3.9.2

3.10

At all times immediately upon receipt of any notice, order direction or other matter whatever
affecting or likely to affect the Holding to produce it for the Landlords inspection and to permit the
Landlord to take a copy.
To comply immediately with and give sufficient effect to every notice, direction or other matter
whatever affecting or likely to affect the Holding served or made by any competent Authority.
Fully to comply with all Legal Obligations relating to the Holding and to keep the Landlord
effectively indemnified against all actions, proceedings, costs, expenses, claims and demands in
respect of any matter contravening any Legal Obligation.

To preserve the benefit of any Quota transferred to or made available to the Tenant at the
commencement of the Term as the occupier for the time being of the Holding.
On termination of the Term to transfer the benefit of the Quota or make the Quota available to the
Landlord or to any incoming occupier (as appropriate).

Yield up
3.10.1
3.10.2

On termination of this Agreement to yield up the Holding to the Landlord with vacant possession in
a state of repair and condition which is consistent with the proper performance of the Tenants
agreements in this Agreement.
Immediately before the termination of this Agreement if and to the extent required by the Landlord
to reinstate all alterations, additions or improvements made to the buildings or other fixed
equipment on the Holding at any time during the Term16.

[457]

Landlords agreements

The Landlord agrees with the Tenant:

4.1

Insurance
To insure the fixed equipment on the Holding in a sum equal to the full reinstatement value determined by the
Landlord against loss or damage by fire and all other risks that the Landlord may decide and to carry out all
works of repair or replacement necessary to make good the loss or damage provided that the loss or damage
is not due to the wilful negligence or default of the Tenant or any servant agent or licensee of the Tenant.

4.2

Quiet enjoyment
If the Tenant observes and performs the Tenants agreements and obligations in this Agreement the Tenant
may peaceably hold and enjoy the Holding during the Term without any lawful interruption or disturbance
from or by the Landlord or any person claiming through, under or in trust for the Landlord.

[458]

Forfeiture17

Without prejudice to any other rights of the Landlord if:


5.1
the whole or part of the Rent remains unpaid 21 days after becoming due (whether demanded or not); or
5.2
any of the Tenants agreements in this Agreement are not performed or observed; or
5.3
the Tenant:
5.3.1
proposes or enters into any composition or arrangement with his creditors generally or any class of
his creditors; or
5.3.2
is the subject of any judgment or order made against him which is not complied with within 7 days
or is the subject of any execution, distress, sequestration or other process levied upon or enforced
against any part of his undertaking, property, assets or revenue; or
5.3.3
being a company:

5.3.3.1

is the subject of a petition presented or an order made or a resolution passed or analogous


proceedings taken for appointing an administrator of or winding up such company; or
5.3.3.2 an incumbrancer takes possession or exercises or attempts to exercise any power of sale
or a receiver or administrative receiver is appointed of the whole or any part of the
undertaking, property, assets or revenues of such company; or
5.3.3.3 stops payment or agrees to declare a moratorium or becomes or is deemed to be insolvent
or unable to pay its debts within the meaning of the Insolvency Act 1986 Section 123; or
5.3.3.4 without the prior consent in writing of the Landlord ceases or threatens to cease to carry
on its business in the normal course; or
5.3.4
being an individual:
5.3.4.1 is the subject of a bankruptcy petition or bankruptcy order; or
5.3.4.2 is the subject of an application or order or appointment under the Insolvency Act 1986
Section 253 or Section 273 or Section 286; or
5.3.4.3 is unable to pay or has no reasonable prospect of being able to pay his debts within the
meaning of the Insolvency Act 1986 Sections 267 and 26818; or
5.4
any event occurs or proceedings are taken with respect to the Tenant in any jurisdiction to which the Tenant is
subject which has an effect equivalent or similar to any of the events mentioned in clause 5.3;
then and in any of such cases the Landlord may at any time (and notwithstanding the waiver of any previous right of reentry) re-enter the Holding whereupon the Tenancy will absolutely determine but without prejudice to any right of
action of the Landlord in respect of any previous breach by the Tenant of this Agreement.
[459]

Consent to cultivation in the last year

The Landlord gives his consent to the Tenant farming and cultivating the Holding and to produce a crop in the last year
of the Tenancy [in accordance with a cropping schedule to be agreed in advance with the Landlord]19.

[7

Milk Quota20

The provisions of schedule 4 will apply to the Milk Quota which is agreed to attach to the Holding.]

Tenants fixtures and buildings

The fixtures and buildings specified in schedule 5 belong to the Tenant and may be removed by him in accordance with
the 1995 Act21.

Dispute resolution22

9.1

In the event of any dispute arising under this Agreement between the parties, other than a dispute in respect of
Rent or consent for improvements or compensation, the same will be determined by the Expert named in the
Particulars who will act as an independent expert and not as an arbitrator and who will be appointed on the
joint written application of both parties or on the written application of either party having first given to the
other party not less than 4 weeks notice in writing of his intention to do so; and if such Expert shall die or be
unwilling to act then such other expert as may be appointed on the application of either party by the President
of the Royal Institution of Chartered Surveyors.
The appointment of such Expert will specify that his decision will be made following representations in
writing by the parties and the costs of the Expert will be borne as directed by the Expert and his decision will
be final and binding on all parties.

9.2
[460]

10

Nature of tenancy

The Tenancy granted by this Agreement is and is intended to be a Farm Business Tenancy 23.

11

Whole agreement

This Agreement contains the whole agreement between the Landlord and the Tenant concerning the Holding.

12

Notices

12.1
12.2

For the purposes of the Landlord and Tenant Act 1987 the Landlords address at which notices and
proceedings should be served is as specified at the commencement of this Agreement 24.
Notices or other documents required or authorised to be given under the 1995 Act may be sent by ordinary
first class post or recorded delivery or facsimile at the address given for the party in this Agreement or in a
manner provided for in Section 36 of the 1995 Act 25.

[13

Agreement for tenancy (stamp duty certificate)

It is certified that there is no prior agreement for tenancy to which this Agreement gives effect.]26

AS WITNESS etc
[461]

SCHEDULE 1
The Holding
(give full details of the property under eg the headings set out below)
[Ordnance Survey or
National Grid] Number

Hectares Description

SCHEDULE 2
Rights granted to the Tenant
[1

A right of way for the Tenant, his agents and authorised persons at all times with or without vehicles, plant,
machinery or animals over the track [shown for the purpose of identification only] coloured [brown] on the
attached plan.]
(insert any further rights required to be granted to tenant)27

SCHEDULE 3
Rights excepted and reserved to the Landlord
(insert details: see eg the rights set out in Form 4 [421] ante)28
[462]

SCHEDULE 4
Milk Quota29
[Option 1:
The provisions of this schedule apply to the Milk Quota set out in the Particulars:
1
The Milk Quota will be transferred by the Landlord to the Tenant following the change of occupation of the
Holding caused by this Agreement.
2
The Tenant will do everything necessary to maintain the Milk Quota and not by any act or omission do
anything or allow anything to be done which will result in the Milk Quota lapsing or reducing during the
Term or otherwise becoming unavailable to the Landlord on termination of the Term.
3
The Tenant on quitting the Holding will immediately transfer the Milk Quota to the Landlord or to
whomsoever he nominates without charge or payment.
4
The obligation under this schedule will not apply in so far as the Milk Quota has been subject to permanent
reduction made by any Authority and following termination of the Term any compensation payable for
reductions in the Milk Quota will be due to the Landlord.
[463]
or Option 2:
1
2
3

No milk quota will be transferred by the Landlord to the Tenant following the change of occupation of the
Holding caused by this Agreement.
Both parties will co-operate with each other in the signing and lodging of any necessary documents so as to
ensure so far as is lawfully possible that there will be no transfer of milk quota between the parties brought
about by this Agreement.
If notwithstanding this Agreement any milk quota is transferred from the Landlord to the Tenant, the Tenant
will pay to the Landlord a sum representing the loss suffered by the Landlord including all costs of acquiring
replacement milk quota and any other losses incurred by him.]

SCHEDULE 5
Tenants Fixtures and Buildings30
(give details)
[464]

SCHEDULE 6
Definitions and interpretation
1

Definitions

1.1

1995 Act means the Agricultural Tenancies Act 1995.

1.2

Arable Area Payments Scheme means the general Arable Area Payments Scheme set down under the
Arable Area Payments Regulations [1995]31.

1.3

Authority means any statutory, public, local or other authority or any court of law or any government
department or any of their duly authorised officers.

1.4

Enactment means:
1.4.1
any Act of Parliament or
1.4.2
any European Community Legislation or decree having effect of law in the United Kingdom.

1.5

Holding means the land (including all buildings and fixed equipment on the land) set out in the Particulars
as more fully described in schedule 1.

1.6

IACS means the Integrated Administration and Control System set down in the Integrated Administration
and Control System Regulations [1993]32.

1.7

Insurance Rent means the amount paid by the Landlord (including any excess sums) from time to time
during the Term in discharging premiums and other outgoings for fire insurance and other risks or insurances
contained or referred to in any policy effected by the Landlord in respect of the Holding, payable upon
production by the Landlord to the Tenant of the receipt for the premium or premiums due.

[465]
1.8

Interest means interest at the Interest Rate on any sums due from the Tenant to the Landlord not paid
within 7 days of falling due for the period from the due date to the date of actual payment.

1.9

Interest Rate means the percentage rate above the base lending rate from time to time of the bank specified
in the Particulars or such other bank being a member of the Committee of London and Scottish Bankers as
the Landlord may from time to time nominate or if that base lending rate cannot be ascertained then such
alternative rate as the Landlord may reasonably specify; and where and whenever interest is payable at or by
reference to the Interest Rate it will be calculated on a daily basis.

1.10

Legal Obligation means any obligation from time to time created by any Enactment or Authority which
relates to the Holding or its use.

1.11

Milk Quota means the milk quota set out in the Particulars.

1.12

Particulars means the particulars page set out at the beginning of this Agreement.

1.13

Quota means all quota or other right of production or right to payment or subsidy whether under any
scheme for the production or marketing of agricultural produce or otherwise or any right of or restriction on
production or the use of the Holding for farming or any licence or consent required for such production or use
(other than Milk Quota) which is now or at any time in the future may be allocated, transferred or made
available to the Tenant in respect of the Holding.

1.14

Rent means the sums of rent set out in the Particulars payable by the instalments set out in the Particulars.

1.15

Tenancy means the tenancy granted by this Agreement.

1.16

Term means the term of the Tenancy which commences on the date set out in the Particulars (from which
date the Tenant is entitled to possession of the Holding) and expires on the date set out in the Particulars.

1.17
[466]

VAT means Value Added Tax and includes any future tax of a like nature.

Interpretation

In this Agreement unless the context otherwise requires:


2.1
words importing any gender include every gender;
2.2
words importing the singular number include the plural number and vice versa;

2.3
2.4

words importing persons include firms, companies and corporations and vice versa;
references to numbered clauses and schedules are references to the relevant clause in or schedule to this
Agreement;
reference in any schedule to this Agreement to numbered paragraphs relate to the numbered paragraphs of
that schedule;
where any obligation is undertaken by two or more persons jointly they are to be jointly and severally liable
in respect of that obligation;
any obligation on any party not to do or omit to do anything is to include an obligation not to allow that thing
to be done or omitted to be done;
any party who agrees to do something will be deemed to fulfil that obligation if that party procures that it is
done;
the headings to the clauses, schedules and paragraphs of this Agreement will not affect the interpretation;
any sum payable by one party to the other will be exclusive of VAT which will where it is chargeable be paid
in addition to the sum in question at the time when the sum in question is due to be paid;
any reference to an Enactment includes the reference to that Enactment as amended or replaced from time to
time and to any subordinate legislation or bye-law made under that Enactment.

2.5
2.6
2.7
2.8
2.9
2.10
2.11

(signature (or common seal) of landlord: tenancy agreement)


(signature of tenant: counterpart)33
[467]
1
2

3
4
5

7
8

As to stamp duty see Information Binder: Stamp Duties [1] (Lease or Tack) and (Duplicate or Counterpart). See also clause 13
[461] and note 26 below.
Note that for the purposes of the Agricultural Tenancies Act 1995 (1 Halsburys Statutes (4th Edn) AGRICULTURE) the tenancy
begins on the day on which, under the terms of the tenancy, the tenant is entitled to possession: see ibid s 38(4) and Paragraph 2
[3] ante.
The holding should be described accurately and by reference to a plan, with details set out in schedule 1 [462].
If using this precedent, the term should be for a fixed period of two years or less. It should not start before the date on which the
agreements are completed, but may be expressed to start at a later date.
The permitted purpose or purposes should be specified. It is advisable for the parties to exchange notices under the Agricultural
Tenancies Act 1995 s 1(4) before the tenancy begins in all cases where any non-agricultural use is proposed. If the agreement
contains a strictly drawn user covenant where the term is for two years or less the draftsman might take the view that notices
need not be exchanged under the Agricultural Tenancies Act 1995 s 1(4) on the grounds, first that the user covenant, coupled
with ibid s 1(8), ensures compliance with the agriculture condition and secondly that in an agreement of this length there is less
risk of consent or acquiescence to any breach, but the risk should be made clear to a landlord: see Paragraph 158 [208] ante.
If there is no milk quota attaching to the holding, the description in the Particulars at [452], schedule 4 [463] and the definition in
schedule 6 paragraph 1.11 [466] should be deleted. As to milk quota generally see vol 2(2) (1998 Reissue) AGRICULTURE
Paragraph 17 [38] et seq .
A particular expert may be chosen in certain circumstances under the Agricultural Tenancies Act 1995 (see ibid ss 12(b), 28 and
29 and Paragraph 123 [144] ante), in which case the name and address of the chosen expert should be included.
Clause 2 [453] contains the operative terms. The rights granted to the tenant are to be set out in schedule 2 [462] and matters
excepted and reserved to the landlord are to be set out in schedule 3 [462]. In this agreement, the tenant is liable to pay the rent,
to reimburse the landlord for insurance premiums paid by the landlord insuring the holding and to pay interest on all sums paid
late by the tenant. A lease or tenancy agreement may be expressed to be made with a full or limited title guarantee, if the landlord
is willing to do so; as to the covenants for title implied by including these words see the Law of Property (Miscellaneous
Provisions) Act 1994 (37 Halsburys Statutes (4th Edn) REAL PROPERTY), vol 25(1) (1995 Reissue) LAND REGISTRATION
Paragraph 121 [2181] et seq and vol 35 (1997 Reissue) SALE OF LAND Paragraph 474 [599]. If a title guarantee is to be given,
the title should be fully investigated : see Paragraph 159 [209] ante.

[468]
9

10

11

12

If there are any buildings on the holding then consider including the simple agreement regarding their repair and maintenance set
out in clause 3.3.1 [454] which may be appropriate for a short term tenancy. As to repairing covenants generally see vols 22(1) (3) (1996-1997 Reissue) LANDLORD AND TENANT (Business Tenancies).
Under the Agricultural Holdings Act 1986 (1 Halsburys Statutes (4th Edn) AGRICULTURE), the Agriculture (Maintenance,
Repair and Insurance of Fixed Equipment) Regulations 1973/1473 as amended (the so called model clauses) were deemed to
be incorporated into every tenancy of an agricultural holding except as specifically provided otherwise: see Paragraph 321
[2062] and Form 102 [3051] post. There is no comparable provision under the Agricultural Tenancies Act 1995.
Note that it is important to include the agreement set out in clause 3.4.1 [455] to ensure, so far as possible, continuing
compliance with the business conditions. Any use in contravention of this clause can be disregarded under the Agricultural
Tenancies Act 1995 s 1(8) when determining whether or not there has been compliance, unless there has been consent or
acquiescence on the part of the landlord to the breach: see Paragraph 13 [17] ante.
Where a non-agricultural use is included as one of the permitted purposes, clause 3.4.2 [455] and the first alternative in clause
3.4.3 should be deleted and the parties should exchange notices under the Agricultural Tenancies Act 1995 s 1(4). Note ibid s
1(4)(b) in particular: see Paragraph 24 [29] ante.
This clause has been very restrictively drawn to prohibit not merely assignment and underletting but also sharing possession and
occupation of the holding. This is to prevent a tenant entering into partnership with a third party, possibly on terms where the
tenant is merely a sleeping partner with little day to day control over the farming. See also Paragraph 152 note 4 [202] ante.

13

Where the holding is registered as eligible under IACS (as defined in schedule 6 paragraph 1.6 [465]), consider whether the
landlord wishes to restrict the tenants ability to set land aside under the Arable Area Payments Scheme (see schedule 6
paragraph 1.2 [465]). Clause 3.6.1 [456] is intended to stop the tenant from dumping on the holding set-aside, which relates to
crops grown on other land. This may be appropriate particularly if the tenant sets aside on a rotational basis.
If the landlord intends to make a claim for beef special premium, suckler cow premium or sheep annual premium and if the
tenancy commences or is due to terminate between January and July in any year then he should consider restricting the right of
the tenant to claim the holding as his forage area in a relevant year.

[469]
14

15
16

17

18

Note that deletion of the agreement contained in clause 3.7 [456] or the giving of consent by the landlord to alterations or other
improvements could result in the tenant being entitled to compensation for improvements on termination of the tenancy: see
Paragraph 94 [105] ante. Inclusion of this clause, however, will not prevent the tenant from claiming such compensation in
respect of other matters outside the scope of this restriction. Neither will its inclusion prevent the tenant from applying to an
arbitrator under the Agricultural Tenancies Act 1995 s 19 for consent to an improvement: see Paragraph 95 [106] ante and note
16 below.
Note that Quota is defined in schedule 6 paragraph 1.13 [466] to exclude milk quota, which is dealt with separately under
clause 7 [460].
Under the Agricultural Tenancies Act 1995, it is not possible to add to or take away from the compensation provisions where the
Act provides for compensation concerning a particular matter. The Landlord and Tenant Act 1927 (23 Halsburys Statutes (4th
Edn) LANDLORD AND TENANT) contains provisions with a similar effect and practitioners negotiating commercial leases have
often included a provision requiring the tenant to reinstate all alterations, additions and improvements made to premises during
the term. This has been allowed by the courts, despite the fact that it in effect prevents the tenant from obtaining compensation
for improvements.
Note, however, that there is a risk that this clause could fall foul of the Agricultural Tenancies Act 1995 s 26(1), as an
attempt to avoid the compensation provisions of that Act and could therefore be held to be unenforceable.
Note also that this clause does not relate to all matters for which the tenant is entitled to compensation on termination of the
term under the Agricultural Tenancies Act 1995.
As to the law of forfeiture generally see vols 22(1) (1996 Reissue) LANDLORD AND TENANT (Business Tenancies).. There is no
requirement for a notice period of at least one month for the clause to be valid as under the Agricultural Holdings Act 1986: see
Parry v Million Pigs Ltd (1980) 260 Estates Gazette 281.
As to the Insolvency Act 1986 (4 Halsburys Statutes (4th Edn) BANKRUPTCY AND INSOLVENCY) generally see vol 3(2) (1995
Reissue) BANKRUPTCY AND INDIVIDUAL VOLUNTARY ARRANGEMENTS .

[470]
19

20

21
22

23
24

For the tenant to be entitled to compensation in respect of routine improvements made in the normal course of farming and
therefore including many (though not all) traditional tenant right matters, the landlord must give his consent in writing: see
Paragraph 98 [110] ante. If the landlord refuses consent, the tenant can apply to an arbitrator for consent even after he has begun
the improvement. Consent is set out in clause 6 [460]. Note however that the definition of routine improvements does not cover
all the tenant right matters for which the tenant was entitled to receive compensation under the Agricultural Holdings Act 1986
Sch 8 Pt II: see Paragraph 434 [2446] et seq post. If the landlord wishes to agree to pay for such additional matters specific
provisions should be added. The parties should be aware of the fact that husbandry obligations may imply consent to carry out
the routine improvements necessary to comply with such obligations.
As to milk quota generally see vol 2(2) (1998 Reissue) AGRICULTURE Paragraph 17 [38] et seq. Schedule 4 [463] includes
alternative provisions in the event either that the parties agree no milk quota will be transferred to the tenant on the grant of the
tenancy or that the quota attaching to the holding will be transferred to the tenant for the duration of the tenancy. These are only
suggested provisions and must be tailored to the circumstances. When acting for a tenant who holds his own quota, consider any
protection needed should that quota become attached to the holding and transferred to the landlord at the end of the tenancy.
As to tenants fixtures see Paragraph 41 [51] et seq ante; details are to be set out in schedule 5 [464].
Clause 9 [460] is intended to take advantage of the limited opportunity for the parties to agree to the appointment of their own
expert or arbitrator for resolution of disputes provided by the Agricultural Tenancies Act 1995 s 29(1)(a) (see Paragraph 123
[144] ante). Note however that either party has the ability to refer the matter back to an arbitrator appointed under ibid s 28 if he
so chooses.
See Paragraph 3 [6] ante.
Clause 12.1 [461] is required where dwellings are included in the tenancy.

[471]
25

26

27
28
29
30

Any notices exchanged by the parties in order to comply with the notice conditions set out in the Agricultural Tenancies Act
1995 s 1(4), should be served strictly in accordance with ibid s 36, unless before service of those notices, the parties enter into a
written agreement under ibid s 36(2)(c) specifying an alternative method of service. Once the initial notice condition notices
have been exchanged and the tenancy agreement has been signed and dated, all further notices can be served under the extended
provisions agreed between the parties as set out in clause 12.2 [461]: see Paragraph 158 [208] ante.
A lease that is not preceded by an agreement must contain a certificate to that effect for stamp duty purposes: see the Finance Act
1994 s 240 (41 Halsburys Statutes (4th Edn) STAMP DUTIES). See further Information Binder: Stamp Duties [1] (Guide to
Stamp Duties).
For alternative clauses granting easements and other rights see vol 13(1) EASEMENTS AND PROFITS A PRENDRE Form 13 [5601]
et seq.
A suggested schedule of exceptions and reservations is set out in Form 4 [421] ante, but see also vol 13(1) EASEMENTS AND
PROFITS A PRENDRE Form 13 [5601] et seq.
As to milk quota see note 6 above.
As to tenants fixtures see clause 8 [460] and note 21 above.

31
32
33

The regulations current as at the date of the tenancy agreement should be specified. At the date of this volume they are the
Arable Area Payments Regulations 1995/1738 as amended.
The regulations current as at the date of the tenancy agreement should be specified. At the date of this volume they are the
Integrated Administration and Control System Regulations 1993/1317 as amended.
A lease for 3 years or less (including a periodic tenancy) taking effect in possession may be created by parol or by writing which
need not be executed as a deed: Law of Property Act 1925 ss 52(2)(d), 54(2) (37 Halsburys Statutes (4th Edn) REAL PROPERTY)
and the Law of Property (Miscellaneous Provisions) Act 1989 s 2(5)(a) (37 Halsburys Statutes (4th Edn) REAL PROPERTY).

[472][500]

6
Farm business tenancy (grazing)1

PARTICULARS
(a)

Date:
(insert date)2

(b)

The Landlord:
(name) [of (address) or whose registered office is at (address)]

(c)

The Tenant:
(name) [of (address) or whose registered office is at (address)]

(d)

The Holding:
the land known as (describe the property) extending to approximately (number) hectares shown
[for identification purposes only] edged [red] on the attached plan and [more particularly] described
in schedule 13

(e)

The Term:
[a term of (number) [months or years] starting on (date) or
a term starting on (date) and expiring on (date)]4

[501]

(f)

Rent:
(insert amount) [for the Term or from (date) to (date) [and (insert amount) from (date) to (date)]]
payable [by [2] equal instalments] [in advance or in arrear]

(g)

Date[s] for payment of Rent:


(insert details of payment date or dates) [in each year of the Term]

(h)

Permitted Purpose:
the trade or business of grazing [sheep or cattle] owned by the Tenant [and for mowing] [and to use
the buildings on the Holding for sheltering such [sheep or cattle] and for other purposes ancillary to
such grazing [or mowing]]5

[(i)

Milk Quota:
(number) litres of [wholesale or direct sales] milk quota6 with a butterfat base of (number)%
attached to the Holding at the Commencement Date]

[(j)

The Expert:
(name) of (address)]7

[502]
THIS FARM BUSINESS TENANCY AGREEMENT is made on the Date set out in the Particulars BETWEEN:
(1)
The Landlord named in the Particulars (the Landlord)
(2)
The Tenant named in the Particulars (the Tenant)
IT IS AGREED as follows:

Definitions and interpretations

In this Agreement except where specifically defined in schedule 5 the words and phrases used have the meaning
assigned to them by the Agricultural Tenancies Act 1995 (the 1995 Act).

Letting8

The Landlord lets [with [full or limited] title guarantee] the Holding to the Tenant at the Rent for the Term TOGETHER
with the rights set out in schedule 2 SUBJECT to existing rights and other matters affecting the Holding during the
Term and EXCEPTING AND RESERVING to the Landlord the rights set out in schedule 3.
[503]

Tenants agreements

The Tenant agrees with the Landlord:

3.1

Rent
To pay the Rent on the days and in the manner required by this Agreement.

3.2

Outgoings
To pay all rates, taxes and outgoings whatever relating to the Holding during the Term (except tax payable by
the Landlord on the rents received).

3.3

Maintenance
[3.3.1
3.3.2

3.3.3

To keep the buildings and fixed equipment on the Holding in no worse state of repair, order and
condition than that in which they are at the date of this Agreement as evidenced in the attached
schedule of condition9.]
To keep all fences, hedges and gates in proper stockproof condition so as to prevent his stock from
straying or being injured and to indemnify the Landlord against all costs, claims or demands made
by the owners or occupiers of any adjoining land or any other persons for damages or other money
arising from the escape from the Holding of all or any of the stock placed upon the Holding by the
Tenant.
Not to remove or alter any fence, hedge or other boundary on the Holding.

[504]

3.4

Use and management of the Holding


3.4.1
3.4.2
3.4.3
3.4.4
3.4.5

3.5

Throughout the Term to use and farm the Holding or any part of it for the purposes of a trade or
business10.
Not at any time during the Term to use the Holding other than for the Permitted Purpose set out in
the Particulars.
Not to do or suffer to be done on the Holding anything which may be or become a nuisance or
annoyance to the Landlord or the owners or occupiers of any adjoining land and to indemnify the
Landlord against any claim by third parties in respect of any breach of this clause.
To supply a copy to the Landlord of any return or other form which the Tenant is required to make
or complete pursuant to any Enactment or as part of an application for any type of grant or subsidy.
To permit the Landlord to enter the Holding or any part on giving to the Tenant reasonable notice
(save in the event of an emergency).

Alienation
Not to assign, sublet, part with or share possession or occupation of the Holding or any part of it 11.

[3.6

IACS
In the [first or second] year of the Term not to claim the Holding as forage area for the purposes of a claim
for beef special premium, suckler cow premium or sheep annual premium but to co-operate with the
Landlord in signing and lodging (having regard to the statutory time limits applicable) all necessary
documents and declarations to enable the Landlord to claim those premiums in that year 12.]

[505]

3.7

Alteration of buildings
Not to alter, remove or make additions to any building or other item of fixed equipment or erect any new
buildings or other item of fixed equipment or make any other improvements to the Holding without the prior
written consent of the Landlord13.

3.8

Legislation

3.8.1
3.8.2
3.8.3

3.9

At all times immediately upon receipt of any notice, order, direction or other matter whatever
affecting or likely to affect the Holding to produce it for the Landlords inspection and to permit the
Landlord to take a copy.
To comply immediately with and give sufficient effect to every notice, direction or other matter
whatever affecting or likely to affect the Holding served or made by any competent Authority.
Fully to comply with all Legal Obligations relating to the Holding and to keep the Landlord
effectively indemnified against all actions, proceedings, costs, expenses, claims and demands in
respect of any matter contravening any Legal Obligation.

Yield up
3.9.1
3.9.2

On termination of this Agreement to yield up the Holding to the Landlord with vacant possession in
a state of repair and condition which is consistent with the proper performance of the Tenants
agreements in this Agreement.
Immediately before the termination of this Agreement if and to the extent required by the Landlord
to reinstate all alterations, additions or improvements made to the buildings or other fixed
equipment on the Holding at any time during the Term14.

[506]

Landlords agreements

The Landlord agrees with the Tenant that if the Tenant observes and performs the Tenants agreements and obligations
in this Agreement the Tenant may peaceably hold and enjoy the Holding during the Term without any lawful
interruption or disturbance from or by the Landlord or any person claiming through, under or in trust for the Landlord.
[507]

Forfeiture15

Without prejudice to any other rights of the Landlord if:


5.1
the whole or part of the Rent remains unpaid 21 days after becoming due (whether demanded or not); or
5.2
any of the Tenants agreements in this Agreement are not performed or observed; or
5.3
the Tenant:
5.3.1
proposes or enters into any composition or arrangement with his creditors generally or any class of
his creditors; or
5.3.2
is the subject of any judgment or order made against him which is not complied with within 7 days
or is the subject of any execution, distress, sequestration or other process levied upon or enforced
against any part of his undertaking, property, assets or revenue; or
5.3.3
being a company:
5.3.3.1 is the subject of a petition presented or an order made or a resolution passed or analogous
proceedings taken for appointing an administrator of or winding up such company; or
5.3.3.2 an incumbrancer takes possession or exercises or attempts to exercise any power of sale
or a receiver or administrative receiver is appointed of the whole or any part of the
undertaking, property, assets or revenues of such company; or
5.3.3.3 stops payment or agrees to declare a moratorium or becomes or is deemed to be insolvent
or unable to pay its debts within the meaning of the Insolvency Act 1986 Section 123; or
5.3.3.4 without the prior Consent in writing of the Landlord ceases or threatens to cease to carry
on its business in the normal course; or
5.3.4
being an individual:
5.3.4.1 is the subject of a bankruptcy petition or bankruptcy order; or
5.3.4.2 is the subject of an application or order or appointment under the Insolvency Act 1986
Section 253 or Section 273 or Section 286; or
5.3.4.3 is unable to pay or has no reasonable prospect of being able to pay his debts within the
meaning of the Insolvency Act 1986 Sections 267 and 26816;
5.4
any event occurs or proceedings are taken with respect to the Tenant in any jurisdiction to which the Tenant is
subject which has an effect equivalent or similar to any of the events mentioned in clause 5.3;
then and in any of such cases the Landlord may at any time (and notwithstanding the waiver of any previous right of reentry) re-enter the Holding whereupon the tenancy granted by this Agreement will absolutely determine but without
prejudice to any right of action of the Landlord in respect of any previous breach by the Tenant of this Agreement.
[508]

[6

Milk Quota17

The provisions of schedule 4 will apply to the Milk Quota which is agreed to attach to the Holding.]

Dispute resolution18

7.1

7.2

In the event of any dispute arising under this Agreement between the parties other than a dispute in respect of
Rent or Consent for improvements or compensation the same will be determined by the Expert named in the
Particulars who is to act as an independent expert and not as an arbitrator and who is to be appointed on the
joint written application of both parties or on the written application of either party having first given to the
other party not less than 4 weeks notice in writing of his intention to do so; and if such Expert shall die or be
unwilling to act then such other expert as may be appointed on the application of either party by the President
of the Royal Institution of Chartered Surveyors.
The appointment of such Expert is to specify that his decision will be made following representations in
writing by the parties and the costs of the Expert will be borne as directed by the Expert and his decision will
be final and binding on all parties.

Nature of tenancy

The tenancy granted by this Agreement is and is intended to be a Farm Business Tenancy 19.

Whole agreement

This Agreement contains the whole agreement between the Landlord and the Tenant concerning the Holding.

[10

Agreement for tenancy (stamp duty certificate)

It is certified that there is no prior agreement for tenancy to which this Agreement gives effect.]20
AS WITNESS etc
[509]

SCHEDULE 1
The Holding
(give full details of the property under eg the headings set out below)
[Ordnance Survey or
National Grid] Number

Hectares Description

SCHEDULE 2
Rights granted to the Tenant
[1

A right of way for the Tenant, his agents and authorised persons at all times with or without vehicles, plant,
machinery or animals over the track [shown for the purpose of identification only] coloured [brown] on the
attached plan.]
(insert any further rights required to be granted to tenant)21

SCHEDULE 3
Rights excepted and reserved to the Landlord
(insert details: see eg the rights set out in Form 4 [421] ante)22
[510]

[SCHEDULE 4
Milk Quota23
[Option 1:
The provisions of this schedule apply to the Milk Quota set out in the Particulars:
1
The Milk Quota will be transferred by the Landlord to the Tenant following the change of occupation of the
Holding caused by this Agreement.
2
The Tenant will do everything necessary to maintain the Milk Quota and not by any act or omission do
anything or allow anything to be done which will result in the Milk Quota lapsing or reducing during the
Term or otherwise becoming unavailable to the Landlord on termination of the Term.
3
The Tenant on quitting the Holding will immediately transfer the Milk Quota to the Landlord or to
whomsoever he nominates without charge or payment.
4
The obligation under this schedule will not apply in so far as the Milk Quota has been subject to permanent
reduction made by any Authority and following termination of the Term any compensation payable for
reductions in the Milk Quota will be due to the Landlord.
[511]
or Option 2:

1
2
3

No milk quota will be transferred by the Landlord to the Tenant following the change of occupation of the
Holding caused by this Agreement.
Both parties will co-operate with each other in the signing and lodging of any necessary documents so as to
ensure so far as is lawfully possible that there will be no transfer of milk quota between the parties brought
about by this Agreement.
If notwithstanding this Agreement any milk quota is transferred from the Landlord to the Tenant, the Tenant
will pay to the Landlord a sum representing the loss suffered by the Landlord including all costs of acquiring
replacement milk quota and any other losses incurred by him.]]

[512]

SCHEDULE 5
Definitions and interpretation
1

Definitions

1.1

1995 Act means the Agricultural Tenancies Act 1995.

1.2

Authority means any statutory, public, local or other authority or any court of law or any government
department or any of their duly authorised officers.

1.3

Enactment means:
1.3.1
any Act of Parliament or
1.3.2
any European Community Legislation or decree having effect of law in the United Kingdom.

1.4

Holding means the land (including all buildings and fixed equipment on the land) set out in the Particulars
as more fully described in schedule 1.

1.5

IACS means the Integrated Administration and Control System set down in the Integrated Administration
and Control System Regulations [1993]24.

1.6

Legal Obligation means any obligation from time to time created by any Enactment or Authority which
relates to the Holding or its use.

[1.7

Milk Quota means the milk quota set out in the Particulars].

1.8

Particulars means the particulars page set out at the beginning of this Agreement.

1.9

Rent means the sums of rent set out in the Particulars payable by the instalments set out in the Particulars.

1.10

Term means the term of the tenancy granted by this Agreement which commences on the date set out in the
Particulars (from which date the Tenant is entitled to possession of the Holding) and expires on the date set
out in the Particulars.

[513]

Interpretation

In this Agreement unless the context otherwise requires:


2.1
words importing any gender include every gender;
2.2
words importing the singular number include the plural number and vice versa;
2.3
words importing persons include firms, companies and corporations and vice versa;
2.4
references to numbered clauses and schedules are references to the relevant clause in or schedule to this
Agreement;
2.5
reference in any schedule to this Agreement to numbered paragraphs relate to the numbered paragraphs of
that schedule;
2.6
where any obligation is undertaken by two or more persons jointly they are to be jointly and severally liable
in respect of that obligation;
2.7
any obligation on any party not to do or omit to do anything is to include an obligation not to allow that thing
to be done or omitted to be done;
2.8
any party who agrees to do something will be deemed to fulfil that obligation if that party procures that it is
done;
2.9
the headings to the clauses, schedules and paragraphs of this Agreement will not affect the interpretation;

2.10

any sum payable by one party to the other will be exclusive of Value Added Tax which will where it is
chargeable be paid in addition to the sum in question at the time when the sum in question is due to be paid;
any reference to an Enactment includes the reference to that Enactment as amended or replaced from time to
time and to any subordinate legislation or byelaw made under that Enactment.

2.11

(signature (or common seal) of landlord: tenancy agreement)


(signature of tenant: counterpart)
[(signatures of witnesses)]25
[514]
1
2

3
4
5

7
8

As to stamp duty see Information Binder: Stamp Duties [1] (Lease or Tack) and (Duplicate or Counterpart). See also clause 10
[509] and note 20 below.
Note that for the purposes of the Agricultural Tenancies Act 1995 (1 Halsburys Statutes (4th Edn) AGRICULTURE) the tenancy
begins on the day on which, under the terms of the tenancy, the tenant is entitled to possession: see ibid s 38(4) and Paragraph 2
[3] ante.
The holding should be described accurately and by reference to a plan, with details set out in schedule 1 [510].
If using this precedent, the term should be for a fixed period of two years or less. It should not commence before the date on
which the agreement is completed, but may be expressed to start at a later date.
The permitted purpose is restricted in this agreement to grazing and mowing. If other or additional purposes are intended then
Form 5 [451] ante should be used. Unlike similar tenancies granted under the Agricultural Holdings Act 1986 (1 Halsburys
Statutes (4th Edn) AGRICULTURE), there is no problem with including buildings within this tenancy. It is important, however,
that any proposed or potential use of the buildings is consistent with the user covenant and is suitable for uses which will be
ancillary to the grazing of the stock. If the agreement contains a strictly drawn user covenant where the term is for two years or
less the draftsman might take the view that notices need not be exchanged under the Agricultural Tenancies Act 1995 s 1(4) on
the grounds, first that the user covenant, coupled with ibid s 1(8), ensures compliance with the agriculture condition and
secondly that in an agreement of this length there is less risk of consent or acquiescence to any breach, but the risk should be
made clear to a landlord: see Paragraph 158 [208] ante.
If there is no milk quota attaching to the holding, the description in the Particulars at [502], schedule 4 [511] and the definition in
schedule 5 paragraph 1.7 [513] should be deleted. As to milk quota generally see vol 2(2) (1998 Reissue) AGRICULTURE
Paragraph 17 [38] et seq .
A particular expert may be chosen in certain circumstances under the Agricultural Tenancies Act 1995 (see ibid ss 12(b), 28 and
29 and Paragraph 123 [144] ante), in which case the name and address of the chosen expert should be included.
Clause 2 [503] contains the operative terms. The rights granted to the tenant are to be set out in schedule 2 [510] and matters
excepted and reserved to the landlord are to be set out in schedule 3 [510]. A lease or tenancy agreement may be expressed to be
made with a full or limited title guarantee, if the landlord is willing to do so; as to the covenants for title implied by including
these words see the Law of Property (Miscellaneous Provisions) Act 1994 (37 Halsburys Statutes (4th Edn) REAL PROPERTY),
vol 25(1) (1995 Reissue) LAND REGISTRATION Paragraph 121 [2181] et seq and vol 35 (1997 Reissue) SALE OF LAND
Paragraph 474 [599]. If a title guarantee is to be given, the title should be fully investigated : see Paragraph 159 [209] ante.

[515]
9

10

11

12

If there are any buildings on the holding then consider including the simple agreement regarding their repair and maintenance set
out in clause 3.3.1 [504]. As to repairing covenants generally see vols 22(1) - (3) (1996-1997 Reissue) LANDLORD AND
TENANT (Business Tenancies).
Under the Agricultural Holdings Act 1986 (1 Halsburys Statutes (4th Edn) AGRICULTURE), the Agriculture (Maintenance,
Repair and Insurance of Fixed Equipment) Regulations 1973/1473 as amended (the so called model clauses) were deemed to
be incorporated into every tenancy of an agricultural holding except as specifically provided otherwise: see Paragraph 321
[2062] and Form 102 [3051] post. There is no comparable provision under the Agricultural Tenancies Act 1995.
Note that it is important to include the agreement set out in clause 3.4.1 [505] to ensure, so far as possible, continuing
compliance with the business conditions. Any use in contravention of this clause can be disregarded under the Agricultural
Tenancies Act 1995 s 1(8) when determining whether or not there has been compliance, unless there has been consent or
acquiescence on the part of the landlord to the breach: see Paragraph 13 [17] ante.
This clause has been very restrictively drawn to prohibit not merely assignment and underletting but also sharing possession and
occupation of the holding. This is to prevent a tenant entering into partnership with a third party, possibly on terms where the
tenant is merely a sleeping partner with little day to day control over the farming. See also Paragraph 152 note 4 [202] ante.
If the landlord intends to make a claim for beef special premium, suckler cow premium or sheep annual premium and if the
tenancy commences or is due to terminate between January and July in any year then he should consider restricting the right of
the tenant to claim the holding as his forage area in any relevant year.

[516]
13

14

Note that deletion of the agreement contained in clause 3.7 [506] or the giving of consent by the landlord to alterations or other
improvements could result in the tenant being entitled to compensation for improvements on termination of the tenancy: see
Paragraph 94 [105] ante. Inclusion of this clause, however, will not prevent the tenant from claiming such compensation in
respect of other matters outside the scope of this restriction. Neither will its inclusion prevent the tenant from applying to an
arbitrator under the Agricultural Tenancies Act 1995 s 19 for consent to an improvement: see Paragraph 95 [106] ante and note
14 below.
Under the Agricultural Tenancies Act 1995, it is not possible to add to or take away from the compensation provisions where the
Act provides for compensation concerning a particular matter. The Landlord and Tenant Act 1927 (23 Halsburys Statutes (4th
Edn) LANDLORD AND TENANT) contains provisions with a similar effect and practitioners negotiating commercial leases have
often included a provision requiring the tenant to reinstate all alterations, additions and improvements made to premises during

15

the term. This has been allowed by the courts, despite the fact that it in effect prevents the tenant from obtaining compensation
for improvements.
Note, however, that there is a risk that this clause could fall foul of the Agricultural Tenancies Act 1995 s 26(1), as an
attempt to avoid the compensation provisions of that Act and could therefore be held to be unenforceable.
Note also that this clause does not relate to all matters for which the tenant is entitled to compensation on termination of the
term under the Agricultural Tenancies Act 1995.
As to the law of forfeiture generally see vol 22(1) (1996 Reissue) LANDLORD AND TENANT (Business Tenancies). There is no
requirement for a notice period of at least one month for the clause to be valid as under the Agricultural Holdings Act 1986: see
Parry v Million Pigs Ltd (1980) 260 Estates Gazette 281.

[517]
16
17

18

19
20

21
22
23
24
25

As to the Insolvency Act 1986 (4 Halsburys Statutes (4th Edn) BANKRUPTCY AND INSOLVENCY) generally see vol 3(2) (1995
Reissue) BANKRUPTCY AND INDIVIDUAL VOLUNTARY ARRANGEMENTS .
As to milk quota generally see vol 2(2) (1998 Reissue) AGRICULTURE Paragraph 17 [38] et seq . Schedule 4 [511] includes
alternative provisions in the event either that the parties agree no milk quota will be transferred to the tenant on the grant of the
tenancy or that the quota attaching to the holding will be transferred to the tenant for the duration of the tenancy. These are only
suggested provisions and must be tailored to the circumstances. When acting for a tenant who holds his own quota, consider any
protection needed should that quota become attached to the holding and transferred to the landlord at the end of the tenancy.
Clause 7 [509] is intended to take advantage of the limited opportunity for the parties to agree to the appointment of their own
expert or arbitrator for resolution of disputes provided by the Agricultural Tenancies Act 1995 s 29(1)(a) (see Paragraph 123
[144] ante). Note however that either party has the ability to refer the matter back to an arbitrator appointed under ibid s 28 if he
so chooses.
See Paragraph 3 [6] ante.
A lease that is not preceded by an agreement must contain a certificate to that effect for stamp duty purposes: see the Finance Act
1994 s 240 (41 Halsburys Statutes (4th Edn) STAMP DUTIES). See further Information Binder: Stamp Duties [1] (Guide to
Stamp Duties).
For alternative clauses granting easements and other rights see vol 13(1) EASEMENTS AND PROFITS A PRENDRE Form 13 [5601]
et seq.
A suggested schedule of exceptions and reservations is set out in Form 4 [421] ante, but see also vol 13(1) EASEMENTS AND
PROFITS A PRENDRE Form 13 [5601] et seq.
As to milk quota see notes 6, 17 above.
The regulations current as at the date of the tenancy agreement should be specified. At the date of this volume they are the
Integrated Administration and Control System Regulations 1993/1317 as amended.
A lease for 3 years or less (including a periodic tenancy) taking effect in possession may be created by parol or by writing which
need not be executed as a deed: Law of Property Act 1925 ss 52(2)(d), 54(2) (37 Halsburys Statutes (4th Edn) REAL PROPERTY)
and the Law of Property (Miscellaneous Provisions) Act 1989 s 2(5)(a) (37 Halsburys Statutes (4th Edn) REAL PROPERTY). As
to the statutory requirements for valid execution of a deed see vol 12 (1994 Reissue) DEEDS, AGREEMENTS AND
DECLARATIONS.

[518][600]

C: AGREEMENTS THAT ARE NOT TO BE FARM BUSINESS TENANCIES


7
Grazing licence1

PARTICULARS
(a)

Date:
(insert date)

(b)

Licensor:
(name) [of (address) or whose registered office is at (address)]

(c)

Licensee:
(name) [of (address) or whose registered office is at (address)]

(d)

The Premises:
the land known as (describe the property) extending to approximately (number) hectares shown
[for identification purposes only] edged [red] on the attached plan and [more particularly] described
in schedule 12

(e)

Licence Period:
the period starting on (date) and expiring on (date)3

(f)

Licence Fee:
(insert amount) payable [by [2] equal instalments of (insert amount)] on (insert date or dates)

(g)

Rights:
The [right to keep [sheep4] on the Premises for grazing purpose only] [and the] [right to mow the
Premises [once or twice] during the Licence Period and to take away the grass]

[(h)

Maximum head of livestock:


(insert number)]

[601]
THIS LICENCE is made on the Date set out in the Particulars BETWEEN:
(1)
The Licensor named in the Particulars (the Licensor)
(2)
The Licensee named in the Particulars (the Licensee)
IT IS AGREED as follows:

Definitions and interpretation

In this Licence the words and phrases have the meanings set out in schedule 3.

The Rights

The Licensor grants the Licensee the Rights for the Licence Period in accordance with the terms of this Agreement.

Licence5

3.1

The Licensor permits the Licensee to enter onto the Premises to the extent necessary to exercise the Rights
and for no other purposes during the Licence Period on the terms set out in this Licence.
For the avoidance of doubt full occupation and possession of the Premises remains with the Licensor subject
only to the Rights granted by this Licence to the Licensee.

3.2
[602]

Licensees agreements6

The Licensee agrees with the Licensor:


4.1
To pay to the Licensor the Licence Fee.
4.2
To exercise the Rights in such manner as not to do or cause or permit to be done any act or thing on or near
the Premises which may be or become a nuisance or inconvenience or cause damage or annoyance to the
Licensor or to any third party sharing occupation of the Premises with the Licensee or which may infringe
any Legislation.
4.3
To use the Premises for the exercise of the Rights and for no other purpose whatsoever.
4.4
To indemnify and keep the Licensor indemnified from and against all actions, proceedings, costs, claims and
demands by third parties in respect of any damage or liability caused by or arising from the exercise by the
Licensee of the Rights.
4.5
To comply fully with Legislation so far as the same relates to the exercise of the Rights and the Licensees
use of the Premises and to keep the Licensor effectively indemnified against all actions, proceedings, costs,
expenses, claims and demands in respect of any matter contravening the provisions of such Legislation.
4.6
To comply with any other restrictions which the Licensor may reasonably dictate during the Licence Period.
4.7
To comply with the provisions affecting the Rights as set out in schedule 2.
4.8
On termination of this Agreement immediately to remove the Licensees stock from the Premises.
[603]

Termination

The Rights and this Licence will terminate immediately on the happening at any time of any of the following events:
5.1
The Licensee goes into liquidation (other than a members voluntary liquidation for the purposes of
reconstruction or amalgamation of a solvent company where the reconstructed or amalgamated company
assumes the obligations of the liquidated company).
5.2
An administration order is made against the Licensee.
5.3
A receiver or manager is appointed in respect of the Licensees affairs or the whole or any part of his property
or undertaking.
5.4
The Licensee (if an individual) dies or becomes incapable by reason of mental or physical illness of
discharging his obligations under this Agreement or becomes the subject of a bankruptcy petition or
bankruptcy order or (if a company of partnership or other body) ceases to exist.

5.5
5.6
5.7

The Licensee enters into any arrangement or composition with creditors (including for the avoidance of doubt
any voluntary arrangement within the meaning of the Insolvency Act 1986 Part I or Part VIII 7).
The interest of the Licensee under this Licence is taken in execution.
The Licensee commits any grave breach or persistent breaches of this Licence and the Licensor having given
written notice to the Licensee of such breach or breaches the Licensee fails within such period as the Licensor
may specify to rectify such breach or breaches (if capable of rectification).

Personal Licence

The Rights and this Licence are personal to the Licensee and will not be capable of being assigned or otherwise dealt
with.

Fitness of the Premises

By entering into this Licence the Licensor does not undertake that the Premises are or will become or remain fit for the
purposes set out in the Particulars.
AS WITNESS etc
[604]

SCHEDULE 1
The Premises
(give full details of the property under eg the headings set out below)
[Ordnance Survey or
National Grid] Number

Hectares Description

SCHEDULE 2
Provisions affecting the Rights8
The Licensee agrees:
1
Not to bring onto the Premises any diseased animal.
2
Not to bring onto the Premises more than the maximum number head of livestock as stipulated in the
Particulars at any one time.
3
Not to destroy or damage any trees, hedges or fences on the Premises and to ensure that no such damage is
caused by the Licensees stock.
4
Not to allow the Premises to become poached by treading during wet weather conditions and if the Licensor
certifies that any damage is being caused then upon demand immediately to remove the stock.
5
Not to bring, cause or permit to be done or brought any object, matter or thing upon the Premises by which
any policy of insurance of the Licensor would or might be prejudicially affected.
6
On termination of this Agreement immediately to remove the Licensees stock from the Premises.
[605]

SCHEDULE 3
Definitions and Interpretation
1

Definitions

1.1

Legislation means all European or UK Statutes or Statutory Instruments and any Orders, Regulations,
Directories and Codes of Practice for the time being in force issued by any competent Authority in respect of
the Premises and the use of it.

1.2

Licence Fee means the licence fee set out in the Particulars payable as set out in the Particulars.

1.3

Licence Period means the licence period set out in the Particulars.

1.4

Particulars means the particulars page set out at the beginning of this Agreement.

1.5

Premises means the land (including all buildings and fixed equipment on the land) set out in the Particulars,
as more fully described in schedule 1.

1.6

Rights means the rights granted as set out in the Particulars subject to the provisions of schedule 2.

Interpretation

In this Licence unless the context otherwise requires:


2.1
where any obligation is undertaken by two or more persons jointly they are to be jointly and severally liable
in respect of that obligation;
2.2
any sum payable by one party to the other will be exclusive of Value Added Tax which will where it is
chargeable be paid in addition to the sum in question at the time when the sum in question is due to be paid;
2.3
any reference to a Statute includes the reference to that Statute as amended or replaced from time to time and
to any subordinate legislation or byelaw made under that Statute.
(signatures of the licensor and the licensee)
[606]
1
2
3
4
5

6
7
8

No stamp duty see Information Binder: Stamp Duties [1] (Licence).


The premises should be fully described and a plan is desirable, with details set out in schedule 1 [605].
If a periodic licence is preferred this definition should be amended but the draftsman should note that the parties will then be
able to terminate the agreement on giving the appropriate period of notice applicable to licences under the common law.
The type of animals which will graze the premises should be included in the definition of the Rights. The appropriate options
set out in this paragraph of the Particulars should be selected and added to as necessary.
Clause 3 [602] makes it clear that the Licensees occupation is to be non-exclusive and it is important that this occurs in practice.
If, as a matter of fact, the Licensee is to enjoy exclusive use of the premises then he should be granted a tenancy rather than a
licence. For a form of grazing tenancy agreement see Form 6 [501] ante.
All obligations and matters affecting the Rights are set out in clause 4 [603] and schedule 2 [605].
As to the Insolvency Act 1986 (4 Halsburys Statutes (4th Edn) BANKRUPTCY AND INSOLVENCY) generally see vol 3(2) (1995
Reissue) BANKRUPTCY AND INDIVIDUAL VOLUNTARY ARRANGEMENTS .
See notes 4, 6 above.

[607][620]

8
Grazing tenancy for horses (non-business use)1

PARTICULARS
(a)

Date:
(insert date)

(b)

The Landlord:
(name) [of (address) or whose registered office is at (address)]

(c)

The Tenant:
(name) [of (address) or whose registered office is at (address)]

(d)

The Holding:
the land and buildings at (describe the property) extending to approximately (number) hectares
shown [for identification purposes only] edged [red] on the attached plan and [more particularly]
described in schedule 12

(e)

The Term:
[a term of (number) [months or years] starting on (date) or
a term starting on (date) and expiring on (date) or
a term from [month to month or quarter to quarter or year to year] starting on (date)]

[621]

(f)

Rent:
(insert amount) [for the Term or per calendar month or per annum]
payable [by [2] equal instalments] [in advance or in arrear] on (insert details of payment date or
dates) [in each year of the Term]

(g)

Permitted Purpose:
The right to graze for the Tenants own use and enjoyment no more than (number) of the Tenants
horses or ponies on the Holding [and to use the buildings on the Holding only for [stabling and for]
purposes ancillary to the exercise of such right] and to the exclusion of any business use3

[(h)

The Expert:
(name) of (address) and if the Expert shall die or be unwilling to act then such other expert as may
be appointed on the application of either party by the President of the Royal Institution of Chartered
Surveyors]

[622]
THIS AGREEMENT is made on the Date set out in the Particulars BETWEEN:
(1)
The Landlord named in the Particulars (the Landlord)
(2)
The Tenant named in the Particulars (the Tenant)
IT IS AGREED as follows:

Definitions and interpretations

In this Agreement words and phrases used have the meaning assigned to them in schedule 4.

Letting

The Landlord lets [with [full or limited] title guarantee4] the Holding to the Tenant at the Rent for the Term
[TOGETHER WITH the rights set out in schedule 2] SUBJECT TO existing rights and other matters affecting the
Holding during the Term [and EXCEPTING AND RESERVING to the Landlord the rights set out in schedule 3].
[623]

Tenants Agreements

The Tenant agrees with the Landlord:

3.1

Rent
To pay the Rent on the days and in the manner required by this Agreement.

3.2

Outgoings
To pay all rates, taxes and outgoings whatever relating to the Holding during the Term.

3.3

Maintenance
[3.3.1
3.3.2

3.3.3
3.3.4

To keep the buildings and fixed equipment on the Holding in their current state of repair and
condition [as evidenced by the attached [photographic] schedule of condition]5.]
To keep all fences, hedges and gates in proper stockproof condition so as to prevent his horses or
ponies from straying or being injured and to indemnify the Landlord against all costs, claims or
demands made by the owners or occupiers of any adjoining land or any other persons for damages
or other money arising from the escape from the Holding of all or any of the horses or ponies
placed upon the Holding by the Tenant.
Not to remove or alter any fence, hedge or other boundary on the Holding nor to destroy or damage
any trees, hedges or fences on the Holding and to ensure that no such damage is caused by the
Tenants horses or ponies.
To keep all ditches and drains clean and free from obstructions.

[624]

3.4

Use and management of the Holding


3.4.1
3.4.2
3.4.3
3.4.4
3.4.5
3.4.6
3.4.7
3.4.8

Not to use and farm the Holding or any part of it for the purposes of a trade or business.
Not at any time during the Term to use the Holding other than for the Permitted Purpose set out in
the Particulars.
Not to do or suffer to be done on the Holding anything which may be or become a nuisance or
annoyance to the Landlord or the owners or occupiers of any adjoining land and to indemnify the
Landlord against any claim caused by or arising from the Tenants occupation of the Holding.
Not to sell off or remove from the Holding any hay or straw and not to mow the permanent pasture.
To permit the Landlord to enter the Holding or any part on giving to the Tenant reasonable notice
(save in the event of an emergency).
To comply with any other restrictions which the Landlord may reasonably require.
Not to allow the Holding to become poached by treading and, if the Landlord gives the Tenant
written notice that any such damage is in the Landlords opinion being caused, immediately to
remove his horses or ponies from the Holding.
Not to bring cause or permit to be done or brought any object or matter or thing upon the Holding
by which any policy of insurance of the Landlord might be prejudiced.

3.5

Alienation
Not to assign, sublet, part with or share possession or occupation of the Holding or any part of it 6.

[625]

3.6

Alteration of buildings
Not to alter, remove or make additions to any building or other item of fixed equipment or erect any new
buildings or other item of fixed equipment or make any other improvements to the Holding.

3.7

Legislation
3.7.1
3.7.2
3.7.3

3.8

At all times immediately upon receipt of any notice, order, direction or other matter whatever
affecting or likely to affect the Holding to produce for the Landlords inspection and to permit the
Landlord to take a copy.
To comply immediately with and give sufficient effect to every notice, direction or other matter
whatever affecting or likely to affect the Holding served or made by any Authority.
Fully to comply with all Legal Obligations relating to the Holding and to keep the Landlord
effectively indemnified against all actions, proceedings, costs, expenses, claims and demands in
respect of any matter contravening any Legal Obligation.

Yield Up
On termination of this Agreement to yield up the Holding to the Landlord with vacant possession in a stqte of
repair and condition which is consistent with the proper performance of the Tenants agreements in this
Agreement.

[626]

Landlords agreements

The Landlord agrees with the Tenant that if the Tenant observes and performs the Tenants agreements and obligations
in this Agreement the Tenant may peaceably hold and enjoy the Holding during the Term without any lawful
interruption or disturbance from or by the Landlord or any person claiming through, under or in trust for the Landlord.

Mutual agreements

5.1

Forfeiture7

Without prejudice to any other rights of the Landlord if:


5.1.1
the whole or part of the Rent remains unpaid 21 days after becoming due (whether demanded or not); or
5.1.2
any of the Tenants agreements in this Agreement are not performed or observed; or
5.1.3
the Tenant:
5.1.3.1 proposes or enters into any composition or arrangement with his creditors generally or any class of
his creditors; or
5.1.3.2 is the subject of any judgment or order made against him which is not complied with within 7 days
or is the subject of any execution, distress, sequestration or other process levied upon or enforced
against any part of his undertaking, property, assets or revenue; or
[627]
5.1.3.3 being a company:
5.1.3.3.1 is the subject of a petition presented or an order made or a resolution passed or analogous
proceedings taken for appointing an administrator of or winding up such company; or
5.1.3.3.2 an incumbrancer takes possession or exercises or attempts to exercise any power of sale
or a receiver or administrative receiver is appointed of the whole or any part of the
undertaking, property, assets or revenues of such company; or
5.1.3.3.3 stops payment or agrees to declare a moratorium or becomes or is deemed to be insolvent
or unable to pay its debts within the meaning of the Insolvency Act 1986 Section 123; or
5.1.3.3.4 without the prior consent in writing of the Landlord ceases or threatens to cease to carry
on its business in the normal course; or
5.1.3.4 being an individual:
5.1.3.4.1 is the subject of a bankruptcy petition or bankruptcy order; or
5.1.3.4.2 is the subject of an application or order or appointment under the Insolvency Act 1986
Section 253 or Section 273 or Section 286; or
5.1.3.4.3 is unable to pay or has no reasonable prospect of being able to pay his debts within the
meaning of the Insolvency Act 1986 Sections 267 and 2688;
5.1.4
any event occurs or proceedings are taken with respect to the Tenant in any jurisdiction to which it is subject
which has an effect equivalent or similar to any of the events mentioned in clause 5.1.3;

then and in any of such cases the Landlord may at any time (and notwithstanding the waiver of any previous right of reentry) re-enter the Holding whereupon the tenancy granted by this Agreement will absolutely determine but without
prejudice to any right of action of the Landlord in respect of any previous breach by the Tenant of this Agreement.
[628]

5.2

Break clause

Either party to this Agreement will be entitled on the death of the other or (in the case of more than one landlord or
tenant) on the death of [any or the last] of them to terminate this Agreement by serving on the relevant deceased partys
personal representatives not less than [one months or six months or one years] prior written notice of his intention to
do so [such notice to expire at the end of a period of the tenancy].

5.3

Dispute resolution

5.3.1

In the event of any dispute arising under this Agreement between the parties the same will be determined by
the Expert named in the Particulars who is to act as independent expert and not as an arbitrator and who is to
be appointed on the written application of either party.
The appointment of the Expert is to specify that his decision will be made following representations in
writing by the parties and the costs of the Expert will be borne as directed by the Expert and his decision will
be final and binding on all parties.

5.3.2

5.4

Whole agreement

This Agreement contains the whole agreement between the Landlord and the Tenant concerning the Holding.

[6

Agreement for tenancy (stamp duty certificate)

It is certified that there is no prior agreement for tenancy to which this Agreement gives effect.]9
AS WITNESS etc
[629]

SCHEDULE 1
The Holding
(give full details of the property under eg the headings set out below)
[Ordnance Survey or
National Grid] Number

Hectares Description

SCHEDULE 2
Rights granted to the Tenant
[1

A right of way for the Tenant, his agents and authorised persons at all times with or without vehicles, plant,
machinery or animals over the track [shown for the purpose of identification only] coloured [brown] on the
attached plan.]
(insert any further rights required to be granted to tenant)10

SCHEDULE 3
Rights excepted and reserved to the Landlord
(insert details: see eg the rights set out in Form 4 [421] ante)11
[630]

SCHEDULE 4
Definitions and interpretation
1

Definitions

1.1

Authority means any statutory, public, local or other authority or any court of law or any government
department or any of their duly authorised officers.

1.2

Enactment means:
1.2.1
any Act of Parliament or
1.2.2
any European Community Legislation or decree having effect of law in the United Kingdom.

1.3

Holding means the land (including all buildings and fixed equipment on the land) set out in the Particulars
as more fully described in schedule 1.

1.4

Legal Obligation means any obligation from time to time created by any Enactment or Authority which
relates to the Holding or its use.

1.5

Particulars means the particulars page set out at the beginning of this Agreement.

1.6

Rent means the sums of rent set out in the Particulars payable by the instalments set out in the Particulars.

1.7
[631]

Term means the term of the tenancy set out in the Particulars 12.

Interpretation

In this Agreement unless the context otherwise requires:


2.1
words importing any gender include every gender;
2.2
words importing the singular number include the plural number and vice versa;
2.3
words importing persons include firms, companies and corporations and vice versa;
2.4
references to numbered clauses and schedules are references to the relevant clause in or schedule to this
Agreement;
2.5
reference in any schedule to this Agreement to numbered paragraphs relate to the numbered paragraphs of
that schedule;
2.6
where any obligation is undertaken by two or more persons jointly they are to be jointly and severally liable
in respect of that obligation;
2.7
any obligation on any party not to do or omit to do anything is to include an obligation not to allow that thing
to be done or omitted to be done;
2.8
any party who agrees to do something will be deemed to fulfil that obligation if that party procures that it is
done;
2.9
the headings to the clauses, schedules and paragraphs of this Agreement will not affect the interpretation;
2.10
any sum payable by one party to the other is to be exclusive of Value Added Tax which will where it is
chargeable be paid in addition to the sum in question at the time when the sum in question is due to be paid;
2.11
any reference to an Enactment includes the reference to that Enactment as amended or replaced from time to
time and to any subordinate legislation or bye-law made under that Enactment.
(signature (or common seal) of landlord: tenancy agreement)
(signature of tenant: counterpart)
[(signatures of witnesses)]13
[632]
1
2
3
4

6
7
8
9

10
11

As to stamp duty see Information Binder: Stamp Duties [1] (Lease or Tack) and (Duplicate or Counterpart). See also clause 6
[629] and note 9 below.
The holding should be described accurately and by reference to a plan, with details set out in schedule 1 [630].
If the land is not used for the purposes of a trade or business, the tenant will have no continuing rights of occupation at the end of
the term. The landlord must not acquiesce to any business use: see clause 3.4.1 [625] and Paragraph 157 [207] ante.
A lease or tenancy agreement may be expressed to be made with a full or limited title guarantee, if the landlord is willing to do
so; as to the covenants for title implied by including these words see the Law of Property (Miscellaneous Provisions) Act 1994
(37 Halsburys Statutes (4th Edn) REAL PROPERTY), vol 25(1) (1995 Reissue) LAND REGISTRATION Paragraph 121 [2181] et
seq and vol 35 (1997 Reissue) SALE OF LAND Paragraph 474 [599]. If a title guarantee is to be given, the title should be fully
investigated : see Paragraph 159 [209] ante.
If there are any buildings on the holding then consider including the simple agreement regarding their repair and maintenance set
out in clause 3.3.1 [624]. As to repairing covenants generally see vols 22(1) - (3) (1996-1997 Reissue) LANDLORD AND
TENANT. (Business Tenancies)
This clause has been very restrictively drawn to prohibit not merely assignment and underletting but also sharing possession and
occupation of the holding. See also Paragraph 152 note 4 [202] ante.
As to the law of forfeiture generally see vol 22(1) (1996 Reissue) LANDLORD AND TENANT (Business Tenancies).
As to the Insolvency Act 1986 (4 Halsburys Statutes (4th Edn) BANKRUPTCY AND INSOLVENCY) generally see vol 3(2) (1995
Reissue) BANKRUPTCY AND INDIVIDUAL VOLUNTARY ARRANGEMENTS .
A lease that is not preceded by an agreement must contain a certificate to that effect for stamp duty purposes: see the Finance Act
1994 s 240 (41 Halsburys Statutes (4th Edn) STAMP DUTIES). See further Information Binder: Stamp Duties [1] (Guide to
Stamp Duties).
For alternative clauses granting easements and other rights see vol 13(1) EASEMENTS AND PROFITS A PRENDRE Form 13 [5601]
et seq.
A suggested schedule of exceptions and reservations is set out in Form 4 [421] ante, but see also Form 9 schedule 3 [662] post
and vol 13(1) EASEMENTS AND PROFITS A PRENDRE Form 13 [5601] et seq.

12
13

See note 3 above.


A lease for 3 years or less (including a periodic tenancy) taking effect in possession may be created by parol or by writing which
need not be executed as a deed: Law of Property Act 1925 ss 52(2)(d), 54(2) (37 Halsburys Statutes (4th Edn) REAL PROPERTY)
and the Law of Property (Miscellaneous Provisions) Act 1989 s 2(5)(a) (37 Halsburys Statutes (4th Edn) REAL PROPERTY). As
to the statutory requirements for valid execution of a deed see vol 12 (1994 Reissue) DEEDS, AGREEMENTS AND
DECLARATIONS.

[633][650]

9
Agreement for letting1 of land and buildings for use as riding stables or an equestrian centre (where use is not
primarily agricultural)2
THIS AGREEMENT is made the day of BETWEEN:
(1) (name of landlord) [of (address) or whose registered office is at (address and company registration number)] (the
Landlord) and
(2) (name of tenant) [of (address) or whose registered office is at (address and company registration number)] (the
Tenant)
[651]
NOW IT IS AGREED as follows:

Definitions and interpretation

In this agreement unless the context otherwise requires:


1.1
the Property means [(description of property) or the property described in schedule 1] [and for the purposes
of identification only shown edged [red] on the attached plan];
1.2
the Term means the term of the tenancy granted by this agreement which [is (number) [months or years]
commencing on (date) or commences on (date) and expires on (date)];
1.3
the Legislation means [the Town and Country Planning Act 1990, the Wildlife and Countryside Act 1981
and the Environmental Protection Act 1990] and all other European or United Kingdom statutes or statutory
instruments and any orders, regulations, directives and codes of practice for the time being in force made by
any competent authority in respect of the Property and the use of it;
1.4
the 1954 Act means the Landlord and Tenant Act 1954;
1.5
words importing one gender are to be construed as importing any other gender;
1.6
words importing the singular are to be construed as importing the plural and vice versa;
1.7
words importing persons include firms companies and corporations and vice versa;
1.8
where any party comprises more than one person the obligations and liabilities of that party under this
agreement are to be joint and several obligations and liabilities of those persons;
1.9
save where otherwise stated references to numbered clauses and schedules are references to the clauses and
schedules in this agreement which are so numbered;
1.10
the clause headings do not form part of this agreement and are not to be taken into account in its construction
or interpretation;
1.11
references to statutory provisions are to be construed as references to those provisions as respectively
amended or re-enacted or as their application is modified by other provisions (whether before or after the
making of this agreement) from time to time, and are to include any provisions of which they are reenactments (whether with or without modifications).
[652]

Tenancy

The Landlord lets [with [full or limited] title guarantee3] and the Tenant takes the Property [TOGETHER WITH the
rights set out in schedule 2] SUBJECT to all existing rights and other matters affecting the Property [EXCEPTING
AND RESERVING to the Landlord the rights set out in schedule 3] TO HOLD to the Tenant for the Term paying as
follows:
2.1
rent of (amount) [for the Term or per annum] payable on [(date) or by equal instalments on (date) and
(date)]4;
2.2
insurance rent of the amounts that the Landlord pays for premiums for fire insurance and all other risks or
insurances contained or referred to in any policy effected by the Landlord from time to time in accordance
with this agreement to be payable by the Tenant to the Landlord within [one] month of the production to the
Tenant of the receipt for the premium.

The Tenants obligations

The Tenant agrees with the Landlord:

3.1

Rent
To pay the rent in accordance with clause 2 of this agreement.

3.2

Interest
That, if the Tenant should fail to pay the rent payable under clause 2 of this agreement or any other sum due
under this agreement [within [14] days of the date due] whether formally demanded or not, the Tenant will
pay to the Landlord interest on such rent or other sum from the date when it became due to the date on which
it is paid whether before or after any judgment at the rate of [4] % per year above the base lending rate of
(name of bank) from time to time in force.

[653]

3.3

Outgoings
To pay all rates5, taxes, assessments, duties, charges, impositions and outgoings [of an annual or other
periodically recurring nature]6 relating to the Property during the Term which are now (or during the Term
may be) charged, assessed or imposed upon the Property or upon the owner or occupier of them [excluding
any payable by the Landlord occasioned by receipt of rent under clause 2 of this agreement or by any
disposition of dealing with or ownership of any interest reversionary to the Term]7.

3.4

Repair and maintenance8


3.4.1

3.4.2
3.4.3

3.5

To keep the buildings on the Property in [good repair, order and condition or the state of repair,
order and condition in which they are at the date of this agreement as evidenced by the attached
schedule of condition agreed between the Landlord and Tenant] and to keep all ditches and drains
clean and free from obstructions and to keep all fences and hedges reasonably cut back and
stockproof.
To maintain the Property in a good and tenant-like manner and so as not to impoverish or
deteriorate the Property.
Not to break up, plough or otherwise convert any part of the Property presently under grass.

Alterations
Not to damage, alter, remove or make any additions to any existing buildings or to erect any buildings or
other structures on the Property without the Landlords prior written consent.

3.6

Alienation
Not to assign, underlet or part with or share possession or occupation of the Property or any part of the
Property9.

3.7

Excavations
Not to dig, take away or sell any stone, gravel, earth, sand, clay, turf or peat from the Property without the
previous consent in writing of the Landlord.

[654]

3.8

User10
3.8.1

[3.8.2
3.8.3
3.8.4

3.9

To use the Property for the purposes of [exercising horses stabled at (specify) or an equestrian
cross-country course or rearing and breeding horses for recreational purposes only and for keeping
horses in livery] which use is to constitute the use of the Property for the purposes of a business
within the meaning of the Landlord and Tenant Act 1954 Section 23.
To use the Property for the grazing of horses provided that such use is at all times to be wholly
subsidiary and ancillary to the main use of the Property detailed in clause 3.8.1 of this agreement.]
That any change in the use of the Property or any intensification of any use of the Property requires
the specific written authority of the Landlord.
Not to permit or suffer the erection of any noticeboards or advertisements or camping or the
parking of caravans on the Property.

The Legislation
3.9.1
3.9.2

At all times immediately upon receipt of any notice, order, direction or other matter whatever
affecting the Property to supply a copy to the Landlord.
To comply fully and immediately with every order, direction or notice duly made and served upon
him by a competent authority.

3.9.3

To comply fully with the Legislation and at all times to keep the Landlord effectively indemnified
against all actions, proceedings, costs, expenses, claims and demands in respect of any matter
contravening the provisions of the Legislation.

[655]

3.10

Reimbursement
To reimburse the Landlord on demand all fees, charges, damages, costs and expenses incurred or suffered by
the Landlord arising out of or in connection with the Property and in particular out of or in connection with or
incidental to:
3.10.1
any breach of any of the covenants, terms or conditions on the part of the Tenant under this
agreement and any steps taken in contemplation of or in connection with the preparation and/or
service of a notice under the Law of Property Act 1925 Sections 146 and/or 147 (as amended)
requiring the Tenant to remedy any of the covenants, terms and conditions in this agreement,
notwithstanding forfeiture for such breach may be avoided otherwise than by relief granted by the
court; and
3.10.2
any steps taken in contemplation of or in connection with the preparation and/or service of a
schedule of dilapidations during or after the end or sooner determination of the Term.

3.11

Landlords regulations
To conform to such reasonable general written regulations and arrangements as may be made from time to
time by the Landlord at his absolute discretion in respect of the Property.

3.12

Liability for damage


To indemnify the Landlord from and against all liability in respect of any damage to persons or to any
property real or personal, moveable or immovable, or any loss, damage or costs arising directly or indirectly
out of the occupation or use of the Property by the Tenant.

3.13

Yield up
On determination of the tenancy peaceably and quietly to deliver up the Property to the Landlord with vacant
possession in the order and condition which is consistent with the proper performance of the Tenants
covenants in this agreement.

[656]

Landlords agreements

The Landlord agrees with the Tenant:

4.1

Insurance
To insure the buildings on the Property to their full reinstatement value against loss or damage by fire,
lightning, explosion, aircraft (other than hostile aircraft) and other aerial devices or articles dropped from
them, earthquake, riot and civil commotion and malicious damage, storm or tempest, bursting or overflowing
of water tanks, apparatus or pipes, flood and impact by road vehicles and to execute all works of repair or
replacement to the same necessary to make good such loss or damage PROVIDED that such loss or damage
shall not have been due to the wilful negligence or default of the Tenant.

4.2

Quiet enjoyment
To permit the Tenant peaceably and quietly to hold and enjoy the Property during the Term without
interruption or disturbance from or by the Landlord or any person claiming through, under or in trust for the
Landlord [or by title paramount]11.

[657]

Mutual agreements

5.1

Forfeiture12

If and whenever during the Tenancy:


5.1.1
the whole or part of the rent payable under clause 2 of this agreement remains unpaid [14] days after
becoming due whether formally demanded or not; or
5.1.2
any of the Tenants agreements or covenants in this agreement are not performed or observed; or
5.1.3
the Tenant proposes or enters into any composition or arrangement with his creditors; or
5.1.4
the Tenant is the subject of any judgment or order made against him which is not complied with within 7 days
or is the subject of any execution, distress, sequestration or other process levied upon or enforced against any
part of his undertaking, property, assets or revenue; or
5.1.5
the Tenant being a company:

5.1.5.1
5.1.5.2
5.1.5.3
5.1.5.4

is the subject of a petition presented or an order made or a resolution passed or analogous


proceedings taken for appointing an administrator of, or winding up, such a company; or
an incumbrancer takes possession or exercises or attempts to exercise any power of sale or a
receiver is appointed of the whole or any part of the undertaking, property, assets or revenues of
such a company; or
stops payment or agrees to declare a moratorium or becomes or is deemed to be insolvent or unable
to pay its debts within the meaning of the Insolvency Act 1986 Section 123; or
without the prior consent in writing of the Landlord ceases or threatens to cease to carry on its
business in the normal course; or

[658]
5.1.6

the Tenant being an individual:


5.1.6.1 is the subject of a bankruptcy petition or bankruptcy order; or
5.1.6.2 is the subject of an application or order or appointment under the Insolvency Act 1986 Sections 253
or 273 or 286; or
5.1.6.3 is unable to pay or has no reasonable prospect of being able to pay his debts within the meaning of
the Insolvency Act 1986 Sections 267 or 26813; or
5.1.7
any event occurs or proceedings are taken with respect to the Tenant in any jurisdiction to which the Tenant is
subject which has an effect equivalent or similar to any of the events mentioned in clauses 5.1.3 to 5.1.6 of
this agreement;
then it will be lawful for the Landlord or any person authorised by him to enter on the Property or any part of it in the
name of the whole (and even if any previous right of re-entry has been waived) and then the tenancy created by this
agreement will absolutely determine but without prejudice to any claims of the Landlord or Tenant under this
agreement (including the breach in respect of which the re-entry is made).
[659]

5.2

Liability

The Landlord will not be under any liability in respect of any injury, damage, nuisance, annoyance or inconvenience
which may be caused in any way to the Property or to the Tenant his servants, agents, invitees, licensees or visitors
whilst in or about the Property or any adjoining land owned by Landlord.

5.3

Use

Nothing in this agreement is to imply or warrant that the Property may be used for the purpose authorised by this
agreement either under the town and country planning legislation or under any byelaws and regulations now or from
time to time in force.

5.4

Notices

The provisions of the Law of Property Act 1925 Section 196 as amended by the Recorded Delivery Service Act 1962
are to apply to any notice under this agreement.

5.5

Business tenancy14

5.5.1
5.5.2

This agreement is to take effect as a business tenancy to which the 1954 Act applies.
Sections 24 to 28 (inclusive) of the 1954 Act will not apply in relation to the tenancy granted by this
agreement.
The agreement contained in clause 5.5.2 of this agreement has been authorised by an order dated (date) and
made under Section 38(4) of the 1954 Act (as added by the Law of Property Act 1969 Section 5) by the
(name) county court on the joint application of the Landlord and Tenant 15.

5.5.3
[660]

Costs

The costs of and incidental to this agreement and the costs of the application to the court referred to in clause 5.5.3 of
this agreement are to be borne by the [Tenant or the Landlord and Tenant in equal shares].

Value added tax

The Tenant will pay and indemnify the Landlord against VAT (or any tax of a similar nature that may be substituted for
it or levied in addition to it) chargeable in respect of the rent payable under clause 2 of this agreement or any other
payment made by the Tenant under any of the terms of or in connection with this agreement, or in respect of any
payment made by the Landlord where the Tenant agrees in this agreement to reimburse the Landlord for such
payment16.

[8

Agreement for tenancy (stamp duty certificate)

It is certified that there is no prior agreement for tenancy to which this agreement gives effect.]17

[AS or IN] WITNESS etc


[661]

[SCHEDULE 1
Property
(describe the property)]
[SCHEDULE 2
Rights18
A right of way for the Tenant, his agents and authorised visitors with or without vehicles, animals, plant or machinery
over the track shown for the purpose of identification only coloured [green] on the attached plan.]

[SCHEDULE 3
Exceptions and Reservations19
1

All timber and other trees (except fruit trees) pollards, saplings and underwood with power for the Landlord
his agents, workmen and others to mark, fell, cut and remove the same and replant them at times reasonably
convenient to the Tenant doing as little damage as possible [and paying to the Tenant reasonable
compensation for any damage suffered by him in consequence of the exercise of such right].

All springs, wells, ponds, streams and watercourses with all fish, with power for the Landlord and all persons
authorised by him to take and carry away water by means of pipes or otherwise, subject to sufficient water
being left for the Tenant for the purposes permitted by this agreement.

All game (including nests and eggs), fish and (subject to the provisions of the Ground Game Act 1880 and the
Ground Game (Amendment) Act 1906) all wildfowl, hares and rabbits with the exclusive right, subject as
mentioned in this paragraph, for the Landlord and all persons authorised by him to preserve the same and to
hunt, course, shoot, sport and fish on the Property.

[662]
4

All rights of way (if any) used or enjoyed across any part of the Property whether by the Landlord or his
tenants in respect of other property of the Landlord or otherwise.

The benefit of all wayleave contracts entered into by the Landlord and existing at the date of this agreement
and all rents and other money payable under this agreement and the power to carry out on the Property at the
Landlords cost anything required to be done by the Landlord under this agreement.

The right for the Landlord and all persons authorised by him with all necessary machinery, equipment,
vehicles and horses to enter upon the Property for the purposes of exercising any of the rights excepted and
reserved by this schedule and for the purposes of inspecting the state, user and condition of the Property or
any neighbouring land of the Landlord, or obtaining access to such neighbouring land for any other purpose,
and the making of any other improvement on the Property or upon such neighbouring land PROVIDED that
the Landlord makes reasonable compensation to the Tenant for any damage in consequence of the exercise of
such right.]

(signature (or common seal) of landlord: tenancy agreement)


(signature of tenant: counterpart)
[(signatures of witnesses)]20
[663]
1
2

As to stamp duty see Information Binder: Stamp Duties [1] (Lease or Tack) and (Duplicate or Counterpart). See also clause 8
[661] and note 17 below.
This agreement is provided for use where land (perhaps including buildings) is to be let for use as or in conjunction with a riding
school, equestrian centre or stud farm business and which attracts no security of tenure beyond the term granted. In such
circumstances it is submitted that the tenancy created will normally fall under the provisions of the Landlord and Tenant Act
1954 Pt II (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT ) and not under the provisions of the Agricultural
Tenancies Act 1995 (1 Halsburys Statutes (4th Edn) AGRICULTURE) (the predominant use being for a business other than
agriculture within the meaning of the Agricultural Tenancies Act 1995). This Form is therefore drafted on the premise that the
parties agree that the Landlord and Tenant Act 1954 Pt II applies to it (see Wolfe v Hogan [1949] 2 KB 194, [1949] 1 All ER 570,
CA) and that an application to the court will be made pursuant to the Landlord and Tenant Act 1954 s 38(4) for an order that the
operation of ibid ss 2428 is to be excluded. Note, however, there are circumstances in which the predominant use of the

premises may be for agriculture within the meaning of the Agricultural Tenancies Act 1995 for example where the main or only
use of the land is for grazing (see Rutherford v Maurer [1962] 1 QB 16, [1961] 2 All ER 775, CA). Where that is the case the
provisions of the Agricultural Tenancies Act 1995 will apply and an agreement drafted to comply with that Act must be used
instead. See eg Forms 3 [351], 5 [451] ante. The terms of this agreement are not exhaustive and consideration should be given to
whether the value and extent of the land and buildings is such that a more detailed agreement would be appropriate. As to
business tenancies generally see vols 22(1) - (3) (1996-1997 Reissue) LANDLORD AND TENANT (Business Tenancies) .

[664]
3

5
6
7
8

A lease or tenancy agreement may be expressed to be made with a full or limited title guarantee, if the landlord is willing to do
so; as to the covenants for title implied by including these words see the Law of Property (Miscellaneous Provisions) Act 1994
(37 Halsburys Statutes (4th Edn) REAL PROPERTY), vol 25(1) (1995 Reissue) LAND REGISTRATION Paragraph 121 [2181] et
seq and vol 35 (1997 Reissue) SALE OF LAND Paragraph 474 [599]. If a title guarantee is to be given, the title should be fully
investigated : see Paragraph 159 [209] ante.
No rent review mechanism is provided for within the agreement and an express rent review mechanism will be necessary if the
parties intend the rent to be reviewed. For an example of such a mechanism see vol 22(3) (1997 Reissue) LANDLORD AND
TENANT (Business Tenancies) Forms 180 [7611] - 194 [6987].
Note that the use of land and buildings for a business other than agriculture will give rise to liability to business rates. As to nondomestic rating generally see vol 32 RATING AND SIMILAR CHARGES Paragraph 1 [801] et seq.
The tenant under a short-term tenancy should not be liable for capital levies or the like.
The wording in square brackets should be included by the tenant to make it clear that the tenant is not paying the landlords
taxes.
A short form repairing provision only is provided in this Form which is appropriate where limited land and buildings are to be
included within the agreement. Where significant buildings are to be included within the demise the draftsman should consider
whether a more comprehensive provision would be more appropriate. Some elements of the provision are reminiscent of an
agricultural tenancy. This is unavoidable where pasture, hedges and/or fences are to be included and it is submitted this does not
affect the status of the agreement as one falling under the Landlord and Tenant Act 1954.
Since this clause prohibiting alienation is absolute there is no implication of an obligation on the part of the landlord not
unreasonably to withhold consent pursuant to the Landlord and Tenant Act 1927 s 19 (as amended by the Agricultural Holdings
Act 1986, the Agricultural Tenancies Act 1995 and the Landlord and Tenant (Covenants) Act 1995) (23 Halsburys Statutes (4th
Edn) LANDLORD AND TENANT); and the Landlord and Tenant Act 1988 (23 Halsburys Statutes (4th Edn) LANDLORD AND
TENANT) will have no application. As to the provisions of the Landlord and Tenant (Covenants) Act 1995 (23 Halsburys
Statutes (4th Edn) LANDLORD AND TENANT) in relation to the assignment of leases see vols 22(1) - (3) (1996-1997 Reissue)
LANDLORD AND TENANT (Business Tenancies).

[665]
10
11
12
13
14
15
16
17

18
19
20

This clause expressly acknowledges that the tenants intended use is to be for business purposes falling within the Landlord and
Tenant Act 1954 s 23; see note 2 above.
As to the wording of this covenant see vol 24 LANDLORD AND TENANT Form 53 notes 26, 27 [1510] ante.
As to forfeiture generally see vol 22(1) (1996 Reissue) LANDLORD AND TENANT (Business Tenancies)
As to the Insolvency Act 1986 (4 Halsburys Statutes (4th Edn) BANKRUPTCY AND INSOLVENCY) generally see vol 3(2) (1995
Reissue) BANKRUPTCY AND INDIVIDUAL VOLUNTARY ARRANGEMENTS .
See note 2 above.
As to the application to the court and subsequent order see vols 22(1) - (3) (1996-1997 Reissue) LANDLORD AND TENANT
(Business Tenancies).
As to VAT and rent see further Information Binder: Property [1] (VAT and Property).
A lease that is not preceded by an agreement must contain a certificate to that effect for stamp duty purposes: see the Finance Act
1994 s 240 (41 Halsburys Statutes (4th Edn) STAMP DUTIES). See further Information Binder: Stamp Duties [1] (Guide to
Stamp Duties).
For alternative clauses granting easements and other rights see vol 13(1) EASEMENTS AND PROFITS A PRENDRE Form 13 [5601]
et seq.
An alternative schedule of exceptions and reservations is set out in Form 4 [421] ante, but see also vol 13(1) EASEMENTS AND
PROFITS A PRENDRE Form 13 [5601] et seq.
A lease for 3 years or less (including a periodic tenancy) taking effect in possession may be created by parol or by writing which
need not be executed as a deed: Law of Property Act 1925 ss 52(2)(d), 54(2) (37 Halsburys Statutes (4th Edn) REAL PROPERTY)
and the Law of Property (Miscellaneous Provisions) Act 1989 s 2(5)(a) (37 Halsburys Statutes (4th Edn) REAL PROPERTY). As
to the statutory requirements for valid execution of a deed see vol 12 (1994 Reissue) DEEDS, AGREEMENTS AND
DECLARATIONS.

[666][700]

D: THE NOTICE CONDITIONS


10
Notice to landlord or tenant of farm business tenancy1

AGRICULTURAL TENANCIES ACT 1995


NOTICE PURSUANT TO SECTION 1(4)

To:

(name of tenant or landlord) of (address)

Re:

The Holding known as (identify the holding)2

I, (name of landlord or tenant) of (address), GIVE YOU NOTICE pursuant to the Agricultural Tenancies Act 1995
Section 1(4) that I intend that the tenancy of the Holding referred to above which we are proposing to enter into is to be
and remain a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 and that the character of
the tenancy will at its beginning be primarily or wholly agricultural.
(signature of landlord or tenant)
Dated:
1
2

(insert date)

As to the notice conditions under the Agricultural Tenancies Act 1995 s 1(4) (1 Halsburys Statutes (4th Edn) AGRICULTURE)
and Paragraph 17 [22] et seq ante.
The land to be comprised in the tenancy must be identified by name or otherwise: see ibid s 1(4)(a)(i). It is advisable to use the
same description and/or plan as will be used for the tenancy agreement.

[701]

E: RENT REVIEW
11
Farm business tenancystatutory rent review notice1

AGRICULTURAL TENANCIES ACT 1995


NOTICE PURSUANT TO SECTION 10
To:

(name of tenant or landlord) of (address)

Re:

The Holding known as (identify the holding)

I, (name of landlord or tenant) of (address), GIVE YOU NOTICE pursuant to the Agricultural Tenancies Act 1995
Section 10 that I require the rent payable in respect of the Holding referred to above, as from the first date (after the end
of 12 months from the date of service on you of this notice) on which the rent could be reviewed under the Agricultural
Tenancies Act 1995 Section 102, to be referred to arbitration in accordance with that Act.
(signature of landlord or tenant)
Dated:
1
2

(insert date)

As to rent review options in relation to farm business tenancies see Paragraph 51 [61] ante; and as to the statutory rent review
procedure see Paragraph 53 [63] et seq ante.
As to the review date which must be specified in the statutory review notice see Paragraph 56 [66] ante.

[702]

12
Farm business tenancyagreement as to rent1

AGRICULTURAL TENANCIES ACT 1995


Re:

The Holding known as (identify the holding)

WE, (name of landlord) of (address) and (name of tenant) of (address) the Landlord and Tenant of the Holding referred
to above, agree that with effect from (insert date) the rent payable in respect of the Holding pursuant to the terms of the
Agreement between us dated (insert date) will be (insert amount) per year.
(signatures of landlord and tenant)
Dated:
1

(insert date)

As to rent review options in relation to farm business tenancies see Paragraph 51 [61] ante; and as to the statutory rent review
procedure see Paragraph 53 [63] et seq ante. As to the effect on future review dates of a written agreement as to the amount of
rent see Paragraph 56.4.4 [66] ante.

[703][710]

F: TERMINATION OF FARM BUSINESS TENANCIES

13
Notice to terminate fixed term farm business tenancy of more than two years 1

AGRICULTURAL TENANCIES ACT 1995


NOTICE PURSUANT TO SECTION 5
To:

(name of tenant or landlord) of (address)

Re:

The Holding known as (identify the holding)

I, (name of landlord or tenant) of (address), as [Landlord or Tenant] GIVE YOU NOTICE to terminate the tenancy of
the Holding referred to above pursuant to the Agricultural Tenancies Act 1995 Section 5 on the expiry of the term
granted by a [Lease or Tenancy Agreement] dated the (insert date) and made between (insert details of parties) or on
the first date on which the tenancy can lawfully be terminated, being at least 12 months but less than 24 months after
service of this notice.
(signature of landlord or tenant)
Dated:
1

(insert date)

As to termination of a fixed term farm business tenancy of more than two years see the Agricultural Tenancies Act 1995 s 5 (1
Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraphs 72 [82], 77 [88] et seq ante. A fixed term tenancy of two years or
less requires no notice to bring it to an endit will simply expire by effluxion of time: see Paragraph 73 [83] ante. As to break
clauses see Paragraph 76 [86] ante and Form 14 [712] post.

[711]

14
Notice to terminate a farm business tenancy for a term of more than two years in exercise of a provision
contained in the lease or tenancy agreement1

AGRICULTURAL TENANCIES ACT 1995


NOTICE PURSUANT TO SECTION 7
To:

(name of tenant or landlord) of (address)

Re:

The Holding known as (identify the holding)

I, (name of landlord or tenant) of (address), as [Landlord or Tenant] GIVE YOU NOTICE pursuant to clause (number)
of a [Lease or Tenancy Agreement] of the Holding referred to above dated the (insert date) and made between (insert
details of parties) to terminate the tenancy on (insert date) or (if later) on the first date on which the tenancy can be
terminated pursuant to the said clause, being at least 12 months but less than 24 months after service of this notice.
(signature of landlord or tenant)
Dated:
1

(insert date)

As to termination of a farm business tenancy of more than two years in pursuance of a provision of the tenancy giving the tenant
an option to terminate, see the Agricultural Tenancies Act 1995 s 7 (1 Halsburys Statutes (4th Edn) AGRICULTURE) and
Paragraphs 76 [86], 77 [88] et seq ante.

[712]

15
Landlords notice to terminate periodic farm business tenancy1

AGRICULTURAL TENANCIES ACT 1995


To:

(name of tenant) of (address)

Re:

The Holding known as (identify the holding)

I, (name of landlord) of (address), GIVE YOU NOTICE TO QUIT and deliver up to me possession of the Holding
referred to above which you hold of me as tenant on (insert date of expiry of current period of tenancy) or at the expiry
of [12 months] from the end of the now current [year] of the tenancy.
(signature of landlord)
Dated:

(insert date)

Annual periodic tenancies require at least 12, but less than 24, months written notice which must take effect at the end of a year
of the tenancy: see the Agricultural Tenancies Act 1995 s 6 (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraphs 74
[84], 77 [88] et seq ante. Other periodic tenancies are governed by the common law: see Paragraph 75 [85] ante.

[713]

16
Tenants notice to terminate periodic farm business tenancy1

AGRICULTURAL TENANCIES ACT 1995


To:

(name of landlord) of (address)

Re:

The Holding known as (identify the holding)

I, (name of tenant) of (address), GIVE YOU NOTICE that I shall quit and deliver up to you possession of the Holding
referred to above which I hold of you as tenant on (insert date of expiry of current period of tenancy) or at the expiry of
[12 months] from the end of the now current [year] of the tenancy.
(signature of tenant)
Dated:
1

(insert date)

Annual periodic tenancies require at least 12, but less than 24, months written notice which must take effect at the end of a year
of the tenancy: see the Agricultural Tenancies Act 1995 s 6 (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraphs 74
[84], 77 [88] et seq ante. Other periodic tenancies are governed by the common law: see Paragraph 75 [85] ante.

[714][720]

G: IMPROVEMENTS
17
Farm business tenancytenants request for consent to improvements1
AGRICULTURAL TENANCIES ACT 1995
To:

(name of landlord) of (address)

Re:

The Holding known as (identify the holding)

I, (name of tenant) of (address), Tenant of the Holding referred to above request your written consent to the provision
by me of the improvement[s] specified in the schedule below.

SCHEDULE
(insert full details of proposed improvements)
(signature of tenant)
Dated:
1

(insert date)

The landlords consent to improvements is a mandatory pre-requisite for compensation for physical or intangible improvements:
see the Agricultural Tenancies Act 1995 s 17 (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 94 [105] ante. As
to routine improvements see Paragraphs 93 [104], 98 [110] ante.

[721]

18
Farm business tenancylandlords consent to tenants improvements (other than planning permission) 1

AGRICULTURAL TENANCIES ACT 1995


To:

(name of tenant) of (address)

Re:

The Holding known as (identify the holding)

I, (name of landlord) of (address) Landlord of the Holding referred to above, consent to the provision by you of the
improvement[s] specified in schedule 1 below on condition2 that you agree to the terms specified in schedule 2 below
related to [that improvement or those improvements] such terms to be incorporated in a memorandum to be annexed to
both parts of the [Lease or Tenancy Agreement] pursuant to which you occupy the Holding prior to the commencement
of such improvement.

SCHEDULE 1
(insert full details of proposed improvements)
SCHEDULE 2
(set out terms as to eg location, materials, user etc)
(signature of landlord)
Dated:
1
2

(insert date)

As to tenants improvements see Paragraph 91 [101] et seq ante. For consent in relation to an application for planning permission
see Form 19 [723] post.
A landlords consent may be unconditional or on condition that the tenant agrees to a specified variation in the terms of the
tenancy, such variation being related to the improvements in question: see the Agricultural Tenancies Act 1995 s 17 (1
Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 94 [105] ante.

[722]

19
Farm business tenancylandlords consent allowing tenant to make an application for planning permission 1

AGRICULTURAL TENANCIES ACT 1995


To:

(name of tenant) of (address)

Re:

The Holding known as (identify the holding)

I, (name of landlord) of (address) Landlord of the Holding referred to above, consent to the making by you of the
application for planning permission specified in schedule 1 below for the purpose of enabling [a physical improvement
on the Holding by you by your own effort or wholly or partly at your expense or you lawfully to effect a change of
use2] comprising (insert details) on condition that you agree to the terms specified in schedule 2 below related to that
[physical improvement or change of use] such terms to be incorporated in a memorandum to be annexed to both parts
of the [Lease or Tenancy Agreement] pursuant to which you occupy the Holding prior to your making the said
application.

SCHEDULE 1
(insert details of planning application and of any other relevant documentation)
SCHEDULE 2
(set out any terms to be included)
(signature of landlord)
Dated:
1
2

(insert date)

As to a landlords consent to making an application for planning permission see the Agricultural Tenancies Act 1995 s 18 (1
Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 97 [108] ante.
See ibid ss 15(a), 18(1)(b).

[723]

20
Farm business tenancytenants notice demanding that question of consent to improvements be referred to
arbitration1

AGRICULTURAL TENANCIES ACT 1995


NOTICE PURSUANT TO SECTION 19
To:

(name of landlord) of (address)

Re:

The Holding known as (identify the holding)

I, (name of tenant) of (address), GIVE YOU NOTICE that I am aggrieved by


[your refusal to give written consent2 to my proposed improvement to the Holding comprising (insert details) or
your failure to give written consent to my proposed improvement to the Holding comprising (insert details) within two
months of my written request3 or

your requiring that as a condition of your giving written consent to my proposed improvement to the Holding
comprising (insert details) I agree to the variation4 in the terms of the tenancy related to that improvement set out in
your approval (identify variations required by landlord)]
AND I DEMAND that the question be referred to arbitration under the Agricultural Tenancies Act 1995 Section 19.
(signature of tenant)
Dated:
1

2
3
4

(insert date)

As to the procedure for making a reference to arbitration under the Agricultural Tenancies Act 1995 s 19 (1 Halsburys Statutes
(4th Edn) AGRICULTURE) on a landlords refusal to give consent to a tenants proposed improvements see Paragraph 95 [106]
ante. Note in particular the time limits under ibid s 19(3) for giving such a notice (see notes 24 below).
See ibid s 19(1)(a), (3)(a) (time limit of two months from service of landlords notice of refusal).
See ibid s 19(1)(b), (3)(b) (time limit of four months from service of tenants written request).
See ibid s 19(1)(c), (3)(a) (time limit of two months from service of landlords notice of variation).

[724]

21
Farm business tenancytenants notice of intention to claim compensation for improvements 1

AGRICULTURAL TENANCIES ACT 1995


NOTICE PURSUANT TO SECTIONS 16 AND 22
To:

(name of landlord) of (address)

Re:

The Holding known as (identify the holding)

I, (name of tenant) of (address), GIVE YOU NOTICE that I intend to claim compensation under the Agricultural
Tenancies Act 1995 Section 16 in respect of the improvements for which [you gave consent in writing or approval was
given by (insert name of arbitrator) as arbitrator] on (insert date). Details of the improvements and the nature of the
claim are set out in the schedule below.

SCHEDULE
(insert full details of the improvements and the nature of the claim)
(signature of tenant)
Dated:
1

(insert date)

A claim for compensation under the Agricultural Tenancies Act 1995 s 16 (1 Halsburys Statutes (4th Edn) AGRICULTURE) for
tenants improvements is not enforceable unless the tenant gives a written notice of his intention to make the claim, and of the
nature of the claim, to his landlord before the end of the period of two months beginning with the date of termination of the
tenancy: see ibid s 22(2). As to the procedure for making a reference to arbitration under ibid s 22 see Paragraph 101 [115] ante.
Note that the time limit for making an application to appoint an arbitrator is four months beginning with the date of termination
of the tenancy: ibid s 22(3).

[725][740]

H: MISCELLANEOUS
22
Notice to tenant of change of landlord1

AGRICULTURAL TENANCIES ACT 1995


NOTICE PURSUANT TO SECTION 36(7)
To:

(name of tenant) of (address)

Re:

The Holding known as (identify the holding)

I, (name of original or new landlord) of (address), GIVE YOU NOTICE pursuant to the Agricultural Tenancies Act
1995 Section 36(7) that with effect from (date) the Landlord of the Holding described above who is entitled to receive
the rent from the Holding will be (name of new landlord) of (address).
(signature of original or new landlord)

Dated:
1

(insert date)

Until a tenant under a farm business tenancy has received:


(a)
notice that the original landlord has ceased to be entitled to receive the rent and profits of the holding, and
(b)
notice of the name and address of the person who has become entitled to receive the rent and profits,
he may continue to give notices or other documents to the original landlord and they will be deemed to have been given to the
landlord under the tenancy: see the Agricultural Tenancies Act 1995 s 36(7) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[741]

23
Notice of intention to apply for the appointment of an arbitrator in relation to a dispute (other than a dispute
governed by particular statutory provisions as to rent, improvements or compensation) 1

AGRICULTURAL TENANCIES ACT 1995


NOTICE PURSUANT TO SECTION 28(2)
To:

(name of tenant or landlord) of (address)

Re:

The Holding known as (identify the holding)

I, (name of landlord or tenant) of (address), GIVE YOU NOTICE that, unless before the end of the period of 2 months
beginning with the day on which this notice is given to you we have appointed an arbitrator by agreement 2, I propose to
apply to the President of the Royal Institution of Chartered Surveyors for the appointment of an arbitrator by him in
respect of the dispute specified below.

NATURE OF THE DISPUTE


(specify the dispute and give details)3
(signature of or on behalf of landlord or tenant)
Dated:
1
2
3

(insert date)

See the Agricultural Tenancies Act 1995 s 28(2), (5) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 122 [142]
ante.
See ibid s 28(2) and Form 24 [743] post.
The dispute must be specified: see ibid s 28(2).

[742]

24
Agreement to appoint an arbitrator to determine claims, questions or differences between landlord and tenant in
relation to rent1, improvements2, compensation3 or other disputes4

AGRICULTURAL TENANCIES ACT 1995


Re:

The Holding described in the Particulars set out in Part II of this agreement

PART I
1

The Landlord and the Tenant (named in the Particulars set out in Part II below) having failed to resolve the
claims, questions or differences set out in Part II below, agree to the appointment of an arbitrator to determine
such issues in dispute.

(name) of (name and address of firm) has agreed to act as arbitrator [by a letter dated (date)].

IT IS AGREED that (name of agreed arbitrator) will be appointed as at the date of this agreement to act as
arbitrator in respect of the issues set out in Part II below.

(signatures of or on behalf of landlord and tenant)


Dated:
[743]

(insert date)

PART II
Particulars
Details

1
Name and address of the Holding
Holding:

Parish:

County:
2
Name and address of Landlord

3
Name and address of Landlords agents (if any)
4
Name and address of Landlords solicitors (if any)
5
Name and address of Tenant

6
Name and address of Tenants agents (if any)
7
Name and address of Tenants solicitors (if any)
8
Approximate area of Holding

9
Description of Holding
(eg mixed, arable, dairy, market garden)
10
State the provision of the Agricultural Tenancies Act 1995 (or otherwise) in respect of which the arbitration is required
11
Nature of the dispute

12
Conflicts of interest
(state the names of any persons who should not be considered for appointment/nomination) 5
1

See the Agricultural Tenancies Act 1995 s 12 (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 59 [70] ante.

2
3
4
5

See ibid s 19(4) and Paragraph 95 [106] ante.


See ibid s 22(3) and Paragraph 101.2 [115] ante.
See ibid s 28(2) and Paragraph 122 [142] ante.
If it is thought that there are any persons who should not be considered for appointment or nomination by reason of there being a
conflict of interest, full reasons supporting those views should be provided separately.

[744]

25
Application for the appointment of an arbitrator to determine claims, questions or differences between landlord
and tenant1

AGRICULTURAL TENANCIES ACT 1995


To:

The President, The Royal Institution of Chartered Surveyors (Arbitrations Section) (insert address)2

Re:

The Holding described in the Particulars set out in Part II of this application

PART I
1

The Landlord and the Tenant (named in the Particulars set out in Part II below) have failed to agree as to the
person to act as arbitrator and
[there being no provision in any agreement between them relating to the appointment of such arbitrator
and/or
no arbitrator has been appointed under an agreement between the Landlord and Tenant [made since notice in
writing was given on (date) under the Agricultural Tenancies Act 1995 Section [103 or 19(1)4 or 22(2)5]] or
no arbitrator has been appointed by agreement following the notice in writing dated (date) given by the
Landlord or Tenant to the other specifying a dispute between the parties and stating that, unless before the
end of the period of 2 months beginning with the day on which the notice was given the parties have
appointed an arbitrator by agreement, the party giving notice proposes to apply to the President of the RICS
for the appointment of an arbitrator by him6]
I NOW APPLY to the President of the RICS for the appointment of an arbitrator for the purpose of settling
the claims, questions or differences set out in Part II below.

[745]
2

I enclose a cheque for (insert amount)7 made payable to The Royal Institution of Chartered Surveyors.

I understand that this application and the accompanying fee must be received at the above address:
[3.1
at any time during the period of 6 months ending with the review date specified in a statutory rent
review notice given pursuant to the Agricultural Tenancies Act 1995 Section 12 8; or
3.2
at any time 9 after the Tenant has given notice pursuant to the Agricultural Tenancies Act 1995
Section 19(1) in respect of a refusal or failure to give consent, or of a condition attaching to
consent, on the part of the Landlord (if no arbitrator has been appointed under an agreement since
the notice was given)10; or
3.3
after the end of the period of 4 months beginning with the date of termination of the tenancy where,
before the end of the period of 2 months beginning with the date of termination of the tenancy, the
Tenant has given notice in writing to his Landlord of his intention to make a claim, and of the
nature of the claim, for compensation upon the termination of the tenancy under and pursuant to the
Agricultural Tenancies Act 1995 Sections 16 and 2211; or
3.4
otherwise, after the end of the period of 2 months 12 beginning with the date on which a notice 13 is
given by the Landlord or the Tenant specifying a dispute between the parties and stating that unless
the parties have appointed an arbitrator by agreement within such period, the party giving the notice
proposes to apply to the President of the RICS for the appointment of an arbitrator by him;]
and that if it is not so received within that period, the application will be invalid and the appointment of the
arbitrator will not be made.

(signature of or on behalf of landlord or tenant)


Dated:
[746]

PART II

(insert date)

Particulars
Details
1
Name and address of the Holding
Holding:

Parish:

County:
2
Name and address of Landlord

3
Name and address of Landlords agents (if any)
4
Name and address of Landlords solicitors (if any)
5
Name and address of Tenant

6
Name and address of Tenants agents (if any)
7
Name and address of Tenants solicitors (if any)
8
Approximate area of Holding

9
Description of Holding
(eg mixed, arable, dairy, market garden)
10
State the provision of the Agricultural Tenancies Act 1995 (or otherwise) in respect of which the arbitration is required
11
Nature of the dispute

12
Conflicts of interest

(state the names of any persons who should not be considered for appointment/nomination) 14
[747]
1

2
3
4
5
6
7
8
9
10
11
12
13
14

See the Agricultural Tenancies Act 1995 s 30(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 124 [145] ante.
The dispute may be in relation to rent review (see ibid s 12), consent for improvements (see ibid s 19(4)), compensation (see ibid
s 22(3)) or other matters (see ibid s 28(3)).
For the address see Information Binder: Addresses [1] (Arbitration).
Ie a statutory review notice: see the Agricultural Tenancies Act 1995 ss 10, 12(a).
See ibid s 19(4).
See ibid s 22(3)(b).
See ibid s 28(2).
See ibid s 30(2).
See ibid s 12 and Paragraph 59 [70] ante. For a form of statutory rent review notice see Form 11 [702] ante.
Note that no application may be made under ibid s 19(4) after the tenant begins to provide an improvement (other than a routine
improvement): see ibid s 19(9) and Paragraph 96.3 [107] ante.
See ibid s 19(4) and Paragraph 95 [106] ante. For a tenants notice demanding a referral to arbitration see Form 20 [724] ante.
See ibid s 22(2), (3) and Paragraph 101.2 [115] ante. For a tenants notice of intention to claim compensation see Form 21 [725]
ante.
See ibid s 28(3) and Paragraph 122 [142] ante.
See ibid s 28(2). For a tenants notice of intention to apply for the appointment of an arbitrator see Form 23 [142] ante.
If it is thought that there are any persons who should not be considered for appointment or nomination by reason of there being a
conflict of interest, full reasons supporting those views should be provided separately.

[748][2000]

(2)

AGRICULTURAL HOLDINGS

(A) Commentary
A: WHEN DOES THE AGRICULTURAL HOLDINGS ACT 1986 APPLY?
301
Agricultural tenancies beginning on or after 1 September 1995
The Agricultural Holdings Act 1986 will not apply to a tenancy 1 (or to an agreement or licence that would otherwise
have taken effect as a yearly tenancy2) beginning on or after 1 September 1995, unless it is a tenancy of an agricultural
holding3:
301.1 granted by a written contract of tenancy entered into before 1 September 1995 and indicating that the 1986 Act
is to apply in relation to the tenancy4;
301.2 obtained by direction of an agricultural land tribunal under the Agricultural Holdings Act 1986 sections 39 or
535;
301.3 granted (following a direction under the Agricultural Holdings Act 1986 section 39) in circumstances falling
within section 45(6) of that Act6;
301.4 granted on an agreed succession7 by a written contract of tenancy indicating that Part IV of the 1986 Act is to
apply in relation to the tenancy8;
[2001]
301.5 created by the acceptance of a tenant, in accordance with the provisions as to compensation known as the
Evesham custom and set out in the Agricultural Holdings Act 1986 section 80(3)(5) 9, on the terms and
conditions of the previous tenancy10; or
301.6 granted to a person who, immediately before the grant of the tenancy, was the tenant of the holding, or of any
agricultural holding comprising the whole or a substantial part of the land comprised in the holding, under a
tenancy in relation to which the 1986 Act applied (the previous tenancy), and so granted merely because a
purported variation of the previous tenancy (not being an agreement expressed to take effect as a new tenancy
between the parties) has effect as an implied surrender followed by the grant of the tenancy 11.
If the Agricultural Holdings Act 1986 applies to a tenancy by virtue of one the provisions listed above, then the tenancy
cannot be a farm business tenancy for the purposes of the Agricultural Tenancies Act 1995 12.
[2002]

1
2

3
4
5

8
9
10
11
12

See the Agricultural Tenancies Act 1995 s 4 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie an agreement beginning on or after 1 September 1995 that would otherwise have fallen within the Agricultural Holdings Act
1986 s 2 (1 Halsburys Statutes (4th Edn) AGRICULTURE): see the Agricultural Tenancies Act 1995 s 4(1). As to agreements that
take effect as yearly tenancies under the Agricultural Holdings Act 1986, see Paragraphs 310 [2026]313 [2029] post.
Agricultural holding has the same meaning as in the Agricultural Holdings Act 1986 s 1: see the Agricultural Tenancies Act
1995 s 2(2) and Paragraph 304 [2012] post.
See the Agricultural Tenancies Act, 1995 s 4(1)(a).
See the Agricultural Tenancies Act, 1995 s 4(1)(b). As to an application by an eligible person under the Agricultural Holdings
Act 1986 s 39 for the tenancy of a holding on the death of a tenant, or an application by a nominated successor under the
Agricultural Holdings Act 1986 s 53 for the tenancy of a holding on the retirement of a tenant, see Paragraphs 387 [2291]398
[2326] and 399 [2336]411 [2362] post respectively.
See the Agricultural Tenancies Act, 1995 s 4(1)(c). The circumstances covered by the Agricultural Holdings Act 1986 s 45(6) are
that the person or persons entitled to a tenancy or joint tenancy of the holding becomes or become the tenant or joint tenants of
the holding before that time under a tenancy granted by the landlord to and accepted by the person or persons concerned.
For a current tenancy to be granted on an agreed succession, the previous tenancy of the holding (or a related holding) must be
a tenancy to which the Agricultural Holdings Act 1986 Pt IV applies (as to which, see ibid s 34), and the current tenancy must be
granted otherwise than as mentioned in the Agricultural Tenancies Act 1995 s 4(1)(b) or (c) (as to which, see Paragraphs 301.3
and 301.4 [2001]) but in such circumstances that, if the Agricultural Holdings Act 1986 Pt IV applied in relation to the current
tenancy, and a sole (or sole surviving) tenant under the current tenancy were to die and be survived by a close relative, then the
occasion on which the current tenancy is to be granted would be taken to be an occasion falling within the Agricultural Holdings
Act 1986 s 37(1)(a) or (b) (as to which, see Paragraph 390 [2307] post): see the Agricultural Tenancies Act 1995 s 4(2). See
further 559 HL Official Report (5th series) cols 11461150, 12 December 1994; 560 HL Official Report (5th series) col 892, 23
January 1995.
See the Agricultural Tenancies Act, 1995 s 4(1)(d).
As to the Evesham custom, see Paragraph 447 [2482] post.
See the Agricultural Tenancies Act, 1995 s 4(1)(e).
See the Agricultural Tenancies Act, 1995 s 4(1)(f).
See the Agricultural Tenancies Act 1995 s 2(1)(b). As to farm business tenancies, see Paragraph 1 [1] et seq ante.

[2003]
302
Agricultural tenancies beginning before 1 September 1995
The Agricultural Holdings Act 1986 will apply to a tenancy that began before 1 September 1995 if it is a tenancy of an
agricultural holding as statutorily defined 1. Such a tenancy cannot be a farm business tenancy for the purposes of the
Agricultural Tenancies Act 19952.
1
2

As to the definition of agricultural holding, see the Agricultural Holdings Act 1986 s 1 (1 Halsburys Statutes (4th Edn)
AGRICULTURE) and Paragraph 304 [2012] post.
See the Agricultural Tenancies Act 1995 s 2(1)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to farm business
tenancies, see Paragraph 1 [1] et seq ante.

[2004][2010]

B: MEANING OF TERMS
303
Tenancies subject to the Agricultural Holdings Act 1986
The following paragraphs1 and the forms and precedents relating to agricultural holdings 2 should all be read as
referring only to tenancies to which the Agricultural Holdings Act 1986 applies 3.
1
2
3

Ie the paragraphs comprising this Commentary, 304 [2012]468 [2551] post.


For the forms and precedents, see Forms 101 [3001]226 [4025] post.
As to such tenancies, see Paragraphs 301 [2001] and 302 [2004] ante.

[2011]
304
Agricultural holding
An agricultural holding means1 the aggregate of the land (whether agricultural land 2 or not) comprised in a contract of
tenancy3 that is a contract for an agricultural tenancy 4, not being a contract under which the land is let to the tenant
during his continuance in any office, appointment or employment 5 held under the landlord. Buildings may be included
in the land forming an agricultural holding6, and a building may, without any other land, constitute such a holding 7.
1
2
3
4

See the Agricultural Holdings Act 1986 s 1(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to agricultural holdings
generally, see 1(2) Halsburys Laws (4th Edn Reissue) AGRICULTURE para 301 et seq.
For the meaning of agricultural land, see Paragraph 305 [2013] post.
As to the meaning of contract of tenancy, see Paragraph 306 [2014] post.
As to the meaning of agricultural tenancy, see Paragraph 307 [2015] post.

5
6
7

For the position where land is let to employees, see Paragraph 363 [2211] post.
See Dunn v Fidoe [1950] 2 All ER 685, CA; cf Hasell v McAulay [1952] 2 All ER 825, DC.
See Blackmore v Butler [1954] 2 QB 171, [1954] 2 All ER 403, CA.

[2012]
305
Agricultural land
Agricultural land means1:
305.1 land used for agriculture2, and so used for the purposes of a trade or business3; and
305.2 any other land that, by virtue of a designation under the Agriculture Act 1947 4 is agricultural land within the
meaning of that Act.
1
2

See the Agricultural Holdings Act 1986 s 1(4) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
For the meaning of agriculture, see Paragraph 308 [2016] post. References to the use of land for agriculture include, in relation
to land forming part of an agricultural unit, references to any use of the land in connection with the farming of the unit: see the
Agricultural Holdings Act 1986 s 96(5).
The condition of commercial use prevents an allotment garden from being an agricultural holding, and such a garden cannot be
designated as agricultural land. An allotment may, however, be an agricultural holding if it is used for the purpose of a trade or
business. A smallholding may likewise be an agricultural holding if it is so used, although the rights of tenants of smallholdings
are restricted in certain respects in comparison with those of tenants of other agricultural holdings: Stevens v Sedgeman [1951] 2
KB 434, [1951] 2 All ER 33, CA. As to smallholdings as agricultural holdings, see vol 2(3) (1998 Reissue) ALLOTMENTS AND
SMALLHOLDINGS . A market garden is an agricultural holding: the definition of agriculture in the Agricultural Holdings Act
1986 includes market gardens: see Paragraph 308 [2016] post.
Ie under the Agriculture Act 1947 s 109(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
The Agriculture Act 1947 s 109(1) provides that, in that Act, agricultural land means land used for agriculture which is
so used for the purposes of a trade or business, or which is designated by the Minister for the purposes of this subsection, and
includes any land so designated as land which in the opinion of the Minister ought to be brought into use for agriculture:
Provided that no designation under this subsection shall extend:
(a)
to land used as pleasure grounds, private gardens or allotment gardens, or
(b)
to land kept or preserved mainly or exclusively for the purposes of sport or recreation, except where the Minister is
satisfied that its use for agriculture would not be inconsistent with its use for such purposes and it is so stated in the
designation.

[2013]
306
Contract of tenancy
Contract of tenancy means a letting of land, or an agreement for letting of land, for a term of years or from year to
year1. For the purposes of the definition, a letting of land (or an agreement for letting land) that, by virtue of the Law of
Property Act 1925, is converted into a letting or agreement for 90 years 2 is deemed to be a letting of land (or, as the
case may be, an agreement for letting land) for a term of years 3.
A tenancy for a definite term of more than one year but less than two years falls within the statutory
definition4, and therefore creates an agricultural holding and not a tenancy within the protection of the Landlord and
Tenant Act 1954 Part II5.
1

2
3
4
5

See the Agricultural Holdings Act 1986 s 1(5) (1 Halsburys Statutes (4th Edn) AGRICULTURE). Certain short term lettings and
licences created before 1 September 1995 took effect as yearly tenancies by virtue of the Agricultural Holdings Act 1986 s 2: see
Paragraphs 310 [2026]313 [2029] post.
Ie by virtue of the Law of Property Act 1925 s 149(6) (37 Halsburys Statutes (4th Edn) REAL PROPERTY).
See the Agricultural Holdings Act 1986 s 1(5).
See EWP Ltd v Moore [1992] 1 QB 460, [1992] 1 All ER 880, CA and Paragraph 358 [2192] post.
Such a tenancy also falls outside the security of tenure provisions of the Agricultural Holdings Act 1986: see Paragraph 357
[2191] post. Any such tenancy created on or after 1 September 1995 may, if the conditions are satisfied (as to which see
Paragraph 4 [7] ante) be a farm business tenancy.

[2014]
307
Agricultural tenancy
For the purposes of the Agricultural Holdings Act 1986 1, a contract of tenancy relating to any land is a contract for an
agricultural tenancy if, having regard to
307.1 the terms of the tenancy,
307.2 the actual or contemplated use of the land at the time of the conclusion of the contract and subsequently, and
307.3 any other relevant circumstances,
the whole of the land comprised in the contract (subject only to such exceptions as do not substantially affect the
character of the tenancy) is let for use as agricultural land 2.
A tenancy may include non-agricultural as well as agricultural land and the question as to whether or not it is
an agricultural tenancy is determined with reference to the criteria in the Agricultural Holdings Act 1986 3.
1

Ie for the purposes of the Agricultural Holdings Act 1986 s 1 (1 Halsburys Statutes (4th Edn) AGRICULTURE).

See the Agricultural Holdings Act 1986 s 1(2). A change in use of the land, subsequent to the conclusion of a contract of tenancy,
that involves any breach of the terms of the tenancy is to be disregarded for the purpose of determining whether a contract that
was not originally a contract for an agricultural tenancy has subsequently become one, unless it is effected with the landlords
permission, consent or acquiescence: see the Agricultural Holdings Act 1986 s 1(3). As to the meaning of agricultural land, see
Paragraph 305 [2013] ante.
Ie the Agricultural Holdings Act 1986 s 1(2),(3). See also 1(2) Halsburys Laws (4th Edn Reissue) AGRICULTURE para 301 note
2. See also Gold v Jacques Amand Ltd (1991) 63 P & CR 1.

[2015]
308
Agriculture
For the purposes of the Agricultural Holdings Act 1986 agriculture includes horticulture, fruit growing, seed growing,
dairy farming and livestock breeding and keeping, the use of land as grazing land, meadow land, osier land, market
gardens and nursery grounds, and the use of land for woodlands where that use is ancillary to the farming of land for
other agricultural purposes. Agricultural is to be construed accordingly 1.
1

See the Agricultural Holdings Act 1986 s 96(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2016]
309
Livestock
Livestock includes any creature kept for the production of food, wool, skins, or fur or for the purpose of its use in the
farming of land or the carrying on in relation to land of any agricultural activity 1.
1

See the Agricultural Holdings Act 1986 s 96(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2017][2025]

C: SHORT TERM TENANCIES AND LICENCES


310
Agreements that took effect as yearly tenancies
Where before 1 September 1995:
310.1 land was let to a person for use as agricultural land for an interest less than a tenancy from year to year, or
310.2 a person was granted a licence to occupy land for use as agricultural land 1,
and the circumstances were such that, if his interest had been a tenancy from year to year, he would in respect of that
land have been the tenant of an agricultural holding 2, then (subject to certain exceptions 3) the agreement took effect as
if it were an agreement for a tenancy from year to year 4.
1
2
3
4

As to licences relating to farming partnerships, see Paragraph 313 [2029] post.


See the Agricultural Holdings Act 1986 s 2(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
For the exceptions, see Paragraph 311 [2027] post.
See the Agricultural Holdings Act 1986 s 2(1).

[2026]
311
Agreements to which conversion did not apply
The provisions regarding conversion did not apply1 to agreements or licences for the letting or occupation of land if:
311.1 the agreement was approved by the Minister before it was entered into 2; or
311.2 the agreement or licence was made in contemplation of the use of land only for grazing or mowing (or both)
during a specified period of the year 3; or
311.3 the agreement or licence was granted by a person whose interest in the land is less than a tenancy from year to
year (and whose interest is not converted by virtue of these provisions) 4.
1
2

3
4

Note that, in addition, the provisions will not normally apply to any agreement beginning on or after 1 September 1995: see the
Agricultural Tenancies Act 1995 s 4(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 301 [2001] ante.
See the Agricultural Holdings Act 1986 s 2(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). The Minister means, in
relation to England, the Minister of Agriculture, Fisheries and Food, and in relation to Wales, the Secretary of State for Wales:
see the Agricultural Holdings Act 1986 s 96(1). As to tenancies approved by the Minister before they were entered into, see
Paragraphs 354 [2181]356 [2184] post.
See the Agricultural Holdings Act 1986 s 2(3)(a). As to grazing and mowing agreements generally, see Paragraphs 359 [2201]
362 [2204] post.
See the Agricultural Holdings Act 1986 s 2(3)(b).

[2027]
312
Conversion distinguished from mislabelling and sham
Express conversion of a licence into a tenancy was distinct from and supplemental to the principle, judicially evolved,
that what is in truth a tenancy cannot be deprived of its legal effect as such by describing it as a licence 1. A gratuitous

licence, however, was never converted into a tenancy of an agricultural holding 2 because the transaction had to be one
enforceable at law and had to be a contract for valuable consideration 3.
1
2

As to sham and mislabelled agreements, see Paragraphs 366 [2218] and 367 [2220] post respectively.
See Goldsack v Shore [1950] 1 KB 708, [1950] 1 All ER 276, CA. It should be noted that a rent-free licence or tenancy is not
necessarily gratuitous if there is other consideration: see Mitton v Farrow (1980) 255 Estates Gazette 449, CA; Secretary of State
for Social Services v Beavington (1981) 262 Estates Gazette 551. A tenant holding over after the expiration of his tenancy, if it
has been duly determined, does not obtain any contractual rights which would be converted, even if inadvertently the landlord
accepts rent proffered in those circumstances: see Longrigg, Burrough and Trounson v Smith (1979) 251 Estates Gazette 847,
CA.
Collier v Hollinshead (1984) 272 Estates Gazette 941.

[2028]
313
Licences relating to farming partnerships
The essence of the statutory provision for a licence to take effect as a tenancy was the requirement that the licence must
have been granted for the purpose of occupying the land for use as agricultural land 1. A licence, to be capable of
conversion, had to confer on the licensee during its currency a right of exclusive occupation against the licensor.
Where, therefore, a person already in lawful occupation of land entered into a partnership agreement for farming the
land with a farming partner by which the land-owning or land-renting partner granted a licence to the farmer to enter
the land for the purpose of the partnership business, the statutory provision for conversion did not apply 2. Similarly,
where a licence on its true construction merely entitled the licensee to share occupation with the licensor not pursuant
to an agreement for partnership, the statutory conversion again did not apply3.
1
2
3

See the Agricultural Holdings Act 1986 s 2(2)(b) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Harrison-Broadley v Smith [1964] 1 All ER 867, [1964] 1 WLR 456, CA.
Bahamas International Trust Co Ltd v Threadgold [1974] 3 All ER 881, [1974] 1 WLR 1524, HL.

[2029][2040]

D: FORM AND TERMS OF TENANCY


1: REQUIREMENTS FOR WRITTEN TENANCY AGREEMENTS
314
Creation
Subject to the general rule of law regarding the creation of oral tenancies of land 1, the contract of tenancy of an
agricultural holding may be created orally or in writing 2. Where, however, the terms of the contract are not reduced to
writing, either the landlord or the tenant may require the other to enter into a written contract of tenancy and in default
of agreement may enforce such request by arbitration3.
1

2
3

See the Law of Property Act 1925 ss 5254 as amended (37 Halsburys Statutes (4th Edn) REAL PROPERTY) and in particular
section 52(1) of that Act by which a legal estate in land may in general be created only by deed and sections 52(2)(d), 54(2) of
that Act by which a tenancy taking effect in possession for a term not exceeding three years at the best rent that can reasonably
be obtained need not be created by deed or writing but may be created orally.
As to the formalities for the creation of a tenancy, see further vol 22(1) (1996 Reissue) LANDLORD AND TENANT (Business
Tenancies).
As to the right to a written tenancy agreement given by the Agricultural Holdings Act 1986 s 6 (1 Halsburys Statutes (4th Edn)
AGRICULTURE), see Paragraph 316 [2043] post.

[2041]
315
Express and other terms
The contract of tenancy of an agricultural holding is prima facie, like any other contract, the expression of the intention
of the parties as to the terms on which they have entered into mutually binding legal obligations. The full effect of a
contract of tenancy of an agricultural holding can, however, be ascertained only after consideration has been given to:
315.1 the express contractual terms;
315.2 any terms added to the express contractual terms by an award of a statutory arbitrator 1 or a decision or direction
of an agricultural land tribunal2 that take effect as mutually agreed terms of the contract of tenancy;
315.3 the terms imposed by the Agricultural Holdings Act 1986 subject to any contrary agreement between the
parties3;
315.4 the terms imposed by the Agricultural Holdings Act 1986 irrespective of any contrary agreement between the
parties4; and
315.5 the extent to which the express terms of the contract of tenancy are supplemented by custom or usage 5.
1

Eg, under the Agricultural Holdings Act 1986 ss 6(1), 7(2), 8(2), 9(1), 10(6), 12(1), 13(7), 14(2), 20(4), 33(2), 48(3) (1
Halsburys Statutes (4th Edn) AGRICULTURE).

2
3
4
5

Eg, under the Agricultural Holdings Act 1986 s 80.


Eg, by the Agricultural Holdings Act 1986 ss 15(3), 66(2),(4), Sch 9 Pt I paras 3(2), 4(3).
Eg, by the Agricultural Holdings Act 1986 ss 15(1), 24, 25(1), 76(1), 78(1), 83, 84(1).
See, however, the Agricultural Holdings Act 1986 ss 15(1) (tenants right, despite custom, to dispose of produce and practise any
system of cropping) and 77 (no compensation under custom for improvement or tenant-right matter). As to tenant-right matters,
see Paragraphs 434 [2446]439 [2452] post.

[2042]
316
Right to a written agreement
The landlord or the tenant of an agricultural holding may request the other party to enter into a written agreement 1
embodying all the terms of the tenancy and containing provision for the specified matters where:
316.1 there is not in force an agreement in writing embodying all the terms of the tenancy (including any model
clauses incorporated in the contract of tenancy by regulations 2); or
316.2 such an agreement in writing is in force, but the terms of the tenancy do not make provision for one or more of
the matters specified in the Agricultural Holdings Act 1986 3.
If, despite such a request, no agreement is reached, the party seeking it may refer the terms of the tenancy to statutory
arbitration3.
1

2
3
4

See the Agricultural Holdings Act 1986 s 6(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). For forms of request to enter
into an agreement in writing, see Forms 116 [3501] (no agreement in existence) and 117 [3503] (insufficient agreement in
existence) post.
As to the model clauses, see the Agricultural Holdings Act 1986 s 7, Paragraph 3218 [2062] post and Form 102 [3051] post.
As to the specified matters, see the Agricultural Holdings Act 1986, Sch 1 and Paragraph 319 [2046] post.
See the Agricultural Holdings Act 1986 s 6(1). For a form of notice requiring arbitration, see Form 118 [3505] post.

[2043]
317
The award on reference to arbitration
Where the landlord or the tenant of an agricultural holding refers the terms of the tenancy to statutory arbitration, the
arbitrators award:
317.1 must specify the existing terms of the tenancy subject to any agreed variations 1;
317.2 in so far as the terms as so varied neither make provision for the matters specified in the Agricultural Holdings
Act 19862 nor make provision inconsistent with them, must make provision for all the scheduled matters having
such effect as the parties may agree or, in default of their agreement, as appears to the arbitrator to be
reasonable and just3; and
317.3 may include any further provisions relating to the tenancy agreed by the landlord and the tenant 4.
Where it appears to the arbitrator that by reason of any provision required to be included in his award it is
equitable that the rent of the holding should be varied, he may vary the rent accordingly 5. The arbitrators award in
such circumstances has effect as if its terms and provisions were contained in a written agreement entered into between
the landlord and the tenant with effect from the date of the award or such later date as may be specified in it 6. The
arbitrators award does not, however, take effect as the grant of a new tenancy but as a variation of the terms of the preexisting tenancy7.
In addition to the scheduled matters 8, the arbitrator should specify which of the parties is liable for
maintenance work and repair of fixed equipment 9.
1
2
3
4
5
6
7
8
9

See the Agricultural Holdings Act 1986 s 6(2)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the specified matters, see the Agricultural Holdings Act 1986, Sch 1 and Paragraph 319 [2046] post.
See the Agricultural Holdings Act 1986 s 6(2)(b).
See the Agricultural Holdings Act 1986 s 6(2)(c).
See the Agricultural Holdings Act 1986 s 6(3).
See the Agricultural Holdings Act 1986 s 6(4).
See the Agricultural Holdings Act 1986 s 6(4).
As to the scheduled matters, see Paragraph 319 [2046] post.
As to fixed equipment generally, see Paragraphs 320 [2061] and 321 [2062] post.

[2044]
318
Effect of landlords request for a written agreement on tenants ability to dispose of the holding
Where the terms of the tenancy neither make provision for, nor make provision inconsistent with a prohibition on
assignment, subletting or parting with possession of the holding or any part of it without the landlords consent in
writing1, the effect of a landlords written request to the tenant to enter into an agreement in writing embodying all the
terms of the tenancy and containing provision for all the specified matters is to preclude the tenant from assigning,
subletting or parting with possession during the period while the determination of the terms of the tenancy is pending 2.
If in such circumstances the tenant proceeds to assign, sublet or part with possession, the transaction is void 3.

1
2

Ie the matter specified in the Agricultural Holdings Act 1986, Sch 1 para 9 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 6(5). For the purposes of the Agricultural Holdings Act 1986 s 6(5) the period while the
determination is pending is treated as the period beginning with the date of service of the landlords request on the tenant and
ending with the date on which an agreement is concluded in accordance with that request, or with the date on which the
arbitrators award on the reference takes effect: see the Agricultural Holdings Act 1986 s 6(6).
See the Agricultural Holdings Act 1986 s 6(5).

[2045]
319
The specified matters
The matters for which provision is to be made in written tenancy agreements are:
319.1 the names of the parties1;
319.2 particulars of the holding with sufficient description, by reference to a map or plan, of the fields and other
parcels of land comprised in the holding to identify its extent 2;
319.3 the term or terms for which the holding or different parts of it is or are agreed to be let 3;
319.4 the rent reserved and the dates on which it is payable 4;
319.5 the incidence of the liability for rates (including drainage rates) 5;
319.6 a covenant by the tenant, in the event of destruction by fire of harvested crops grown on the holding for
consumption on it, to return to the holding the full equivalent manurial value of the crops destroyed, in so far as
the return of that value is required for the fulfilment of his responsibilities to farm in accordance with the rules
of good husbandry6;
319.7 a covenant by the tenant (except where the interest of the tenant is held for the purposes of a government
department or where the tenant has made provision approved by the Minister in lieu of such insurance) to insure
against damage by fire all dead stock on the holding and all harvested crops grown on the holding for
consumption on it7;
319.8 a power for the landlord to re-enter on the holding in the event of the tenant not performing his obligations
under the agreement8; and
319.9 a covenant by the tenant not to assign, sublet or part with possession of the holding or any part of the holding
without the landlords consent in writing9.
[2046]
1
2
3
4
5
6
7
8
9

See the Agricultural Holdings Act 1986 s 6, Sch 1 para 1 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986, Sch 1 para 2.
See the Agricultural Holdings Act 1986, Sch 1 para 3.
See the Agricultural Holdings Act 1986, Sch 1 para 4.
See the Agricultural Holdings Act 1986, Sch 1 para 5.
See the Agricultural Holdings Act 1986, Sch 1 para 6. As to the rules of good husbandry, see the Agriculture Act 1947 s 11 (1
Halsburys Statutes (4th Edn) AGRICULTURE): see the Agricultural Holdings Act 1986 s 96(3).
See the Agricultural Holdings Act 1986, Sch 1 para 7. The Minister means, in relation to England, the Minister of Agriculture,
Fisheries and Food, and in relation to Wales, the Secretary of State for Wales: see the Agricultural Holdings Act 1986 s 96(1).
See the Agricultural Holdings Act 1986, Sch 1 para 8.
See the Agricultural Holdings Act 1986, Sch 1 para 9.

[2047][2060]
2: TERMS AS TO FIXED EQUIPMENT
(a) Meaning of terms
320
Meaning of fixed equipment
The Agricultural Holdings Act 1986 contains special provisions relating to fixed equipment 1.
Fixed equipment includes any building or structure affixed to land and any works on, in, over or under
land, and also includes anything grown on land for a purpose other than use after severance from the land, consumption
of the thing grown or of its produce, or amenity, and any reference to fixed equipment on land must be construed
accordingly2.
1
2

See the Agricultural Holdings Act 1986 ss 711 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 96(1).

[2061]
321
The model clauses
There are regulations1 prescribing terms as to the maintenance, repair and insurance of fixed equipment, such terms
being referred to as the model clauses 2. The model clauses are deemed to be incorporated in every contract of tenancy

of an agricultural holding except in so far as they would impose on one of the parties to an agreement in writing a
liability which under the agreement is imposed on the other 3.
1

2
3

The regulations at present in force are the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations
1973/1473 as amended by SI 1988/281. Regulations under the Agricultural Holdings Act 1986 s 7 (1 Halsburys Statutes (4th
Edn) AGRICULTURE) may make provision for any matter arising under them to be determined by arbitration: see the Agricultural
Holdings Act 1986 s 7(2).
For an example of specific incorporation of the model clauses, see Form 101 clauses 6.29 [3012] and 7.1 [3019] post. For the
wording of the model clauses, see Form 102 [3051] post.
See the Agricultural Holdings Act 1986 s 7(3).

[2062][2070]
(b) Referring terms to arbitration
322
Reference to arbitration where terms inconsistent with model clauses
Where an agreement in writing relating to a tenancy of an agricultural holding effects substantial modifications in the
operation of the model clauses, then, subject to certain restrictions, the landlord or the tenant of the holding may, if he
has requested the other to vary the terms of the tenancy as to the maintenance, repair and insurance of fixed equipment
so as to bring them into conformity with the model clauses but no agreement has been reached on the request, refer
those terms of the tenancy to arbitration1.
1

See the Agricultural Holdings Act 1986 s 8(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE). Where there has been a
reference under the Agricultural Holdings Act 1986 s 8 relating to a tenancy, no further such reference relating to that tenancy
may be made before the expiry of three years from the coming into effect of the arbitrators award on the previous reference: see
the Agricultural Holdings Act 1986 s 8(6). For a form of request to vary the terms, see Form 119 [3506] post and for a form of
reference to arbitration, see Form 120 [3508] post.

[2071]
323
Duties of the arbitrator
On any such reference the arbitrator must consider whether (disregarding the rent payable for the holding) the terms
referred to arbitration are justifiable having regard to the circumstances of the holding and of the landlord and the
tenant. If he determines that they are not so justifiable, he may vary them in such manner as appears to him reasonable
and just between the landlord and the tenant 1. Where it appears to the arbitrator on any such reference that by reason of
any provision included in his award it is equitable that the rent of the holding should be varied, he may vary the rent
accordingly2.
1
2

See the Agricultural Holdings Act 1986 s 8(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 8(4). As to the referral of rent to arbitration, see Paragraphs 334 [2116]342 [2125]
post.

[2072]
324
Effect of the award in relation to terms as to fixed equipment
The arbitrators award has effect as if the terms and provisions specified and made in the award were contained in an
agreement in writing entered into by the landlord and tenant and having effect (by way of variation of the agreement
previously in force in respect of the tenancy) as from the making of the award or, if the award so provides, from such
later date as may be specified 1.
1

See the Agricultural Holdings Act 1986 s 8(5) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2073]
325
Transitional provisions where liability for fixed equipment transferred
Where the liability for the maintenance or repair of any item of fixed equipment is transferred from the tenant to the
landlord1, the landlord may (within the prescribed period 2 beginning with the date on which the transfer takes effect)
require the amount of any relevant compensation to be determined by arbitration and paid by the tenant 3.
Where the liability for the maintenance or repair of any item of fixed equipment is transferred from the
landlord to the tenant4, any claim by the tenant in respect of any previous failure by the landlord to discharge such
liability must be determined by arbitration if (within the prescribed period beginning with the date on which the transfer
takes effect) the tenant so requires5.
Where the terms of the tenancy of an agricultural holding as to the maintenance, repair or insurance of fixed
equipment (whether established by the operation of the model clauses 6 or by agreement) are varied by new model
clauses7 then, if a reference of the terms of the tenancy to an arbitrator 8 is made within the prescribed period after the
coming into operation of the new regulations, the arbitrator must, for the purposes of that reference, disregard the
variation9.

[2074]
1
2
3

4
5
6
7
8
9

Ie by the Agricultural Holdings Act 1986 ss 68 (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to the meaning of fixed
equipment, see Paragraph 320 [2061] ante.
Prescribed means prescribed by the Minister by regulations: see the Agricultural Holdings Act 1986 s 96(1). For the current
regulations, see the Agriculture (Miscellaneous Time Limits) Regulations 1959/171.
See the Agricultural Holdings Act 1986 s 9(1). Relevant compensation means compensation that would have been payable
(either under the Agricultural Holdings Act 1986 s 71(1) or in accordance with section 71(3) of that Act) in respect of any
previous failure by the tenant to discharge the liability referred to in section 9(1) if the tenant had quitted the holding on the
termination of his tenancy at the date on which the transfer of liability takes effect: see the Agricultural Holdings Act 1986 s
9(2). For a form of requirement by the landlord for arbitration as to compensation, see Form 123 [3513] post. As to landlords
claims for compensation generally, see Paragraphs 458 [2526]460 [2528] post.
Ie by the provisions of the Agricultural Holdings Act 1986 ss 68. As to the meaning of fixed equipment, see Paragraph 320
[2061] ante.
See the Agricultural Holdings Act 1986 s 9(3). For a form of notice of requirement by the tenant for arbitration, see Form 122
[3511] post.
As to the model clauses, see Paragraph 321 [2062] ante.
Ie new terms prescribed by regulations made under the Agricultural Holdings Act 1986 s 7.
Ie a reference under the Agricultural Holdings Act 1986 s 6. As to arbitration of the terms of the tenancy, see Paragraphs 316
[2043]319 [2046] ante.
See the Agricultural Holdings Act 1986 s 9(4).

[2075][2090]
(c) Removal of fixtures
326
Tenants right to remove fixtures and buildings
At any time during the continuance of the tenancy or before the expiry of two months from its termination the tenant
may, subject to certain conditions, remove:
326.1 any engine, machinery, fencing or other fixture of whatever description affixed, whether for the purposes of
agriculture or not, to an agricultural holding by the tenant 1; and
326.2 any building erected by him on the holding2.
Such fixtures and buildings remain the property of the tenant so long as he may remove them 3. The tenants right of
removal applies to a fixture or building acquired by him as it relates to a fixture or building affixed or erected by him 4.
This statutory right of removal does not prejudice any right to remove a fixture which may otherwise subsist 5.
1
2
3
4
5

See the Agricultural Holdings Act 1986 s 10(1)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 10(1)(b).
See the Agricultural Holdings Act 1986 s 10(1).
See the Agricultural Holdings Act 1986 s 10(7).
See the Agricultural Holdings Act 1986 s 10(8).

[2091]
327
Fixtures to which right of removal does not apply
The statutory right of removal does not apply to:
327.1 a fixture affixed or a building erected in pursuance of some obligation 1;
327.2 a fixture affixed or a building erected instead of some fixture or building belonging to the landlord 2;
327.3 a building in respect of which the tenant is entitled to compensation under the Agricultural Holdings Act 1986
or otherwise3; or
327.4 a fixture affixed or a building erected before 1 January 1884 4.
1
2
3
4

See the Agricultural Holdings Act 1986 s 10(2)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 10(2)(b).
See the Agricultural Holdings Act 1986 s 10(2)(c).
See the Agricultural Holdings Act 1986 s 10(2)(d).

[2092]
328
Conditions to be fulfilled by tenant
The right of removal is not exercisable in relation to a fixture or building unless the tenant:
328.1 has paid all rent owing by him and has performed or satisfied all his other obligations to the landlord in respect
of the holding1; and
328.2 has, at least one month before the exercise of the right and the termination of the tenancy, given to the landlord
written notice of his intention to remove the fixture or building 2.
1

See the Agricultural Holdings Act 1986 s 10(3)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

See the Agricultural Holdings Act 1986 s 10(3)(b). If, before the expiry of the tenants notice, the landlord gives to the tenant a
counter-notice in writing electing to purchase a fixture or building comprised in the notice, the tenants right of removal under
the Agricultural Holdings Act 1986 s 10(1) ceases to apply to that fixture or building, but in that case the landlord becomes liable
to pay the tenant the fair value of such fixture or building to an incoming tenant of the holding: see the Agricultural Holdings Act
1986 s 10(4).
For a notice of intention to remove fixtures or buildings, see Form 135 [3536] post. For a counter-notice electing to
purchase, see Form 136 [3538] post.

[2093][2100]
(d) Provision of fixed equipment by landlord
329
Direction to carry out work to enable tenant to comply with statutory requirements
Where, on an application by the tenant of an agricultural holding 1, an agricultural land tribunal is satisfied that it is
reasonable, having regard to the tenants responsibilities to farm the holding in accordance with the rules of good
husbandry2, that the tenant should carry on an agricultural activity to the extent and in the manner specified in the
application, and that either
329.1 the tenant, in carrying on that activity to that extent and in that manner, will contravene requirements imposed
by or under any enactment unless fixed equipment is provided on the holding 3; or
329.2 it is reasonable that the tenant should use, for purposes connected with that activity, fixed equipment already
provided on the holding but that, unless that equipment is altered or repaired, the tenant will contravene such
statutory requirements4,
then the tribunal may direct the landlord to carry out, within a specified period, such work for the provision or
alteration or repair of that fixed equipment as will enable the tenant to comply with the relevant statutory
requirements5.
1
2
3
4
5

For the form of application, see Form 176 [3810] post.


As to the rules of good husbandry, see the Agriculture Act 1947 s 11 (1 Halsburys Statutes (4th Edn) AGRICULTURE): see the
Agricultural Holdings Act 1986 s 96(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 11(1)(a).
See the Agricultural Holdings Act 1986 s 11(1)(b).
See the Agricultural Holdings Act 1986 s 11(1).

[2101]
330
Restriction where activity constitutes a substantial alteration of the type of farming
Where it appears to a tribunal that an agricultural activity specified in the tenants application for the landlord to be
directed to carry out work for the provision or alteration or repair of fixed equipment to enable the tenant to comply
with statutory requirements has not been carried on on the holding continuously for a period of at least three years
immediately preceding the making of the application, they must not direct the landlord to carry out work in connection
with that activity unless they are satisfied that the starting of the activity did not, or (where the activity has not yet been
started) will not, constitute or form part of a substantial alteration of the type of farming carried on on the holding 1.
1

See the Agricultural Holdings Act 1986 s 11(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2102]
331
Other restrictions on direction
A tribunal must not direct the landlord to carry out work for the provision or alteration or repair of fixed equipment to
enable the tenant to comply with relevant statutory requirements unless they are satisfied that:
331.1 it is reasonable to do so, having regard to:
331.1.1 the landlords responsibilities to manage the land comprised in the holding in accordance with the
rules of good estate management 1,
331.1.2 the period for which the holding may be expected to remain a separate holding, and
331.1.3 any other material consideration2;
and
331.2 the landlord has refused to carry out that work on being requested in writing to do so by the tenant, or has not
agreed to carry it out within a reasonable time after being so requested 3.
A tribunal must not direct the landlord to carry out work if he is under a duty to carry out the work in order to comply
with a statutory requirement, or if provision is made by the contract of tenancy (or by any other agreement between the
landlord and the tenant) for the carrying out of work by one of them 4.
1
2
3
4

As to the rules of good estate management, see the Agriculture Act 1947 s 10 (1 Halsburys Statutes (4th Edn) AGRICULTURE):
see the Agricultural Holdings Act 1986 s 96(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 11(3)(a).
See the Agricultural Holdings Act 1986 s 11(3)(b).
See the Agricultural Holdings Act 1986 s 11(4).

[2103]
332
Tenants remedies
If the landlord fails to comply with a direction of the tribunal, the tenant has the same remedies as if the contract of
tenancy had contained an undertaking by the landlord to carry out the work required within the period allowed by the
tribunal1.
1

See the Agricultural Holdings Act 1986 s 11(5) (1 Halsburys Statutes (4th Edn) AGRICULTURE). The tenant may carry out the
work himself and recover the reasonable cost of it from the landlord despite any term in the contract of tenancy restricting the
tenant from carrying out alterations to the holding: see the Agricultural Holdings Act 1986 s 11(6). Any reference to the
reasonable cost of work carried out by a tenant who has received a grant in respect of the work out of money provided by
Parliament is to be construed as a reference to the reasonable cost reduced by the amount of the grant: see the Agricultural
Holdings Act 1986 s 11(8).

[2104]
333
Extension of time limit
An agricultural land tribunal may on an application by the landlord extend, or further extend, the period specified in a
direction if it is shown that the specified period (or that period as previously extended by the tribunal) will not allow
sufficient time both for the completion of preliminary arrangements necessary or desirable in connection with the work
required1 and for the carrying out of the work 2.
1
2

These preliminary arrangements include in appropriate cases the determination of an application by the landlord for a grant in
respect of the work: see the Agricultural Holdings Act 1986 s 11(7) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 11(7).

[2105][2115]
3: TERMS AS TO RENT
(a) Arbitration
334
Demand for referral
The landlord or the tenant of an agricultural holding may serve written notice on the other demanding that the rent
payable in respect of the holding as from the next termination date 1 be referred to arbitration2.
1

References in the Agricultural Holdings Act 1986 s 12, Sch 2 (1 Halsburys Statutes (4th Edn) AGRICULTURE) to the next
termination date following the date of the demand for arbitration are construed as references to the next day, following the date
of the demand, on which the tenancy could have been determined by notice to quit given at the date of the demand: see the
Agricultural Holdings Act 1986 s 12(4). For a form of demand for arbitration of rent payable, see Form 130 [3526] post.
See the Agricultural Holdings Act 1986 s 12(1).

[2116]
335
Duty of the arbitrator
On a reference of rent to arbitration the arbitrator must:
335.1 determine what rent is properly payable 1 in respect of the holding at the date of the reference; and
335.2 accordingly, with effect from the next termination date following the date of the demand for arbitration, increase
or reduce the rent previously payable or direct that it should continue unchanged 2.
1
2

As to the meaning of rent properly payable, see Paragraph 336 [2118] post.
See the Agricultural Holdings Act 1986 s 12(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2117]
336
Rent properly payable
For the purposes of a reference of rent to arbitration, the rent properly payable 1 in respect of a holding is the rent at
which the holding might reasonably be expected to be let by a prudent and willing landlord to a prudent and willing
tenant, taking into account all relevant factors, including in every case:
336.1 the terms of the tenancy (including those relating to rent);
336.2 the character and situation of the holding (including the locality in which it is situated);
336.3 the productive capacity2 of the holding and its related earning capacity3; and
336.4 the current level of rents for comparable lettings 4.
1
2

See the Agricultural Holdings Act 1986 s 12(5), Sch 2 para 1(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Productive capacity means 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: see the Agricultural Holdings Act 1986, Sch 2 para 1(2)(a).

Related earning capacity means the extent to which, in the light of the productive capacity of the holding (as to which see note
2 above), a competent tenant practising a system of farming suitable to the holding could reasonably be expected to profit from
farming the holding: see the Agricultural Holdings Act 1986, Sch 2 para 1(2)(b).
As to the current level of rents for comparable lettings, see Paragraph 337 [2119] post.

[2118]
337
Current level of rents
In determining the current level of rents for comparable lettings 1, the arbitrator must take into account any available
evidence with respect to the rents (whether fixed by agreement between the parties or by arbitration under statute) that
are, or are likely to become, payable in respect of tenancies of comparable agricultural holdings on terms (other than
those fixing the rent) similar to those of the tenancy under consideration 2. However, the arbitrator must disregard:
337.1 any element of the rents in question due to an appreciable scarcity of comparable holdings available for letting
on such terms compared with the number of persons seeking to become tenants of such holdings on such
terms3;
337.2 any element of those rents due to the fact that the tenant of, or a person tendering for, any comparable holding is
in occupation of other land in the vicinity of that holding that may conveniently be occupied together with that
holding4; and
337.3 any effect on those rents due to any allowances or reductions made in consideration of the charging of
premiums5.
1
2
3
4
5

Ie for the purposes of the Agricultural Holdings Act 1986 s 12(5), Sch 2 para 1(1) (1 Halsburys Statutes (4th Edn)
AGRICULTURE).
See the Agricultural Holdings Act 1986, Sch 2 para 1(3).
See the Agricultural Holdings Act 1986, Sch 2 para 1(3)(a).
See the Agricultural Holdings Act 1986, Sch 2 para 1(3)(b).
See the Agricultural Holdings Act 1986, Sch 2 para 1(3)(c).

[2119]
338
Matters to be disregarded
In determining the rent properly payable, the arbitrator must disregard any increase in the rental value of the holding
due to:
338.1 tenants improvements1 or fixed equipment2 other than improvements executed or equipment provided under an
obligation imposed on the tenant by the terms of his contract of tenancy3;
338.2 landlords improvements4 in so far as the landlord has received or will receive grants out of money provided by
Parliament or local government funds in respect of their execution 5; and
338.3 milk quota transferred to the tenant at the tenants expense 6.
The arbitrator must also disregard any effect on the rent of the fact that the tenant who is a party to the
arbitration is in occupation of the holding7, and must not fix the rent at a lower amount by reason of any dilapidation or
deterioration of, or damage to, buildings or land caused or permitted by the tenant 8.
[2120]
1

3
4
5
6
7
8

Tenants improvements means any improvements executed on the holding in so far as they are executed wholly or partly at the
expense of the tenant (whether or not that expense has been or will be provided by Parliament or local government funds)
without any equivalent allowance or benefit made or given by the landlord in consideration of their execution: see the
Agricultural Holdings Act 1986 s 12(5), Sch 2 para 2(2)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Where the tenant has held a previous tenancy of the holding, the reference to any improvements as mentioned in the above
definition extends to improvements executed during that tenancy, but excludes any improvement in respect of which the tenant
received any compensation on the termination of that or any other tenancy: see the Agricultural Holdings Act 1986, Sch 2 para
2(3)(a). The continuous adoption by the tenant of a system of farming more beneficial to the holding than the system of farming
required by the contract of tenancy or, in so far as no system is required, than the system of farming normally practised on
comparable agricultural holdings, is to be treated as an improvement executed at his expense: see the Agricultural Holdings Act
1986, Sch 2 para 2(4).
Tenants fixed equipment means fixed equipment provided by the tenant: see the Agricultural Holdings Act 1986, Sch 2 para
2(2)(b). Where the tenant has held a previous tenancy of the holding, then the reference to such equipment in this definition
extends to equipment provided during that tenancy, but excludes any equipment so provided in respect of which the tenant
received any compensation on the termination of that or any other tenancy: see the Agricultural Holdings Act 1986, Sch 2 para
2(3)(b). As to fixed equipment generally, see Paragraphs 320 [2061] and 321 [2062] ante.
See the Agricultural Holdings Act 1986, Sch 2 para 2(1)(a).
Landlords improvements means improvements executed on the holding by the landlord: see the Agricultural Holdings Act
1986, Sch 2 para 2(2)(c).
See the Agricultural Holdings Act 1986, Sch 2 para 2(1)(b).
See the Agriculture Act 1986 s 15 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986, Sch 2 para 3(a).
See the Agricultural Holdings Act 1986, Sch 2 para 3(b).

[2121]
339
Time when demand ceases to be effective
A demand for arbitration of rent ceases to be effective on the next termination date following the date of the demand
unless, before such termination date:
339.1 an arbitrator has been appointed by agreement between the parties 1; or
339.2 an application has been made to the President of the Royal Institution of Chartered Surveyors for the
appointment of an arbitrator by him2.
1
2

See the Agricultural Holdings Act 1986 s 12(3)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE). For forms of appointment of
an arbitrator by agreement, see Forms 141 [3583] and 142 [3587] post.
See the Agricultural Holdings Act 1986 s 12(3)(b).

[2122]
340
Frequency of arbitration
A demand for arbitration of rent is not effective if the next termination date following the date of the demand falls
earlier than the end of three years from:
340.1 the commencement of the tenancy1; or
340.2 the date as from which a previous increase or reduction in rent, whether made under the Agricultural Holdings
Act 19862 or otherwise, took effect 3; or
340.3 the date as from which there took effect a previous direction of an arbitrator that the rent should continue
unchanged4.
1
2
3

See the Agricultural Holdings Act 1986 s 12(5), Sch 2 para 4(1)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to
construction of references to the commencement of the tenancy, see Paragraphs 341 [2124] and 342 [2152] post.
Ie under the Agricultural Holdings Act 1986 s 12.
See the Agricultural Holdings Act 1986, Sch 2 para 4(1)(b). Where a reduction in rent is agreed in consequence of a change in
the fixed equipment provided by the landlord, the date of the reduction will not affect the calculation of the three-year period
(see the Agricultural Holdings Act 1986, Sch 2 para 4(2)(b)), however a reduction in rent consequent upon a change in the
holding itself (even if only the surrender of a building) will trigger a new three-year period: Mann v Gardner (1990) 61 P & CR
1, CA.
See the Agricultural Holdings Act 1986, Sch 2 para 4(1)(c).

[2123]
341
New holdings
Where a tenancy of an agricultural holding (the new holding) commences under a contract of tenancy between:
341.1 a person who immediately before the date of the commencement of the tenancy was entitled to a severed part of
the reversionary estate in an agricultural holding (the original holding) in which the new holding was then
comprised1, and
341.2 the person who immediately before that date was the tenant of the original holding 2;
and where the rent payable in respect of the new holding at the commencement of the tenancy of that holding
represents merely the appropriate portion of the rent payable in respect of original holding immediately before the
commencement of that tenancy3, the statutory reference to the commencement of the tenancy 4 is to be read as referring
to the commencement of the original tenancy and the references to the rent 5 are to be read as references to the rent
payable in respect of the original holding 6. This construction continues until the first occasion following the
commencement of the tenancy of the new holding on which any such increase or reduction of or direction with respect
to the rent of the new holding takes effect 7.
1
2
3
4
5
6

See the Agricultural Holdings Act 1986 s 12(5), Sch 2 para 5(1)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986, Sch 2 para 5(1)(b).
See the Agricultural Holdings Act 1986, Sch 2 para 5(1).
Ie the reference in the Agricultural Holdings Act 1986, Sch 2 para 4(1)(a): see the Agricultural Holdings Act 1986, Sch 2 para
5(2)(a).
Ie references in the Agricultural Holdings Act 1986, Sch 2 para 4(1)(b),(c) to a previous increase or reduction of rent or a
previous direction that rent should continue unchanged: see the Agricultural Holdings Act 1986, Sch 2 para 5(2)(b).
These provisions must, however, be read in conjunction with the Agricultural Tenancies Act 1995 s 4 (particularly s 4(1)(f)) (1
Halsburys Statutes (4th Edn) AGRICULTURE). A termination and regrant may result in the holding becoming a farm business
tenancy and ceasing to be an agricultural holding.
See the Agricultural Holdings Act 1986, Sch 2 para 5(2).

[2124]
342

Variation of boundaries or terms

Where the landlord and the tenant of a holding provide in an agreement (not being an agreement for a new tenancy) for
the adjustment of the boundaries of the holding or for any variation of the terms of the tenancy, excluding those relating
to rent, then, unless the agreement otherwise provides:
342.1 that provision is, for the purpose of the restriction on frequency of demands for arbitration of rent, to be treated
as not operating to terminate the tenancy and accordingly as not resulting in the commencement of a new
tenancy between the parties1, and
342.2 any increase or reduction in rent solely attributable to any such adjustment or variation is to be disregarded for
the purposes of ascertaining the date from which there took effect a previous increase or reduction in rent 2.
1
2

See the Agricultural Holdings Act 1986 s 12(5), Sch 2 para 6(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986, Sch 2 para 6(b). This provision is clearly directed towards minor adjustments in
boundaries without any substantial alteration in the extent of the holding involved and does not apply to, eg, the surrender of a
farmhouse: see Mann v Gardner (1990) 61 P & CR 1 at 10, CA.

[2125][2140]
(b) Increases in rent for landlords improvements
343
Notice of increase
Where the landlord of an agricultural holding has carried out on the holding certain specified improvements 1, he may,
within six months of the completion of the improvement, serve written notice on the tenant to increase the rent of the
holding as from the completion of the improvement. The rent may be increased by an amount equal to the increase in
the rental value attributable to the carrying out of the improvement 2.
1
2

As to the specified improvements, see Paragraph 344 [2142] post.


See the Agricultural Holdings Act 1986 s 13(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). For a form of notice of
increase of rent, see Form 132 [3530] post.

[2141]
344
The specified improvements
The specified improvements are:
344.1 an improvement carried out at the request of, or in agreement with, the tenant 1;
344.2 an improvement involving the provision, alteration or repair of fixed equipment carried out in compliance with
a direction given by an agricultural land tribunal2;
344.3 a long term improvement, where the tribunal has given approval to the tenant and the landlord has served
written notice on the tribunal and the tenant that he (the landlord) proposes to carry out the work himself 3;
344.4 an improvement carried out in compliance with a direction given by the Minister 4 under powers conferred on
him by or under any enactment5;
344.5 works executed on the holding to comply with the requirements of a notice under the Agriculture (Safety,
Health and Welfare Provisions) Act 1956 in connection with the provision of sanitary conveniences and
washing facilities6;
344.6 an improvement carried out in compliance with an improvement notice served, or an undertaking accepted,
under the Housing Act 19857 (improvement notices) or the Housing Act 1974 8 (compulsory improvement of
dwellings)9.
[2142]
1
2
3
4
5
6
7
8
9

See the Agricultural Holdings Act 1986 s 13(2)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 13(2)(b). As to the provision, alteration and repair of fixed equipment, see Paragraphs
320 [2061] and 321 [2062] ante.
See the Agricultural Holdings Act 1986 s 13(2)(c). As to long term improvements for which the landlords consent or a tribunals
approval is required, see Paragraph 428 [2431] post.
The Minister means, in relation to England, the Minister of Agriculture, Fisheries and Food, and in relation to Wales, the
Secretary of State for Wales: see the Agricultural Holdings Act 1986 s 96(1).
See the Agricultural Holdings Act 1986 s 13(2)(d).
See the Agricultural Holdings Act 1986 s 13(2)(e).
Ie the Housing Act 1985 Pt VII (ss 209238) (repealed by the Local Government and Housing Act 1989 ss 165(2), 194(4), Sch
12 Pt II).
Ie the Housing Act 1974 Pt VIII (ss 85104) (repealed by the Housing (Consequential Provisions) Act 1985 s 3, Sch 1 Pt I).
See the Agricultural Holdings Act 1986 s 13(2)(f).

[2143]
345

Restrictions on increases

An increase of rent may not be made in respect of an improvement falling within the Agricultural Holdings Act 1986
section 13(2)(a), (b) or (f) 1 if, within six months from its completion, the landlord and the tenant agree on any increase
in rent or other benefit to the landlord in respect of the improvement 2.
The amount of the increase in rent must be reduced proportionately:
345.1 in the case of an improvement relating to fixed equipment, carried out in compliance with a direction of an
Agricultural Land Tribunal 3, where a grant has been made to the landlord in respect of the improvement out of
money provided by Parliament4;
345.2 in the case of any other improvement listed above 5, where a grant has been made to the landlord in respect of
the improvement out of money provided by Parliament or local government funds 6; and
345.3 in the case of an improvement carried out in compliance with an improvement notice 7, where the tenant has
contributed to the cost incurred by his landlord in carrying out the improvement 8.
1
2
3
4
5
6
7
8

As to these improvements, see sub-paragraphs 344.1, 344.2 and 344.6 [2142] ante.
See the Agricultural Holdings Act 1986 s 13(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie an improvement within the Agricultural Holdings Act 1986 s 13(2)(b), as to which see sub-paragraph 344.2 [2142] ante.
See the Agricultural Holdings Act 1986 s 13(4)(a).
Ie the improvements set out in the Agricultural Holdings Act 1986 s 13(2)(a), (c)(f).
See the Agricultural Holdings Act 1986 s 13(4)(b).
Ie an improvement within the Agricultural Holdings Act 1986 s 13(2)(f), as to which see sub-paragraph 344.6 [2142] ante.
See the Agricultural Holdings Act 1986 s 13(4)(c).

[2144]
346
Application of provisions
The provisions relating to the increase of rent for landlords improvements apply to an improvement 1 whether or not it
is one for the carrying out of which compensation is provided under the Agricultural Holdings Act 1986 Parts V 2 or
VI3.
1
2
3

See the Agricultural Holdings Act 1986 s 13(8) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 Pt V (ss 6078) providing for compensation on termination of tenancy. As to
compensation for improvements, see Paragraphs 421 [2401]433 [2442] post.
See the Agricultural Holdings Act 1986 Pt VI (ss 7982), market gardens and smallholdings. As to compensation for
improvements to market gardens, see Paragraphs 442 [2471]445 [2474] post.

[2145]
347
Disputes
Any dispute arising between the landlord and the tenant of the holding under the above provisions as to rent increases
must be determined by arbitration under the Agricultural Holdings Act 1986 1.
1

See the Agricultural Holdings Act 1986 s 13(7) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2146][2155]
(c) Reduction in rent
348
Reduction in rent where notice is given to quit part of holding
Where the landlord of an agricultural holding resumes possession of part of the holding 1 either by virtue of the
statutory provisions validating in certain cases a notice to quit part of the holding 2 or in pursuance of a similar
provision contained in the contract of tenancy 3, the tenant is entitled to a reduction in rent proportionate to that part of
the holding. He is also entitled to a reduction in respect of any depreciation in the value to him of the residue of the
holding caused by the severance or by the use to be made of the part severed 4. The amount by which the rent is reduced
must, in default of agreement made after the landlord resumes possession of the part of the holding concerned, be
determined by arbitration5.
1
2
3

4
5

See the Agricultural Holdings Act 1986 s 33(1)(a) (1 Halsburys statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 31(1). As to notice to quit part, see Paragraphs 372 [2245] and 373 [2246] post.
See the Agricultural Holdings Act 1986 s 33(1)(b). In any case falling within the Agricultural Holdings Act 1986 s 33(1)(b) that
has to be determined by arbitration, the arbitrator, in assessing the amount of the reduction, must take into consideration any
benefit or relief allowed to the tenant under the contract of tenancy in respect of the land of which the landlord has resumed
possession: see the Agricultural Holdings Act 1986 s 33(3).
See the Agricultural Holdings Act 1986 s 33(1).
See the Agricultural Holdings Act 1986 s 33(2).

[2156][2160]
4: TERMS AS TO DISTRESS

349
Introduction
In general the landlord of an agricultural holding is not entitled to distrain for rent that became due in respect of that
holding more than one year before the making of the distress 1. Where, however, according to the ordinary course of
dealing between the landlord and the tenant of the holding, the payment of rent has been deferred until the expiry of a
quarter or half-year after the date at which the rent legally became due, the rent is deemed for this purpose to have
become due at the expiry of that quarter or half-year and not at the date when it became legally due 2.
1
2

See the Agricultural Holdings Act 1986 s 16(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 16(2).

[2161]
350
Compensation to be set off against rent for purposes of distress
Where the amount of any compensation due to the tenant of an agricultural holding, whether under the Agricultural
Holdings Act 1986 or under custom or agreement, has been ascertained before the landlord distrains for rent, that
amount may be set off against the rent and the landlord is not entitled to distrain for more than the balance 1.
1

See the Agricultural Holdings Act 1986 s 17(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2162]
351
Restrictions on distraint on property of third party
The landlord may not distrain for rent on property belonging to a person other than the tenant of an agricultural holding
if:
351.1 the property is either agricultural or other machinery and is on the holding under an agreement with the tenant
for its hire or use in the conduct of his business1; or
351.2 the property is livestock2 and is on the holding for breeding purposes3.
1
2
3

See the Agricultural Holdings Act 1986 s 18(1)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
For the purposes of see the Agricultural Holdings Act 1986 s 18 livestock includes any animal capable of being distrained: see
the Agricultural Holdings Act 1986 s 18(5). For the general definition of livestock, see Paragraph 309 [2017] ante.
See the Agricultural Holdings Act 1986 s 18(1)(b).

[2163]
352
Restriction on distraining agisted livestock
The landlord of an agricultural holding may not distrain agisted livestock 1 where there is other sufficient distress to be
found2. If agisted livestock is distrained because other sufficient distress is not found, the sum recovered by the distress
must not exceed the amount of the price agreed to be paid for the feeding or any part of the price which remains
unpaid3.
The owner of the agisted livestock may, at any time before it is sold, redeem it by paying to the distrainer a
sum equal to the agreed feeding price or any unpaid part of it, and payment of that sum operates as a full discharge as
against the tenant of any sum of that amount that would otherwise be due from the owner of the livestock to the tenant
in respect of the price of feeding 4.
Any portion of the agisted livestock, so long as it remains on the holding, continues liable to be distrained for
the amount for which the whole of the livestock is distrainable 5.
1

2
3
4
5

Agisted livestock means livestock belonging to another person that has been taken in by the tenant of an agricultural holding to
be fed at a fair price: see the Agricultural Holdings Act 1986 s 18(5) (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to
agistment, see further vol 2(2) (1998 Reissue) AGRICULTURE Paragraph 101 [734] et seq .
See the Agricultural Holdings Act 1986 s 18(2).
See the Agricultural Holdings Act 1986 s 18(2).
See the Agricultural Holdings Act 1986 s 18(3).
See the Agricultural Holdings Act 1986 s 18(4).

[2164][2170]

E: LETTINGS CONFERRING NO SECURITY OF TENURE


1: INTRODUCTION
353
Excluding security
The consequences to a landowner of the grant of a tenancy in terms of the devaluation of the freehold, the fiscal
consequences of a letting, the extent of security of tenure (in some instances extending to two subsequent generations
of the tenant) and the loss of control generally of the land were such that, prior to the enactment of the Agricultural
Tenancies Act 19951, many landowners considered alternative arrangements for the occupation of agricultural land, not

involving the creation of a tenancy or, at the very least, involving the creation of a tenancy conferring no security of
tenure2.
The distinction between a lease and a licence, which is of importance in the context of business 3 and
residential4 tenancies, is also of significance in relation to the statutory protection for agricultural tenants 5. Exclusive
possession is of primary importance when considering whether a legal relationship is that of licensor and licensee or
landlord and tenant6.
1
2

3
4
5
6

As to the limited security of tenure provided by the Agricultural Tenancies Act 1995 (1 Halsburys Statutes (4th Edn)
AGRICULTURE), see Paragraph 71 [81] et seq ante.
As to lettings with the Ministers prior consent, see Paragraphs 354 [2181]356 [2184] post; as to tenancies for more than one
but less than two years, see Paragraphs 357 [2191] and 358 [2192] post; as to grazing and/or mowing agreements, see
Paragraphs 359 [2201]363 [2204] post and as to lettings to employees, see Paragraph 363 [2211] post. As avoiding the creation
of an agricultural holding, see Paragraphs 364 [2216]367 [2220] post.
As to business tenancies, see vols 22(1) - (3) (1996-1997 Reissue) LANDLORD AND TENANT (Business Tenancies).
As to residential tenancies, see vol 23 LANDLORD AND TENANT.
As to leases and licences, see Paragraphs 4.1 [7] and 310 [2026]313 [2029] ante and 356 [2184], 366 [2218] and 367 [2220]
post.
As to the distinction between a tenancy and a licence, and the significance of exclusive possession, see Paragraph 7 [10] ante and
27(1) Halsburys Laws (4th Edn Reissue) LANDLORD AND TENANT para 6 et seq. Farming arrangements that exclude the
grantor from agricultural exploitation of the land may result in security of tenure arising in favour of the grantee: see Padbury v
York [1990] 2 EGLR 3.

[2171][2180]
2: AGREEMENTS EXCLUDED FROM SECURITY WITH THE MINISTERS CONSENT
354
Tenancies for less than a year
Although lettings for an interest less than a tenancy from year to year, and licences of any duration, granted before 1
September 1995, under which a tenant or licensee was permitted to occupy agricultural land, fell to be converted into
tenancies from year to year under the Agricultural Holdings Act 1986 1, this provision did not apply where:
354.1 the agreement was approved by the Minister2 before it was entered into3; or
354.2 the agreement, or grant of a licence, was made in contemplation of the use of the land only for grazing or
mowing (or both) during some specified period of the year 4; or
354.3 the agreement, or grant of a licence, was made by a person whose interest in the land was less than a tenancy
from year to year (which had not taken effect as such a tenancy by virtue of the provisions of the Agricultural
Holdings Act 1986 section 2)5.
The Agricultural Holdings Act 1986 gave no guidance on the principles to be applied, but in practice the Minister 6 gave
consent only in very limited and restricted circumstances 7. Where, as would normally be the case, conditions 8 were
imposed they had to be strictly observed 9.
[2181]
1

2
3
4
5
6

See the Agricultural Holdings Act 1986 s 2(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 310 [2026]313
[2029] ante. Any dispute as to the operation of the Agricultural Holdings Act 1986 s 2 must be determined by arbitration: see ibid
s 2(4).
The Minister means, in relation to England, the Minister of Agriculture, Fisheries and Food, and in relation to Wales, the
Secretary of State for Wales: see the Agricultural Holdings Act 1986 s 96(1).
See the Agricultural Holdings Act 1986 s 2(1).
See the Agricultural Holdings Act 1986 s 2(3)(a). As to grazing and mowing agreements, see Paragraphs 359 [2201]362 [2204]
post.
See the Agricultural Holdings Act 1986 s 2(3)(b).
The machinery for granting approval by the Ministry was delegated by the Minister of Agriculture, Fisheries and Food to the
divisional surveyor for the Ministry in each particular area of England, and similarly in Wales by the Secretary of State for
Wales. The onus of proof was on the landowner. Where a short term agreement was granted on the same day as the date on the
Ministers form of consent, and the landowner was unable to prove that the Ministers consent was granted earlier in the day, the
restriction in the Agricultural Holdings Act 1986 s 2 on letting agricultural land for less than from year to year was held to
operate and the agreement was converted into a tenancy from year to year: Bedfordshire County Council v Clarke (1974) 230
Estates Gazette 1587.
A statement setting out the policy to be applied in the exercise of the Ministers discretion was laid in the library of the House of
Commons on 19 July 1984. It has been held that an approval of all lettings or licences of a particular type or by a particular
landlord falls within the statutory exception relating to prior ministerial approval in the Agricultural Holdings Act 1986 s 2(1),
but not all lettings or licences whatsoever: Finbow v Air Ministry [1963] 2 All ER 647, [1963] 1 WLR 697. Approval by the
Minister for a specified period did not result in a tenancy granted for a shorter term being outside the terms of the approval: Pahl
v Trevor [1992] 25 EG 130, CA. The Minister merely had to approve the letting of the particular piece of land before any
agreement was made, not the terms of the particular agreement: Epsom and Ewell Borough Council v C Bell (Tadworth) Ltd
[1983] 2 All ER 59, [1983] 1 WLR 379.
See Pahl v Trevor [1992] 25 EG 130, CA.

Bedfordshire County Council v Clarke (1974) 230 Estates Gazette 1587.

[2182]
355
Fixed term leases for a term of between two and five years1
A tenancy of an agricultural holding for a term of two years or more granted before 1 September 1995, instead of
terminating on the term date, continues (as from the term date) as a tenancy from year to year, but otherwise on the
terms of the original tenancy, unless it is terminated in accordance with statute 2.
It is not possible to contract out of this provision 3 except in the case of a tenancy for a term of not less than
two and not more than five years where, before the grant of the tenancy, both prospective parties make a joint
application to the Minister4 for approval of the agreement to exclude the statutory provisions and the Minister notifies
them of his approval5. The contract of tenancy must be in writing and it, or a statement endorsed upon it, must indicate
(in whatever terms) that the Agricultural Holdings Act 1986 section 3 does not apply to the tenancy 6.
1
2
3
4
5
6

These provisions are now relevant only in the case of fixed term leases of between 2 and 5 years granted before 1 September
1995.
See the Agricultural Holdings Act 1986 s 3(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). For a form of notice to
determine such a tenancy, see Form 153 [3695]. As to the length of notice, see Paragraph 369 [2242] post.
See the Agricultural Holdings Act 1986 s 5(1).
The Minister means, in relation to England, the Minister of Agriculture, Fisheries and Food, and in relation to Wales, the
Secretary of State for Wales: see the Agricultural Holdings Act 1986 s 96(1).
See the Agricultural Holdings Act 1986 s 5(2).
See the Agricultural Holdings Act 1986 s 5(3).

[2183]
356
Licences
Although the Ministers1 power to give approval to the grant of a tenancy not conferring security of tenure was limited
to a term certain of less than a year or a term certain of between two and five years 2, there was no such restriction on
the Ministers power to grant consent for a licence 3.
However, there is a danger of a licence being found on its true construction to be a tenancy masquerading as a
licence, even though it is described as a licence on its face 4.
1
2
3
4

The Minister means, in relation to England, the Minister of Agriculture, Fisheries and Food, and in relation to Wales, the
Secretary of State for Wales: see the Agricultural Holdings Act 1986 s 96(1).
Ie by the provisions of the Agricultural Holdings Act 1986 ss 2, 5(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE): see
Paragraphs 354 [2181] and 355 [2183] ante.
See the Agricultural Holdings Act 1986 s 2(2)(b).
As to mislabelling of documents, see Paragraph 367 [2220] post.

[2184][2190]
3: TENANCIES FOR MORE THAN ONE BUT LESS THAN TWO YEARS
357
No security of tenure
A tenancy for more than one but less than two years granted before 1 September 1995 conferred on the tenant no
security of tenure under the Agricultural Holdings Act 1986 1. If, however, the agreement provided that there should in
fact be a series of agreements, each for 18 months, it is submitted that such agreements would have been aggregated to
create an agreement for a tenancy of not less than two years, enjoying security of tenure under the Agricultural
Holdings Act 1986.
1

Gladstone v Bower [1960] 2 QB 384, [1960] 3 All ER 353, CA; Johnson v Moreton [1980] AC 37, [1978] 3 All ER 37, HL. See
also Keen v Holland [1984] 1 All ER 75, [1984] 1 WLR 251, CA.

[2191]
358
Whether a tenancy of an agricultural holding
Whether a tenancy for more than one but less than two years was actually a tenancy of an agricultural holding was an
important question. If such a tenancy was not a tenancy of an agricultural holding 1, none of the remaining provisions of
the Agricultural Holdings Act 1986, for example compensation, would apply, and although there would have been no
security of tenure under the Agricultural Holdings Act 1986 2, the tenancy would be protected under the Landlord and
Tenant Act 19543 as a business tenancy. However, the Court of Appeal held 4 that such a tenancy did fall within the
statutory definition of a contract of tenancy as being for a term of years and thus created an agricultural holding 5, which
was not within the Landlord and Tenant Act 19546.
1

The crucial factor was whether it was a letting of land for a term of years or from year to year within the Agricultural Holdings
Act 1986 s 1(5) (1 Halsburys Statutes (4th Edn) AGRICULTURE), as to which see Paragraph 306 [2014] ante.

2
3
4
5
6

As to security of tenure in tenancies for more than one but less than two years, see Paragraph 357 [2191] ante.
Ie the Landlord and Tenant Act 1954 Pt II (ss 2346) (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT).
See EWP Ltd v Moore [1992] 1 QB 460, [1992] 1 All ER 880, CA, where a tenancy of agricultural land for a fixed term of 23
months was held to be for a term of years.
For the definitions in the Agricultural Holdings Act 1986 s 1(1),(5), see Paragraphs 304 [2012]309 [2017] ante.
See the Landlord and Tenant Act 1954 s 43(1)(a) as amended by the Agriculture Act 1958 s 8(1), Sch 1 para 29 and the
Agricultural Tenancies Act 1995 s 40 Schedule para 10.

[2192][2200]
4: GRAZING AND MOWING AGREEMENTS
359
Exemption from security
A licence or tenancy made, before 1 September 1995, whether expressly or not, in contemplation of the use of the land
only for grazing or mowing (or both) during some specified period of the year was not converted 1 into a tenancy from
year to year conferring security of tenure on the tenant 2. A grazing agreement did not merely avoid security of tenure
under the Agricultural Holdings Act 1986, but also under the Landlord and Tenant Act 1954 3.
1
2
3

As to conversion of tenancies generally, see Paragraphs 310 [2026]313 [2029] ante.


See the Agricultural Holdings Act 1986 s 2(3)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Landlord and Tenant Act 1954 s 43(1)(a) (as amended by the Agriculture Act 1958 s 8(1), Sch 1 para 29 and by the
Agricultural Tenancies Act 1995 s 40, Schedule para 10) (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT).

[2201]
360
Specified period of the year
An agreement that the tenant should occupy for a limited period, but that the agreement would be renewed, caused the
periods to be aggregated for the purposes of determining the true length of the agreement between the parties 1.
The period of the tenancy had to be both specified and less than a year 2, but specific reference to actual dates
was not necessary. Thus a letting for the grazing season was sufficient 3. A letting for six months periods was outside
the exception, since it implied a minimum of two such periods 4. Even an agreement for the letting of land for a full year
fell within the exception if the mutual contemplation of the parties, as found by the court, was that the tenant should use
the land for grazing or mowing only and that such use should be limited to a part of the year only 5.
1
2
3
4
5

Short Bros (Plant) v Edwards (1978) 249 Estates Gazette 539, CA; Scene Estate Ltd v Amos [1957] 2 QB 205, [1957] 2 All ER
325, CA.
See the Agricultural Holdings Act 1986 s 2(3)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Stone v Whitcombe (1980) 40 P & CR 296 at 306, CA; Mackenzie v Laird 1959 SLT 268 at 272.
Rutherford v Maurer [1962] 1 QB 16, [1961] 2 All ER 775, CA; Short Bros (Plant) v Edwards (1978) 249 Estates Gazette 539,
CA.
Stone v Whitcombe (1980) 40 P & CR 296 at 306, CA.

[2202]
361
Contemplated use not actual use
It was not what the tenant in fact did with the land following a grazing and/or mowing agreement that determined
whether or not the statutory exception operated, but what was agreed between the parties 1. If, therefore, a tenant was
permitted to occupy land for grazing or mowing purposes only, but in fact grew corn and intended all the time to do so,
the statutory exception still operated unless it could be shown that it was the mutual intention of the parties that the land
should be used for some purpose other than grazing or mowing only. The actual use might be of evidential value as to
the intention of the parties but of itself did not override the mutual intention expressed in the written agreement 2.
The contemplation of the parties had to be mutual and had to be more than a mere expectation. In the case of
a genuine written agreement, it was not permissible to look outside its terms to ascertain what the parties might have
contemplated in their own minds, except possibly to ascertain terms of the agreement on which the written document
was silent3.
1
2
3

See the Agricultural Holdings Act 1986 s 2(3)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Boyce v Rendells (1983) 268 Estates Gazette 268, CA.
Scene Estate Ltd v Amos [1957] 2 QB 205, [1957] 2 All ER 325, CA.

[2203]
362
Buildings
Although the inclusion of buildings in an agreement of this nature was dangerous, as evidence of a mutual intention
that the land should be used for more than grazing or mowing only, the inclusion of small ancillary buildings did not of
itself cause the agreement to fall outside the exception 1.
1

Avon County Council v Clothier (1977) 242 Estates Gazette 1048, CA.

[2204][2210]
5: LETTINGS TO EMPLOYEES
363
No security where tenant is an employee of landlord
The definition of an agricultural holding 1 in the Agricultural Holdings Act 1986 excludes a contract under which the
land is let to the tenant during his continuance in any office, appointment or employment held under the landlord 2. If,
therefore, the tenant under a contract granted before 1 September 1995 is an employee of the landlord and the tenancy
is coterminous with the employment by the landlord, no security will be enjoyed by the tenant.
A letting of land to a farm manager by his employer in those circumstances would avoid any security for the
farm manager, but a letting to a person who was on probation, before being granted a full tenancy, has been held not to
be a letting to a person holding an office, appointment or employment under the landlord 3.
1
2
3

See the Agricultural Holdings Act 1986 s 1(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 304 [2012] ante.
See the Agricultural Holdings Act 1986 s 1(1).
Verrall v Farnes [1966] 2 All ER 808, [1966] 1 WLR 1254.

[2211][2215]
6: AVOIDING THE CREATION OF AN AGRICULTURAL HOLDING
364
Prohibition on contracting out
Although the provisions of the Agricultural Holdings Act 1986 relating to restrictions on the operation of notices to
quit, and the agricultural land tribunals consent to their operation, contain no express prohibition on contracting out, it
is in fact contrary to public policy for the parties voluntarily to agree that those provisions should not apply or should
be circumvented by means of the contract between the parties 1. If, therefore, the parties entered into an agreement
before 1 September 1995 that on its true construction either was, or by virtue of the operation of the Agricultural
Holdings Act 19862 became, a tenancy of an agricultural holding, a term of that agreement providing for some scheme
to be employed so as to frustrate the security of tenure afforded by the Agricultural Holdings Act 1986 would not be
effective3.
However, this did not mean that the parties could not arrange their affairs so that the agreement reached
between them did not constitute a contract of tenancy creating an agricultural holding conferring security of tenure 4.
Nevertheless, if the parties expressly agreed between themselves that the tenancy they created was not one to which
security of tenure should apply, but on its true construction it was found that the parties had misconstrued their own
document and that security of tenure was available, the party claiming security of tenure could not be estopped from
making that claim5.
1
2
3
4

Johnson v Moreton [1980] AC 37, [1978] 3 All ER 37, HL. See also Featherstone v Staples [1986] 2 All ER 461, [1986] 1 WLR
861, CA and Gisborne v Burton [1989] QB 390, [1988] 3 All ER 760, CA.
Ie the Agricultural Holdings Act 1986 s 2(3)(b) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See Johnson v Moreton [1980] AC 37, [1978] 3 All ER 37, HL.
See OMalley v Seymour (1978) 250 Estates Gazette 1083 at 1088, CA per Lawton LJ. See also Shell-Mex and BP Ltd v
Manchester Garages Ltd [1971] 1 All ER 841 at 846, [1971] 1 WLR 612 at 619, CA in which, when considering a scheme to
avoid the provisions of the Landlord and Tenant Act 1954 Pt II (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT),
Buckley LJ said one cannot take [the scheme] into account in the process of construing such a document to find out what the
true nature of the transaction is.
See Keen v Holland [1984] 1 All ER 75, [1984] 1 WLR 251, CA. See also Paragraph 367 [2220] post (mislabelling).

[2216]
365
Agreement for surrender at future date
It would also appear that, pursuant to this general principle, an agreement for the surrender of a tenancy of an
agricultural holding at a future date, where the agreement to surrender is freely negotiated after the grant of the tenancy
and not as an express condition of it, will be enforceable if the future date is within the time in which a notice to quit
could have taken effect 1. A concluded surrender that has destroyed the tenancy is an effective method of determining an
agricultural tenancy.
1

See Elsden v Pick [1980] 3 All ER 235 at 242, 243, [1980] 1 WLR 898 at 908, 909, CA.

[2217]
366
Sham transactions
The law relating to sham transactions involves a totally different legal concept 1 from contracting out. If the parties
agreed before 1 September 1995 that there should be a letting or a licence of such a nature and kind as was converted
into a letting, and in either case the letting would have been one of an agricultural holding, they could not by their
documentation dress up the agreement so as to give the appearance of an agreement of a different nature and kind.

Similarly if both parties agreed that the land should be used for general farming but in their documentation they falsely
asserted that the land was to be used for grazing or mowing only, the agreement had to be construed and took effect in
accordance with the true mutual intention of the parties. The document itself was disregarded as a sham.
It is, however, important to note that both parties must have mutually intended something other than that
which the document itself suggests before the court will set aside a document as a sham. There have been many cases
in which the doctrine of sham has been considered and applied specifically in the context of the law of landlord and
tenant, particularly where shared licences designed to avoid the Rent Acts have fallen to be considered 2.
[2218]
1

As to what legal concept may be involved in the use of the word sham, see the observations of Diplock LJ in Snook v London
& West Riding Investments Ltd [1967] 2 QB 786 at 802, [1967] 1 All ER 518 at 528, CA. See also Gisborne v Burton [1989] QB
390, [1988] 3 All ER 760, CA where the majority of the Court of Appeal in Gisborne v Burton [1989] QB 390, [1988] 3 All ER
760, CA held that, although an arrangement where the landowner granted a tenancy to his wife (who on the same day granted a
subtenancy) was not a sham in the sense explained in Snook v London & West Riding Investments Ltd [1967] 2 QB 786 at 802,
[1967] 1 All ER 518 at 528, CA, it was nevertheless an artificial transaction which attracted the principle applied in Furniss v
Dawson [1984] AC 474, [1984] 1 All ER 530, HL.. For a case where it was held that a licence designed to come within what is
now the Agricultural Holdings Act 1986 s 2(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE) was in fact a sham, see Short
Bros (Plant) v Edwards (1978) 249 Estates Gazette 539, CA.
See eg Walsh v Griffiths-Jones [1978] 2 All ER 1002; Demuren v Seal Estates (1978) 249 Estates Gazette 440, CA; OMalley v
Seymour (1978) 250 Estates Gazette 1083, CA. The results were different in each of these cases because the findings of fact as to
the true intention of the parties and the extent to which those intentions were carried forward into the documents, although the
forms of licence were similar. See also Street v Mountford [1985] AC 809, [1985] 2 All ER 289, HL; Aslan v Murphy [1989] 3
All ER 130, [1990] 1 WLR 766, CA; AG Securities v Vaughan; Antoniades v Villiers [1990] 1 AC 417, [1988] 3 All ER 1058,
HL.

[2219]
367
Mislabelling
In addition to, and as an alternative to, an allegation that a document falls to be construed otherwise than in accordance
with its true terms, or the true relationship of the parties is other than the document itself suggests, founded on an
allegation of contracting out or sham, there is a third case that draftsmen of documents relating to agricultural holdings
should bear in mind when determining the nature and terms of the documents that they prepare: namely the question of
mislabelling. Where a sham is alleged, it is necessary for the court to consider whether the documents represent the true
bargain reached between the parties by reference to extrinsic evidence. Where an allegation of mislabelling is made, the
court has to consider the document in question in its entirety and determine whether the labels the parties have attached
to themselves accurately describe their true legal relationship. For example, where a document is described as a licence,
and the parties are described as licensor and licensee respectively, but the document taken in its entirety and on its true
construction is found to constitute the grant of a tenancy, the court will treat the legal relationship between the parties as
being that of landlord and tenant notwithstanding the fact that the parties themselves have misconstrued their own
document and misunderstood the true relationship they have created 1. Even the most general tenant-like obligations, if
imposed on a licensee, may be sufficient to enable the court to hold that the agreement is a tenancy, even though it is
described as a licence2.
Whether a document falls to be disregarded as a sham is a question largely of fact; whether a document is
mislabelled is a question of law founded on the true construction of the document in question without looking outside
the document except in so far as that is permissible within the general rules of construction. Even though the parties
entered into a partnership, or described themselves as farmer and contractor, they may be found to have misdescribed
themselves in their documents and, albeit inadvertently, to have created a relationship of landlord and tenant.
1
2

See Addiscombe Garden Estates Ltd v Crabbe [1958] 1 QB 513, [1957] 3 All ER 563, CA. and Paragraph 353 [2171] (excluding
security) ante.
See eg Ashdale Land & Property Co Ltd v Manners [1992] 34 EG 76.

[2220][2230]

F: SECURITY OF TENURE
1: INTRODUCTION
368
The machinery for conferring security of tenure
The Agricultural Holdings Act 1986 confers security of tenure on tenants of agricultural holdings by providing for the
continuation of certain tenancies1 and by imposing restrictions on the operation of notices to quit given by landlords 2.
The 1986 Act does not expressly restrict other methods of termination, such as surrender or forfeiture 3.
The statutory scheme for family succession on the death of a tenant of an agricultural holding, introduced in
1976, was abolished (subject to certain exceptions) in the case of tenancies created on or after 12 July 1984 4. The

Agricultural Holdings Act 1986 Part IV also contains provisions (originally introduced in 1984) for succession on
retirement, but these provisions only apply to tenancies where there are succession rights on death 5.
1

2
3
4
5

See the Agricultural Holdings Act 1986 s 2 (1 Halsburys Statutes (4th Edn) AGRICULTURE), which provides that certain short
term lettings and licences are to take effect as tenancies from year to year (see Paragraphs 310 [2026]313 [2029] ante); and the
Agricultural Holdings Act 1986 s 3, which provides that, subject to certain exceptions, a tenancy for a term of two years or more
will continue as a tenancy from year to year at the end of the contractual term. As to the exceptions, see the Agricultural
Holdings Act 1986 ss 3(1)(a), 4, 5 and Paragraph 355 [2183] (tenancies for more than one but less than two years) ante.
As to notices to quit, see Paragraphs 369 [2242]374 [2251] post.
See further Scammell and Denshams Law of Agricultural Holdings (7th Edn, 1989) Pt III.
See now the Agricultural Holdings Act 1986 s 34. As to succession on death, see Paragraphs 387 [2291]398 [2326] post.
See the Agricultural Holdings Act 1986 s 34. As to succession on retirement, see Paragraphs 399 [2336]411 [2362] post.

[2231][2240]
2: NOTICES AND COUNTER-NOTICES
(a) Notices to quit
369
Length of notice
A notice to quit1 an agricultural holding or part of an agricultural holding (notwithstanding any provision to the
contrary in the contract of tenancy of the holding) is invalid if it purports to determine the tenancy before the expiry of
12 months from the end of the then current year of the tenancy, notwithstanding any contrary provision in the tenancy
agreement2. This provision does not, however, apply:
369.1 where the tenant is insolvent3;
369.2 to a notice given pursuant to a provision in the tenancy agreement authorising the resumption of possession of
the holding or part of the holding for a specified purpose other than agriculture 4;
369.3 to a notice given by the tenant to a subtenant5;
369.4 where the lease takes effect as a lease for 90 years determinable on death or marriage 6.
1

2
3
4
5
6

As to service of notices, see the Agricultural Holdings Act 1986 s 93 (1 Halsburys Statutes (4th Edn) AGRICULTURE). For
special provisions where the tenant is a serviceman, see the Agricultural Holdings Act 1986 s 30, Sch 5. For forms of notice to
quit, see Forms 154 [3697]156 [3700] post.
See the Agricultural Holdings Act 1986 s 25(1).
See the Agricultural Holdings Act 1986 s 25(2)(a). As to the meaning of insolvent, see the Agricultural Holdings Act 1986 s
96(2).
See the Agricultural Holdings Act 1986 s 25(2)(b). For a landlords notice to quit land required for non-agricultural purposes,
given pursuant to such a provision in a tenancy agreement, see Form 157 [3702] post.
See the Agricultural Holdings Act 1986 s 25(2)(c). For a notice to quit given by a tenant to his subtenant, see Form 158 [3704]
post. As to the position of subtenants generally, see Paragraphs 412 [2371]413 [2372] post.
Ie under the Law of Property Act 1925 s 149(6) (37 Halsburys Statutes (4th Edn) REAL PROPERTY): see the Agricultural
Holdings Act 1986 s 25(2)(d).

[2242]
370
Notice after arbitration of rent
A further exception is provided1 where, on a reference under the Agricultural Holdings Act 1986 for arbitration of rent 2,
the arbitrator determines that the rent payable in respect of the holding is to be increased; in these circumstances a
notice to quit given by the tenant (at least six months before it purports to take effect) is not invalid if it purports to
determine the tenancy at the end of the year of the tenancy beginning with the date from which the rent increase is
effective3.
1
2
3

See the Agricultural Holdings Act 1986 s 25(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie under the Agricultural Holdings Act 1986 s 12.
A term of the contract of tenancy requiring a longer period of notice will not make such a notice invalid: see the Agricultural
Holdings Act 1986 s 25(5).

[2243]
371
Notice after certificate of failure to farm in accordance with rules of good husbandry
Similarly, where the landlord of an agricultural holding applies to an agricultural land tribunal for a certificate that the
tenant is not fulfilling his responsibilities to farm in accordance with the rules of good husbandry 1, the tribunal may, on
granting a certificate:
371.1 specify in the certificate a minimum period of not less than two months to determine the tenancy 2; and
371.2 direct that such period is to apply instead of the normal statutory period of notice 3;

and a notice to quit stating that the tribunal has given such a direction is not invalid even though the notice is less than
the normal statutory minimum4.
1

2
3
4

Ie under the Agricultural Holdings Act 1986, Sch 3 Pt II para 9(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to notice
to quit on the ground set out in the Agricultural Holdings Act 1986, Sch 3 Pt I Case C, see Paragraph 381 [2279] post. As to the
rules of good husbandry, see the Agriculture Act 1947 s 11 (1 Halsburys Statutes (4th Edn) AGRICULTURE): see the Agricultural
Holdings Act 1986 s 96(3).
See the Agricultural Holdings Act 1986 s 25(4)(a).
See the Agricultural Holdings Act 1986 s 25(4)(b).
See the Agricultural Holdings Act 1986 s 25(4).

[2244]
372
Notice relating to part of holding
A notice to quit part of an agricultural holding would normally be invalid at common law in the absence of an express
provision in the tenancy agreement 1. The Agricultural Holdings Act 1986 provides 2 that where a landlord gives notice
to quit part of an agricultural holding held on a tenancy from year to year, such notice is not invalid on the ground that
it relates to part only of the holding if it is given (and states that it is given):
372.1 for the purpose of adjusting the boundaries between agricultural units or amalgamating agricultural units or
parts of such units3; or
372.2 with a view to the use of the land for certain specified objects 4.
Where a valid notice to quit part of the holding is served on the tenant 5 and the tenant serves written counternotice within 28 days after the giving of the notice 6 to the effect that he accepts the notice to quit part as notice to quit
the entire holding, to take effect at the same time as the original notice, then the notice to quit takes effect accordingly 7.
1

2
3
4
5
6
7

As to the exceptions to the general rule, see Scammell and Denshams Law of Agricultural Holdings (7th Edn, 1989) Pt III Ch
12. As to the circumstances in which a notice to quit an agricultural holding may be given without the statutory minimum period
of notice, see Paragraph 369 [2242] ante.
See the Agricultural Holdings Act 1986 s 31(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 31(1)(a).
See the Agricultural Holdings Act 1986 s 31(1)(b). As to the specified objects, see Paragraph 373 [2246] post.
Ie either a notice by the landlord that is rendered valid by the Agricultural Holdings Act 1986 s 31, or a notice given by a person
entitled to a severed part of the reversion: see the Agricultural Holdings Act 1986 s 32(1).
Or, where the operation of the notice depends on proceedings under the Agricultural Holdings Act 1986 Pt III, within 28 days
after the date when the notice becomes effective: see the Agricultural Holdings Act 1986 s 32(2)(b).
See the Agricultural Holdings Act 1986 s 32(2). As to reduction in rent where notice is given to quit part of an agricultural
holding, see the Agricultural Holdings Act 1986 s 33 and Paragraph 348 [2156] ante.

[2245]
373
The specified objects in relation to a notice to quit part
Notice to quit part of an agricultural holding may be valid if it is given with a view to the use of the land for:
373.1 the erection of cottages or other houses for farm labourers, whether with or without gardens 1; or
373.2 the provision of gardens for cottages or other houses for farm labourers 2; or
373.3 the provision of allotments3; or
373.4 the letting of land (with or without other land) as a smallholding 4; or
373.5 the planting of trees5; or
373.6 the opening or working of a deposit of coal, ironstone, limestone, brick-earth or other mineral, or a stone quarry
or a clay, sand or gravel pit or the construction of any works or buildings to be used in connection with such
opening or working6; or
373.7 the making of a watercourse or reservoir 7; or
373.8 the making of a road, railway, tramroad, siding, canal or basin or a wharf, pier or other work connected with
such construction8.
1
2
3
4
5
6
7
8

See the Agricultural Holdings Act 1986 s 31(2)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 31(2)(b).
See the Agricultural Holdings Act 1986 s 31(2)(c).
See the Agricultural Holdings Act 1986 s 31(2)(d).
See the Agricultural Holdings Act 1986 s 31(2)(e).
See the Agricultural Holdings Act 1986 s 31(2)(f).
See the Agricultural Holdings Act 1986 s 31(2)(g).
See the Agricultural Holdings Act 1986 s 31(2)(h).

[2246][2250]
(b) Tenants counter-notice

374
Right to serve a counter-notice
A tenant who receives a notice to quit the whole or part of an agricultural holding may serve on the landlord, within one
month1, a written counter-notice2 requiring that the Agricultural Holdings Act 1986 section 26(1) apply 3, so that the
notice to quit will not have effect unless (on an application by the landlord) an agricultural land tribunal consents to its
operation4. The landlord must seek the tribunals consent on an application made within one month of the tenants
counter-notice5.
However, if the notice to quit is given solely in any one of the cases where the consent of an agricultural land
tribunal is not required, no such counter-notice may be given by the tenant 6.
1

2
3

4
5
6

See the Agricultural Holdings Act 1986 s 26(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). The landlord is not required to
set out in the notice to quit the tenants right to serve a counter-notice and the consequences of not doing so: Crawford v Elliot
[1991] 1 EGLR 13, CA.
For a form of counter-notice, see Form 162 [3716] post.
See the Agricultural Holdings Act 1986 s 26(1)(b). In the case of a joint tenancy of agricultural land, a counter-notice under the
Agricultural Holdings Act 1986 s 26(1)(b) can ordinarily only be served with the concurrence of all the joint tenants. Where,
however, agricultural land was let to three partner-tenants, one of whom was a company wholly owned by the landlord, it was
held that a restrictive condition that no partner could serve a counter-notice without the companys consent was void and
unenforceable and that consequently counter-notices served by the other two partners only were valid: Featherstone v Staples
[1986] 2 All ER 461, [1986] 1 WLR 861, CA applying Johnson v Moreton [1980] AC 37, [1978] 3 All ER 37, HL.
As to cases where the consent of an agricultural land tribunal is required, see Paragraphs 375 [2256]376 [2258] post.
See the Agricultural Land Tribunals (Rules) Order 1978/259 art 2, Sch 1 r 2(2). For the prescribed form of application for
consent, see Form 169 [3781] post.
See the Agricultural Holdings Act 1986 s 26(2). For the cases where consent is not required, see the Agricultural Holdings Act
1986, Sch 3 Pt I Cases AH (Case B as substituted by the Agricultural Holdings (Amendment) Act 1990 s 1(2)), and see
Paragraphs 379 [2276]386 [2285] post. Where the landlord serves a notice to quit under the Agricultural Holdings Act 1986 s
26(2), Sch 3 Pt I Case D on the grounds that the tenant has failed to comply with a notice to do work, the tenant may serve a
counter-notice: see the Agricultural Holdings Act 1986 s 28. For a form of counter-notice, see Form 165 [3720] post.

[2251][2255]
3: CASES WHERE THE CONSENT OF A TRIBUNAL IS REQUIRED
375
General considerations
Where an application1 has been made to an agricultural land tribunal for consent 2 to the operation of a notice to quit,
the tribunal must be satisfied 3 as to one or more of the specific matters 4 mentioned by the landlord in his application for
consent. Even if the tribunal is so satisfied, they must withhold their consent to the operation of the notice to quit if in
all the circumstances it appears to the tribunal that a fair and reasonable landlord would not insist on possession 5.
Where the tribunal give their consent to the operation of the notice to quit, they may impose such conditions 6
as appear necessary to ensure that the land in question will be used for the purpose for which the landlord proposes to
determine the tenancy7, but the tribunal may, on the landlords application, vary or revoke such conditions if they are
satisfied that, by reason of a change of circumstances or otherwise, any condition imposed ought to be varied or
revoked8.
[2256]
1
2

3
4
5
6

7
8

For the prescribed form of application, see Form 169 [3781] post.
For a detailed discussion of cases where the tribunals consent is required to the operation of a notice to quit, see Scammell and
Denshams Law of Agricultural Holdings (7th Edn, 1989) Pt III Ch 10. For a form of notice to quit on one of the grounds where
the tribunals consent is required, see Form 155 [3698] post.
See the Agricultural Holdings Act 1986 s 27(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the specific matters, see Paragraph 376 [2258] post.
See the Agricultural Holdings Act 1986 s 27(2).
As to the position where the tribunal give their consent and impose a condition under the Agricultural Holdings Act 1986 s 27(4),
and it is proved on an application to the tribunal on behalf of the Crown that the landlord has acted in contravention of the
condition or has failed within the time allowed by the condition to comply with it, see the Agricultural Holdings Act 1986 s
27(6)(9).
See the Agricultural Holdings Act 1986 s 27(4).
See the Agricultural Holdings Act 1986 s 27(5).

[2257]
376
Specific matters
The tribunal must be satisfied that one or more of the following grounds has been established by the landlord:
376.1 that the carrying out of the purpose for which the landlord proposes to terminate the tenancy is desirable in the
interests of good husbandry1 with regard to the land to which the notice relates, treated as a separate unit 2;
376.2 that the carrying out of the purpose is desirable in the interests of sound management of the estate of which the
land to which the notice relates forms part or which that land constitutes 3;

376.3 that the carrying out of the purpose is desirable for the purposes of agricultural research, education, experiment
or demonstration or for the purposes of the enactments relating to smallholdings 4;
376.4 that the carrying out of the purpose is desirable for the purposes of the enactments relating to allotments 5;
376.5 that greater hardship would be caused by withholding than by giving consent to the operation of the notice 6;
376.6 that the landlord proposes to determine the tenancy for the purpose of the lands being used for a use, other than
agriculture, not falling within Case B of the Agricultural Holdings Act 1986 7.
1
2
3
4
5
6
7

As to the rules of good husbandry, see the Agriculture Act 1947 s 11 (1 Halsburys Statutes (4th Edn) AGRICULTURE): see the
Agricultural Holdings Act 1986 s 96(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 27(3)(a).
See the Agricultural Holdings Act 1986 s 27(3)(b).
See the Agricultural Holdings Act 1986 s 27(3)(c). As to smallholdings generally, see vol 2(3) (1998 Reissue) ALLOTMENTS
AND SMALLHOLDINGS .
See the Agricultural Holdings Act 1986 s 27(3)(d). As to allotments generally, see vol 2(3) (1998 Reissue) ALLOTMENTS AND
SMALLHOLDINGS .
See the Agricultural Holdings Act 1986 s 27(3)(e).
See the Agricultural Holdings Act 1986 s 27(3)(f). As to Case B, see the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case
B as substituted by the Agricultural Holdings (Amendment) Act 1990 s 1(2) and see also Paragraph 380 [2277] post.

[2258][2265]
4: CASES WHERE NOTICE IS EFFECTIVE WITHOUT CONSENT
(a) General
377
Exclusion of requirement for consent
The tenants right to serve a counter-notice 1 and render the landlords notice to quit of no effect unless the consent of an
agricultural land tribunal is first obtained is, in certain cases, excluded by the Agricultural Holdings Act 1986 2. The
landlords notice to quit must state that it is given for the reasons or in the circumstances that bring it within these
cases3.
1
2

As to the tenants right to serve a counter-notice, see Paragraph 374 [2251] ante.
Ie the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Cases AH as amended (1 Halsburys Statutes (4th Edn)
AGRICULTURE), as to which see Paragraphs 379 [2276]386 [2285] post. For a detailed discussion of cases where the tribunals
consent is not required, see Scammell and Denshams Law of Agricultural Holdings (7th Edn, 1989) Pt III Ch 11.
See the Agricultural Holdings Act 1986, Sch 3 Pt I Cases AH as amended. A notice to quit stating that it is given for one of the
reasons set out in these cases is invalid and of no effect if it contains a statement that is false and made fraudulently by the giver
of the notice: Rous v Mitchell [1991] 1 All ER 676, [1991] 1 WLR 469, CA.

[2266]
378
Tenants right to contest
Where the tenants right to serve a counter-notice is excluded, he may, if he chooses, contest the reason in the notice to
quit, but he is precluded from requiring the landlord to obtain the consent of the agricultural land tribunal 1. The
landlord merely has to establish the reason stated in his notice.
A tenant in receipt of a notice to quit given pursuant to Cases A, B, D or E must, if he wishes to contest, serve
notice requiring arbitration2 within one month. In default, the tenant is statute-barred from putting in issue the reasons
stated for the giving of the notice to quit.
1
2

See the Agricultural Holdings Act 1986 s 26(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
For a notice requiring arbitration, see Form 166 [3722] post. As to arbitration, see the Agricultural Holdings (Arbitration on
Notices) Order 1987/710. Note that the requirement for arbitration does not completely exclude judicial consideration: see Rous
v Mitchell [1991] 1 All ER 676, [1991] 1 WLR 469, CA where it was held that the question as to whether the notice to quit
contained a fraudulent misrepresentation was not a question to be referred to arbitration under the Agricultural Holdings
(Arbitration on Notices) Order 1987, as article 9 of that Order is not sufficiently clear and explicit to exclude the jurisdiction of
the court. Note also that in the case of a notice to quit given on the ground specified in Case D, there is an alternative and
additional right to invoke the jurisdiction of the agricultural land tribunal in limited circumstances: see Paragraph 382 [2280]
post.

[2267][2275]
(b) The Cases
379
Case A1
The holding is let as a smallholding by a smallholdings authority or the Minister 2 pursuant to the Agriculture Act 1970
Part III3 and was so let on or after 12 September 1984, and:
379.1 the tenant has attained the age of 65; and

379.2 if the result of the notice to quit taking effect would be to deprive the tenant of living accommodation occupied
by him under the tenancy, suitable alternative accommodation 4 is available for him or will be available for him
when the notice takes effect; and
379.3 the instrument under which the tenancy was granted contains an acknowledgment signed by the tenant that the
tenancy is subject to the provisions of this Case5;
and it is stated in the notice to quit that it is given by reason of this matter.
1
2
3
4
5

See the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case A (1 Halsburys Statutes (4th Edn) AGRICULTURE).
The Minister means, in relation to England, the Minister of Agriculture, Fisheries and Food, and in relation to Wales, the
Secretary of State for Wales: see the Agricultural Holdings Act 1986 s 96(1).
Ie the Agriculture Act 1970 Pt III (ss 3765) as amended (2 Halsburys Statutes (4th Edn) ALLOTMENTS AND
SMALLHOLDINGS ).
As to the meaning of suitable alternative accommodation, see the Agricultural Holdings Act 1986, Sch 3 Pt II paras 17.
Ie the provisions of the Agricultural Holdings Act 1986, Sch 3 Pt I Case A or under the Agricultural Holdings (Notices to Quit)
Act 1977 s 2(3) Case I (repealed).

[2276]
380
Case B1
The notice to quit is given on the ground that the land is required for a use, other than for agriculture:
380.1 for which permission2 has been granted on an application made under the enactments relating to town and
country planning3; or
380.2 for which permission under those enactments is granted by a general development order 4 by reason only of the
fact that the use is authorised by:
380.2.1 a private or local Act,
380.2.2 an order approved by both Houses of Parliament, or
380.2.3 an order made under the Harbours Act 1964 section 14 or section 165; or
380.3 for which any provision that is contained in an Act, but does not form part of the enactments relating to town
and country planning, deems permission under those enactments to have been granted; or
380.4 which any such provision deems not to constitute development for the purposes of those enactments; or
380.5 for which permission is not required under the enactments relating to town and country planning by reason only
of Crown immunity;
and that fact is stated in the notice.
[2277]
1

2
3
4
5

See the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case B, as substituted by the Agricultural Holdings (Amendment) Act
1990 s 1(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE). See Agricultural Law Notes: Recent cases by J Muir Watt [1990]
32 EG 26.
As to the permissions that should not be taken into consideration, see the Agricultural Holdings Act 1986, Sch 3 Pt II para 8(1).
As to the enactments relating to town and country planning, see the Agricultural Holdings Act 1986, Sch 3 Pt II para 8A(1)(b),
(2)(b) as inserted by the Agricultural Holdings (Amendment) Act 1990 s 1(3).
General development order is defined in the Agricultural Holdings Act 1986, Sch 3 Pt II para 8A(1)(a),(2)(a) as inserted by the
Agricultural Holdings (Amendment) Act 1990 s 1(3).
The Harbours Act 1964 s 14 as amended (34 Halsburys Statutes (4th Edn) PORTS AND HARBOURS) concerns orders for
securing harbour efficiency. The Harbours Act 1964 s 16 as amended concerns orders for improvement, construction etc

[2278]
381
Case C1
Not more than six months before the giving of the notice to quit, an Agricultural Land Tribunal granted a certificate 2
that the tenant of the holding was not fulfilling his responsibilities to farm in accordance with the rules of good
husbandry3 and that fact is stated in the notice.
1
2
3

See the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case C (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie a certificate under the Agricultural Holdings Act 1986, Sch 3 Pt II para 9(1).
As to the meaning of the rules of good husbandry, see the Agriculture Act 1947 s 11 (1 Halsburys Statutes (4th Edn)
AGRICULTURE): see the Agricultural Holdings Act 1986 s 96(3).

[2279]
382
Case D1
At the date of the giving of the notice to quit, the tenant had failed to comply with a written notice served on him by the
landlord being either:
382.1 a notice2 requiring him, within two months from the service of the notice, to pay any rent due in respect of the
agricultural holding to which the notice relates3; or

382.2 a notice4 requiring him, within a reasonable period 5 specified in the notice, to remedy any breach by the tenant
(that was capable of being remedied) of any term or condition of his tenancy that was not inconsistent with his
responsibilities to farm in accordance with the rules of good husbandry6;
and it is stated in the notice to quit that it is given by reason of that matter.
[2280]
1
2
3

5
6

See the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case D (1 Halsburys Statutes (4th Edn) AGRICULTURE).
For the prescribed form of notice to the tenant to pay rent, see Form 150 [3681] post.
Note that the Landlord and Tenant Act 1987 Pt VI (ss 4651) (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT)
applies to premises that consist of or include a dwelling and are not held under a tenancy to which the Landlord and Tenant Act
1954 Pt II applies: see the Landlord and Tenant Act 1987 s 46(1). As to the application of the Landlord and Tenant Act 1987 Pt
VI to agricultural tenancies, see Dallhold Estates (UK) Pty v Lindsey Trading Properties Inc [1992] 23 EG 112.
For the prescribed forms of notice to the tenant to remedy breach of the tenancy agreement, see Forms 151 [3684] and 152
[3691] post. Where a notice to quit includes a statement in accordance with the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt
I Case D to the effect that it is given by reason of the tenants failure to comply with a notice to do work (ie work of repair,
maintenance or replacement: see the Agricultural Holdings Act 1986 s 28(6)), the tenant may serve a counter-notice within one
month requiring that the Agricultural Holdings Act 1986 s 28(2) shall apply to the notice. The notice to quit then does not have
effect unless, on application by the landlord, an agricultural land tribunal consents to its operation: see the Agricultural Holdings
Act 1986 s 28(2). The tenant may alternatively serve notice on the landlord within one month requiring the validity of the reason
stated in the notice to quit to be determined by arbitration: see the Agricultural Holdings Act 1986 s 28(4).
A period of less than six months will not be treated as a reasonable period: see the Agricultural Holdings Act 1986, Sch 3 Pt II
para 10(1)(c).
As to the meaning of the rules of good husbandry, see the Agriculture Act 1947 s 11 (1 Halsburys Statutes (4th Edn)
AGRICULTURE): see the Agricultural Holdings Act 1986 s 96(3).

[2281]
383
Case E1
At the date of the giving of the notice to quit, the interest of the landlord in the agricultural holding had been materially
prejudiced by the commission by the tenant of a breach, which was not capable of being remedied, of any term or
condition of the tenancy that was not inconsistent with the tenants responsibilities to farm in accordance with the rules
of good husbandry2, and it is stated in the notice that it is given by reason of that matter.
1
2

See the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case E (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the meaning of the rules of good husbandry, see the Agriculture Act 1947 s 11 (1 Halsburys Statutes (4th Edn)
AGRICULTURE) applied by the Agricultural Holdings Act 1986 s 96(3).

[2282]
384
Case F1
At the date of the giving of the notice to quit, the tenant was a person who had become insolvent 2, and it is stated in the
notice that it is given by reason of that matter.
1
2

See the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case F (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the meaning of insolvent, see the Agricultural Holdings Act 1986 s 96(2).

[2283]
385
Case G1
The notice to quit is given:
385.1 following the death of a person who immediately before his death was the sole (or sole surviving) tenant 2 under
the contract of tenancy; and
385.2 not later than the end of the period of three months beginning with the date of any relevant notice 3;
and it is stated in the notice to quit that it is given by reason of that persons death.
1

2
3

See the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case G (1 Halsbury's Statutes (4th Edn) AGRICULTURE).
The Agricultural Holdings Act 1986 s 43(1) provides that a notice to quit falling within Case G does not have effect unless:
(1)
no application to become the tenant of the holding is made under the Agricultural Holdings Act 1986 s 39 within the
period allowed (see Paragraph 394 [2321] post), or
(2)
one or more applications having been made under the Agricultural Holdings Act 1986 s 39, either no applicant is
considered by the agricultural land tribunal to be suitable or the tribunal consents to the operation of the notice to quit
(see Paragraph 397 [2325] post).
As to the meaning of tenant, see the Agricultural Holdings Act 1986, Sch 3 Pt II para 12(a).
As to the meaning of relevant notice, see the Agricultural Holdings Act 1986, Sch 3 Pt II para 12(b); Lees v Tatchell [1990] 1
EGLR 10, [1990] 23 EG 62, CA and BSC Pension Fund Trustees Ltd v Downing [1990] 1 EGLR 4, [1990] 19 EG 87.

[2284]
386

Case H1

The notice to quit is given by the Minister2 and:


386.1 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 3 or the reshaping of any agricultural unit; and
386.2 the agreement under which the tenant was granted the tenancy contains an acknowledgement signed by the
tenant that the tenancy is subject to the provisions of this Case 4.
1
2
3
4

See the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case H (1 Halsbury's Statutes (4th Edn) AGRICULTURE).
The Minister means, in relation to England, the Minister of Agriculture, Fisheries and Food, and in relation to Wales, the
Secretary of State for Wales: see the Agricultural Holdings Act 1986 s 96(1).
Ie under the Agriculture Act 1967 s 26(1) as amended (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Or the provisions of the Agricultural Holdings (Notices to Quit) Act 1977 s 2(3) Case H (repealed), or of the Agriculture Act
1967 s 29 as amended.

[2285][2290]
5: SUCCESSION ON DEATH OF TENANT
(a) Right of succession
387
Tenancies to which the succession provisions apply
The Agricultural Holdings Act 1986 Part IV 1 applies to a tenancy of an agricultural holding granted before 12 July
19842, but does not apply to a tenancy granted on or after that date unless:
387.1 the tenancy was obtained by virtue of a direction of an agricultural land tribunal under the Agricultural Holdings
Act 1986 sections 39 or 533; or
387.2 the tenancy was granted (following a direction under the Agricultural Holdings Act 1986 section 39) in
circumstances falling within section 45(6) of that Act 4; or
387.3 the tenancy was granted by a written contract of tenancy indicating (in whatever terms) that the provisions of
the Agricultural Holdings Act 1986 Part IV were to apply in relation to the tenancy 5; or
387.4 the tenancy was granted otherwise than as mentioned above to a person who, immediately before that date, was
a tenant of the holding or of any agricultural holding comprising the whole or a substantial part of the land
comprised in the holding6.
[2291]
1
2
3

5
6

Ie the Agricultural Holdings Act 1986 Pt IV (ss 3459) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 34(1)(a).
See the Agricultural Holdings Act 1986 s 34(1)(b)(i). As to an application by an eligible person under the Agricultural Holdings
Act 1986 s 39 for the tenancy of a holding on the death of a tenant, or an application by a nominated successor under the
Agricultural Holdings Act 1986 s 53 for the tenancy of a holding on the retirement of a tenant, see Paragraphs 394 [2321] and
399 [2336] post.
See the Agricultural Holdings Act 1986 ss 34(1)(b)(ii). The circumstances covered by the Agricultural Holdings Act 1986 s 45(6)
are that the person or persons entitled to a tenancy or joint tenancy of the holding becomes or become the tenant or joint tenants
of the holding before that time under a tenancy granted by the landlord to and accepted by the person or persons concerned.
See the Agricultural Holdings Act 198 s 34(1)(b)(iii).
See the Agricultural Holdings Act 198 s 34(1)(b)(iv).

[2292]
388
Right for close relative to apply for tenancy on succession
Where the Agricultural Holdings Act 1986 Part IV applies to a tenancy of an agricultural holding 1 and the sole (or sole
surviving) tenant of an agricultural holding dies2 and is survived by a close relative 3, an eligible person4 may apply to
an agricultural land tribunal for a direction5 entitling him to a tenancy of the holding6.
1
2
3
4

As to where the Agricultural Holdings Act 1986 s 36(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE) Part IV applies, see
Paragraph 387 [2291] ante.
See the Agricultural Holdings Act 1986 s 35(1)(b).
Close relative means the spouse, brother or sister, child or child of the family of the deceased tenant: see the Agricultural
Holdings Act 1986 s 35(2).
Eligible person means a surviving close relative (who is not the occupier of a commercial unit of agricultural land) whose
principal source of livelihood has been derived from the holding for five out of the last seven years: see the Agricultural
Holdings Act 1986 s 36(3). As to situations where a person who is not fully eligible may apply to be treated as eligible, see the
Agricultural Holdings Act 1986 s 41 and Form 192 [3867] post.
For a discussion of the possible advantages of assigning the tenancy to a corporate tenant and thus avoiding reliance on
succession provisions, see Agricultural tenancies: Assignment of tenancies to companies [1991] 40 EG 78.
Ie a direction of an agricultural land tribunal under the Agricultural Holdings Act 1986 s 39. As to the procedure, see Paragraphs
394 [2321]398 [2326] post.

See the Agricultural Holdings Act 1986 s 36(1). For the prescribed forms of application see Forms 192 [3867] and 196 [3893]
post. For the prescribed forms for the landlords reply, see Forms 193 [3881] and 197 [3895] post.

[2293][2305]
(b) Exclusion of right of succession on death
389
Exclusion of succession to certain fixed terms
An otherwise eligible person may not apply for a direction entitling him to a tenancy of the holding if on the date of the
death of the deceased tenant the holding was held by the deceased under:
389.1 a tenancy for a fixed term of years of which more than 27 months remained unexpired 1; or
389.2 a tenancy for a fixed term of more than one but less than two years 2.
1
2

See the Agricultural Holdings Act 1986 s 36(2)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 36(2)(b).

[2306]
390
Exclusion of succession where two successions have already occurred
An otherwise eligible person may not apply for a direction entitling him to a tenancy of the holding if, on each of the
last two occasions when a sole (or sole surviving) tenant of the holding (or of a related holding 1) died, one or other of
the following occurred:
390.1 a tenancy of the holding or of a related holding was obtained by virtue of a direction of an agricultural land
tribunal under the Agricultural Holdings Act 1986 section 39 2, or such a tenancy was granted (following such a
direction) in circumstances falling within section 45(6) of that Act 3; or
390.2 a tenancy of the holding or of a related holding was granted by the landlord to a person who, being a close
relative of the tenant who died on that occasion, was or had become the sole or sole remaining applicant for
such a direction4.
1
2
3

A related holding means any agricultural holding comprising the whole or a substantial part of the land comprised in the
holding: see the Agricultural Holdings Act 1986 s 35(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 37(1)(a). As to directions under the Agricultural Holdings Act 1986 s 39, see Paragraph
398 [2326] post.
The circumstances covered by the Agricultural Holdings Act 1986 s 45(6) are that the person or persons entitled to a tenancy or
joint tenancy of the holding becomes or become the tenant or joint tenants of the holding before that time under a tenancy
granted by the landlord to and accepted by the person or persons concerned.
See the Agricultural Holdings Act 1986 s 37(1)(b). See Re Trustees of FP Saunders v Ralph (1993) 66 P & CR 335, [1993]
EGCS 44, which considered whether a son was the first or second successor of a tenancy previously held by father and
grandfather as joint tenants.

[2307]
391
Exclusion of succession where there is a valid notice to quit subject to a tribunals consent
An otherwise eligible person may not apply for a direction entitling him to a tenancy of the holding if, on the date of
the death of the deceased tenant, the tenancy is the subject of a valid notice to quit 1 under the Agricultural Holdings Act
1986 section 26(1), being a notice given before the date of death in the case of which:
391.1 the month allowed for serving a counter-notice 2 expired before that date without such a counter-notice having
been served3; or
391.2 the agricultural land tribunal consented before that date to its operation 4.
1
2
3
4

As to the validity of notices to quit agricultural holdings, see Paragraphs 369 [2242]373 [2246 ante.
Ie a counter-notice under the Agricultural Holdings Act 1986 s 26(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to the
right to serve a counter-notice, see Paragraph 374 [2251] ante.
See the Agricultural Holdings Act 1986 s 38(1)(a).
See the Agricultural Holdings Act 1986 s 38(1)(b).

[2308]
392
Exclusion of succession where there is a valid notice to quit within certain cases
An otherwise eligible person may not apply for a direction entitling him to a tenancy of the holding if, on the date of
the death of the deceased tenant, the tenancy is the subject of a valid notice to quit (given before that date) falling
within Case C or Case F1; or fallings within Case B, Case D or Case E2 where one of the following applies:
392.1 the time within which the tenant could have required any questions arising in connection with the notice to be
determined by arbitration under the Agricultural Holdings Act 1986 expired before that date, without such a
requirement having been made by the tenant, and the month allowed for serving any counter-notice in respect of
the notice expired before that date, without any such counter-notice having been served 3; or
392.2 questions arising in connection with the notice were referred to arbitration under the Agricultural Holdings Act
1986 before that date, and were determined before that date in such a way as to uphold the operation of the

notice, and (where applicable) the month allowed for serving any counter-notice in respect of the notice expired
before that date, without any counter-notice having been served 4; or
392.3 an agricultural land tribunal consented before that date to the operation of the notice 5.
1
2
3
4
5

See the Agricultural Holdings Act 1986 s 38(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to the Agricultural Holdings
Act 1986, Sch 3 Pt I Cases C and F, see Paragraphs 381 [2279] and 384 [2283] ante respectively.
See the Agricultural Holdings Act 1986 s 38(3). As to the Agricultural Holdings Act 1986, Sch 3 Pt I Cases B (as substituted), D
and E, see Paragraphs 380 [2277], 382 [2280] and 383 [2282] ante respectively.
See the Agricultural Holdings Act 1986 s 38(3)(a).
See the Agricultural Holdings Act 1986 s 38(3)(b).
See the Agricultural Holdings Act 1986 s 38(3)(c).

[2309]
393
Exclusion of succession in the case of smallholdings and certain trust property
An otherwise eligible person may not apply for a direction entitling him to a tenancy of the holding if:
393.1 the holding consists of land held by a smallholdings authority or the Minister 1 for the purposes of
smallholdings2; or
393.2 the tenancy was granted by trustees in whom the land is vested on charitable trusts, the sole or principal object
of which is the settlement or employment in agriculture of persons who have served in any of the naval, military
or air forces3.
1
2
3

The Minister means, in relation to England, the Minister of Agriculture, Fisheries and Food, and in relation to Wales, the
Secretary of State for Wales: see the Agricultural Holdings Act 1986 s 96(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 38(4).
See the Agricultural Holdings Act 1986 s 38(5).

[2310][2320]
(c) Procedure
394
Time of application
An application by an eligible person to an agricultural land tribunal for a direction entitling him to a tenancy of the
holding must be made within three months beginning with the day after the date of the death of the deceased tenant 1.
1

See the Agricultural Holdings Act 1986 s 39(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2321]
395
Single application
Where only one application is made, the agricultural land tribunal, if satisfied that the applicant was an eligible person
at the date of death, and that he has not subsequently ceased to be such a person, must determine 1 whether, in their
opinion, the applicant is a suitable person2 to become the tenant of the holding. The tribunal must afford the landlord an
opportunity of stating his views on the suitability of the applicant 3 before making a determination. If satisfied that the
sole applicant is both eligible and suitable, the tribunal must 4 give a direction entitling him to a tenancy5.
1
2
3
4
5

See the Agricultural Holdings Act 1986 s 39(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the relevant matters to be considered, see the Agricultural Holdings Act 1986 s 39(8) and Paragraph 397 [2325] post.
See the Agricultural Holdings Act 1986 s 39(7).
Subject to the Agricultural Holdings Act 1986 ss 39(10) (enabling eligible person to accept a tenancy of part) and 44
(opportunity for landlord to obtain consent to notice to quit falling within Case G).
See the Agricultural Holdings Act 1986 s 39(5).

[2322]
396
Multiple applications
More than one application may be received by the agricultural land tribunal within the relevant period of three months.
In that case the following rules apply:
396.1 If one of the applicants is a person validly designated by the deceased in his will as the person he wished to
succeed him as tenant of the holding 1, the tribunal, if satisfied as to the applicants eligibility, must determine
whether that person is suitable 2, and may consider any other applicant only if the person designated in the will 3
is not suitable to become the tenant of the holding.
396.2 If only one applicant, being found to be eligible, is determined by the tribunal to be in their opinion a suitable
person to become the tenant of the holding, the tribunal must, subject 4 to affording the landlord an opportunity
of applying for consent to the operation of any notice to quit under Case G 5, give a direction entitling him to a
tenancy of the holding.

396.3 If two or more applicants, being found to be eligible, are determined by the tribunal to be suitable to become
tenants of the holding, the tribunal must, subject to affording the landlord an opportunity of applying for
consent to the operation of any notice to quit under Case G:
396.3.1 determine which of the applicants is in their opinion the more or most suitable person to become
tenant of the holding6; and
396.3.2 give a direction entitling that applicant to a tenancy of the holding 7.
[2323]
396.4 If the landlord consents, the tribunal may give a direction specifying any two, three or four applicants and
entitling those applicants to a joint tenancy of the holding 8.
1
2
3
4

5
6
7

See the Agricultural Holdings Act 1986 s 39(4) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 39(2).
Will includes a codicil: see the Agricultural Holdings Act 1986 s 40.
Ie subject to the Agricultural Holdings Act 1986 ss 39(10) (enabling eligible person to accept a tenancy of part) and 44
(opportunity for landlord to obtain consent to notice to quit falling within Case G): see the Agricultural Holdings Act 1986 s
39(5).
As to the Agricultural Holdings Act 1986, Sch 3 Pt I Case G, see Paragraph 385 [2284] ante; as to the restriction on the operation
of a notice to quit falling within Case G, see the Agricultural Holdings Act 1986 ss 43, 44.
Subject to the Agricultural Holdings Act 1986 s 39(9) (see sub-paragraph 396.4 [2324]): see the Agricultural Holdings Act 1986
s 39(6)(a).
Subject to the Agricultural Holdings Act 1986 ss 39(10) (enabling eligible person to accept a tenancy of part) and 44
(opportunity for landlord to obtain consent to notice to quit falling within Case G): see the Agricultural Holdings Act 1986 s
39(6)(b).
See the Agricultural Holdings Act 1986 s 39(9). As to the new tenancy, see Paragraph 398 [2326] post.

[2324]
397
Matters to be considered by a tribunal
In making a determination an agricultural land tribunal must:
397.1 afford the landlord an opportunity of stating his views on the suitability of the applicant or any of the
applicants1; and
397.2 have regard to:
397.2.1 the extent to which the applicant, or each of the applicants, has been trained in, or has practical
experience of, agriculture2;
397.2.2 the age, physical health and financial standing of the applicant or each of them 3; and
397.2.3 the views, if any, stated by the landlord on the suitability of the applicant or any of the applicants 4.
1
2
3
4

See the Agricultural Holdings Act 1986 s 39(7) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 39(8)(a).
See the Agricultural Holdings Act 1986 s 39(8)(b).
See the Agricultural Holdings Act 1986 s 39(8)(c).

[2325]
398
The new tenancy
Where the tribunal directs the landlord to grant a new tenancy of the holding to a successful applicant or a joint tenancy
to two or more applicants1, the tenancy takes effect at the end of 12 months following the end of the year of the tenancy
in which the deceased died2 or, if notice to quit under Case G 3 has been given, the date (if later) on which the notice to
quit takes effect 4. The terms of the new tenancy will be the same as the terms of the old tenancy 5 unless varied by
arbitration6. If the terms of the old tenancy did not contain a prohibition on assigning, subletting or parting with
possession of the holding or any part of the holding without the landlords consent in writing, there is an automatically
implied covenant to that effect 5.
1
2
3
4
5
6
7

See the Agricultural Holdings Act 1986 s 45 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 46(1)(a).
As to the Agricultural Holdings Act 1986, Sch 3 Pt I Case G, see Paragraph 385 [2284] ante.
See the Agricultural Holdings Act 1986 s 46(1)(b).
See the Agricultural Holdings Act 1986 s 47(1).
Ie arbitration under the Agricultural Holdings Act 1986 s 48: see ibid s 47(1).
See the Agricultural Holdings Act 1986 s 47(3).

[2326][2335]
6: SUCCESSION ON RETIREMENT
(a) The application

399
Right of nominated person to apply
In the case of any tenancy of an agricultural holding from year to year in relation to which an application may be made
for succession on death1, where a notice2 (the retirement notice) is given to the landlord by the tenant, or (in the case
of a joint tenancy) by all the tenants, of the holding indicating (in whatever terms) that he or they wish a single eligible
person3 named in the notice to succeed him (or them) as tenant of the holding as from a date specified in the notice 4,
the eligible person named in the retirement notice (the nominated successor) may apply to an agricultural land
tribunal for a direction entitling him to a tenancy 5.
1

2
3
4

Ie a tenancy falling within the Agricultural Holdings Act 1986 s 34(1)(a) or (b) (1 Halsburys Statutes (4th Edn) AGRICULTURE):
see the Agricultural Holdings Act 1986 s 49(1)(a). As to tenancies to which the succession provisions apply, see Paragraph 387
[2291] ante.
For a retirement notice, see Form 167 [3724] post.
As to the meaning of eligible person, see the Agricultural Holdings Act 1986 s 50(2).
The date must be a date on which the tenancy of the holding could have been determined by notice to quit given at the date of
the notice and falling not less than one year and not more than two years after the date of the notice: see the Agricultural
Holdings Act 1986 s 49(1)(b).
See the Agricultural Holdings Act 1986 s 50(1). For the prescribed form of application, see Form 198 [3898] post.

[2336]
400
Procedure for application
The nominated successor1 must make his application2 to an agricultural land tribunal within the period of one month
beginning with the day after the date of the giving of the retirement notice 3. The application must be accompanied by a
copy of the retirement notice4 and must be signed by both the nominated successor and the retiring tenant or, where the
notice was given by joint tenants, by each of the retiring tenants 5.
1
2
3
4
5

The nominated successor is the eligible person named in the retirement notice: see the Agricultural Holdings Act 1986 s 49(1)
(b),(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 399 [2336] ante.
See the Agricultural Holdings Act 1986 s 53(1). For the prescribed form of application, see Form 198 [3898] post.
See the Agricultural Holdings Act 1986 s 53(2).
For a retirement notice, see Form 167 [3724] post.
See the Agricultural Holdings Act 1986 s 53(3).

[2337][2345]
(b) Exclusion of the right of succession on retirement
401
General
Succession on retirement is excluded:
401.1 where there have already been two successions on death 1;
401.2 where there is a valid notice to quit subject to the consent of a tribunal 2;
401.3 where there is a valid notice to quit within Cases C or F, or within Cases B, D or E and certain conditions are
fulfilled3; and
401.4 in the case of smallholdings and certain trust property4.
1
2
3
4

See the Agricultural Holdings Act 1986 s 37 (1 Halsburys Statutes (4th Edn) AGRICULTURE) as applied by ibid s 51(1). As to
exclusion of the right of succession on death where 2 successions have already occurred, see Paragraph 390 [2307] ante.
See the Agricultural Holdings Act 1986 s 38(1) as applied by ibid s 51(1). As to exclusion of the right of succession on death
where there is a valid notice to quit subject to the consent of a tribunal, see Paragraph 391 [2308] ante.
See the Agricultural Holdings Act 1986 s 38(2),(3) as applied by ibid s 51(1). As to exclusion of succession on death where there
is a valid notice within these Cases, see Paragraph 392 [2309] ante.
See the Agricultural Holdings Act 1986 s 38(4),(5) as applied by ibid s 51(1). As to exclusion of succession on death in these
cases, see Paragraph 393 [2310] ante.

[2346]
402
Exclusion where there has been a previous retirement notice
An otherwise eligible person may not make an application for a direction entitling him to a tenancy of the holding if the
retiring tenant has at any time given any other retirement notice 1 in respect of the holding or a related holding 2 and an
application to become the tenant of the holding or a related holding has been duly made by any nominated successor 3 in
respect of that notice4.
1
2
3
4

As to retirement notices, see Paragraph 399 [2336] ante.


Related holding means, in relation to the holding, any agricultural holding comprising the whole or a substantial part of the
land comprised in the holding: see the Agricultural Holdings Act 1986 s 49(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the nominated successor, see Paragraphs 399 [2336] and 400 [2337] ante.
See the Agricultural Holdings Act 1986 s 51(2).

[2347]
403
Exclusion where the retiring tenant is not aged 65
An otherwise eligible person may not make an application for a direction entitling him to a tenancy of the holding if at
the retirement date the retiring tenant will be under the age of 65 1 unless the retirement notice is given on the grounds
that:
403.1 the retiring tenant or (where the notice is given by joint tenants) each of the retiring tenants is or will at the
retirement date be incapable, by reason of bodily or mental infirmity, of conducting the farming of the holding
in such a way as to secure the fulfilment of the responsibilities of the tenant to farm in accordance with the rules
of good husbandry2; and
403.2 any such incapacity is likely to be permanent 3;
and that fact is stated in the notice4.
1
2
3
4

See the Agricultural Holdings Act 1986 s 51(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 51(3)(a). As to the rules of good husbandry, see the Agriculture Act 1947 s 11 (1
Halsburys Statutes (4th Edn) AGRICULTURE) applied by the Agricultural Holdings Act 1986 s 96(3).
See the Agricultural Holdings Act 1986 s 51(3)(b).
See the Agricultural Holdings Act 1986 s 51(3).

[2348]
404
Exclusion where there is a notice to quit
An otherwise eligible person may not make an application for a direction entitling him to a tenancy of the holding if, on
the date of the giving of the retirement notice, the tenancy is the subject of a valid notice to quit, given before that date
and including a statement that it is given for any such reason as is referred to in Case B, D or E 1, unless:
404.1 it is determined by arbitration that the notice is ineffective on account of the invalidity of the reason stated 2; or
404.2 a counter-notice is served in respect of a notice under Case D 3 and consent to the application of the notice to
quit is withheld or no application for consent is made 4.
1

2
3
4

The notice to quit must not be one falling within the Agricultural Holdings Act 1986 s 38(3) as applied by the Agricultural
Holdings Act 1986 s 51(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE): see the Agricultural Holdings Act 1986 s 51(4). As
to the Agricultural Holdings Act 1986, Sch 3 Pt I Cases B (as substituted), D and E, see Paragraphs 380 [2277], 382 [2280] and
383 [2282] respectively ante.
See the Agricultural Holdings Act 1986 s 51(5)(a). As to the right to require arbitration of the validity of the reason stated, see
Paragraph 378 [2267] ante.
Ie under the Agricultural Holdings Act 1986 s 28(2).
See the Agricultural Holdings Act 1986 s 51(5)(b).

[2349][2355]
(c) Procedure after application
405
Effect of notice to quit given after application
A notice to quit under Case C, following a certificate that the tenant is not fulfilling his obligation to farm in accordance
with the rules of good husbandry1, or under Case F2 renders the retirement notice of no effect 3. A notice to quit
including a statement that it is given for a reason referred to in Case B 4 or Case D5 renders the retirement notice of no
effect6 unless:
405.1 it is determined by arbitration that the notice is ineffective on account of the invalidity of the reason stated 7; or
405.2 a counter-notice is served in respect of a notice under Case D and consent to the application of the notice to quit
is withheld or no application for consent is made 8.
1
2
3
4
5
6
7
8

As to Case C, see Paragraph 381 [2279] ante.


As to Case F, see Paragraph 384 [2283] ante.
See the Agricultural Holdings Act 1986 s 52(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). An application invalidated
under this provision is treated as if it had never been made: see the Agricultural Holdings Act 1986 s 52(5).
As to Case B, see Paragraph 380 [2277] ante.
As to Case D, see Paragraph 382 [2280] ante.
See the Agricultural Holdings Act 1986 s 52(2). An application invalidated under this provision is treated as if it had never been
made: see the Agricultural Holdings Act 1986 s 52(5).
See the Agricultural Holdings Act 1986 s 52(3)(a).
See the Agricultural Holdings Act 1986 s 52(3)(b). As to the effect on the time limit for an application by the nominated
successor to a tribunal, see the Agricultural Holdings Act 1986 s 52(4).

[2356]
406

Infirmity of retiring tenant

If the retirement notice includes a statement that it is given on the grounds of infirmity 1, then before the nominated
successors application is dealt with further, the agricultural land tribunal must be satisfied 2 that:
406.1 the retiring tenant or (as the case may be) each of the retiring tenants, either is or will at the retirement date be
incapable, by reason of bodily or mental infirmity, of conducting the farming of the holding in such a way as to
secure the fulfilment of the responsibilities of the tenant to farm in accordance with the rules of good
husbandry3, and
406.2 any such incapacity is likely to be permanent 4.
1
2
3
4

Ie the grounds contained in the Agricultural Holdings Act 1986 s 51(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to
this exception to the rule that the retiring tenant must be aged 65, see Paragraph 403 [2348] ante.
See the Agricultural Holdings Act 1986 s 53(4).
See the Agricultural Holdings Act 1986 s 53(4)(a). As to the rules of good husbandry, see the Agriculture Act 1947 s 11 (1
Halsburys Statutes (4th Edn) AGRICULTURE) applied by the Agricultural Holdings Act 1986 s 96(3).
See the Agricultural Holdings Act 1986 s 53(4)(b).

[2357]
407
Suitability of nominated successor
If the agricultural land tribunal is satisfied that the nominated successor was an eligible person at the date of the giving
of the retirement notice, and that he has not subsequently ceased to be such a person, it must be determined whether, in
the opinion of the tribunal, the applicant is a suitable person to become the tenant of the holding 1. Before making a
determination, the tribunal must give the landlord an opportunity of stating his views on the suitability of the nominated
successor2, and in making the determination the tribunal must have regard to all relevant matters including:
407.1 the extent to which the nominated successor has been trained in, or has had practical experience of, agriculture;
407.2 his age, physical health and financial standing; and
407.3 the views (if any) stated by the landlord on his suitability3.
1
2
3

See the Agricultural Holdings Act 1986 s 53(5) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 53(6).
See the Agricultural Holdings Act 1986 s 53(6)(a)(c).

[2358]
408
Greater hardship qualification
If the agricultural land tribunal determine that the nominated successor is a suitable person to become the tenant of the
holding, the tribunal must give a direction entitling him to a tenancy of the holding 1. However, no such direction is to
be given if it appears to the tribunal that greater hardship would be caused by giving the direction than by refusing the
nominated successors application2.
1
2

See the Agricultural Holdings Act 1986 s 53(7) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 53(8).

[2359]
409
Refusal or withdrawal of application
If the agricultural land tribunal dispose of the nominated successors application otherwise than by giving a direction
entitling the nominated successor to a tenancy, the retirement notice is of no effect but continues to count for the
purpose of determining whether the right to succession on retirement is excluded because a previous retirement notice
has been given1. Where an application by the nominated successor is withdrawn or abandoned, such application is to be
treated as if it had never been made 2.
1
2

See the Agricultural Holdings Act 1986 s 53(9) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 53(10).

[2360]
410
Effect of a direction
A direction by an agricultural land tribunal entitling a nominated successor to a tenancy of a holding 1 entitles him to a
tenancy of the holding as from the retirement date or the date specified in the direction 2. Accordingly, such a tenancy
will be deemed to be at that time granted by the landlord to, and accepted by, the nominated successor 3.
1
2
3

Ie under the Agricultural Holdings Act 1986 s 53(7) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie the relevant time: see the Agricultural Holdings Act 1986 s 55(8).
See the Agricultural Holdings Act 1986 s 55(1).

[2361]
411413 Terms of new tenancy

The terms of the tenancy to which a direction by an agricultural land tribunal 1 entitles a nominated successor are the
same as the terms on which the holding was let immediately before it ceased to be let under the contract of tenancy
under which it was let at the date of the giving of the retirement notice 2. However, if the terms of the tenancy to which
the nominated successor is entitled would otherwise not include a covenant by the tenant not to assign, sublet or part
with possession of the holding or any part of it without the landlords written consent, such a covenant is implied in the
nominated successors tenancy3.
1
2
3

Ie under the Agricultural Holdings Act 1986 s 53(7) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 56(1).
See the Agricultural Holdings Act 1986 s 56(2). Note that the Landlord and Tenant Act 1927 s 19 (as amended by the Landlord
and Tenant (Covenants) Act 1995 s 22) (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT) does not apply to leases of
agricultural holdings to which the Agricultural Holdings Act 1986 applies: see the Landlord and Tenant Act 1927 s 19(4) (as
amended by the Agricultural Holdings Act 1986 and the Agricultural Tenancies Act 1995). Accordingly, such a covenant by the
tenant not to assign, sublet or part with possession of the holding will not be deemed to be subject to a proviso that the landlords
consent is not to be unreasonably withheld. As to assignment and the Landlord and Tenant (Covenants) Act 1995 (23 Halsburys
Statutes (4th Edn) LANDLORD AND TENANT) generally, see vols 22(1) - (3) (1996-1997 Reissue) LANDLORD AND TENANT
(Business Tenancies).

[2362][2380]

G: COMPENSATION PAYABLE TO TENANT


1: DISTURBANCE
414
Tenants entitlement to compensation for disturbance
In certain circumstances, on the termination of a tenancy of an agricultural holding to which the Agricultural Holdings
Act 1986 applies1, the tenant is entitled to compensation for disturbance 2 from the landlord. The statutory right to
compensation applies where such a tenancy terminates by reason of:
414.1 a notice to quit the holding given by the landlord3; or
414.2 a counter-notice given by the tenant, accepting a notice to quit part of the holding as a notice to quit the entire
holding4;
and the tenant quits in consequence of the notice or counter-notice.
No compensation is payable if the landlords notice to quit is given for one of the reasons stated in Cases C,
D, E, F or G5 and additional compensation is not payable where the reasons are those stated in Cases A or H 6.
[2381]
1
2
3

4
5
6

As to tenancies to which the Agricultural Holdings Act 1986 (1 Halsburys Statutes (4th Edn) AGRICULTURE) applies, see
Paragraphs 301 [2001] and 302 [2004] ante.
See the Agricultural Holdings Act 1986 ss 6063.
See the Agricultural Holdings Act 1986 s 60(1)(a). As to notices to quit generally, see the Agricultural Holdings Act 1986 ss 25
33 and Paragraphs 369 [2242]373 [2246] ante. Note that a tenancy that terminates in accordance with the Agricultural Holdings
Act 1986 s 4, following the tenants death, is deemed to terminate by reason of a notice to quit for the purposes of compensation:
see ibid s 4(3).
See the Agricultural Holdings Act 1986 s 60(1)(b). As to a counter-notice by the tenant in such circumstances, see the
Agricultural Holdings Act 1986 s 32 and Paragraph 372 [2245] ante.
See the Agricultural Holdings Act 1986 s 61(1). As to the Agricultural Holdings Act 1986 s 26, Sch 3 Pt I Cases C, D, E, F and
G, see Paragraphs 381 [2279]385 [2284] ante.
See the Agricultural Holdings Act 1986 s 61(2). As to the Agricultural Holdings Act 1986 s 26, Sch 3 Pt I Cases A and H, see
Paragraphs 379 [2276] and 386 [2285] ante respectively. As to additional compensation, see Paragraph 419 [2389] post.

[2382]
415
Measure of basic compensation
Where the tenant becomes entitled to compensation for disturbance, the amount of basic compensation 1 is either:
415.1 one years rent1; or
415.2 two years rent2 or (if less) the amount of the tenants actual loss4.
Although any dispute arising between landlord and tenant on such a claim or with regard to a notice under Cases C, D,
E, F, or G must be dealt with by statutory arbitration 5, the costs of any such arbitration cannot be included as part of the
claim for actual loss6.
The tenant is entitled without proof of loss or expense, to a minimum amount of basic compensation equal
to one years rent of the holding 7. In some cases additional compensation equal to four years rent is payable 8, but
basic compensation for disturbance may not exceed the amount of two years rent of the holding 9.
Any compensation for disturbance payable to a tenant under the Agricultural Holdings Act 1986 section 60 is
additional to any other rights to compensation which the tenant might have 10. Compensation payments under the

Agricultural Holdings Act 1986 will not attract VAT provided that notice to quit has been served and the tenant has
complied with it11.
[2383]
1
2
3
4

5
6
7
8
9
10
11

See the Agricultural Holdings Act 1986 s 60(2)(a),(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 60(3)(a).
See the Agricultural Holdings Act 1986 s 60(3)(b).
The amount of the tenants actual loss is the amount of the loss or expense, directly attributable to the quitting of the holding,
which is unavoidably incurred by the tenant on or in connection with the sale or removal of his household goods, implements of
husbandry, fixtures, farm produce or farm stock on or used in connection with the holding, including any expenses reasonably
incurred by the tenant in the preparation of his claim for basic compensation, not being costs of arbitration: see the Agricultural
Holdings Act 1986 s 60(5).
See the Agricultural Holdings Act 1986 s 84(1).
See the Agricultural Holdings Act 1986 s 60(5).
See the Agricultural Holdings Act 1986 s 60(3)(a).
See the Agricultural Holdings Act 1986 ss 60(2)(b),(4), 61 and Paragraph 419 [2389] post.
See the Agricultural Holdings Act 1986 s 60(3)(b).
See the Agricultural Holdings Act 1986 s 60(7).
Compensation which is paid strictly in accordance with the tenants statutory entitlement is treated as being outside the scope of
VAT: see the current HM Customs and Excise Notice 742 Land and property. As to VAT and compensation payments, see
further Service: Property (VAT and Property).

[2384]
416
Requirements as to notices and valuation
The tenant must serve on the landlord, before the expiry of two months from the termination of the tenancy, written
notice of his intention to make a claim 1. If the tenant wishes to claim basic compensation of more than one years
rent2, he must also give to the landlord written notice of his intention to make a claim for such an amount not less than
one month before the termination of the tenancy3.
Moreover, in the case of a claim for expense incurred in connection with any sale of the goods, implements,
fixtures, produce or stock4, the tenant cannot claim more than the minimum amount of compensation unless before the
sale he gives the landlord a reasonable opportunity of making a valuation of the items to be sold 5.
[2385]
1

2
3
4

See the Agricultural Holdings Act 1986 s 83(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE) which provides that no claim
arising out of the termination of the tenancy will be enforceable unless such notice is served. The notice must specify the nature
of the claim, but it is sufficient if the notice refers to the relevant statutory provision, custom or term: see the Agricultural
Holdings Act 1986 s 83(3). For a notice of intention to make a claim, see Form 213 [4000] post.
Ie under the Agricultural Holdings Act 1986 s 60(3)(b). As to basic compensation, see Paragraph 415 [2383] ante.
See the Agricultural Holdings Act 1986 s 60(6)(a). For a notice of intention to claim more than one years rent, see Form 211
[3998] post.
Ie as mentioned in the Agricultural Holdings Act 1986 s 60(5). The amount of the tenants actual loss is the amount of the loss
or expense, directly attributable to the quitting of the holding, which is unavoidably incurred by the tenant on or in connection
with the sale or removal of his household goods, implements of husbandry, fixtures, farm produce or farm stock on or used in
connection with the holding, including any expenses reasonably incurred by the tenant in the preparation of his claim for basic
compensation, not being costs of arbitration: see the Agricultural Holdings Act 1986 s 60(5).
See the Agricultural Holdings Act 1986 s 60(6)(b).

[2386]
417
Subtenancies
A tenant who has sublet the holding and who, pursuant to a notice to quit given to him by his landlord, becomes liable
to pay to his subtenant compensation for disturbance is not himself precluded from recovering compensation from his
own landlord by reason only of the fact that, not being in occupation, he does not actually quit the holding on the
termination of his tenancy1.
1

See the Agricultural Holdings Act 1986 s 63(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2387]
418
Notice to quit part of holding
Where the tenant quits in consequence of a counter-notice given by him accepting a notice to quit part as notice to quit
the whole1, and the part of the holding subject to the notice to quit 2 is less than one-quarter of the original holding 3 and
the remainder of the holding not so subject is reasonably capable of being farmed as a separate holding 4, no
compensation is payable except in respect of the part of the holding to which the notice to quit relates 5.

3
4
5

See the Agricultural Holdings Act 1986 s 60(1)(b) (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to the tenants right to
serve a counter-notice, see Paragraph 372 [2245] ante. Quitting as a result of such a counter-notice gives rise to a claim for
compensation: see Paragraph 414 [2381] ante.
This includes any part of the holding affected by any relevant previous notice rendered valid by the Agricultural Holdings Act
1986 s 31: see ibid s 63(3)(a). As to notices to quit part, see Paragraph 372 [2245] ante. Relevant previous notice means any
notice to quit given by the same person who gave the current notice to quit or, where that person is a person entitled to a severed
part of the reversionary estate in the holding, by that person or by any other person so entitled: see the Agricultural Holdings Act
1986 s 63(4).
See the Agricultural Holdings Act 1986 s 63(3)(a).
See the Agricultural Holdings Act 1986 s 63(3)(b).
See the Agricultural Holdings Act 1986 s 63(3).

[2388]
419
Additional compensation
A tenant who is entitled to statutory compensation for disturbance may be entitled also to additional compensation 1
equal to four years rent of the holding at the rate at which the rent was payable immediately before the termination of
the tenancy.
Additional compensation is not payable where the reason stated in the notice to quit falls within Cases A or H 2, or
where3:
419.1 the relevant notice to quit contains a statement that the carrying out of the purpose for which the landlord
proposes to determine the tenancy is desirable on specified 4 grounds, or that the landlord will suffer hardship
unless the notice has effect 5; and
419.2 if an application for consent in respect of the notice to quit is made to the agricultural land tribunal, the tribunal
consents to its operation and states in the reasons for the decision that the tribunal is satisfied as to specified 6
matters7.
However, additional compensation is payable where an application for consent is made to an agricultural land tribunal
if either8:
419.3 the reasons given also include the reason that the tribunal is satisfied that the landlord proposes to determine the
tenancy for the purpose of the lands being used for a use, other than for agriculture, not falling within Case B 9;
or
419.4 the tribunal include in their decision a statement 10 that they would have been so satisfied had that reason been
specified in the application11.
[2389]
1
2
3
4
5
6
7
8
9
10
11

See the Agricultural Holdings Act 1986 ss 60(2)(b),(4) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 61(2). As to the Agricultural Holdings Act 1986 s 26, Sch 3 Pt I Cases A and H, see
Paragraphs 379 [2276] and 386 [2285] ante respectively.
See the Agricultural Holdings Act 1986 s 61(3).
Ie those grounds specified in the Agricultural Holdings Act 1986 s 27(3)(a)(c): see Paragraphs 375 [2256] and 376 [2258] ante.
See the Agricultural Holdings Act 1986 s 61(3)(a).
Ie specified in the Agricultural Holdings Act 1986 s 27(3)(a)(c),(e).
See the Agricultural Holdings Act 1986 s 61(3)(b).
See the Agricultural Holdings Act 1986 s 61(4).
See the Agricultural Holdings Act 1986 s 61(4)(a). As to the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case B as
substituted, see Paragraph 380 [2277] ante.
Ie under the Agricultural Holdings Act 1986 s 61(5).
See the Agricultural Holdings Act 1986 s 61(4)(b).

[2390]
420
Termination in pursuance of an early resumption clause
Where the tenancy determines by reason of a notice to quit the holding given pursuant to a provision in the contract of
tenancy authorising the resumption of possession of the holding for some specified purpose other than agriculture, and
the tenant quits the holding in consequence of such notice, the tenant is entitled to compensation in addition to the
statutory compensation for disturbance 1. The additional compensation payable in this situation is the value of the
additional benefit (if any) that would have accrued to the tenant if the tenancy, instead of being terminated as provided
by the notice, had been terminated on the expiration of 12 months from the end of the year of tenancy current when the
notice was given2.
1
2

See the Agricultural Holdings Act 1986 s 62(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 62(2). For the purposes of the Agricultural Holdings Act 1986 s 62(2) the current year
of a tenancy for a term of two years or more is the year beginning with such day, in the period of 12 months ending with the date

on which the notice is served, as corresponds to the day on which the term would expire by effluxion of time: see the
Agricultural Holdings Act 1986 s 62(3).

[2391][2400]
2: IMPROVEMENTS BEGUN BEFORE 1 MARCH 1948
421
Tenants entitlement to compensation for old improvements
A tenant is entitled on the termination of his tenancy of an agricultural holding, on quitting the holding, to obtain from
his landlord compensation for specified improvements 1 begun before 1 March 19482. Compensation is payable for
improvements carried out by the tenant or improvements in respect of which the tenant (on entering into occupation
and with the landlords written consent), paid statutory compensation to the outgoing tenant 3.
1
2
3

As to the improvements concerned, see Paragraph 422 [2402] post.


See the Agricultural Holdings Act 1986 s 64(4), Sch 9 Pt I para 1 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986, Sch 9 Pt I para 5(2) .

[2401]
422
Old improvements for which compensation is payable
The specified improvements are1:
422.1 erection, alteration or enlargement of buildings 2;
422.2 formation of silos3;
422.3 making and planting of osier beds4;
422.4 making of water meadows or works of irrigation 5;
422.5 making of gardens6;
422.6 making or improvement of roads or bridges7;
422.7 making or improvement of watercourses, ponds, wells or reservoirs or of works for the application of water
power or for supply of water for agricultural or domestic purposes8;
422.8 making or removal of permanent fences 9;
422.9 planting of hops10;
422.10 planting of orchards or fruit bushes11;
422.11 reclaiming of waste land12;
422.12 warping or weiring of land13;
422.13 embankments and sluices against floods14;
422.14 erection of wirework in hop gardens15;
422.15 provision of permanent sheep-dipping accommodation 16;
422.16 drainage17.
[2402]
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

See the Agricultural Holdings Act 1986 s 64(4), Sch 9 Pt II (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 1.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 2.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 3.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 4.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 5.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 6.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 7.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 8.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 9.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 10.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 11.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 12.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 13.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 14.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 15.
See the Agricultural Holdings Act 1986, Sch 9 Pt II para 16. See also the Agricultural Holdings Act 1986, Sch 9 Pt I para 4.

[2403]
423
Consent of landlord
The tenants right to compensation in respect of the specified improvements 1 is conditional on the previous written
consent (whether conditional or otherwise) of the landlord having been obtained to the execution of the improvement 2.
Where the consent was given on agreed terms as to compensation, that compensation must be substituted for statutory
compensation3. Special provisions apply to drainage improvements 4.

1
2
3
4

As to the specified improvements, see Paragraph 422 [2402] ante.


See the Agricultural Holdings Act 1986, Sch 9 Pt I para 3(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986, Sch 9 Pt I para 3(2).
See the Agricultural Holdings Act 1986, Sch 9 Pt I para 4, Pt II para 16.

[2404]
424
Measure of compensation
The measure of compensation is an amount equal to the increase attributable to the improvement in the value of the
holding as a holding, having regard to the character and situation of the holding and the average requirements of tenants
reasonably skilled in husbandry1. Any benefit which the landlord has given or allowed to the tenant in consideration of
the tenants executing an improvement is to be taken into account, whether expressly stated in the contract of tenancy to
be so given or allowed or not2.
1
2

See the Agricultural Holdings Act 1986, Sch 9 Pt I para 2(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986, Sch 9 Pt I para 2(2).

[2405][2410]
3: IMPROVEMENTS BEGUN ON OR AFTER 1 MARCH 1948
(a) Introduction
425
Tenants entitlement to compensation
A tenant is entitled on the termination of his tenancy of an agricultural holding to which the Agricultural Holdings Act
1986 applies1, on quitting the holding, to obtain from his landlord compensation for relevant improvements begun on
or after 1 March 19482. There are three categories of relevant improvement:
425.1 long-term improvements to which consent of the landlord is required 3;
425.2 long-term improvements to which consent of the landlord or approval of an agricultural land tribunal is
required4; and
425.3 short-term improvements (for which no consent is required)5.
1
2
3
4
5

As to tenancies to which the Agricultural Holdings Act 1986 applies, see Paragraphs 301 [2001] and 302 [2004] ante.
See the Agricultural Holdings Act 1986 s 64(1),(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 64(1), Sch 7 Pt I. As to long-term improvements to which the landlords consent is
required, see Paragraphs 426 [2421] and 427 [2422] post.
See the Agricultural Holdings Act 1986 s 64(1), Sch 7 Pt II. As to long-term improvements to which the consent of the landlord
or the approval of an agricultural land tribunal is required, see Paragraphs 428 [2431]431 [2436] post.
See the Agricultural Holdings Act 1986 s 64(1), Sch 8 Pt I. As to short-term improvements, see Paragraphs 432 [2441] and 433
[2442] post.

[2411][2420]
(b) Long-term improvements made with consent of landlord
426
Long-term improvements to which consent of landlord is required
The relevant long-term improvements to which the consent of landlord is required 1 comprise:
426.1 making or planting of osier beds2;
426.2 making of water meadows 3;
426.3 making of watercress beds4;
426.4 planting of hops5;
426.5 planting of orchards or fruit bushes6;
426.6 warping or weiring of land7;
426.7 making of gardens8;
426.8 provision of underground tanks9.
1
2
3
4
5
6
7
8
9

See the Agricultural Holdings Act 1986 s 64(1), Sch 7 Pt I (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 64(1), Sch 7 para 1.
See the Agricultural Holdings Act 1986 s 64(1), Sch 7 para 2.
See the Agricultural Holdings Act 1986 s 64(1), Sch 7 para 3.
See the Agricultural Holdings Act 1986 s 64(1), Sch 7 para 4.
See the Agricultural Holdings Act 1986 s 64(1), Sch 7 para 5.
See the Agricultural Holdings Act 1986 s 64(1), Sch 7 para 6.
See the Agricultural Holdings Act 1986 s 64(1), Sch 7 para 7.
See the Agricultural Holdings Act 1986 s 64(1), Sch 7 para 8.

[2421]
427
Consent and compensation
The tenant is not entitled to compensation for such an improvement 1 unless the landlord has given his written consent
to the carrying out of the improvement 2. Such consent may be given unconditionally or on such terms as to
compensation or otherwise as may be agreed in writing between the parties 3. If any such agreement is made, the
statutory provision as to the amount of compensation 4 has effect subject to the provisions of the agreement 5. The
measure of the statutory compensation is an amount equal to the increase attributable to the improvement in the value
of the agricultural holding as a holding, having regard to the character and situation of the holding and the average
requirements of tenants reasonably skilled in husbandry6.
1
2

3
4
5
6

Ie an improvement listed in Paragraph 426 [2421] ante.


See the Agricultural Holdings Act 1986 s 67(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). For a landlords [notice of
intention to give] consent to long-term improvements, see Form 207 [3992] post. For the tenants application for written consent
to long-term improvements, see Form 206 [3991] post.
See the Agricultural Holdings Act 1986 s 67(2).
Ie the Agricultural Holdings Act 1986 s 66(1).
See the Agricultural Holdings Act 1986 s 67(2).
See the Agricultural Holdings Act 1986 s 66(1). This measure of compensation is the same as in the case of improvements begun
before 1 March 1948: see Paragraph 424 [2405] ante.

[2422][2430]
(c) Long-term improvements made with consent of landlord or approval of tribunal
428
Long-term improvements to which consent or approval is required
The relevant improvements are:
428.1 erection, alteration or enlargement of buildings, and making or improvement of permanent yards 1;
428.2 carrying out works in compliance with an improvement notice served, or an undertaking accepted, under the
Housing Act 1974 Part VIII or the Housing Act 1985 Part VII 2;
428.3 erection or construction of loading platforms, ramps, hard standings for vehicles or other similar facilities 3;
428.4 construction of silos4;
428.5 claying of land5;
428.6 marling of land6;
428.7 making or improvement of roads or bridges7;
[2431]
428.8 making or improvement of water courses, culverts, ponds, wells or reservoirs, or of works for the application of
water power for agricultural or domestic purposes or of works for the supply, distribution or use of water for
such purposes (including the erection or installation of any structures or equipment which form part of or are to
be used for or in connection with operating any such works) 8;
428.9 making or removal of permanent fences 9;
428.10 reclaiming of waste land10;
428.11 making or improvement of embankments or sluices11;
428.12 erection of wirework for hop gardens12;
428.13 provision of permanent sheep-dipping accommodation 13;
428.14 removal of bracken, gorse, tree roots, boulders or other like obstructions to cultivation 14;
428.15 land drainage (other than mole drainage and works carried out to secure its efficient functioning) 15;
428.16 provision or laying-on of electric light or power 16;
428.17 provision of facilities for the storage or disposal of sewage or farm waste 17;
428.18 repairs to fixed equipment, being equipment reasonably required for the proper farming of the holding, other
than repairs which the tenant is under an obligation to carry out 18;
428.19 the grubbing up of orchards or fruit bushes19;
428.20 planting trees otherwise than as an orchard and bushes other than fruit bushes 20.
[2432]
1
2

3
4
5
6

See the Agricultural Holdings Act 1986 s 64(1), Sch 7 Pt II para 9 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie the Housing Act 1985 Pt VII (ss 209238) (repealed by the Local Government and Housing Act 1989 ss 165(2), 194(4), Sch
12 Pt II) and the Housing Act 1974 Pt VIII (ss 85104) (repealed by the Housing (Consequential Provisions) Act 1985 s 3, Sch 1
Pt I). See the Agricultural Holdings Act 1986, Sch 7 para 10.
See the Agricultural Holdings Act 1986, Sch 7 para 11.
See the Agricultural Holdings Act 1986, Sch 7 para 12.
See the Agricultural Holdings Act 1986,s : 7 para 13.
See the Agricultural Holdings Act 1986,s : 7 para 14.

7
8
9
10
11
12
13
14
15
16
17
18
19
20

See the Agricultural Holdings Act 1986,s :


See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :

7 para 15.
7 para 16.
7 para 17.
7 para 18.
7 para 19.
7 para 20.
7 para 21.
7 para 22.
7 para 23. As to mole drainage, see Paragraph 432.1 [2441] post.
7 para 24.
7 para 25.
7 para 26.
7 para 27.
7 para 28.

[2433]
429
Consent or approval
With regard to these long-term improvements 1, the landlords written consent is a condition precedent to entitlement to
the statutory improvements compensation 2, and the provisions mentioned above as to the giving of unconditional or
conditional consent and the effect of agreements as to compensation apply 3.
However, where on the application of the tenant, the landlord refuses his consent, or gives consent containing
terms unacceptable to the tenant, the tenant may apply to an agricultural land tribunal for approval to the carrying out
of the improvement4. The tribunal may withhold approval, or give approval unconditionally or on terms as to reduction
of compensation or otherwise 5.
1
2
3
4
5

Ie an improvement listed in Paragraph 428 [2431] ante.


See the Agricultural Holdings Act 1986 s 67(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 67(2) and Paragraph 427 [2422] ante.
See the Agricultural Holdings Act 1986 s 67(3). For the prescribed form application for approval, see Form 178 [3819] post. For
the prescribed form for the landlords reply, see Form 179 [3823] post.
See the Agricultural Holdings Act 1986 s 67(4).

[2434]
430
Carrying out improvements
In a case where the agricultural land tribunal grants approval to carrying out improvements, the landlord has the right,
within one month from receiving notification of the tribunals decision, to serve on the tribunal and on the tenant a
written notice of the landlords proposal to carry out the improvement himself 1. If the landlord then fails within a
reasonable time to carry out the improvement, the tenant may apply to the tribunal for a determination that the landlord
has so failed 2. Where the tribunal determines that the landlord has failed to carry out the improvement, or where the
landlord did not give due notice of his proposal to carry out the improvement, the approval of the tribunal has the same
effect as if it were the consent of the landlord, and any terms to which the approval is subject have effect as if contained
in a written agreement between the landlord and the tenant 3.
1

2
3

See the Agricultural Holdings Act 1986 s 67(5) (1 Halsburys Statutes (4th Edn) AGRICULTURE). For a notice of intention to
carry out improvements, see Form 208 [3994] post. The period of one month is prescribed by the Agricultural Land Tribunals
(Rules) Order 1978/259.
See the Agricultural Holdings Act 1986 s 67(6)(b). For the prescribed form of application, see Form 180 [3826] post.
See the Agricultural Holdings Act 1986 s 67(6).

[2435]
431
Measure of compensation
The measure of compensation for such improvements is the same as in the case of long-term improvements to which
consent of landlord is required1.
1

See the Agricultural Holdings Act 1986 s 66(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraph 427 [2422] ante.

[2436][2440]
(d) Short-term improvements
432
The short-term improvements
The short-term improvements for which no consent is required 1 comprise:
432.1 mole drainage and works carried out to secure its efficient functioning 2;

432.2
432.3
432.4
432.5
432.6
1
2
3
4
5
6
7

protection of fruit trees against animals 3;


clay burning4;
liming (including chalking) of land5;
application to land of purchased manure and fertiliser, whether organic or inorganic 6;
consumption on the holding of corn (whether produced on the holding or not) or of cake or other feeding stuff
not produced on the holding by horses, cattle, sheep, pigs or poultry7.

See the Agricultural Holdings Act 1986 s 64(1),s : 8 Pt I (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986,s : 8 para 1. For a notice by the tenant of his intention to carry out mole drainage, see
Form 209 [3995] post.
See the Agricultural Holdings Act 1986,s : 8 para 2.
See the Agricultural Holdings Act 1986,s : 8 para 3.
See the Agricultural Holdings Act 1986,s : 8 para 4.
See the Agricultural Holdings Act 1986,s : 8 para 5.
See the Agricultural Holdings Act 1986,s : 8 para 6.

[2441]
433
Consent and compensation for short-term improvements
A tenant qualifies for statutory improvements compensation for such short-term improvements 1 without the necessity
of a notice being served on the landlord or any consent being given by him 2 save with regard to mole drainage and
consequential works3. In that case the tenant must, to qualify for compensation, give the landlord written notice 4 of his
intention to carry out the improvement at least one month before beginning to do it 5.
A tenant is not entitled6 to compensation for such a short-term improvement if it is effected for the purposes
of the obligation to return the value of crops sold off or removed, and to protect the holding from injury and
deterioration, at the time of exercising his statutory rights as to disposal of produce and cropping 7.
The measure of compensation for short-term improvements is the value of the improvement or matter to an
incoming tenant in accordance with such method, if any, as may be prescribed 8.
1
2
3
4
5
6
7
8

Ie the improvements listed in Paragraph 432 [2441] ante.


See the Agricultural Holdings Act 1986 s 64(1),s : 8 Pt I (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 68(1).
For a notice by the tenant of his intention to carry out mole drainage, see Form 209 [3995] post.
See the Agricultural Holdings Act 1986 s 68(1).
See the Agricultural Holdings Act 1986 s 76(3).
See the Agricultural Holdings Act 1986 s 15(1),(4).
See the Agricultural Holdings Act 1986 s 66(2). As to the method of calculating such compensation, see the Agriculture
(Calculation of Value for Compensation) Regulations 1978/809 as amended by SI 1980/751, SI 1981/822 and SI 1983/1475.

[2442][2445]
4: TENANT-RIGHT MATTERS
434
Tenants entitlement to compensation for tenant-right matters
A tenants statutory entitlement to compensation from his landlord for tenant-right matters arises on the termination of
his tenancy of an agricultural holding to which the Agricultural Holdings Act 1986 applies 1, on the tenants quitting the
holding2.
1
2

As to tenancies to which the Agricultural Holdings Act 1986 (1 Halsburys Statutes (4th Edn) AGRICULTURE) applies, see
Paragraphs 301 [2001], 302 [2004] ante.
See the Agricultural Holdings Act 1986 s 65(1),s : 8 Pt II.

[2446]
435
Meaning of tenant-right matters
Tenant-right matters comprise:
435.1 growing crops and severed or harvested crops and produce, being in either case crops or produce grown on the
holding in the last year of the tenancy, but not including crops or produce the tenant has a right to sell or remove
from the holding1;
435.2 seeds sown and cultivations, fallows and acts of husbandry performed on the holding at the expense of the
tenant (including the growing of herbage crops for commercial seed production) 2;
435.3 pasture laid down with clover, grass, lucerne, sainfoin or other seeds being either:
435.3.1 pasture laid down at the expense of the tenant otherwise than in compliance with an obligation
imposed on him by an agreement in writing to lay it down to replace temporary pasture comprised in
the holding when the tenant entered on the holding which was not paid for by him 3, or

435.3.2 pasture paid for by the tenant on entering on the holding4;


435.4 acclimatisation, hefting or settlement of hill sheep on hill land 5;
435.5 in areas of the country where arable crops can be grown in an unbroken series of not less than six years and it is
reasonable that they should be grown on the holding or part of it, the residual fertility value of the sod of the
excess qualifying leys on the holding, if any6.
1
2
3
4
5
6

See the Agricultural Holdings Act 1986 s 65(1),s : 8 para 7 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986,s : 8 para 8.
See the Agricultural Holdings Act 1986,s : 8 para 9(a).
See the Agricultural Holdings Act 1986,s : 8 para 9(b).
See the Agricultural Holdings Act 1986,s : 8 para 10. As to the meaning of hill sheep and hill land, see the Agricultural
Holdings Act 1986,s : 8 para 10(2).
See the Agricultural Holdings Act 1986,s : 8 para 11. As to the meaning of leys and qualifying leys see the Agricultural
Holdings Act 1986,s : 8 para 11(3).

[2447]
436
Acts in contravention of terms of tenancy
Where the claim for compensation is in respect of crops or produce grown, seeds sown, cultivations, fallows or acts of
husbandry performed or pasture laid down, the entitlement to compensation is in general excluded if those acts or
matters have been done in contravention of the terms of the tenancy 1. However, if what was done was reasonably
necessary to comply with a statutory direction 2, or the tenant shows that the contravened term of the tenancy was not
consistent with the fulfilment of his responsibilities to farm the holding in accordance with the rules of good husbandry,
the tenant is still entitled to compensation 3.
1
2
3

See the Agricultural Holdings Act 1986 s 65(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie under the Agriculture Act 1947 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 65(2).

[2448]
437
Freedom of cropping
A tenant is not entitled1 to any compensation for any tenant-right matter if it was effected for the purpose of fulfilling
his obligation to protect the holding from injury and deterioration, where he has exercised his statutory right to practise
any system of cropping2.
1
2

See the Agricultural Holdings Act 1986 s 76(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the right of freedom of cropping, see the Agricultural Holdings Act 1986 s 15(4).

[2449]
438
Application to holdings occupied before 1 March 1948
A tenant who entered into occupation of an agricultural holding before 1 March 1948 is not entitled 1 to statutory
compensation in respect of any of the tenant-right matters specified in sub-paragraphs 435.1435.4 above 2 unless he
elects by written notice 3, given before the termination of the tenancy, that those statutory provisions 4 are to apply to
him.
Where the tenancy determines by reason of a notice to quit, the landlord may, at any time during the currency
of the notice to quit, give notice in writing to the tenant requiring him to elect whether the statutory provisions as to
compensation as to tenant-right matters are to apply 5. On being so required, the tenant will lose the right to elect unless
he gives notice to the landlord. The tenants notice must normally be given within one month 6 from his receipt of the
landlords request, but where there are proceedings before an agricultural land tribunal 7 seeking consent to the
operation of the notice to quit, the period of one month is measured from the date of the termination of those
proceedings8.
A tenant who is entitled to make, but does not make, an election will retain any right to compensation for an
improvement which he may have had under custom or under the terms of his tenancy 9.
[2450]
1
2
3
4

See the Agricultural Holdings Act 1986 s 65(1),s : 12 para 6(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie sub-paragraphs 435.1435.4 [2447] ante.
For a tenants notice electing for compensation, see Form 214 [4002] post.
Ie the Agricultural Holdings Act 1986 s 65(1),s : 8 paras 710. With regard to the tenant-right matter specified in sub-paragraph
435.4 [2447] (see the Agricultural Holdings Act 1986,s : 8 para 10), the necessity for election in writing by a tenant, if he desires
to claim the statutory right to compensation instead of any alternative customary or contractual compensation, is extended to any
tenant who entered into occupation on or after 1 March 1948 and before 31 December 1951: see the Agricultural Holdings Act
1986,s : 12 para 7.
See the Agricultural Holdings Act 1986,s : 12 para 6(2). For a landlords notice requiring the tenant to elect, see Form 215
[4004] post.

6
7
8
9

See the Agricultural Holdings Act 1986,s : 12 para 6(2)(a).


Ie under the Agricultural Holdings Act 1986 ss 26, 27 ors : 3.
See the Agricultural Holdings Act 1986,s : 12 para 6(2)(b).
See the Agricultural Holdings Act 1986 ss 77(1), 78(3),s : 12 para 8.

[2451]
439
Measure of compensation
The amount of compensation in respect of tenant-right matters 1 is the value to an incoming tenant2.
1
2

Ie those listed in Paragraph 435 [2447] ante.


See the Agricultural Holdings Act 1986 s 66(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE). As to the method of calculating
such compensation, see the Agriculture (Calculation of Value for Compensation) Regulations 1978/809 as amended by SI
1980/751, SI 1981/822 and SI 1983/1475.

[2452][2460]
5: SPECIAL SYSTEM OF FARMING
440
Tenants entitlement to compensation for special system of farming
Where the tenant of an agricultural holding to which the Agricultural Holdings Act 1986 applies 1 shows that, by the
continuous adoption of a system of farming which has been more beneficial to the holding than the system of farming
required by the contract of tenancy2 or, in so far as no system of farming is so required, than the system of farming
normally practised on comparable agricultural holdings 3, the value of the holding as a holding has been increased
during the tenancy, having regard to the character and situation of the holding and the average requirements of tenants
reasonably skilled in husbandry, then the tenant is entitled, on quitting the holding on the termination of the tenancy, to
obtain compensation from the landlord of an amount equal to the increase 4.
1
2
3
4

As to tenancies to which the Agricultural Holdings Act 1986 (1 Halsburys Statutes (4th Edn) AGRICULTURE) applies, see
Paragraphs 301 [2001] and 302 [2004] ante.
See the Agricultural Holdings Act 1986 s 70(1)(a).
See the Agricultural Holdings Act 1986 s 70(1)(b).
See the Agricultural Holdings Act 1986 s 70(1).

[2461]
441
Notice of claim
The tenant is entitled to recover compensation only if:
441.1 he has, not later than one month before the termination of the tenancy, given the landlord written notice 1 of his
intention to claim compensation2; and
441.2 a record3 has been made of the condition of the fixed equipment on the holding and of the general condition of
the holding4.
No compensation is recoverable in respect of any matter arising before the date of the making of such record or, if more
than one such record has been made, the first of them5.
1
2
3
4
5

For a notice of intention to claim compensation for a special system of farming, see Form 210 [3997] post.
See the Agricultural Holdings Act 1986 s 70(2)(a) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Ie a record under the Agricultural Holdings Act 1986 s 22.
See the Agricultural Holdings Act 1986 s 70(2)(b).
See the Agricultural Holdings Act 1986 s 70(3). As to the allowance to be made (for compensation for improvements and tenantright matters) in assessing compensation see the Agricultural Holdings Act 1986 s 70(4). The right to compensation for a special
system of farming does not permit a tenant to recover any compensation he would not otherwise be entitled to recover in respect
of improvements (see Paragraphs 421 [2401]433 [2442] ante), tenant-right matters (see Paragraphs 434 [2446]439 [2452]
ante) or market garden improvements (see Paragraphs 442 [2471]445 [2474] post): see the Agricultural Holdings Act 1986 s
70(5).

[2462][2470]
6: MARKET GARDENS
(a) Entitlement to compensation
442
Tenants entitlement to compensation for market garden improvements
A further category of improvements may rank for statutory compensation if carried out on an agricultural holding (or
any part of an agricultural holding 1) to which the Agricultural Holdings Act 1986 applies 2, and in respect of which it is
agreed by an agreement in writing that the holding is to be let or treated as a market garden 3.

Market garden improvements 4 begun on or after 1 March 1948 5 are, in the case of a such a holding, treated as
short-term improvements6 and consequently, in accordance with and subject to the provisions set out above 7, rank for
compensation without any notice having been given to, or consent given by, the landlord.
1
2
3
4
5

6
7

See the Agricultural Holdings Act 1986 s 79(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to tenancies to which the Agricultural Holdings Act 1986 applies, see Paragraphs 301 [2001] and 302 [2004] ante.
See the Agricultural Holdings Act 1986 s 79(1). Note that special provisions apply in respect of tenancies current on 1 January
1896: see the Agricultural Holdings Act 1986 ss 79, 81,s : 12 para 10.
Ie the improvements listed in Paragraph 443 [2472] post.
See the Agricultural Holdings Act 1986 s 79(2). Improvements begun before 1 March 1948 consisting of the erection or
enlargement of buildings for the purpose of the trade or business of a market garden are treated as old improvements: see
Paragraph 421 [2401]424 [2405] ante.
Ie the improvements listed in Paragraph 432 [2441] ante.
As to compensation for short-term improvements, see Paragraph 433 [2442] ante.

[2471]
443
Market garden improvements
Market garden improvements comprise1:
443.1 planting of standard or other fruit trees permanently set out2;
443.2 planting of fruit bushes permanently set out3;
443.3 planting of strawberry plants4;
443.4 planting of asparagus, rhubarb and other vegetable crops which continue productive for two or more years 5;
443.5 erection, alteration or enlargement of buildings for the purpose of the trade or business of a market gardener 6.
1
2
3
4
5
6

See the Agricultural Holdings Act 1986 s 79(2),s : 10 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986,s : 10 para 1.
See the Agricultural Holdings Act 1986,s : 10 para 2.
See the Agricultural Holdings Act 1986,s : 10 para 3.
See the Agricultural Holdings Act 1986,s : 10 para 4.
See the Agricultural Holdings Act 1986,s : 10 para 5.

[2472]
444
Fixtures
In addition to the tenants general right to remove fixtures 1, he may remove from a holding let or treated as a market
garden any buildings acquired for the purposes of his trade or business as a market gardener, whenever such buildings
were erected2.
The tenant of such a holding may also remove during the tenancy all fruit trees and fruit bushes planted by
him and not permanently set out3 but, if the tenant does not exercise this right of removal before the termination of the
tenancy, the right is lost. The trees and bushes then remain the property of the landlord and the tenant is not entitled to
any compensation in respect of them4.
1
2
3
4

See the Agricultural Holdings Act 1986 s 10 (1 Halsburys Statutes (4th Edn) AGRICULTURE) and Paragraphs 326 [2091]328
[2093] ante.
See the Agricultural Holdings Act 1986 ss 79(3), 10(2)(c),(d).
See the Agricultural Holdings Act 1986 s 79(4).
See the Agricultural Holdings Act 1986 s 79(4).

[2473]
445
Incoming tenant
The incoming tenant of a holding let or treated as a market garden is entitled to claim compensation in respect of the
whole or part of an improvement purchased by him from an outgoing tenant even though no consent in writing to his
purchase was given by the landlord1.
1

See the Agricultural Holdings Act 1986 s 79(5) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2474][2480]
(b) Direction that holding is to be treated as a market garden
446
Application for direction
Where the tenant of an agricultural holding desires 1 to make on the holding (or any part of it) an improvement of the
kind specified in the Agricultural Holdings Act 1986, Schedule 10 2 and the landlord refuses, or fails within a reasonable
time, to agree in writing that the holding (or that part of it) is to be treated as a market garden, the tenant may apply to
an agricultural land tribunal for a direction3.

The tribunal, after being satisfied that the holding (or part of it) is suitable for the purposes of market
gardening, may direct that the provisions as to improvements to market gardens 4 are to apply to the holding (or that
part of it) either in respect of all or some only of the specified improvements, and those provisions then apply
accordingly in respect of any such improvement executed after the date of the direction 5.
1
2
3
4
5

It is suggested that any such desire should be communicated in writing.


As to market garden improvements, see Paragraph 443 [2472] ante.
See the Agricultural Holdings Act 1986 s 80(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). For the prescribed form of
application, see Form 182 [3835] post.
See the Agricultural Holdings Act 1986 s 79(2)(5). As to market garden improvements, see Paragraph 443 [2472] ante.
See the Agricultural Holdings Act 1986 s 80(2).

[2481]
447
Evesham custom
In any direction given by an agricultural land tribunal that the provisions as to improvements to market gardens are to
apply to a holding1 there are incorporated the terms of the so-called Evesham custom 2. In accordance with this
custom, where a tenancy is terminated by a notice to quit given by the tenant or by reason of the tenants insolvency 3,
the tenant is not entitled to any compensation in respect of improvements specified in the direction unless he satisfies
certain conditions4. The conditions are that:
447.1 the tenant produces to the landlord a written offer 5, from a substantial and otherwise suitable person, to accept,
as from the termination of the existing tenancy and on the same terms and conditions so far as applicable, a new
tenancy of the holding and to pay to the outgoing tenant all compensation payable under the Agricultural
Holdings Act 1986 or under the contract of tenancy; and
447.2 the landlord fails to accept the offer within three months after the tenant has produced it 6.
Where by the application of the Evesham custom a new tenancy with an incoming tenant is created, the new
tenancy is deemed not to be a new tenancy for the purpose of the provisions under which a landlord or a tenant may
seek an arbitration on the question of the rent of the holding 7. Accordingly, neither the landlord nor the tenant needs to
wait for three years before seeking an arbitration on the rent properly payable under the tenancy 8.
[2482]
1
2
3
4
5

6
7
8

Ie under the Agricultural Holdings Act 1986 s 80(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 80(3)(5).
As to the meaning of insolvency, see the Agricultural Holdings Act 1986 s 96(2).
See the Agricultural Holdings Act 1986 s 80(3),(4).
The notice containing the offer must be given not later than one month after the date on which the notice to quit is given, or the
date of the insolvency, or such later date as may be agreed, and the offer must hold good for 3 months from the date on which it
is produced: see the Agricultural Holdings Act 1986 s 80(4)(a).
See the Agricultural Holdings Act 1986 s 80(4).
See the Agricultural Holdings Act 1986 s 80(8). As to arbitration of rent, see Paragraphs 334 [2116]342 [2125] ante.
As to frequency of arbitration, see Paragraph 340 [2123] ante.

[2483]
448
Protection of landlord
A direction that all or part of a holding is to be treated as a market garden 1 may be given subject to such conditions (if
any) for the protection of the landlord as the agricultural land tribunal thinks fit 2. In particular, where a direction relates
to a part only of a holding, the direction may, on the landlords application, provide that it is to take effect only if the
tenant consents to the division of the holding into two parts. The direction will then relate to one part, to be held at rents
agreed (or, in default of agreement, settled by statutory arbitration), but otherwise on the same terms and conditions, so
far as applicable, as those on which the holding is already held 3.
1
2
3

Ie under the Agricultural Holdings Act 1986 s 80(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 80(6).
See the Agricultural Holdings Act 1986 s 80(7).

[2484][2490]
(c) Agreements
449
Agreements as to compensation
Where a written agreement secures to the tenant of an agricultural holding, in respect of a market garden
improvement1, fair and reasonable compensation (having regard to the circumstances existing at the date when the
agreement was made), then the agreed compensation is substituted for the statutory compensation for that
improvement2.

A landlord and tenant who agree that the holding is to be let or treated as a market garden may by writing
substitute the provisions as to compensation known as the Evesham custom 3 for the provisions that would otherwise
be applicable to the holding4.
1
2
3
4

Ie an improvement for which compensation is payable by virtue of the Agricultural Holdings Act 1986 ss 79, 80 (1 Halsburys
Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 81(1).
As to the Evesham custom, see Paragraph 447 [2482] ante.
See the Agricultural Holdings Act 1986 s 81(2).

[2491][2500]
7: DAMAGE BY GAME
450
Tenants entitlement to compensation for damage by game
The tenant of an agricultural holding to which the Agricultural Holdings Act 1986 applies 1 is, in certain circumstances,
entitled to compensation from his landlord if the tenant has sustained damage to his crops from any wild animals or
birds he does not have written permission to kill 2. The right to kill and take those animals or birds must be vested in the
landlord or anyone (other than the tenant) claiming under the landlord 3. The tenant must give his landlord:
450.1 written notice within one month after he first becomes, or ought reasonably to have become, aware of the
occurrence of the damage 4;
450.2 a reasonable opportunity to inspect the damage 5:
450.2.1 in the case of damage to a growing crop, before the crop is begun to be reaped, raised or consumed;
450.2.2 where the crop has been reaped or raised, before the crop is begun to be removed from the land; and
450.3 written notice of the claim, together with particulars of it, within one month after the expiry of the year 6 in
respect of which the claim is made 7.
1
2
3

4
5
6
7

As to holdings to which the Agricultural Holdings Act 1986 applies, see Paragraphs 301 [2001] and 302 [2004] ante.
See the Agricultural Holdings Act 1986 s 20(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
Where the right to kill and take wild animals or birds that caused the damage is vested in some person other than the landlord,
the landlord is entitled to an indemnity from that other person against all claims for compensation under the Agricultural
Holdings Act 1986 s 20, and any question arising under this provision is to be determined by statutory arbitration: see the
Agricultural Holdings Act 1986 s 20(5).
See the Agricultural Holdings Act 1986 s 20(2)(a). For a notice of occurrence of damage by game, see Form 219 [4011] post.
See the Agricultural Holdings Act 1986 s 20(2)(b).
Year means any period of 12 months ending, in any year, with 29 September or with such other date as may by agreement
between the parties be substituted for that date: see the Agricultural Holdings Act 1986 s 20(3)(b).
See the Agricultural Holdings Act 1986 s 20(2)(c). For a notice of claim, see Form 220 [4013] post.

[2501]
451
Measure of compensation for damage by game
The amount of compensation for damage by game must, in default of agreement between the parties made after the
damage has been suffered, be determined by statutory arbitration 1.
1

See the Agricultural Holdings Act 1986 s 20(4) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2502][2510]
8: MILK QUOTA
452
Tenants entitlement to claim
The tenant of an agricultural holding is entitled to claim compensation from the landlord on termination of the tenancy
in respect of milk quota1 if:
452.1 the tenancy in question is a tenancy from year to year; or is one treated as such by the operation of the
Agricultural Holdings Act 1986 section 2 2; or is a fixed term tenancy of two years or more to which the
Agricultural Holdings Act 1986 section 3 applies; or is a tenancy that would give rise to security but for the fact
that prior Ministry consent or approval under the Agricultural Holdings Act 1986 sections 2 or 5 3 was
obtained4;
452.2 the tenancy of the land has terminated 5;
452.3 the tenant has milk quota registered as his 6 in relation to a holding 7 consisting of or including the land
comprised in the tenancy;
452.4 the milk quota was allocated directly to the tenant in relation to land comprised in the holding (allocated
quota)8, or either the tenant had milk quota allocated to him or he was in occupation of the land comprised in
the tenancy on 2 April 1984 (whether or not under the tenancy that is terminating) and subsequently had milk

quota transferred to him through a transaction the cost of which he bore wholly or partly himself (transferred
quota)9.
1
2
3

See the Agriculture Act 1986 s 13,s : 1 (1 Halsburys Statutes (4th Edn) AGRICULTURE) and the Milk Quota (Calculation of
Standard Quota) Order 1986/1530 as amended.
As to tenancies treated as tenancies from year to year, see Paragraphs 310 [2026]313 [2029] ante.
As to excluding security with the Ministers consent, see Paragraph 355 [2183] ante.

[2511]
4
5
6

See the Agriculture Act 1986,s : 1 para 18(1). A tenancy of between one and two years or a letting or licence for grazing or
mowing (or both) during some specified period of the year are outside the definition.
See the Agriculture Act 1986,s : 1 para 1(1).
See the Agriculture Act 1986,s : 1 para 1(1). If the tenant himself is the registered producer, no difficulty about his entitlement to
compensation will arise. If the registered producer is the farm partnership of which the tenant is a partner, the compensation will
be distributed in accordance with the partnership terms. However, if the registered producer is a farming company and not an
individual tenant, it is arguable that the tenant will not be entitled to claim. Moreover, if, after the tenancy has ended, the identity
of the producer is changed retrospectively to correspond with the identity of the tenant, it is questionable whether such a
procedure will enable a valid application to be made.
Under the Agriculture Act 1986,s : 1 para 18(1), holding has the same meaning as in the Dairy Produce Quotas Regulations
1994/672, which provide that holding has the meaning assigned to it by Article 9(d) of Council Regulation (EC) 3950/92.
Article 9(d) provides that holding means all the production units operated by the single producer and located within the
geographical territory of the EC.
Accordingly, a holding for milk quota purposes is any land thus used by a producer and may consist of different parcels of
land held under different forms of tenure, not necessarily having any physical unity.
See the Agriculture Act 1986,s : 1 para 1(1)(a). This provision refers to compensation payable in respect of so much of the
relevant quota as consists of allocated quota. The relevant quota is defined in the Agriculture Act 1986,s : 1 para 1(2) as:
(a)
in a case where the holding consists only of the land subject to the tenancy, the milk quota registered in relation to the
holding; and
(b)
otherwise, such part of that milk quota as falls to be apportioned to that land on the termination of the tenancy.
See the Agriculture Act 1986,s : 1 para 1(1)(b). As to the transfer of milk quota generally, see vol 2(2) (1998 Reissue)
AGRICULTURE Paragraph 17 [38] et seq .

[2512]
453
Compensation payable
The compensation to which the tenant may be entitled is payable under three heads:
453.1 compensation for excess of allocated quota1 over standard quota2;
453.2 compensation for the tenants fraction of the standard quota calculated by reference to investments made by
the tenant in dairy improvements and fixed equipment 3;
453.3 compensation for transferred quota4 to the extent that the tenant has financed the transaction 5.
The value of milk quota to be taken into account in calculating the payment to which the tenant is entitled is the value
of the milk quota at the time of the termination of the tenancy. In determining that value, all available evidence is to be
taken into account, including evidence as to the difference in market price paid for land where milk quota is registered
and where it is not registered6.
1
2

3
4
5
6

As to allocated quota, see Paragraph 452.4 [2511] ante.


See the Agriculture Act 1986 s 13,s : 1 para 5(2)(ii) (1 Halsburys Statutes (4th Edn) AGRICULTURE). Standard quota is to be
calculated by multiplying the relevant number of hectares (as defined in the Agriculture Act 1986 para 6(1)(a)) by the prescribed
quota per hectare (as contained in the Milk Quota (Calculation of Standard Quota) Order 1986/1530 as amended): see the
Agriculture Act 1986,s : 1 para 6.
See the Agriculture Act 1986,s : 1 para 5(2)(i). Tenants fraction is defined by the Agriculture Act 1986,s : 1 para 7.
As to transferred quota, see Paragraph 452.4 [2511] ante.
See the Agriculture Act 1986,s : 1 para 5(3).
See the Agriculture Act 1986,s : 1 para 9.

[2513]
454
Request for arbitration
Where the tenant may be entitled to payment of compensation for milk quota, either the landlord or the tenant may at
any time before the termination of the tenancy, by notice in writing served on the other, demand that the determination
of the standard milk quota for the land or the tenants fraction be referred to arbitration 1. On the matter being referred to
arbitration the arbitrator must determine the standard milk quota or the tenants fraction for the land, in so far as the
tenants fraction is determinable as at the date of reference 2. An arbitrator appointed to determine the tenants claim for
compensation following termination of the tenancy must award payment in accordance with a determination made in
advance of the tenancy terminating, unless it appears to him that any circumstances relevant to his determination were
materially different at the time of the termination of the tenancy from those subsisting at the time that the determination

was made3. If a material difference can be identified, the arbitrator must disregard so much of the determination as
appears to him to be affected by the change in circumstances 4.
1
2
3
4

See the Agriculture Act 1986 s 13,s : 1 para 10(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). For forms of demand for
arbitration, see Forms 222 [4017] (arbitration of standard quota) and 223 [4019] (arbitration of tenants fraction) post.
See the Agriculture Act 1986,s : 1 para 10(2).
See the Agriculture Act 1986,s : 1 para 11(6)(b),(7).
See the Agriculture Act 1986,s : 1 para 11(7).

[2514]
455
Agreement of standard quota or tenants fraction
At any time before the termination of the tenancy the landlord and the tenant may agree in writing the amount of the
standard quota1 for the land comprised in the tenancy or the tenants fraction or the value of the milk quota which is to
be used for the purpose of calculating the payment due to the tenant on quitting 2. An arbitrator appointed to determine
the tenants claim for compensation following termination must award payment in accordance with a written agreement
unless it appears to him that any circumstances relevant to the agreement were materially different at the time of the
termination of the tenancy from those subsisting at the time the agreement was made. If a material difference can be
identified he must disregard so much of the agreement as appears to him to be affected by the change in
circumstances3.
1

2
3

Standard quota is to be calculated by multiplying the relevant number of hectares (as defined in the Agriculture Act 1986 para
6(1)(a)) by the prescribed quota per hectare (as contained in the Milk Quota (Calculation of Standard Quota) Order 1986/1530 as
amended): see the Agriculture Act 1986,s : 1 para 6 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agriculture Act 1986 s 13,s : 1 para 11(6)(a). For an agreement as to the amount of standard quota, see Form 224 [4021]
post.
See the Agriculture Act 1986,s : 1 para 11(7).

[2515]
456
Notice of claim and settlement
In order to claim compensation for milk quota, the tenant must serve notice in writing on the landlord of his intention to
make the claim within two months of the termination of the tenancy, failing which the claim is unenforceable 1. The
landlord and the tenant may within the period of eight months from the termination of the tenancy, by agreement in
writing, settle the claim but where the claim has not been settled during that period it must be determined by arbitration
under the Agricultural Holdings Act 1986 2. These two general rules are subject to special provisions in relation to
tenancies in respect of which application for succession has been made 3. The Agricultural Holdings Act 1986 section
84, which governs arbitrations under that Act, applies to the tenants claim for compensation for milk quota on
termination of the tenancy, subject to the variation that the arbitrator must fix the date for payment of compensation,
costs or otherwise not later than three months after the date of the award 4.
1
2
3
4

See the Agriculture Act 1986 s 13,s : 1 para 11(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE. For a notice of intention to
claim compensation, see Form 225 [4023] post.
See the Agriculture Act 1986,s : 1 para 11(2). For an agreement as to compensation, see Form 226 [4025] post.
See the Agriculture Act 1986,s : 1 para 11(3).
See the Agriculture Act 1986,s : 1 para 11(5).

[2516]
457
Special provisions
Special provisions are made concerning the tenants compensation in relation to tenancies to which a statutory
succession applies on death or retirement 1; tenancies that are assigned after 2 April 1984 whether by deed or operation
of law2; subtenancies that terminate after 2 April 1984 3; and in relation to termination of the tenancy of part of the
tenanted land4 and severance of the reversionary estate5.
1
2
3
4
5

See the Agriculture Act 1986 s 13,s : 1 para 2 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agriculture Act 1986,s : 1 para 3.
See the Agriculture Act 1986,s : 1 para 4.
See the Agriculture Act 1986,s : 1 para 13.
See the Agriculture Act 1986,s : 1 para 14.

[2517][2525]

H: COMPENSATION PAYABLE TO LANDLORD


458

Deterioration of particular parts of holding

The landlord of an agricultural holding to which the Agricultural Holdings Act 1986 applies 1 is entitled to recover from
a tenant, on the tenants quitting the holding on the termination of his tenancy, statutory compensation in respect of the
dilapidation or deterioration of, or damage to, any part of the holding or anything in or on the holding caused by nonfulfilment by the tenant of his responsibilities to farm in accordance with the rules of good husbandry 2. The amount of
compensation is the cost, as at the date of the tenants quitting the holding, of making good the dilapidation,
deterioration or damage 3.
As an alternative to a claim for this statutory compensation, the landlord may claim compensation in respect
of the same matters4 but under and in accordance with a written contract of tenancy 5. Such non-statutory compensation
may be claimed only on the tenants quitting the holding on the termination of his tenancy 6. Compensation in respect of
any one holding cannot be recovered both under the contract and under the Agricultural Holdings Act 1986 7.
1
2
3

4
5
6
7

As to holdings to which the Agricultural Holdings Act 1986 (1 Halsburys Statutes (4th Edn) AGRICULTURE) applies, see
Paragraphs 301 [2001] and 302 [2004] ante.
See the Agricultural Holdings Act 1986 s 71(1). As to the rules of good husbandry, see the Agriculture Act 1947 s 11 (1
Halsburys Statutes (4th Edn) AGRICULTURE) applied by the Agricultural Holdings Act 1986 s 96(3).
See the Agricultural Holdings Act 1986 s 71(2). The amount of such compensation payable, either under the Agricultural
Holdings Act 1986 or under a written contract, must not exceed the amount (if any) by which the value of the landlords
reversion is diminished owing to such dilapidation, deterioration or damage: see the Agricultural Holdings Act 1986 s 71(5).
Ie the matters specified in the Agricultural Holdings Act 1986 s 71(1).
See the Agricultural Holdings Act 1986 s 71(3).
See the Agricultural Holdings Act 1986 s 71(4)(a).
See the Agricultural Holdings Act 1986 s 71(4)(b).

[2526]
459
General deterioration of holding
Where the landlord shows that the value of the holding generally has been reduced, whether by reason of any such
dilapidation, deterioration or damage as is mentioned above 1 or otherwise by non-fulfilment by the tenant of his
responsibility to farm in accordance with the rules of good husbandry 2, then, on the tenants quitting the holding at the
termination of the tenancy, the landlord is entitled to recover from the tenant compensation for the reduction in value,
in so far as he has not already been compensated under the above provisions, relating to the dilapidation, deterioration
or damage to particular parts of the holding3.
The compensation for this general reduction in value is not recoverable unless the landlord, not later than one
month before the termination of the tenancy, gives to the tenant written notice of his intention to claim such
compensation4. The measure of compensation is an amount equal to the decrease in the value of the holding as a
holding, having regard to its character and situation and the average requirements of tenants reasonably skilled in
husbandry5.
1

2
3
4
5

Ie dilapidation or deterioration of, or damage to, any part of the holding or anything in or on the holding caused by nonfulfilment by the tenant of his responsibilities to farm in accordance with the rules of good husbandry: see the Agricultural
Holdings Act 1986 s 71(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
As to the rules of good husbandry, see the Agriculture Act 1947 s 11 (1 Halsburys Statutes (4th Edn) AGRICULTURE) applied by
the Agricultural Holdings Act 1986 s 96(3).
See the Agricultural Holdings Act 1986 s 72(1),(2).
See the Agricultural Holdings Act 1986 s 72(4). For a notice of intention to claim compensation for general deterioration of the
holding, see Form 212 [3999] post.
See the Agricultural Holdings Act 1986 s 72(3).

[2527]
460
Successive tenancies
When the tenant of a holding has remained during two or more tenancies, his landlord is not deprived of his right to
compensation under the above provisions1 by reason only that the tenancy during which an act or omission occurred
which in whole or in part caused the dilapidation, deterioration or damage was a tenancy other than that at the
termination of which the tenant quits the holding2.
1
2

Ie the provisions outlined in Paragraphs 458 [2526] and 459 [2527] ante.
See the Agricultural Holdings Act 1986 s 73 (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[2528][2535]

I: PROCEDURES FOR SETTLEMENT OF CLAIMS


1: NOTICE AND AGREEMENT

461
Procedure on termination of tenancy
A claim of whatever nature by the landlord or the tenant of an agricultural holding to which the Agricultural Holdings
Act 1986 applies1, being a claim against the other which arises:
461.1 under the Agricultural Holdings Act 1986 or any custom or agreement; and
461.2 on or out of the termination of the tenancy of the holding or part of it;
is determinable by arbitration under the Act and is not enforceable unless, before the expiry of two months from the
termination2 of the tenancy, the claimant has served written notice 3 on his landlord or tenant, as the case may be, of his
intention to make the claim4. The notice must specify the nature of the claim, but it is sufficient if the notice refers to
the statutory provision, custom or term of an agreement under which the claim is made 5.
1
2

3
4
5

As to holdings to which the Agricultural Holdings Act 1986 (1 Halsburys Statutes (4th Edn) AGRICULTURE) applies, see
Paragraphs 301 [2001] and 302 [2004] ante.
Where a tenant lawfully remains in occupation of part of an agricultural holding after the termination of a tenancy, references to
termination are to be construed, in the case of a claim relating to that part of the holding, as references to the termination of the
occupation: see the Agricultural Holdings Act 1986 s 83(6) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
For a notice of intention to make a claim on termination of a tenancy, specifying the nature of the claim, see Form 213 [4000]
post.
See the Agricultural Holdings Act 1986 s 83(1),(2).
See the Agricultural Holdings Act 1986 s 83(3).

[2536]
462
Agreement or arbitration
Whether a claim is made by the landlord or the tenant, they may, by agreement in writing within the period of eight
months from the termination 1 of the tenancy, settle the claim 2. Where by the expiry of such period the claim is not
settled, it must be determined by arbitration under the Agricultural Holdings Act 1986 3.
1

2
3

Where a tenant lawfully remains in occupation of part of an agricultural holding after the termination of a tenancy, references to
termination are to be construed, in the case of a claim relating to that part of the holding, as references to the termination of the
occupation: see the Agricultural Holdings Act 1986 s 83(6) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 83(4). For an agreement as to compensation on termination of tenancy, see Form 216
[4005] post.
See the Agricultural Holdings Act 1986 s 83(5). For statements of case for arbitration of matters arising on quitting a holding, see
Form 145 [3595] (tenants case) and 146 [3599] (landlords case) post.

[2537][2540]
2: ENFORCEMENT
463
Recovery of compensation etc
Where a sum agreed or awarded under the Agricultural Holdings Act 1986 to be paid for compensation, costs or
otherwise by the landlord or the tenant of an agricultural holding is not paid within 14 days after the time when the
payment becomes due, it is recoverable on an order made by the county court as if it were money ordered to be paid by
the county court under its ordinary jurisdiction 1. A landlord entitled otherwise than for his own benefit (eg as a trustee)
is not, however, personally liable to pay such sums 2.
Where a sum becomes due to a tenant of an agricultural holding in respect of compensation from the landlord
(whether entitled for his own benefit or not) and the landlord fails to discharge his liability within the period of one
month from the date on which the sum becomes due, the tenant is entitled to obtain from the Minister 3 an order
charging the holding with payment of the amount due4.
1
2
3
4

See the Agricultural Holdings Act 1986 s 85(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
See the Agricultural Holdings Act 1986 s 85(3)(a).
The Minister means, in relation to England, the Minister of Agriculture, Fisheries and Food, and in relation to Wales, the
Secretary of State for Wales: see the Agricultural Holdings Act 1986 s 96(1).
See the Agricultural Holdings Act 1986 s 85(2),(3)(b). Such a charge is a Class A land charge and should be protected by
registration under the Land Charges Act 1972 s 2(1) (37 Halsburys Statutes (4th Edn) REAL PROPERTY): see vol 25(1) (1995
Reissue) LAND CHARGES Paragraph 38 [261]. Where title to the land charged is registered at HM Land Registry, protection by
notice or caution under the Land Registration Act 1925 (37 Halsburys Statutes (4th Edn) REAL PROPERTY) is appropriate: see
vol 25(1) (1995 Reissue) LAND REGISTRATION Paragraph 172 [2461] et seq.

[2541][2545]
3: ARBITRATION
464
Matters referred to statutory arbitration
Provision is made in the Agricultural Holdings Act 1986 for the determination by statutory arbitration of certain
questions arising during the currency of the tenancy of an agricultural holding 1. Also, any claim of whatever nature by

the landlord or the tenant against the other, being a claim arising under the Agricultural Holdings Act 1986 or any
custom or agreement and on or out of the termination of the tenancy of the whole or part of the holding, must, subject
to the provisions as to notice of claims 2 and settlement of claims by agreement 3, be determined by statutory
arbitration4.
1

The matters to be referred to arbitration under the Agricultural Holdings Act 1986 (1 Halsburys Statutes (4th Edn)
AGRICULTURE) during the currency of the tenancy are:
(1)
any dispute arising from the restriction on letting agricultural land for less than from year to year: see the Agricultural
Holdings Act 1986 s 2(4);
(2)
the terms of the tenancy where there is no written agreement or an incomplete agreement: see the Agricultural
Holdings Act 1986 s 6(1) and for a notice of reference to arbitration, see Form 118 [3505] post;
(3)
any matter arising under the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations
1973/1473: see the Agricultural Holdings Act 1986 s 7(2);
(4)
the terms of the tenancy where these are not in conformity with the model clauses set out in the Agriculture
(Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973: see the Agricultural Holdings Act 1986 s
8(2) and for a notice of reference to arbitration, see Form 120 [3508] post;

[2546]
(5)

2
3
4

the amount of any compensation for transfer of liability for maintenance of any item of fixed equipment from the
tenant to the landlord: see the Agricultural Holdings Act 1986 s 9(1) and for a notice of reference to arbitration, see
Form 122 [3511] post;
(6)
any dispute as to the amount payable for fixtures or buildings the landlord elects to purchase: see the Agricultural
Holdings Act 1986 s 10(6);
(7)
the amount of rent payable from the next termination date: see the Agricultural Holdings Act 1986 s 12(1) and for a
notice of demand for arbitration, see Form 130 [3526] post;
(8)
any dispute as to increases of rent for landlords improvements: see the Agricultural Holdings Act 1986 s 13(7);
(9)
the question whether it is expedient to reduce the area of land required to be maintained as permanent pasture: see the
Agricultural Holdings Act 1986 s 14(2) and for a notice of demand for arbitration, see Form 134 [3534] post;
(10)
the amount of compensation for damage by game: see the Agricultural Holdings Act 1986 s 20(4);
(11)
the amount of any reduction in rent where notice to quit part of the holding is given: see the Agricultural Holdings
Act 1986 s 33(2); and
(12)
the terms of a tenancy obtained by succession on the death of the tenant and/or the rent under it: see the Agricultural
Holdings Act 1986 s 48(3),(4) and for a demand for arbitration, see Form 201 [3913] post.
As to notice of claims, see Paragraph 461 [2536] ante.
As to settlement by agreement, see Paragraph 462 [2537] ante.
See the Agricultural Holdings Act 1986 s 83(1),(5).

[2547]
465
Appointment of arbitrator
Any matter which by or by virtue of the Agricultural Holdings Act 1986 is required to be determined by arbitration
must, notwithstanding any agreement providing for a different method, be determined by the arbitration of a single
arbitrator in accordance with the provisions laid down for this purpose 1. The provisions of the Arbitration Act 1950 are
expressly excluded2. Despite the statutory nature of the arbitration, an arbitrator may be appointed by agreement
between the parties themselves 3. In default of such agreement the President of the Royal Institution of Chartered
Surveyors will appoint the arbitrator on the written application of either of the parties 4 from a special panel constituted
for the purpose5.
An appointment when made must be in writing 6, and becomes effective when the arbitrator accepts his
appointment7. If an arbitrator fails to act for seven days after receiving from either party a written 8 notice requiring him
to do so, a new arbitrator may be appointed as if no arbitrator had been appointed 9. A similar right of new appointment
arises if the arbitrator dies or becomes incapable of acting 10. Subject to the above, however, neither party has power to
revoke the appointment of the appointed arbitrator without the consent of the other 11. By implication it follows that
both parties may jointly in writing revoke an arbitrators appointment 12. The county court is empowered to remove an
arbitrator on the ground of misconduct13.
1
2
3

4
5
6
7
8

Ie the provisions of the Agricultural Holdings Act 1986 s 84(1),s : 11 (1 Halsburys Statutes (4th Edn) AGRICULTURE), and the
Agricultural Holdings (Form of Award in Arbitration Proceedings) Order 1990/1472.
See the Agricultural Holdings Act 1986 s 84(1).
See the Agricultural Holdings Act 1986,s : 11 para 1(1). For an appointment of an arbitrator by agreement, see Form 141 [3583]
post. As to the fee that must accompany the application to the President of the Royal Institution of Chartered Surveyors see the
Agricultural Holdings Act 1986,s : 11 para 1(2) and Service: Fees.
See the Agricultural Holdings Act 1986,s : 11 paras 1(1), 5. For applications, see Forms 143 [3589] (landlords claim for
increase of rent on completion of improvements) and 144 [3592] (terms and/or rent of new tenancy on succession) post.
See the Agricultural Holdings Act 1986,s : 11 para 1(1), (5).
See the Agricultural Holdings Act 1986,s : 11 para 5.
Sclater v Horton [1954] 2 QB 1, [1954] 1 All ER 712, CA; as to the acceptance of an appointment by an arbitrator, see also
Hannaford v Smallacombe [1994] 15 EG 155, CA.
See the Agricultural Holdings Act 1986,s : 11 para 5.

9
10
11
12
13

See the Agricultural Holdings Act 1986,s :


See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :
See the Agricultural Holdings Act 1986,s :

11 para 2.
11 para 2.
11 para 4.
11 para 4, 5.
11 para 27(1).

[2548]
466
Conduct of arbitration
Within 35 days of the appointment of an arbitrator, each party to the arbitration must submit a statement of his case
with particulars1 and relevant documents (for example, the contract of tenancy and any abortive request for a tenancy
agreement or variation of the terms of the contract of tenancy that was a condition precedent to the reference). Except
with the consent of the arbitrator, a partys case may not be subsequently amended 2 and each party is confined at the
hearing to matters alleged in his statement and particulars and any due amendment of such statement and particulars 3.
At the hearing the parties and their witnesses, if the arbitrator thinks fit, are examined on oath or affirmation 4 and the
parties must produce such samples and documents as the arbitrator may require 5. Witnesses may be summoned to
appear and for this purpose the county court rules are applied to the arbitration proceedings 6.
1

2
3
4
5
6

See the Agricultural Holdings Act 1986 s 84,s : 11 para 7 (1 Halsburys Statutes (4th Edn) AGRICULTURE). For forms of
statement of case, see Forms 145 [3595] (tenants case on quitting holding) and 146 [3599] (landlords case on tenant quitting
holding) post. Note that the arbitrator has no discretion to extend the statutory 35 day time limit: Hannaford v Smallacombe
[1994] 15 EG 155, CA.
See the Agricultural Holdings Act 1986,s : 11 para 7(a).
See the Agricultural Holdings Act 1986,s : 11 para 7(b).
See the Agricultural Holdings Act 1986,s : 11 para 9.
See the Agricultural Holdings Act 1986,s : 11 para 8.
See the Agricultural Holdings Act 1986,s : 11 para 10.

[2549]
467
Statement of case for county court
The arbitrator may at any stage in the proceedings and must, if so directed by a county court judge on the application of
either party, state a case for the opinion of the county court on any question of law arising in the proceedings or on any
question as to the arbitrators own jurisdiction1.
1

See the Agricultural Holdings Act 1986 s 84,s : 11 para 26 (1 Halsburys Statutes (4th Edn) AGRICULTURE). For a statement of
special case for the opinion of the county court, see Form 148 [3608] post.

[2550]
468600 The award
The arbitrator must make and sign his award within 56 days of his appointment 1 unless this time is extended by the
President of the Royal Institution of Chartered Surveyors 2. The award is final and binding on the parties 3. An award
may, however, be set aside by the county court for the misconduct of the arbitrator, or on the grounds that the award
was improperly procured or that there is an error of law on the face of the award 4. Costs may be awarded by the
arbitrator5 and are subject to taxation in the county court6.
1
2
3
4
5
6

See the Agricultural Holdings Act 1986 s 84,s : 11 para 14(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). For the
prescribed form of award, see Form 147 [3602] post.
See the Agricultural Holdings Act 1986,s : 11 para 14(2).
See the Agricultural Holdings Act 1986,s : 11 para 19.
See the Agricultural Holdings Act 1986,s : 11 para 27(2).
See the Agricultural Holdings Act 1986,s : 11 para 23.
See the Agricultural Holdings Act 1986,s : 11 para 24.

[2551][3000]

(B) Forms and Precedents


A: AGREEMENTS AND LICENCES
101
Agreement for letting a farm from year to year with alternative repairing liabilities 1

THIS AGREEMENT is made the day of BETWEEN:


(1)

(name of landlord) of (address) (the Landlord which expression where the context permits is to include the
person for the time being entitled to the rent payable under this agreement) and

(2)

(name of tenant) of (address) (the Tenant which expression where the context permits is to include his
successors in title)2

[3001]
NOW IT IS AGREED as follows:

Definitions and interpretation

In this agreement:
1.1

the Holding means the agricultural holding [including the shooting rights over it] known as (name of
holding) situate at (insert details) and extending to approximately hectares ( acres) particulars
of which are set out in schedule 1, shown [for the purpose of identification only] edged red on the plan
attached to this agreement3;

[3002]
1.2

the Commencement Date means (date);

1.3

the Commencing Rent means the rent stated in sub-clause 5.1;

1.4

words importing corporations include persons (whether masculine or feminine as the case may be) and vice
versa, words importing the masculine gender only include the feminine gender, words importing the singular
number only include the plural number and vice versa and where there are two or more individuals included
in the expression the Tenant covenants expressed to be made by him or them are to be deemed to be made
by such persons jointly and severally;

1.5

reference to any Act or statutory instrument includes reference to any re-enactment or modification of such
Act or statutory instrument;

1.6

clause headings in this agreement do not form part of this agreement 4;

1.7

save where otherwise stated any reference to a numbered clause, subclause or schedule means the clause,
subclause or schedule in this agreement that is so numbered.

The Holding

The Landlord agrees to let and the Tenant agrees to take the Holding together with all Landlords fixtures and fittings,
excepting and reserving to the Landlord as more particularly set out in schedule 2.

Term

The tenancy is to commence on the Commencement Date and continue from year to year until determined at the end of
any year of the tenancy by either party giving to the other not less than 12 months previous notice in writing.
[3003]

Existing easements and reservations

The Holding is let subject to all public and private rights of way and all other easements and agreements (if any)
affecting it and to the exceptions and reservations mentioned below.

Rent

5.1

The rent is to be a year and is to continue at the same yearly sum until such time as a different rent
is substituted for it5, either by agreement or by arbitration under the provisions of the Agricultural Holdings
Act 1986, after which the rent is to be the substituted rent.

5.2

Any agreement by which a new rent for the Holding is agreed is to be deemed to be made under this clause
and not to create a fresh tenancy agreement unless otherwise specifically stated.

5.3

The rent is to be payable half yearly [in advance (or) in arrears] on 25 March and 29 September in each year
the first payment (being a proportionate part of the rent) to be made on (date).

5.4

The Commencing Rent is to be reviewed on the [third] anniversary of the Commencement Date (if the
tenancy so long continues) and the rent payable from that date is to be the rent (not being less than the
Commencing Rent) that an arbitrator appointed immediately before that date pursuant to a reference to
arbitration properly demanded by the Landlord under the Agricultural Holdings Act 1986 section 12 would
determine to be properly payable in respect of the Holding under the provisions of that section, and in default
of agreement the rent payable is to be determined by a single arbitrator to be appointed in accordance with
the provisions of the Agricultural Holdings Act 1986.

[3004]

Agreements by the Tenant

The Tenant agrees with the Landlord as follows:

6.1

Rent

The Tenant must pay the rent reserved above and all existing and future rates, land drainage charges and other taxes and
outgoings of an annual or recurring nature except owners drainage rates.

6.2

Reimbursement ingoing

[The Tenant must pay to the Landlord on demand the amount payable or to become payable by the Landlord to the
outgoing tenant in respect of the Holding (other than disturbance compensation and game damage) under a claim
arising on or out of the termination of his tenancy of the Holding together with all reasonable and necessary costs and
expenses incurred by the Landlord in respect of any valuation or arbitration in ascertaining such sum or sums without
deducting any payments made or payable by the outgoing tenant to the Landlord and to expend any amount paid to the
Tenant by the Landlord towards carrying out his (the Tenants) obligations under this agreement.
(or)
The Tenant must pay to the Landlord all sums properly payable by an incoming tenant for growing crops, tillages, dead
stock and other matters to which the Landlord would be entitled if he were an outgoing tenant holding under the terms
of this agreement after deducting all sums the Landlord would be liable to pay if he were an outgoing tenant holding on
those terms, the amount so payable to be ascertained in default of agreement according to a valuation to be made by a
single valuer (to be appointed in default of agreement by the President of the Royal Institution of Chartered Surveyors)
whose valuation is to be final, the amount so ascertained to be payable on demand by the Tenant to the Landlord.]
[3005]

6.3

Water extraction

On entering the Holding the Tenant must give all necessary notices and make all necessary applications and payments
to preserve any existing licence granted in respect of the Holding under the Water Resources Act 1991 or any similar
enactment, and subsequently must continue the licence in force during the tenancy and must not surrender it without
the consent in writing of the Landlord or by any act or omission jeopardise the licence.

6.4

Use

The Tenant must not use or permit or suffer the use of the Holding or any part of it for any purpose other than
agriculture and in particular must not use it for:
6.4.1

the display of advertisements;

6.4.2

camping;

6.4.3

the parking of caravans;

6.4.4

holding fairs, racing, coursing, matches, games, contests, rallies, musical festivals or bathing by the public; or

6.4.5

as a market garden

and the Tenant must manage and farm the Holding as [a dairy (or) (as the case may be)] farm for which sole purpose it
is let
[3006]

6.5

System of farming

The Tenant must not change the system of farming as [a dairy (or) (as the case may be)] farm without the consent of
the Landlord, whose consent may not be unreasonably withheld [or delayed], and where a change is consented to the
Tenant and not the Landlord is to be liable for all additional works of maintenance, repairs or improvements necessary
or desirable to be carried out on the Holding in consequence of the altered type of farming.

6.6

Limit on consent

Nothing contained in this agreement and no consent by the Landlord to a change in the type of farming under subclause 6.5 is to be deemed to be a consent in writing either for the purposes of this agreement or the Agricultural
Holdings Act 1986 section 67 or to any of the improvements set out in the Agricultural Holdings Act 1986, Schedule
10.

6.7

Dispute as to consent

Any dispute as to whether consent is unreasonably withheld under the provisions of sub-clause 6.5 is to be determined
by a single arbitrator appointed in default of agreement by the President of the Royal Institution of Chartered
Surveyors.

6.8

Good husbandry

The Tenant must cultivate and manage the Holding according to the rules of good husbandry as defined in the
Agriculture Act 1947 section 11 so as not to impoverish or deteriorate the land and to keep and leave the Holding clean
and in good heart and condition.
[3007]

6.9

Pests

The Tenant must take all reasonable and practicable steps to keep the Holding free from infestation by insects and other
pests and to destroy rabbits, moles, rats and other vermin and to spread mole-hills and ant-hills upon the Holding.

6.10

Weeds

The Tenant must take all reasonable steps to control and destroy all harmful or injurious weeds throughout the Holding.

6.11

Notifiable diseases

The Tenant must immediately notify the Landlord in writing of any outbreak or suspected outbreak of any notifiable
disease of crops or stock on the Holding.

6.12

Farming in last year

In the last year of the tenancy the Tenant must farm and cultivate the Holding in accordance with the reasonable
requirements (if any) of the Landlord notified to the Tenant in writing.

6.13

Sprays

When using any sprays the Tenant must take all reasonable care to ensure that adjoining hedges trees and crops are not
adversely affected and must make good or replant as necessary should any damage occur and so far as possible must
select and use chemicals, whether for spraying, seed dressing or any other purposes whatever, that will cause the least
harm to game birds and other wild-life other than vermin or pests.
[3008]

6.14

Fire

The Tenant must not burn any straw left on the stubble behind the combine harvester and must use his utmost
endeavours to prevent any fire from burning or scorching any hedgerow or tree on the Holding or from spreading to
any part of any adjoining property whether belonging to the Landlord or not and in the event of damage occurring to
any part of such property the Tenant must pay the cost of reinstating it and must pay to the Landlord full compensation
for the loss of timber and for damage caused to the Landlords interests as reserved in this agreement and must
indemnify the Landlord from and against all claims that may be made by reason of damage to the property of any third
party.

[6.15

Stocking

The Tenant must keep the Holding properly stocked and use his best endeavours to stock the Holding with disease-free
[cattle].]

6.16

Grassland

The Tenant must not plough or break up any land described in schedule 1 as meadow, grass or permanent pasture
without the previous written consent of the Landlord.

[3009]

6.17

Turf and topsoil

The Tenant must not remove from the Holding any turf or top soil without the previous written consent of the Landlord.

6.18

Cropping

Subject to his rights under the Agricultural Holdings Act 1986 section 15, the Tenant must not take from the arable land
more than straw crops in succession and must not have more than of such crops in corn or grain and on
quitting must leave reasonable and proper proportions in or in course for winter corn, spring corn, maiden seeds, leys or
roots and forage crops.

6.19

[Sale of keep (or) Agistment]

[(Sale of keep)The Tenant must not sell any grass, keeping, grazing or growing crops on the Holding or take in
livestock of any third party or in which a third party has an interest to keep without the previous written consent of the
Landlord.]
[(Agistment) The Tenant must not without the previous written consent of the Landlord grant to any person a licence to
graze stock on the Holding, or take to feed on the Holding stock belonging to any other person.]
[3010]

6.20

Charges

The Tenant must notify the Landlord in writing of any charge made under the authority of the Agricultural Credits Act
1928 immediately on the completion of any document evidencing such charge.

6.21

Sale of crops

The Tenant must not sell off or remove, but must consume on the Holding, all grasses, clover and forage crops whether
harvested or not and all fodder, straw and roots grown on the Holding in the last year of the tenancy or remaining
unconsumed from previous years, and must leave for the use of the Landlord or incoming tenant all such grasses,
clover and forage crops, fodder, straw and roots that remain unconsumed when the Tenant quits the Holding.

6.22

Manure

The Tenant must return to the Holding the full equivalent manurial value of any grasses, clover or forage plants
whether green or conserved or any fodder, straw, roots or other produce of the Holding sold or removed from it at any
time prior to the last year of the tenancy.

6.23

Records of cropping etc

The Tenant must keep and on the request of the Landlord produce at any reasonable time true records of all cropping
and true accounts with all necessary vouchers of all hay, straw and other produce sold off the Holding and of the
provision made for the return to the Holding of the full equivalent manurial value of all crops sold off or removed from
the Holding and of the provisions made to protect the Holding from injury or deterioration in consequence of the
exercise by the Tenant of his right to cropping and sale of produce under the Agricultural Holdings Act 1986 section 15.

6.24

Dung

The Tenant must spread annually on the Holding all farmyard manure and compost produced and made on the Holding
and at the termination of the tenancy must leave carefully stored all such farmyard manure and compost not already
spread.
[3011]

6.25

Orchards and gardens

The Tenant must keep all orchards and gardens in a proper state of cultivation, well manured and in good heart and
must protect the Holding from damage by cattle or otherwise howsoever.

6.26

Pruning

The Tenant must prune all fruit trees and bushes at proper seasons and at his own expense replace dead and worn out
fruit trees with other fruit trees suitable to the district, provided that the Tenant may at his option, in lieu of replacing
individual trees, grub up and replace the whole or a substantial part of an orchard in accordance with a scheme
approved by the Landlord or in default of such approval found to be a reasonable scheme by an arbitrator agreed
between the parties or in default of agreement appointed by the President of the Royal Institution of Chartered
Surveyors.

6.27

Soil analysis

When so required by and at the expense of the Landlord the Tenant must have taken a proper analysis of the soil of the
Holding (or of such part of it as may be specified by the Landlord) by such Ministry or other body as the Landlord may
specify.

6.28

Tree damage

The Tenant must not permit or suffer any waste, or cut down, top or lop or drive nails into or otherwise injure any trees
growing on the Holding and must protect all trees from damage by cattle or otherwise howsoever.

6.29

Repairs

[(where the tenant is to repair)


6.29.1
The provisions of schedule 3 are to have effect with regard to the repair and replacement of fixed equipment
on the Holding.
6.29.2

If the Tenant fails to execute repairs for which he is liable within [1 month] of receiving from the Landlord a
written request specifying the necessary repairs and calling on him to execute them, the Landlord may enter
and execute such repairs and recover the reasonable costs from the Tenant immediately after the completion
of such repairs.]

[3012]
[(where the model clauses are not set out but repair is apportioned in accordance with them)
The Tenant must carry out such repairs and works as are required of him under the provisions of the Agriculture
(Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973 as amended from time to time.]
[(where the model clauses are set out in extenso)
The provisions of schedule 3 are to have effect with regard to the repair and replacement of fixed equipment on the
Holding.]

6.30

Additional buildings

The Tenant must not alter, remove or make additions to any building or erect any new buildings or make any other
improvements specified in the Agricultural Holdings Act 1986, Schedule 7 without the previous written consent of the
Landlord (subject always to the Tenants right to apply for consent to an Agricultural Land Tribunal under the
Agricultural Holdings Act 1986 section 67).

6.31

Farmhouse

The Tenant must at all times during the Tenancy personally reside in the principal farmhouse on the Holding as his sole
residence and dwellinghouse 6.

6.32

Assignment

The Tenant must not assign, underlet, part with or share possession or occupation of the whole or any part of the
Holding7 provided that:
6.32.1
[3013]
6.32.2

if the Tenant shares occupation of the Holding with [his wife (or) her husband] or child or children that is not
to operate as a breach of the terms of this subclause or sub-clause 6.31;
the Tenant may permit any cottages and gardens [and (or) but not] the principal farmhouse comprised in this
agreement to be occupied under service agreements by agricultural workers employed by the Tenant full time
on the Holding but not so as to create any tenancy of any of the cottages and gardens and only if the
occupation of any of the cottages [or the farmhouse] is necessary in order to enable the agricultural worker to
perform his duties under a service agreement adequately and provided that [the farmhouse and] each cottage
[is (or) are] occupied by only one such agricultural worker and his family;

6.32.3

the Tenant may let any cottage not from time to time required to be so occupied to such person or persons and
on terms that are first approved by the Landlord in writing; and

6.32.4

the Tenant may grant a licence limited to a season to a third party to exercise sporting rights on the Holding
provided that the terms of any such licence are first approved in writing by the Landlord.

6.33

Insurance of buildings

The Tenant must keep the farmhouse and cottages insured on a comprehensive policy, and the agricultural buildings
insured against loss or damage by fire, in each case with an insurance company and in a sum or sums to be approved by
the Landlord and must pay out any insurance money received in or towards the rebuilding or reinstatement of any
property damaged or destroyed and must produce the policy of insurance and the receipt for the current premium to the
Landlord or his agent whenever called upon to do so.
[3014]

6.34

Insurance of live and dead stock

The Tenant must:


6.34.1

insure the live and dead stock and the whole of the meadow and clover and hay, fodder and straw and other
crops stored on the Holding or in the buildings with an insurance company of a category approved by the
Landlord, against loss or damage by fire, to their full market value and must keep them so insured at all times
during the tenancy;

6.34.2

produce the policy of insurance and the receipt for the current premium to the Landlord or his agent
whenever called upon to do so; and

6.34.3

in the event of any of such produce being destroyed by fire, as soon as reasonably practicable replace the
produce destroyed or purchase its full manurial and mechanical equivalent in good farmyard manure or
approved artificial fertilisers or feeding stuffs to be expended on the Holding.

6.35

Avoidance of Landlords policy

The Tenant must avoid any act or omission by which any policy of insurance taken out by the Landlord may be
invalidated and must indemnify the Landlord against any losses, charges, costs or expenses incurred through any such
invalidation and must keep in the buildings an adequate number of fire extinguishers in good working order and must
take all other reasonable precautions to safeguard the Landlords property against fire and other risks.
[3015]

6.36

Game

[(shooting reserved) The Tenant must preserve game, wildfowl, woodcock, snipe and other wild birds included in the
Wildlife and Countryside Act 1981, Schedule 2 (including their nests and eggs) and fish and must ward off
unauthorised persons from molesting or destroying them or trespassing on any part of the Holding for that purpose and
must give notice to the Landlord of anyone so offending or trespassing and otherwise must preserve the Landlords
interests reserved in schedule 2 paragraph 6.]
[(shooting rights included) The Tenant must exercise the shooting rights included in this tenancy in a fair and
sportsmanlike manner and at proper seasons so as to preserve and not to diminish stocks of game, and must keep down
vermin so as to prevent their becoming injurious to the game, the Holding, the woods and any other interest of the
Landlord and must ward off unauthorised persons from destroying or molesting them.]

6.37

Encroachments

The Tenant must prevent any new footpaths or other encroachments or easements from being made in or acquired over
any part of the Holding save as provided in schedule 2 paragraph 3.

6.38

Nuisance

The Tenant must not do or suffer to be done on the Holding anything that may be or become a nuisance or annoyance to
the Landlord or the owners or occupiers of any adjoining land and must indemnify the Landlord against any claims by
third parties in respect of any breach of this subclause.

6.39

Production of notices

At all times, immediately upon receipt of any notice order direction or other matter whatever affecting or likely to
affect the Holding, the Tenant must produce it for the Landlords inspection and permit the Landlord to make a copy.

6.40

Compliance with notices

The Tenant must comply immediately with, and give sufficient effect to, every direction or notice duly made and served
upon him by a competent authority and must keep the Landlord effectually indemnified against all relative proceedings,
damages, penalties, costs and claims.
[3016]

6.41

Planning

The Tenant must not omit or suffer to be omitted any act, matter or thing in, on or respecting the Holding that is
required to be omitted (as the case may be) by the Town and Country Planning Act 1990 8 (which expression is to
include any orders, regulations or directions for the time being in force made issued or given under that Act), or do or
suffer to be done any act or thing that contravenes the provisions of that Act and must at all times keep the Landlord
effectually indemnified against all actions, proceedings, costs, expenses, claims and demands in respect of any such act
matter or thing contravening the provisions of that Act.

6.42

Compensation

Where damage results from the laying of pipelines, sewers and other apparatus underground or from the erection of
poles, pylons and other apparatus above the ground the Tenant must use the monetary compensation to remedy such
damage and fully to restore the Holding or must obtain a suitable indemnity from the statutory or acquiring authority.

6.43

Pollution

The Tenant must not contravene the Rivers (Prevention of Pollution) Act 1961.

6.44

Specialist crops

The Tenant must not make any contracts with any producers for growing specialist crops on the Holding except on
condition that:
6.44.1

any contract in writing is to be prepared and signed by both parties before the grower enters upon the
Holding;

6.44.2

any contract must provide specifically that the grower is granted non-exclusive rights of occupation and must
not give to the grower any security of tenure;

6.44.3

any contract must not (or if more than one contract is granted all the contracts together must not) relate to a
greater area in any one year than 20% of the total arable area of the Holding and must not in any case be for a
period exceeding 364 days; and

6.44.4

no contract or contracts may be made that operate during the last year of the tenancy unless the Landlord has
first given consent in writing.

[3017]

6.45

Notice of death

If the Tenant [or any of them] dies during the continuance of the tenancy his executors or administrators or other person
or persons in whom any interest in the tenancy is vested immediately after his death must within one month of his death
give notice in writing to the Landlord of such death and its date 9.

6.46

Vacant possession of cottages

In the last year of the tenancy (whether it is terminated by the Landlord or the Tenant) the Tenant must take all steps
reasonably required by the Landlord in or towards obtaining vacant possession of any of the cottages on the Holding
that may be occupied by agricultural workers or others (including the commencement and prosecution of court
proceedings if appropriate) but so that the Tenant gives no warranty or guarantee that vacant possession will be given of
any property subject to an occupation or tenancy permitted under the terms of this agreement.

6.47

Deduction of sums due

All sums due from the Tenant to the Landlord in respect of rent, dilapidations, deteriorations or otherwise must be
deducted from the amount of compensation due from the Landlord to the Tenant under sub-clauses 7.37.5.
[3018]

6.48

Records for calculating compensation

For the purpose of supporting a claim to receive full compensation at the determination of the tenancy for the residual
value of feeding stuffs, fertilisers and lime and the value of temporary pasture under the statutory provisions and
compensation regulations then current the Tenant, must maintain and produce to the Landlord on demand a true record
of the manner and periods in each season in which the permanent pasture and leys have been grazed or conserved and
the quantity of all corn and both the quantity and nutrient content of all cake and other feeding stuffs consumed and the
fertilisers applied to the Holding together with details of the production and disposal of all slurry.

6.49

Yielding-up

At the expiration or sooner determination of the tenancy the Tenant must yield up the Holding, with vacant possession
of every part of it, in a condition consistent with the due performance by him of the provisions contained above.

Agreements by the Landlord10

The Landlord agrees with the Tenant as follows:

[7.1

Repairs

The Landlord must carry out such repairs and works as are [(where the model clauses are set out in extenso) specified
in schedule 3. (or, where the model clauses are not set out but liability for repair is apportioned) required of him under
the provisions of the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973 as
amended from time to time].]11

[7.2

Building insurance

The Landlord must keep the farmhouse and cottages insured on a comprehensive policy and the agricultural buildings,
except those listed as redundant in schedule 4, insured against loss or damage by fire and must lay out any insurance
money received in or towards the rebuilding or reinstatement of any property damaged or destroyed.]
[3019]

7.3

Compensation

7.3.1

Upon the Tenant giving up possession of the Holding, he is to be compensated for matters of tenant-right as
provided for under the Agricultural Holdings Act 1986.

7.3.2

The measure of compensation for improvements within the Agricultural Holdings Act 1986, Schedule 7 is to
be as provided for under the Agricultural Holdings Act 1986 section 66.

7.3.3

The measure of compensation for tenant-right improvements and other matters within the Agricultural
Holdings Act 1986, Schedule 8 is to be as provided for by the Agricultural Holdings Act 1986 section 66 and
by the Agriculture (Calculation of Value for Compensation) Regulations 1978 12.

7.4

Quiet enjoyment

The Tenant paying the rent reserved above and performing and observing the agreements on his part contained above,
the Landlord must permit him quietly to hold and enjoy the Holding without any interruption by the Landlord or by any
person rightfully claiming under or in trust for him.
[3020]

Further agreements

It is further agreed between the Landlord and the Tenant as follows:

8.1

Resumption of possession

The Landlord may upon giving to the Tenant 3 calendar months written notice 13 of his intention to do so (or in the
event of alteration in or additions to the statutory provisions relating to the service of notices and making of claims by a
tenant that are required to be served or made during the currency of the tenancy, such longer notice as will permit the
Tenant to serve such notices or make such claims as he may be entitled to serve or make under the Agricultural
Holdings Act 1986) resume possession at any time of any portion of the Holding 14 (not exceeding [% (or)
hectares] of it in any one calendar year), for any non-agricultural purpose 15 whether the use of the land for any such
purpose is to be made by the Landlord or his licensee or by a purchaser, tenant or assignee from the Landlord, and such
resumption of possession is not to terminate the tenancy created by this agreement except in regard to the land taken.

8.2

Re-entry

If at any time:
8.2.1

the rent or any part of it is in arrear for at least 21 days after becoming due, or

8.2.2

there is any breach or non-observance by the Tenant of any of the covenants and conditions contained in this
agreement, or

8.2.3

an interim receiver is appointed in respect of the Tenants property or a bankruptcy order is made in respect of
the tenant16, or

8.2.4

the Tenant enters into any composition with his creditors, or

8.2.5
[3021]
8.2.6

the interest of the Tenant under this agreement is taken in execution, or

8.2.7

any stock or crops on the Holding are taken under a bill of sale

execution is levied on any of the Tenants goods or chattels, or

then the Landlord may, without previously demanding any rents that may be due, (after giving to the Tenant 2 calendar
months notice) re-enter immediately upon the Holding or any part of it in the name of the whole, and the tenancy is
then to determine absolutely without prejudice to the rights of the Landlord in respect of any breach or non-observance
of any of the covenants and conditions contained above and on the part of the Tenant to be performed and observed or
any other rights and remedies of the Landlord; provided that if the tenancy terminates under the provisions of this
clause without sufficient warning to enable either party to give any notices or take any steps necessary to support and
enforce and proper claims for compensation on outgoing from the Holding or termination of the tenancy, that party is
nevertheless to have exactly the same position and rights as if all notices had been duly given and steps duly taken to
support the claims to which that party might otherwise be properly entitled 17.

8.3

Distress

8.3.1

Upon any seizure by the Landlord under distress for rent, the Landlord is not to be obliged to sell any hay,
straw or crops upon the terms that they may be removed from the Holding, but may exercise the power of
sale of distrained goods conferred by statute by selling the same subject to the condition that such produce is
to be consumed on the Holding or subject to some other condition securing that the manurial value of the hay,
straw or crops is returned to the Holding.

8.3.2

Upon any seizure and sale by the Landlord under distress for rent, the Landlord may grant to any purchaser of
hay, straw or crops, for such period or periods as the Landlord may think fit, the use of the threshing machine
(if any) upon the Holding and also the use of such part or parts of the Holding as the Landlord may think
necessary or proper for the purpose of threshing, storing, consuming or otherwise dealing with such hay,
straw or crops and without making any compensation to the Tenant in that respect.

[3022]

8.4

Set-off

Either party may set off against, and deduct from, any money that may at any time be payable by him in respect of the
Holding, other than rent, any money that may be payable to him by the other in respect of the Holding whether the
sums so payable by or to him are of a liquidated character or not.

8.5

Redundant buildings

If at any time or times during the continuance of the tenancy either party desires to treat any buildings on the Holding
(other than those included in schedule 4) as redundant to the proper requirements of the Holding, then in default of
agreement that party may, on giving one months notice in writing to the other, have the question whether such
buildings or any of them are redundant referred to the decision of a single arbitrator to be appointed in default of
agreement between the parties by the President of the Royal Institution of Chartered Surveyors; and if it is agreed or if
the arbitrator awards that such buildings or any of them are redundant then as from the date of the agreement or award
(as the case may be) the buildings so agreed or awarded to be redundant are to be deemed to be included in schedule 4
and both parties are to be relieved from all liability as to any antecedent breach of any undertaking to repair them 18.
[3023]

8.6

Buildings and equipment in schedule 4

8.6.1

If any buildings or other items of fixed equipment are not necessary for the proper cultivation or working of
the Holding and have been included in schedule 4, this agreement is to be construed in all respects as if those
buildings were not existing on the Holding at the commencement of the tenancy.

8.6.2

The Tenant may use buildings included in schedule 4 at his own risk and without any obligation to carry out
any repairs to them, but he must keep them in a clean and tidy condition: provided that the Landlord has the
right at any time at his own expense to enter and repair them or remove them.

8.7

Repair exclusions

Nothing contained in [schedule 3 (or) the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment)
Regulations 1973] is to create any liability on the part of either the Landlord or the Tenant:

8.7.1

to maintain, repair or insure any item of fixed equipment if the Landlord and the Tenant agree in writing that
neither party is to be liable to maintain, repair or insure that item; or

8.7.2

to execute any work if and so far as the execution of that work is rendered impossible (except at prohibitive
or unreasonable expense) by reason of subsidence of any land or by the blocking of outfalls not under the
control of either the Landlord or the Tenant.

8.8

Sale of Holding

In the event of the sale of the Holding the responsibility for the landlords covenants under this agreement is to pass to
the buyer and no action is to lie against the seller for their non-observance after the date on which the rent accrues to
the buyer.
[3024]

8.9

Cost of records

The cost of making any record required under the Agricultural Holdings Act 1986 section 22 19 is to be borne by the
person requiring that record except in the case the records that must be made under sub-clause 6.23, the cost of which
must be borne by the Tenant.

8.10

Exclusion of custom

The rights of the parties under this agreement or otherwise in respect of the tenancy are not to depend on or be affected
by any custom of the country.

8.11

Tenants fixtures

8.11.1

The fixtures and fittings specified in schedule 5 are fixtures belonging to the Tenant in respect of which the
Agricultural Holdings Act 1986 section 10 is to apply.

8.11.2

If the Tenant does not within 3 calendar months after the termination of the tenancy remove from the Holding
any fixtures and fittings subsequently installed to which the Agricultural Holdings Act 1986 section 10
applies and which the Landlord has not given notice of his intention to purchase under that section, such
fixtures and fittings, on the expiration of that period, are immediately to become the property of the Landlord
without payment unless the Landlord otherwise elects in which case the Tenant must remove such fixtures
and fittings from the Holding and make good any damage occasioned to the Holding as a result.

8.12

Landlords agent

Any right or power under this agreement granted to the Landlord may be exercised by the Landlord or the Landlords
duly authorised agents or servants and any notice that must be given to or by the Landlord is to be deemed to have been
properly served if served on or by the Landlords agents.

8.13

VAT

Where under the terms of this agreement the Tenant is obliged to make any payment to the Landlord that attracts VAT
(or any tax replacing it) the Tenant is to be responsible for the payment of the VAT (or any tax replacing it) 20.

Stamp duty

The Landlord and the Tenant certify that there is no agreement for lease to which this lease gives effect.
[3025]
AS WITNESS etc (see vol 12 (1994 Reissue) DEEDS, AGREEMENTS AND DECLARATIONS)

SCHEDULE 1
The Holding
(describe holding)
SCHEDULE 2
The Reservations to the Landlord
1

Mines and minerals etc

All mines, minerals, quarries, stones, sand, brick earth, clay, gravel, turf, petroleum and its relative hydrocarbons and
all other gases and substances in or under the Holding of a kind ordinarily worked or removed by underground or
surface working, with power for the Landlord and all persons authorised by him:
1.1

to enter on the Holding to search for, win, dress and make them merchantable,

1.2

to carry them away from the Holding and from neighbouring land over any roadways on the Holding or over
any other part of the Holding, and

1.3

to execute all incidental works

including the right to let down the surface of the Holding, the Tenant being paid reasonable compensation for all
damage caused to him by the exercise of such power.

Water

The right for the Landlord and all persons authorised by him to enter the Holding and (subject to the provisions of the
Water Resources Act 1991) take water from any stream, spring or other source of supply on the Holding by means of
pipes or otherwise howsoever, provided sufficient water is left for the Tenant for domestic and agricultural purposes.
[3026]

Wayleaves and entry

The right to grant any wayleave, contract, easement or licence to any public or local authority or public utility company
or other company or persons with the right to authorise servants and agents of such parties with or without vehicles,
horses, machinery and plant to enter upon the Holding and carry out their works (subject to the payment of reasonable
compensation for damage provided a claim in writing is made by the Tenant to the Landlord within a reasonable time
from the occurrence of the damage) together with the benefit of all such contracts, agreements for easements or
licences and all rents and other payments reserved.

Timber

All timber and other trees (except fruit trees), saplings, pollards and underwood with liberty for the Landlord and all
persons authorised by him to enter upon the Holding to mark, fell, cut and carry them away, and to plant replacements,
and to cart the cut timber, trees saplings, pollards and underwood from the Holding and from neighbouring land over
any roadways on the Holding or over any other part of the Holding, without making any payment to the Tenant for the
use but making reasonable compensation to the Tenant for any damage done in the exercise of the rights reserved
provided a claim in writing is made by the Tenant to the Landlord within a reasonable time.
[3027]

Possession

The right to recover possession in accordance with the provisions of sub-clause 8.1.

[6

Game etc

6.1

All game, wildfowl, woodcock, snipe and other wild birds listed in the Wildlife and Countryside Act 1981,
Schedule 2, their nests and eggs and all fish together with the exclusive right for the Landlord and all persons
authorised by him to go upon the Holding:
6.1.1
to rear, preserve, shoot, kill and take them away, and
6.1.2
to shoot, hunt, hawk, sport and fish on or over the Holding.

6.2

Subject to the Ground Game Act 1880 and the Ground Game (Amendment) Act 1906, the right for the
Landlord and all persons authorised by him to kill, shoot and take away rabbits, hares, pigeons or any other
pests21.]

[3028]

Entry

7.1

The right for the Landlord and all persons authorised by him with or without vehicles, horses, machinery and
plant to enter on any part of the Holding at all reasonable times for all the purposes mentioned above and all
reasonable purposes.

7.2

In particular, but without prejudice to the generality of subparagraph 7.1, the right to run pipes, drains,
conduits, cables, wires or other works (either already existing or any new ones) for the benefit of any other
part of the Landlords estate and the right to carry out works for the benefit of any other part of the same

estate, the Tenant being paid reasonable compensation for all damage caused to him by the exercise of the
right for the benefit of any other part of the same estate 22.

Existing rights

All rights of way (if any) used or enjoyed up to and including the date of this agreement across any part of the Holding
whether by the Landlord or his tenants in respect of other property of the Landlord or otherwise howsoever.

Existing wayleaves

The benefit of all wayleave agreements entered into by the Landlord and existing at the date of this agreement and all
rents and other money payable under them, and the power to carry out on the Holding at the Landlords cost anything
required to be done under them by the Landlord.
[3029]

SCHEDULE 3
[(where liability is apportioned in accordance with the Agriculture (Maintenance, Repair and Insurance of Fixed
equipment) Regulations 1973 as amended and it is desired to set out the model clauses in extenso, Form 102 [3051]
post may be included here)]
[(where the tenant is to be responsible for repairs)23

Repair

The Tenant must repair and keep and leave clean and in good, tenantable repair, order and condition the farmhouse,
cottages and all buildings and fixed equipment on the Holding including the main walls, roofs and timbers, all fixtures
and fittings in all buildings, water supply systems and fittings (whether situated above or below ground) and all
installations connected with them, sewage disposal systems including septic tanks filtering media and cesspools
(including covers and tops), fences (live and dead), hedges, walls, ditches, roads and yards and all other fixed
equipment in or upon the Holding or that during the tenancy may be erected or provided on it.

Replacement

The Tenant must replace anything mentioned in paragraph 1 of this schedule that has worn out or otherwise become
incapable of further repair.

Guttering etc

The Tenant must keep clean and in good working order all roof valleys, guttering and downpipes, wells, septic tanks,
cesspools and sewage disposal systems.
[3030]

Painting outside

As often as may be necessary in order to prevent deterioration and in any case at intervals of not more than 5 years, the
Tenant must properly paint with at least 2 coats of a suitable quality or properly and adequately gas-tar, creosote or
otherwise effectively treat with a preservative material all outside wood and ironwork of the farmhouse, cottages and
farm buildings, the inside wood and ironwork of all external outward opening doors and windows of the farm buildings
(but not of the farmhouse or cottages), and the interior structural steelwork of open-sided farm buildings that have
previously been painted, gas-tarred, creosoted or otherwise treated with preservative material or that it is necessary so
to paint, gas-tar, creosote or treat with preservative material in order to prevent deterioration: provided that in this
paragraph open-sided means having the whole or the greater part of at least one side or end permanently open apart
from roof supports if any.

Painting inside

As often as may be necessary and in any case at intervals of not more than 7 years, the Tenant must properly clean,
colour, whiten, paper, paint, limewash or otherwise treat with materials of suitable quality the inside of the farmhouse,
cottages and farm buildings including the interior of outward opening doors and windows of the farmhouse and
cottages that have been previously so treated.

Hedges

The Tenant must cut trim or lay a proper proportion of the hedges in each year of the tenancy so as to maintain them in
good and sound condition.
[3031]

Ponds and ditches

The Tenant must dig out, scour and cleanse all ponds, watercourses, ditches and grips as may be necessary to maintain
them at sufficient width and depth and must keep all field drains and their outlets clear from obstruction.

Cost of decorating outside

If the last year of the tenancy is not a year in which the Tenant is liable under paragraph 4 of this schedule to paint, gastar, creosote or otherwise treat the doors, windows, eaves, guttering and downpipes of buildings the Tenant must pay to
the Landlord at the end of such last year either the estimated reasonable cost of it or a sum equal to the aggregate of
one-fifth of that cost in respect of each year that has elapsed since such last painting, gas-tarring, creosoting or other
treatment as above was completed whichever is the less.

Cost of decorating inside

If the last year of the tenancy is not a year in which such cleaning, colouring, whitening, papering, painting or other
treatment as is mentioned in paragraph 5 of this schedule is due to be carried out the Tenant must pay to the Landlord at
the end of such last year either the estimated reasonable cost of it or a sum equal to the aggregate of one-seventh part of
that cost in respect of each year that has elapsed since such last cleaning, colouring, whitening, papering, painting or
other treatment as above was completed whichever is the less.

10

Compensation assessment

In the assessment of any compensation payable by the Tenant on the termination of the tenancy in respect of
dilapidations any accrued liability under paragraphs 8 and 9 of this schedule is to be taken into account
[3032]

11

Right to remedy failure to repair

If the Tenant does not start work on the repairs or replacements for which he is liable under this schedule within 2
months or if he fails to complete them within 3 months of receiving from the Landlord a written notice 24 (not being a
notice to remedy breach of tenancy agreement by doing work of repair, maintenance or replacement in a form
prescribed under the Agricultural Holdings Act 1986) specifying the necessary repairs or replacements and calling on
him to execute them the Landlord may enter and execute such repairs or replacements and recover the reasonable cost
from the Tenant immediately.

12

Contesting liability

12.1

If the Tenant wishes to contest his liability to execute any repairs or replacements specified in a notice served
upon him by the Landlord under paragraph 11 of this schedule he must within one month serve a counternotice25 in writing upon the Landlord specifying the grounds on which and the items of repair or replacement
in respect of which he denies liability and requiring the question of liability in that respect to be determined
by arbitration under the terms of the Agricultural Holdings Act 1986.
Upon service of the counter-notice on the Landlord the operation of the notice (including the running of time
under it) is to be suspended in so far as it relates to the items specified in the counter-notice until the
termination of an arbitration determining the question of liability in respect of those items: provided that in
this paragraph termination in relation to an arbitration means the date on which the arbitrators award is
delivered to the Tenant.

12.2

[3033]

13

Redundant buildings

Nothing in this schedule is to impose upon the Tenant any liability for the repair or replacement of any buildings listed
as redundant in schedule 4 or deemed to be included in it under sub-clause 8.6.

14

Work rendered impossible

Nothing in this schedule is to create any liability on the Tenant to execute any work if and in so far as the execution of
that work is rendered impossible (except at prohibitive or unreasonable expense) by reason of subsidence of any land or
the blocking of outfalls not under the control of the Tenant.]

SCHEDULE 4
Redundant fixed equipment
(insert details of equipment)
SCHEDULE 5
Tenants fixtures and fittings

(insert details of fixtures and fittings)


(signature (or common seal) of landlord: tenancy agreement)
(signature of tenant: counterpart)26
(annex plan)
[3034]
1

As to stamp duty, see Information Binder: Stamp Duties [1]: Table of stamp duties (Lease or Tack) and (Duplicate or
Counterpart). This Form provides for 3 possibilities with regard to repairing obligations. Repairs may be apportioned in
accordance with the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973/1473 as amended
by SI 1988/281, made pursuant to the Agricultural Holdings Act 1986 s 7(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
These are set out in Form 102 [3051] post and may be included in schedule 3 to this form in extenso if required. If, however, it is
desired that the parties should be subject to the regulations from time to time currently in force, it is preferable to incorporate
them referentially: see clauses 6.29 [3012] and 7.1 [3019] of this form. Finally, the tenant may be made liable for all repairs and
replacements, as suggested in schedule 3 [3030] of this form. The provisions set out in the Agriculture (Maintenance, Repair and
Insurance of Fixed Equipment) Regulations 1973 as amended are deemed to be incorporated in every contract of tenancy of an
agricultural holding except in so far as they would impose on one of the parties to an agreement in writing a liability that under
the agreement is imposed on the other: see the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations
1973 reg 3.
Only in rare circumstances would a landlord be well advised to let a company into occupation as tenant, as doing so could
amount to a letting virtually in perpetuity. A company cannot die and therefore the landlord may have no opportunity to
terminate the tenancy under the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case G. The right to give notice to quit on the
death of the tenant in the case of joint tenants applies on the death of the sole or sole surviving tenant: see the Agricultural
Holdings Act 1986 s 26(2), Sch 3 Pt I Case G. As to Case G, see Paragraph 385 [2284] ante.
The holding must be fully described and a map or plan is desirable: see the Agricultural Holdings Act 1986 Sch 1 para 2. It is
common in leases of agricultural land to refer to fields and other areas by reference to the parcel numbers included in large scale
OS maps; the edition or revision of the OS map used should be stated, either by description or by reference to an annexed plan,
as the parcel numbers can vary. Where the landlords title is registered, it is appropriate to include the title number(s) to the land
in question even though the agreement is not itself registrable; office copies of the register of the landlords title should be
obtained to ensure that the landlord has title to grant the lease or tenancy. For the definition of agricultural holding, see
Paragraph 304 [2012] ante.
It may be desirable to include this subclause if the clause headings are included in the agreement as actually signed. In the case
of a contractual document it seems that any clause headings or marginal notes form part of the document and are not to be
ignored as in a statute, but they are to be treated as a general description of the provisions to which they relate, the words of
which also define the terms of the actual contract: see Digby v General Accident Fire and Life Assurance Corpn Ltd [1943] AC
121 at 136, [1942] 2 All ER 319 at 326, HL, and see also National Farmers Union Mutual Insurance Society Ltd v Dawson
[1941] 2 KB 424 at 430.

[3035]
5

The initial rent can be varied by agreement between the parties or by arbitration upon the demand of either landlord or tenant. As
to arbitration of rent, see Paragraphs 334 [2116]342 [2125] ante. A variation in the rent does not operate as a termination and
grant of a new tenancy: see Jenkin Lewis & Son Ltd v Kerman [1971] Ch 477, [1970] 3 All ER 414, CA. A reduction in rent
consequent upon a change in the holding itself (even if only the surrender of a building) will trigger a new 3-year period: Mann v
Gardner [1991] 1 EGLR 9, CA. As to the procedures regarding variation in rent during the currency of the tenancy, see the
Agricultural Holdings Act 1986 s 12 and Paragraph 334 [2116]342 [2125] ante.
This clause has been drafted restrictively to prevent the tenant from seeking to occupy a number of separate farmhouses and
claiming each is his residence. The clause is designed to ensure that the tenant lives on the subject holding and, therefore, can
personally supervise and carry out all the necessary agricultural work, and not enjoy the holding as an absentee tenant and
proprietor of the farming business, enjoying the profits of the farming without a full personal commitment to the holding. Such
clauses are strictly enforceable: see Lloyds Bank Ltd v Jones [1955] 2 QB 298, [1955] 2 All ER 409, CA and Sumnal v Statt
(1984) 49 P & CR 367, CA.
This clause has been very restrictively drawn to prohibit not merely assignment and underletting but also sharing possession and
occupation of the holding. This is to prevent a tenant entering into partnership with a third party, possibly on terms where the
tenant is a mere sleeping partner with little more than a nominal involvement in the holding which is, in fact, farmed by the
working partner, possibly in conjunction with other holdings, so that the landlord loses control over the person in day to day
control of the farming. Breach of a prohibition upon assignment, subletting or parting with possession is incapable of remedy
(see Scala House and District Property Co Ltd v Forbes [1974] QB 575, [1973] 3 All ER 308, CA and Troop v Gibson (1985)
277 Estates Gazette 1134, CA) and, therefore, if the landlord can be shown to have suffered material prejudice as a result of such
a breach, a notice to quit can be given pursuant to the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case E in the event of a
breach being committed by the tenant. As to Case E, see Paragraph 383 [2282] ante. Farm workers occupying farm cottages will,
notwithstanding the terms of this clause, enjoy security of tenure under the Rent (Agriculture) Act 1976 (1 Halsburys Statutes
(4th Edn) AGRICULTURE) without the tenant being in breach of this prohibition. As to the Rent Agriculture) Act 1976, see
Paragraphs 601 [5001]654 [5205] post.
The proviso in the Landlord and Tenant Act 1927 s 19(1) (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT), by
which there is to be implied a condition that consent to assignment etc is not to be unreasonably withheld, does not apply to a
tenancy of an agricultural holding: see the Landlord and Tenant Act 1927 s 19(4) as amended by the Agricultural Tenancies Act
1995 s 40, Schedule para 6. See also vol 23 LANDLORD AND TENANT.

[3036]

8
9

10
11
12

Ie the Town and Country Planning Act 1990 as amended (46 Halsburys Statutes (4th Edn) TOWN AND COUNTRY PLANNING).
On the death of the tenant the landlord has only 3 months from the date of the death in which to give notice to quit if he wishes
to avail himself of the right to give an incontestable notice contained in the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I
Case G. As to Case G, see Paragraph 385 [2284] ante. By virtue of the Agricultural Holdings Act 1986 s 26, Sch 3 Pt II para
12(b) the time limit does not start to run against the landlord until:
(1)
the personal representatives of the deceased tenant have given notice in writing of the death;
(2)
an applicant has given notice of an application to an agricultural land tribunal for the grant of a new tenancy in
succession; or
(3)
if both events occur, whichever is the first.
It is not, therefore, critical for the landlord to discover by his own researches the occurrence of the death of his tenant. This
clause is nevertheless considered to be desirable since there is no statutory duty upon the personal representatives of the
deceased tenant to inform the landlord of the death, and it is desirable in the interests of the sound management of the landlords
estate that he should be aware of the identity from time to time of his tenant.
It is important to ensure that the respective obligations of landlord and tenant are inter-related.
This clause should be omitted if the tenant is to be responsible for repairs.
Ie the Agriculture (Calculation of Value for Compensation) Regulations 1978/809 as amended by SI 1980/751, SI 1981/822 and
SI 1983/1475. This clause is largely declaratory of the compensation provisions in the Agricultural Holdings Act 1986 ss 6078,
many of which cannot be varied in any event.

[3037]
13

14

15

16

The Agricultural Holdings Act 1986 s 25(2)(b) permits a provision in a tenancy agreement entitling the landlord to give notice to
quit part, in which event the general rule that not less than 12 months notice to quit must be given is varied. There is no statutory
provision as to the length of notice that may be substituted for 12 months but it was held in Coates v Diment [1951] 1 All ER 890
that the clause had to provide for sufficient notice to enable the tenant to give a counter-notice entitling the tenant to certain
forms of statutory compensation. It is considered, therefore, undesirable to provide for less than 2 months notice when drafting
short notice clauses of this sort.
The Agricultural Holdings Act 1986 s 31(1),(2) entitles a landlord to give notice to quit part of the holding in very limited
circumstances specified in those subsections. As to notice to quit part of a holding, see Paragraphs 372 [2245] and 373 [2246]
ante. These circumstances do not include general residential development, development for industrial purposes etc Clause 8.1
[3021] of this form extends very widely the circumstances in which a landlord may give notice to quit part of the holding,
without offending the general common law rule that a notice to quit part is invalid: see Re Bebingtons Tenancy, Bebington v
Wildman [1921] 1 Ch 559 and Woodward v Earl of Dudley [1954] Ch 283, [1954] 1 All ER 559.
The Agricultural Holdings Act 1986 s 25(2)(b) provides that the purpose for which the landlord can give short notice must be
specified in the agreement. However, it was held in Paddock Investments Ltd v Lory (1975) 236 Estates Gazette 803, CA that any
non-agricultural purpose was a specified purpose since a specified purpose did not need to be a specific purpose.
See the Insolvency Act 1986 as amended (4 Halsbury's Statutes (4th Edn) BANKRUPTCY AND INSOLVENCY). In the case of a
company tenant, the events should be:
(1)
the making of an administration order in respect of the company; and
(2)
any person becoming entitled to exercise the powers conferred on an administrative receiver. However, as to
company tenants, see note 2 above.
As regards the making of an administration order, it should be noted that the Insolvency Act 1986 s 10(1)(c) provides that
no proceedings, execution or other legal process may be commenced or continued, and no distress may be levied, against the
company or its property after a petition for an administration order has been presented except with the leave of the court and
subject (where the court gives leave) to such terms as the court may impose. The same applies after an administration order is
made (see the Insolvency Act 1986 s 11(3)(d)) save that proceedings, execution and process etc may be commenced or continued
with the administrators consent. Thus in such cases a landlord wishing to take advantage of the event will have to obtain consent
from the administrator or the court before commencing any proceedings or legal process. It is uncertain whether such consent
would be required as regards a landlords right of peaceable re-entry.

[3038]
17

18

19

20

Although the Agricultural Holdings Act 1986 imposes restrictions on the right of a landlord to give notice to quit, there are no
restrictions on the landlords alternative right to terminate the tenancy by forfeiture if a suitable forfeiture clause is included in
the tenancy agreement. It was, however, held in Parry v Million Pigs Ltd (1980) 260 Estates Gazette 281 that a forfeiture clause
that purported to entitle the landlord to resume possession without giving prior notice to the tenant of sufficient duration to
enable the tenant to serve the appropriate forms of counter-notice entitling him to compensation was invalid and ineffective for
the same reasons as in Coates v Diment [1951] 1 All ER 890 where it was held that a short notice clause entitling the landlord to
recover possession for development purposes was similarly invalid.
For the provisions entitling a landlord or tenant to seek arbitration as to whether or not a building or other piece of fixed
equipment on the holding is redundant to the farming of the holding, see the Agriculture (Maintenance, Repair and Insurance of
Fixed Equipment) Regulations 1973 as amended by SI 1988/281. There is no provision for arbitration on whether such an item is
obsolete.
The records that may be required under the Agricultural Holdings Act 1986 s 22 are records of the condition of fixed equipment
on the holding and of the general condition of the holding (which may be required by the landlord or the tenant: see the
Agricultural Holdings Act 1986 s 22(1)(a)) and records of any fixtures or building the tenant is entitled to remove and of existing
improvements executed by him or in respect of which he paid compensation to an outgoing tenant (which may be required by the
tenant: see the Agricultural Holdings Act 1986 s 22(1)(b)).
The supply of land under an agricultural lease would be exempt from VAT unless the landlord or a relevant associate of the
landlord elects to waive exemption from VAT: see the Value Added Tax Act 1994, Sch 9 Pt II group 1, Sch 10 paras 2, 3 (48
Halsburys Statutes (4th Edn) VALUE ADDED TAX AND CAR TAX). See Information Binder: Property [1] (VAT and Property).

21

Clause 6.32.4 [3014] of this form contains a provision for the grant of limited sporting rights by the tenant and in clause 6.36
[3016] there is a provision for the inclusion of shooting rights in the letting. Schedule 2 paragraph 6 [3028] provides for the
exclusion of all sporting rights. Care must be taken to ensure that one or other provision applies but not both and that the
agreement is consistent throughout. As to the position regarding game damage claims, see the Agricultural Holdings Act 1986 s
20 and Paragraphs 450 [2501] and 451 [2502] ante. For a notice of occurrence of damage by game, see Form 219 [4011] post
and for a notice of claim for damage by game, see Form 220 [4013] post. The grant of sporting rights otherwise than in
connection with the sale of the freehold may attract VAT if sold in the course or furtherance of business: see the Value Added Tax
Act 1994, Sch 9 Pt II group 1 item 1(b).

[3039]
22

23

The Agricultural Holdings Act 1986 s 23 gives the landlord a statutory right of entry for 3 specific purposes:
(1)
to view the state of the holding,
(2)
to fulfil his responsibilities to manage it according to the rules of good estate management and
(3)
to provide or improve fixed equipment other than in fulfilment of those responsibilities.
Those rights are extended considerably by this paragraph.
It is increasingly popular for landlords to insist upon tenants undertaking full repairing and insuring obligations. However,
landlords and tenants should be aware of the fact that if an agreement giving the tenant full repairing and insuring obligations is
entered into, either party may refer to an arbitrator the question whether the modifications contained in the agreement, ie the
differences between the statutory obligations and the contractual obligations, are justifiable: see the Agricultural Holdings Act
1986 s 8(2),(3). If the arbitrator varies the contractual obligations to bring them into line with the model clauses then he may
also vary the rent, and assess in the award the accumulated dilapidations payable by the party being relieved of his obligation by
the award.
For a notice requesting and specifying repairs to be effected, see Form 124 [3515] post.
For a counter-notice requiring the question of liability to execute repairs or replacements to be determined by arbitration, see
Form 125 [3517] post.
A lease for 3 years or less (including a periodic tenancy) taking effect in possession may be created by parol or by writing which
need not be executed as a deed: see the Law of Property Act 1925 s 52(2) (37 Halsburys Statutes (4th Edn) REAL PROPERTY)
and the Law of Property (Miscellaneous Provisions) Act 1989 s 2(5)(a) (37 Halsburys Statutes (4th Edn) REAL PROPERTY). As
to the requirements for valid execution as a deed, see vol 12 (1994 Reissue) DEEDS , AGREEMENTS AND DECLARATIONS.

24
25
26

[3040][3050]

102
The model clauses as set out in the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment)
Regulations 19731

SCHEDULE
MAINTENANCE, REPAIR AND INSURANCE OF THE FIXED EQUIPMENT OF A HOLDING
Part I. Rights and Liabilities of the Landlord
1.(1) To execute all repairs and replacement to the under-mentioned parts of the farmhouse, cottages and farm
buildings, namely:- roofs, including chimney stacks, chimney pots, eaves-guttering and downpipes, main walls and
exterior walls, howsoever constructed, including walls and fences of open and covered yards and garden walls, together
with any interior repair or decoration made necessary as a result of structural defect to such roofs or walls, floors, floor
joists, ceiling joists and timbers, exterior and interior staircases and fixed ladders (including banisters or handrails) of
the farmhouse and cottages, and doors, windows and skylights, including the frames of such doors, windows and
skylights (but excepting glass or glass substitute, sashcords, locks and fastenings): provided that in the case of repairs
and replacements to floorboards, interior staircases and fixed ladders (including banisters or handrails), doors and
windows and opening skylights (including frames), eaves-guttering and downpipes, the landlord may recover one-half
of the reasonable cost thereof from the tenant.
[3051]
(2) To execute all repairs and replacements to underground water supply pipes, wells, bore-holes and reservoirs and all
underground installations connected therewith, and to sewage disposal systems, including septic tanks, filtering media
and cesspools (but excluding covers and tops).
(3) Except as provided by paragraph 8, to replace anything mentioned in paragraph 5(1) which has worn out or
otherwise become incapable of further repair, unless the tenant is himself liable to replace it under paragraph 6.
2.(1)(a) To keep the farmhouse, cottages and farm buildings insured to their full value against loss or damage by
fire; and
(b) as often as the farmhouse, cottages and farm buildings or any, or any part, of them shall be destroyed or damaged
by fire, to execute all works of repair or replacement thereto necessary to make good damage by fire and to cause all
money received in respect of such destruction or damage by virtue of such insurance to be laid out in the execution of
such work.

(2) The proviso to paragraph 1(1) shall not to apply to works falling within sub-paragraph (1)(b) of this paragraph.
[3052]
3.(1) As often as may be necessary in order to prevent deterioration, and in any case at intervals of not more than
five years properly to paint with at least two coats of a suitable quality or properly and adequately to gas-tar, creosote or
otherwise effectively treat with a preservative material all outside wood and ironwork of the farmhouse, cottages and
farm buildings, the inside wood and ironwork of all external outward opening doors and windows of farm buildings,
but not of the farmhouse or cottages, and the interior structural steelwork of open-sided farm buildings which have
previously been painted, gas-tarred, creosoted or otherwise treated with preservative material or which it is necessary to
paint, gas-tar, creosote or treat with preservative material in order to prevent deterioration of the same so to paint, gastar, creosote or treat with preservative material: provided that in respect of doors, windows, eaves-guttering and
downpipes the Landlord may recover one-half of the reasonable cost of such work from the tenant, but if any such
work to any of those items is completed before the commencement of the fifth year of the tenancy the sum the
Landlord may so recover from the tenant shall be restricted to an amount equal to the aggregate of one-tenth part of
such reasonable cost in respect of each year that has elapsed between the commencement of the tenancy and the
completion of the work.
(2) In the last foregoing sub-paragraph open-sided means having the whole or the greater part of at least one side or
end permanently open, apart from roof supports, if any.
4.(1) The Landlord shall be under no liability
(a) to execute repairs or replacements or to insure buildings or fixtures which are the property of the tenant, or
(b) subject to paragraph 2(1)(b), to execute repairs or replacements rendered necessary by the wilful act or the
negligence of the tenant or any members of his household or his employees.
(2) If the tenant does not start work on the repairs or replacements for which he is liable under paragraphs 5, 6, 7 and 8
within two months, or if he fails to complete them within three months of receiving from the Landlord a written notice 2
(not being a notice to remedy breach of tenancy agreement by doing work of repair, maintenance, or replacement in a
form prescribed under section 19(1) and (3) of the Agricultural (Miscellaneous Provisions) Act 1963 3) specifying the
necessary repairs or replacements and calling on him to execute them the landlord may enter and execute such repairs
or replacements and recover the reasonable cost from the Tenant forthwith.
[3053]
(3)(a) If the tenant wishes to contest his liability to execute any repairs or replacements specified in a notice served
upon him by the Landlord under the last foregoing sub-paragraph he shall within one month serve a counter-notice in
writing4 upon the landlord specifying the grounds on which and the items of repair or replacement in respect of which
he denies liability and requiring the question of liability in respect thereof to be determined by arbitration under the Act.
(b) Upon service of the counter-notice on the landlord, the operation of the notice (including the running of time
thereunder) shall be suspended, in so far as it relates to the items specified in the counter-notice, until the termination of
an arbitration determining the question of liability in respect of those items.
(c) In this sub-paragraph, termination, in relation to an arbitration, means the date on which the arbitrators award is
delivered to the tenant.
[3054]
Part II. Rights and liabilities of the Tenant
Except in so far as such liabilities fall to be undertaken by the landlord under Part I hereof:
5.(1) To repair and keep and leave clean and in good tenantable repair, order and condition the farmhouse, cottages
and farm buildings together with all fixtures and fittings, boilers, ranges and grates, drains, sewers, gulleys, greasetraps, manholes and inspection chambers, electrical supply systems and fittings, water supply systems and fittings in so
far as they are situated above ground, including pipes, tanks, cisterns, sanitary fittings, drinking troughs and pumping
equipment, hydraulic rams (whether situated above or below ground), fences, hedges, field walls, stiles, gates and
posts, cattle grids, bridges, culverts, ponds, watercourses, sluices, ditches, roads and yards in and upon the holding, or
which during the tenancy may be erected or provided thereon.
(2) To repair or replace all removable covers to manholes, to inspection chambers and to sewage disposal systems.
(3) To keep clean and in good working order all roof valleys, guttering and downpipes, wells, septic tanks, cesspools
and sewage disposal systems.

(4) To use carefully so as to protect them from wilful, reckless or negligent damage all items for the repair or
replacement of which the landlord is responsible under paragraph 1; and also to report in writing immediately to the
landlord any damage, however caused, to items for the repair or replacement of which the landlord is responsible.
[3055]
6. Subject to paragraph 2(1)(b)
(1) to replace or repair and, upon replacement or repair, adequately to paint, gas-tar, creosote or otherwise treat with
effective preservative material as may be proper, all items of fixed equipment, and to do any work, where such
replacement, repair or work is rendered necessary by the wilful act or negligence of the tenant or any members of his
household or his employees; and
(2) to replace anything mentioned in paragraph 5(1) which has worn out or otherwise become incapable of repair if its
condition has been brought about by or is substantially due to the Tenants failure to repair it.
7. As often as may be necessary, and in any case at intervals of not more than seven years, properly to clean, colour,
whiten, paper, paint, limewash or otherwise treat with materials of suitable quality the inside of the farmhouse, cottages
and farm buildings, including the interior of outward opening doors and windows of the farmhouse and cottages, which
have been previously so treated, and in the last year of the tenancy to limewash the inside of all buildings which
previously have been limewashed.
8.(1) Notwithstanding the general liability of the landlord for repairs and replacements, to renew all broken or
cracked tiles or slates and to replace all slipped tiles or slates from time to time as the damage occurs, but so that the
cost shall not exceed 100 in any one year of the tenancy.
[3056]
(2) This paragraph shall not have effect so as to render a tenant liable for the cost of any renewals or replacement of
tiles in excess of 25 which have been carried out by the landlord prior to 24th March 1988.
9. To cut, trim or lay a proper proportion of the hedges in each year of the tenancy so as to maintain them in good and
sound condition.
10. To dig out, scour and cleanse all ponds, watercourses, ditches and grips, as may be necessary to maintain them at
sufficient width and depth, and to keep clear from obstruction all field drains and their outlets.
[3057]
11(1) If the last year of the tenancy is not a year in which such cleaning, colouring, whitening, papering, painting,
limewashing or other treatment as mentioned in paragraph 7 is due to be carried out, the tenant shall pay to the landlord
at the end of such last year either the estimated reasonable cost thereof or a sum equal to the aggregate of one-seventh
part of that cost in respect of each year that has elapsed since such last cleaning, colouring, whitening, papering,
painting, limewashing or other treatment as aforesaid, was completed, whichever is the less.
(2) If the last year of the tenancy is not a year in which the landlord is liable, under paragraph 3, to paint, gas-tar,
creosote or otherwise treat the doors, windows, eaves-guttering and downpipes of buildings, the tenant shall pay to the
landlord at the end of such last year either one-half of the estimated reasonable cost thereof or a sum equal to the
aggregate of one-tenth part of that cost in respect of each year that has elapsed since such last painting, gas-tarring,
creosoting or other treatment as aforesaid, was completed, whichever is the less.
(3) In the assessment of any compensation payable by the tenant on the termination of the tenancy in respect of
dilapidation, any accrued liability under the two preceding sub-paragraphs shall be taken into account.
[3058]
12.(1) If the landlord fails to execute repairs other than repairs to an underground waterpipe which are his liability
within three months of receiving from the tenant a written notice 5 specifying the necessary repairs and calling on him
to execute them, the tenant may execute such repairs and, except to the extent to which under the terms of Part I hereof
the tenant is liable to bear the cost, recover (subject to the landlords right to require arbitration under sub-paragraph (5)
below) the reasonable cost from the Landlord forthwith.
(2) If the landlord fails to execute any repairs which are his liability to an underground waterpipe within one week of
receiving from the tenant a written notice specifying the necessary repairs and calling on him to execute them, the
tenant may execute such repairs and, except to the extent to which under the terms of Part I hereof the tenant is liable to
bear the cost, recover (subject to the landlords right to require arbitration under sub-paragraph (5) below) the
reasonable cost from the landlord upon the expiry of a period of one month from the execution of the repairs.
[3059]

(3) Subject to sub-paragraph (4) below, if the landlord fails to execute any replacements which are his liability within
three months of receiving from the tenant a written notice 6 specifying the necessary replacements and calling on him to
execute them, the tenant may execute such replacements and, except to the extent to which under the terms of Part I
hereof the Tenant is liable to bear the cost, recover (subject to the landlords right to require arbitration under subparagraph (5) below) the reasonable cost from the Landlord forthwith.
(4) The tenant shall not to be entitled to recover, in respect of the aggregate of the replacements executed by him after
being specified in a notice given in pursuance of sub-paragraph (3) above, in any year of the tenancy any sum in excess
of whichever of the following sums is hereinafter specified in relation to the replacements so executed, that is to say
(a) in relation to replacements executed in any year of the tenancy terminating on or before 24th March 1988, a sum
equal to the rent of the holding for that year or 500, whichever is the smaller, or
(b) in relation to replacements executed in any year of the tenancy terminating after 24th march 1988, a sum equal to
the rent of the holding for that year or 2,000, whichever is the smaller.
(5)(a) If the Landlord wishes to contest his liability to execute any repairs or replacements specified in a notice served
upon him by the Tenant under sub-paragraph (1), (2) or (3) above he shall within one month of the service of that notice
serve a counter-notice7 in writing upon the tenant specifying the grounds on which and the items of repair or
replacement in respect of which he denies liability and requiring the question of liability in respect thereof to be
determined by arbitration under the Act.
(b) Upon service of a counter-notice on the tenant which relates to a notice served on the landlord under sub-paragraph
(1) or (3) above, the operation of the notice so served under sub-paragraph (1) or (3) (including the running of time
thereunder) shall be suspended, in so far as it relates to the items specified in the counter-notice, until the termination of
an arbitration determining the question of liability in respect of those items.
(c) Upon service of a counter-notice on the tenant which relates to a notice served on the landlord under sub-paragraph
(2) above, the tenants right under that sub-paragraph to recover the reasonable cost of the repairs specified in the
counter-notice shall not arise unless the question of liability to execute those repairs is first determined by arbitration in
favour of the tenant, and shall thereupon arise from the termination of the arbitration.
(d) In this sub-paragraph termination in relation to an arbitration means the date on which the arbitrators award is
delivered to the landlord.
[3060]
Part III. General Provisions
13.(1) If at any time and from time to time the landlord or the tenant shall be of the opinion that any item of fixed
equipment is, or before the same was damaged or destroyed by fire was, redundant to the farming of the holding, the
landlord or the tenant may by giving two months notice in writing 8 to the other of them require that the question
whether such item of fixed equipment is, or before such damage or destruction was, so redundant be determined, in
default of agreement, by arbitration under the Act, and if the arbitrator shall award that the said item of fixed equipment
is, or before such damage or destruction by fire was, redundant to the farming of the holding then, as from the date of
such award, paragraph 14(1) shall apply to that item and both the landlord and the tenant shall be relieved from all
liability in respect of any antecedent breach of any obligation to maintain, repair or replace the item of fixed equipment
so awarded to be redundant, and the landlord shall be entitled to demolish and remove such item of fixed equipment
and to enter upon the holding for those purposes.
(2) In any arbitration to which sub-paragraph (1) of this paragraph applies, no item of fixed equipment shall be
determined to be, or to have been before damage or destruction by fire, as the case may be, redundant to the farming of
the holding, unless the arbitrator shall be satisfied that the repair or replacement of such item is or, as the case may be,
was, not reasonably required having regard to
(a)(i)
the Landlords responsibilities to manage the holding in accordance with the rules of good estate
management; and
(ii)
the period for which the holding may reasonably be expected to remain a separate holding; and
(b)
the character and situation of the holding and the average requirements of a tenant reasonably skilled in
husbandry.
[3061]
14. Nothing contained in Parts I or II hereof shall create any liability on the part of either landlord or tenant:
(1) to maintain, repair, replace or insure any item of fixed equipment which the landlord and the tenant agree in writing
to be obsolete or redundant to the farming of the holding or which in the event of any dispute between them as to
whether it is, or before the same was damaged or destroyed by fire was, redundant to the farming of the holding, shall
be awarded to be so redundant by an arbitrator in any arbitration as mentioned in paragraph 13; or

(2) to execute any work if and so far as the execution of such work is rendered impossible (except at prohibitive or
unreasonable expense) by reason of subsidence of any land or the blocking of outfalls which are not under the control
of either the landlord or the tenant.
15. If any claim, question or difference shall arise between the landlord and the tenant under the foregoing provisions
hereof, not being a matter which, otherwise than under the provisions of this paragraph is required by or by virtue of
the Act or section 19 of the Agriculture (Miscellaneous Provisions) Act 1963 9 (notice to remedy breach of tenancy
agreement) or regulations or orders made thereunder or the foregoing provisions hereof to be determined by arbitration
under the Act, such claim, question or difference shall be determined, in default of agreement, by arbitration under the
Act.
Interpretation
16.(1) In this Schedule, unless the context otherwise requires, the Act means the Agricultural Holdings Act 1948 10
as amended by any other enactment.
(2) Any reference in this Schedule to a numbered paragraph is a reference to the paragraph bearing that number in this
Schedule.
[3062]
1

These provisions are set out in the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973/1473
as amended by SI 1988/281 and are Crown Copyright. They are deemed to be incorporated in every contract of tenancy of an
agricultural holding except in so far as they would impose on one of the parties to an agreement in writing a liability that under
the agreement is imposed on the other: see the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations
1973 reg 3.
For a notice requesting and specifying repairs to be effected, see Form 124 [3515] post.
See now the Agricultural Holdings Act 1986, Sch 3 Pt I Case D, Pt II para 10 (1 Halsburys Statutes (4th Edn) AGRICULTURE).
For a tenants counter-notice requiring the question of liability to be arbitrated, see Form 125 [3517] post.
For a notice requesting and specifying repairs to be effected by the landlord, see Form 126 [3519] post.
For a notice requesting and specifying repairs to be effected by the landlord, see Form 126 [3519] post.
For a landlords counter-notice requiring liability for repairs or replacements to be arbitrated, see Form 127 [3521] post.
For a notice requiring arbitration of the question whether an item of fixed equipment is redundant, see Form 128 [3523] post.
See now the Agricultural Holdings Act 1986, Sch 3 Pt I Case D, Pt II para 10.
See now the Agricultural Holdings Act 1986.

3
4
5
6
7
8
9
10

[3063][3070]

103
Lease of a farm for two years or more1
THIS LEASE is made the day of BETWEEN:
(1)

(name of landlord) of (address) (the Landlord, which expression where the context so admits is to include
the person for the time being entitled to the reversion immediately expectant on the determination of the term
created) and

(2)

(name of tenant) of (address) (the Tenant, which expression [where the context so admits is to include his
successors in title (or) is to include the person for the time being entitled to the term created by this lease])

NOW THIS DEED WITNESSES as follows:

Definitions and interpretation

In this agreement:
1.1

the Holding means all that farmhouse, cottages, buildings and land known as (name of farm) situate at
(insert details) and extending to approximately hectares ( acres) the particulars of which are
set out in schedule 1 and shown [for the purpose of identification only] edged red on the plan attached to this
agreement2;

[3071]
1.2

words importing corporations include persons (whether masculine or feminine as the case may be) and vice
versa and words importing the masculine gender only include the feminine gender and words importing the
singular number only include the plural number and vice versa and where there are two or more individuals

included in the expression the Tenant covenants expressed to be made by him or them are to be deemed to
be made by such persons jointly and severally
1.3

reference to any Act or statutory instrument includes reference to any re-enactment or modification of such
Act or statutory instrument;

1.4

clause headings in this agreement do not form part of this agreement 3;

1.5

save where otherwise stated any reference to a numbered clause or schedule means the clause or schedule in
this agreement that is so numbered.

[3072]

Demise

The Landlord demises the Holding to the Tenant, excepting and reserving to the Landlord as more particularly set out
in schedule 2, to hold to the Tenant for the term of years from (commencement date), paying during the term:
2.1

the yearly rent of (subject to increase in accordance with the provisions contained in schedule 3) 4 by
equal [half-yearly (or) quarterly] payments [on (date) and (date) (or) on the usual quarter days] free from all
deductions the first payment to be made on (date) next; and

2.2

such additional yearly rents as may be agreed between the Landlord and the Tenant in respect of the increase
in the rental value of the Holding attributable to the carrying out by the Landlord of such improvements to the
Holding as the Landlord may make at the request of or in agreement with the Tenant, such additional rents to
be paid [on (date) and (date) (or) on the usual quarter days], the first payment of each such rent to be made
on the first date for the payment of rent after the completion of the improvements to which the increase of
rent is attributable.

Tenants covenants

The Tenant covenants with the Landlord as follows:

3.1

Rent

The Tenant must pay the rent reserved above and all existing and future rates, land drainage charges and other taxes and
outgoings of an annual or recurring nature except owners drainage rates.

3.2

Reimbursement ingoing

[The Tenant must pay to the Landlord on demand the amount payable or to become payable by the Landlord to the
outgoing tenant in respect of the Holding (other than disturbance compensation and game damage) under a claim
arising on or out of the termination of his tenancy of the Holding together with all reasonable and necessary costs and
expenses incurred by the Landlord in respect of any valuation or arbitration in ascertaining such sum or sums without
deducting any payments made or payable by the outgoing tenant to the Landlord and to expend any amount paid to the
Tenant by the Landlord towards carrying out his (the Tenants) obligations under this agreement.
(or)
The Tenant must pay to the Landlord all sums properly payable by an incoming tenant for growing crops, tillages, dead
stock and other matters to which the Landlord would be entitled if he were an outgoing tenant holding under the terms
of this agreement after deducting all sums the Landlord would be liable to pay if he were an outgoing tenant holding on
those terms, the amount so payable to be ascertained in default of agreement according to a valuation to be made by a
single valuer (to be appointed in default of agreement by the President of the Royal Institution of Chartered Surveyors)
whose valuation is to be final, the amount so ascertained to be payable on demand by the Tenant to the Landlord.]
[3073]

3.3

Water extraction

On entering the Holding the Tenant must give all necessary notices and make all necessary applications and payments
to preserve any existing licence granted in respect of the Holding under the Water Resources Act 1991 or any similar
enactment, and subsequently must continue the licence in force during the tenancy and must not surrender it without
the consent in writing of the Landlord or by any act or omission jeopardise the licence.

3.4

Use

The Tenant must not use or permit or suffer the use of the Holding or any part of it for any purpose other than
agriculture and in particular must not use it for:
3.4.1

the display of advertisements;

3.4.2

camping;

3.4.3

the parking of caravans;

3.4.4

holding fairs, racing, coursing, matches, games, contests, rallies, musical festivals or bathing by the public; or

3.4.5

as a market garden

and the Tenant must manage and farm the Holding as [a dairy (or) (as the case may be)] farm for which sole purpose it
is let.
[3074]

3.5

System of farming

The Tenant must not change the system of farming as [a dairy (or) (as the case may be)] farm without the consent of
the Landlord, whose consent may not be unreasonably withheld [or delayed], and where a change is consented to the
Tenant and not the Landlord is to be liable for all additional works of maintenance, repairs or improvements necessary
or desirable to be carried out on the Holding in consequence of the altered type of farming.

3.6

Limit on consent

Nothing contained in this agreement and no consent by the Landlord to a change in the type of farming under subclause
3.5 is to be deemed to be a consent in writing either for the purposes of this agreement or the Agricultural Holdings Act
1986 section 67 or to any of the improvements set out in the Agricultural Holdings Act 1986, Schedule 10.

3.7

Dispute as to consent

Any dispute as to whether consent is unreasonably withheld under the provisions of subclause 3.5 is to be determined
by a single arbitrator appointed in default of agreement by the President of the Royal Institution of Chartered
Surveyors.

3.8

Good husbandry

The Tenant must cultivate and manage the Holding according to the rules of good husbandry as defined in the
Agriculture Act 1947 section 11 so as not to impoverish or deteriorate the land and to keep and leave the Holding clean
and in good heart and condition.
[3075]

3.9

Pests

The Tenant must take all reasonable and practicable steps to keep the Holding free from infestation by insects and other
pests and to destroy rabbits, moles, rats and other vermin and to spread mole-hills and ant-hills upon the Holding.

3.10

Weeds

The Tenant must take all reasonable steps to control and destroy all harmful or injurious weeds throughout the Holding.

3.11

Notifiable diseases

The Tenant must immediately notify the Landlord in writing of any outbreak or suspected outbreak of any notifiable
disease of crops or stock on the Holding.

3.12

Farming in last year

In the last year of the tenancy the Tenant must farm and cultivate the Holding in accordance with the reasonable
requirements (if any) of the Landlord notified to the Tenant in writing.

3.13

Sprays

When using any sprays the Tenant must take all reasonable care to ensure that adjoining hedges trees and crops are not
adversely affected and must make good or replant as necessary should any damage occur and so far as possible must
select and use chemicals, whether for spraying, seed dressing or any other purposes whatever, that will cause the least
harm to game birds and other wild-life other than vermin or pests.
[3076]

3.14

Fire

The Tenant must not burn any straw left on the stubble behind the combine harvester and must use his utmost
endeavours to prevent any fire from burning or scorching any hedgerow or tree on the Holding or from spreading to
any part of any adjoining property whether belonging to the Landlord or not and in the event of damage occurring to
any part of such property the Tenant must pay the cost of reinstating it and must pay to the Landlord full compensation
for the loss of timber and for damage caused to the Landlords interests as reserved in this agreement and must
indemnify the Landlord from and against all claims that may be made by reason of damage to the property of any third
party.

[3.15

Stocking

The Tenant must keep the Holding properly stocked and use his best endeavours to stock the Holding with disease-free
[cattle].]

3.16

Grassland

The Tenant must not plough or break up any land described in schedule 1 as meadow, grass or permanent pasture
without the previous written consent of the Landlord.

3.17

Turf and topsoil

The Tenant must not remove from the Holding any turf or top soil without the previous written consent of the Landlord.

3.18

Cropping

Subject to his rights under the Agricultural Holdings Act 1986 section 15, the Tenant must not take from the arable land
more than straw crops in succession and must not have more than of such crops in corn or grain and on
quitting must leave reasonable and proper proportions in or in course for winter corn, spring corn, maiden seeds, leys or
roots and forage crops.

3.19

[Sale of keep (or) Agistment]

[(Sale of keep)The Tenant must not sell any grass, keeping, grazing or growing crops on the Holding or take in
livestock of any third party or in which a third party has an interest to keep without the previous written consent of the
Landlord.]
[(Agistment) The Tenant must not without the previous written consent of the Landlord grant to any person a licence to
graze stock on the Holding, or take to feed on the Holding stock belonging to any other person.]
[3077]

3.20

Charges

The Tenant must notify the Landlord in writing of any charge made under the authority of the Agricultural Credits Act
1928 immediately on the completion of any document evidencing such charge.

3.21

Sale of crops

The Tenant must not sell off or remove, but must consume on the Holding, all grasses, clover and forage crops whether
harvested or not and all fodder, straw and roots grown on the Holding in the last year of the tenancy or remaining
unconsumed from previous years, and must leave for the use of the Landlord or incoming tenant all such grasses,
clover and forage crops, fodder, straw and roots that remain unconsumed when the Tenant quits the Holding.

3.22

Manure

The Tenant must return to the Holding the full equivalent manurial value of any grasses, clover or forage plants
whether green or conserved or any fodder, straw, roots or other produce of the Holding sold or removed from it at any
time prior to the last year of the tenancy.

3.23

Records of cropping etc

The Tenant must keep and on the request of the Landlord produce at any reasonable time true records of all cropping
and true accounts with all necessary vouchers of all hay, straw and other produce sold off the Holding and of the
provision made for the return to the Holding of the full equivalent manurial value of all crops sold off or removed from
the Holding and of the provisions made to protect the Holding from injury or deterioration in consequence of the
exercise by the Tenant of his right to cropping and sale of produce under the Agricultural Holdings Act 1986 section 15.

3.24

Dung

The Tenant must spread annually on the Holding all farmyard manure and compost produced and made on the Holding
and at the termination of the tenancy must leave carefully stored all such farmyard manure and compost not already
spread.
[3078]

3.25

Orchards and gardens

The Tenant must keep all orchards and gardens in a proper state of cultivation, well manured and in good heart and
must protect the Holding from damage by cattle or otherwise howsoever.

3.26

Pruning

The Tenant must prune all fruit trees and bushes at proper seasons and at his own expense replace dead and worn out
fruit trees with other fruit trees suitable to the district, provided that the Tenant may at his option, in lieu of replacing
individual trees, grub up and replace the whole or a substantial part of an orchard in accordance with a scheme
approved by the Landlord or in default of such approval found to be a reasonable scheme by an arbitrator agreed
between the parties or in default of agreement appointed by the President of the Royal Institution of Chartered
Surveyors.

3.27

Soil analysis

When so required by and at the expense of the Landlord the Tenant must have taken a proper analysis of the soil of the
Holding (or of such part of it as may be specified by the Landlord) by such Ministry or other body as the Landlord may
specify.
[3079]

3.28

Tree damage

The Tenant must not permit or suffer any waste, or cut down, top or lop or drive nails into or otherwise injure any trees
growing on the Holding and must protect all trees from damage by cattle or otherwise howsoever.

3.29

Repairs

[(where the tenant is to repair)


3.29.1
The provisions of schedule 3 are to have effect with regard to the repair and replacement of fixed equipment
on the Holding.
3.29.2

If the Tenant fails to execute repairs for which he is liable within [1 month] of receiving from the Landlord a
written request specifying the necessary repairs and calling on him to execute them, the Landlord may enter
and execute such repairs and recover the reasonable costs from the Tenant immediately after the completion
of such repairs.]

[(where the model clauses are not set out but repair is apportioned in accordance with them)
The Tenant must carry out such repairs and works as are required of him under the provisions of the Agriculture
(Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973 as amended from time to time.]
[(where the model clauses are set out in extenso)
The provisions of schedule 3 are to have effect with regard to the repair and replacement of fixed equipment on the
Holding.]

3.30

Additional buildings

The Tenant must not alter, remove or make additions to any building or erect any new buildings or make any other
improvements specified in the Agricultural Holdings Act 1986, Schedule 7 without the previous written consent of the
Landlord (subject always to the Tenants right to apply for consent to an Agricultural Land Tribunal under the
Agricultural Holdings Act 1986 section 67).

3.31

Farmhouse

The Tenant must at all times during the Tenancy personally reside in the principal farmhouse on the Holding as his sole
residence and dwellinghouse 5.
[3080]

3.32

Assignment

The Tenant must not assign, underlet, part with or share possession or occupation of the whole or any part of the
Holding6 provided that:

3.32.1

if the Tenant shares occupation of the Holding with [his wife (or) her husband] or child or children that is not
to operate as a breach of the terms of this subclause or subclause 3.31;

3.32.2

the Tenant may permit any cottages and gardens [and (or) but not] the principal farmhouse comprised in this
agreement to be occupied under service agreements by agricultural workers employed by the Tenant full time
on the Holding but not so as to create any tenancy of any of the cottages and gardens and only if the
occupation of any of the cottages [or the farmhouse] is necessary in order to enable the agricultural worker to
perform his duties under a service agreement adequately and provided that [the farmhouse and] each cottage
[is (or) are] occupied by only one such agricultural worker and his family;

3.32.3

the Tenant may let any cottage not from time to time required to be so occupied to such person or persons and
on terms that are first approved by the Landlord in writing and

3.32.4

the Tenant may grant a licence limited to a season to a third party to exercise sporting rights on the Holding
provided that the terms of any such licence are first approved in writing by the Landlord.

[3081]

3.33

Insurance of buildings

The Tenant must keep the farmhouse and cottages insured on a comprehensive policy, and the agricultural buildings
insured against loss or damage by fire, in each case with an insurance company and in a sum or sums to be approved by
the Landlord and must pay out any insurance money received in or towards the rebuilding or reinstatement of any
property damaged or destroyed and must produce the policy of insurance and the receipt for the current premium to the
Landlord or his agent whenever called upon to do so.

3.34

Insurance of live and dead stock

The Tenant must:


3.34.1

insure the live and dead stock and the whole of the meadow and clover and hay, fodder and straw and other
crops stored on the Holding or in the buildings with an insurance company of a category approved by the
Landlord, against loss or damage by fire, to their full market value and must keep them so insured at all times
during the tenancy;

3.34.2

produce the policy of insurance and the receipt for the current premium to the Landlord or his agent
whenever called upon to do so; and

3.34.3

in the event of any of such produce being destroyed by fire, as soon as reasonably practicable replace the
produce destroyed or purchase its full manurial and mechanical equivalent in good farmyard manure or
approved artificial fertilisers or feeding stuffs to be expended on the Holding.

3.35

Avoidance of Landlords policy

The Tenant must avoid any act or omission by which any policy of insurance of the Landlord may be invalidated and
must indemnify the Landlord against any losses, charges, costs or expenses incurred through any such invalidation and
must keep in the buildings an adequate number of fire extinguishers in good working order and must take all other
reasonable precautions to safeguard the Landlords property against fire and other risks.
[3082]

3.36

Game

[(shooting reserved) The Tenant must preserve game, wildfowl, woodcock, snipe and other wild birds included in the
Wildlife and Countryside Act 1981, Schedule 2 (including their nests and eggs) and fish and must ward off
unauthorised persons from molesting or destroying them or trespassing on any part of the Holding for that purpose and
must give notice to the Landlord of anyone so offending or trespassing and otherwise must preserve the Landlords
interests reserved in schedule 2 paragraph 6.]
[(shooting rights included) The Tenant must exercise the shooting rights included in this tenancy in a fair and
sportsmanlike manner and at proper seasons so as to preserve and not to diminish stocks of game, and must keep down
vermin so as to prevent their becoming injurious to the game, the Holding, the woods and any other interest of the
Landlord and must ward off unauthorised persons from destroying or molesting them.]

3.37

Encroachments

The Tenant must prevent any new footpaths or other encroachments or easements from being made in or acquired over
any part of the Holding save as provided in schedule 2 paragraph 3.
[3083]

3.38

Nuisance

The Tenant must not do or suffer to be done on the Holding anything that may be or become a nuisance or annoyance to
the Landlord or the owners or occupiers of any adjoining land and must indemnify the Landlord against any claims by
third parties in respect of any breach of this subclause.

3.39

Production of notices

At all times, immediately upon receipt of any notice order direction or other matter whatever affecting or likely to
affect the Holding, the Tenant must produce it for the Landlords inspection and permit the Landlord to make a copy.

3.40

Compliance with notices

The Tenant must comply immediately with, and give sufficient effect to, every direction or notice duly made and served
upon him by a competent authority and must keep the Landlord effectually indemnified against all relative proceedings,
damages, penalties, costs and claims.

3.41

Planning

The Tenant must not omit or suffer to be omitted any act, matter or thing in, on or respecting the Holding that is
required to be omitted (as the case may be) by the Town and Country Planning Act 1990 7 (which expression is to
include any orders, regulations or directions for the time being in force made issued or given under that Act), or do or
suffer to be done any act or thing that contravenes the provisions of that Act and must at all times keep the Landlord
effectually indemnified against all actions, proceedings, costs, expenses, claims and demands in respect of any such act
matter or thing contravening the provisions of that Act.
[3084]

3.42

Compensation

Where damage results from the laying of pipelines, sewers and other apparatus underground or from the erection of
poles, pylons and other apparatus above the ground the Tenant must use the monetary compensation to remedy such
damage and fully to restore the Holding or must obtain a suitable indemnity from the statutory or acquiring authority.

3.43

Pollution

The Tenant must not contravene the Rivers (Prevention of Pollution) Act 1961.

3.44

Specialist crops

The Tenant must not make any contracts with any producers for growing specialist crops on the Holding except on
condition that:
3.44.1

any contract in writing is to be prepared and signed by both parties before the grower enters upon the
Holding;

3.44.2

any contract must provide specifically that the grower is granted non-exclusive rights of occupation and must
not give to the grower any security of tenure;

3.44.3

any contract must not (or if more than one contract is granted all the contracts together must not) relate to a
greater area in any one year than 20% of the total arable area of the Holding and must not in any case be for a
period exceeding 364 days and

3.44.4

no contract or contracts may be made that operate during the last year of the tenancy unless the Landlord has
first given consent in writing.

[3085]

3.45

Notice of death

If the Tenant [or any of them] dies during the continuance of the tenancy his executors or administrators or other person
or persons in whom any interest in the tenancy is vested immediately after his death must within one month of his death
give notice in writing to the Landlord of such death and its date 8.

3.46

Vacant possession of cottages

In the last year of the tenancy (whether it is terminated by the Landlord or the Tenant) the Tenant must take all steps
reasonably required by the Landlord in or towards obtaining vacant possession of any of the cottages on the Holding
that may be occupied by agricultural workers or others (including the commencement and prosecution of court
proceedings if appropriate) but so that the Tenant gives no warranty or guarantee that vacant possession will be given of
any property subject to an occupation or tenancy permitted under the terms of this agreement.

3.47

Deduction of sums due

All sums due from the Tenant to the Landlord in respect of rent, dilapidations, deteriorations or otherwise must be
deducted from the amount of compensation due from the Landlord to the Tenant under subclauses 4.34.5.

3.48

Records for calculating compensation

For the purpose of supporting a claim to receive full compensation at the determination of the tenancy for the residual
value of feeding stuffs, fertilisers and lime and the value of temporary pasture under the statutory provisions and
compensation regulations then current the Tenant, must maintain and produce to the Landlord on demand a true record
of the manner and periods in each season in which the permanent pasture and leys have been grazed or conserved and
the quantity of all corn and both the quantity and nutrient content of all cake and other feeding stuffs consumed and the
fertilisers applied to the Holding together with details of the production and disposal of all slurry.

3.49

Yielding-up

At the expiration or sooner determination of the tenancy the Tenant must yield up the Holding with vacant possession
of every part of it in a condition consistent with the due performance by him of the provisions contained above.
[3086]

Landlords covenants9

The Landlord covenants with the Tenant as follows:

[4.1

Repairs

The Landlord must carry out such repairs and works as are [(where the model clauses are set out in extenso) specified
in schedule 4. (or, where the model clauses are not set out but liability for repair is apportioned) required of him under
the provisions of the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973 as
amended from time to time].]10

[4.2

Building insurance

The Landlord must keep the farmhouse and cottages insured on a comprehensive policy and the agricultural buildings,
except those listed as redundant in schedule 5, insured against loss or damage by fire and must lay out any insurance
money received in or towards the rebuilding or reinstatement of any property damaged or destroyed.]

4.3

Compensation

4.3.1

Upon the Tenant giving up possession of the Holding, he is to be compensated for matters of tenant-right as
provided for under the Agricultural Holdings Act 1986.

4.3.2

The measure of compensation for improvements within the Agricultural Holdings Act 1986, Schedule 7 is to
be as provided for under the Agricultural Holdings Act 1986 section 66.

4.3.3

The measure of compensation for tenant-right improvements and other matters within the Agricultural
Holdings Act 1986, Schedule 8 is to be as provided for by the Agricultural Holdings Act 1986 section 66 and
by the Agriculture (Calculation of Value for Compensation) Regulations 1978 11.

4.4

Quiet enjoyment

The Tenant paying the rent reserved above and performing and observing the agreements on his part contained above,
the Landlord must permit him quietly to hold and enjoy the Holding without any interruption by the Landlord or by any
person rightfully claiming under or in trust for him.
[3087]

Mutual agreements

It is further agreed between the Landlord and the Tenant as follows:

5.1

Resumption of possession

The Landlord may upon giving to the Tenant 3 calendar months written notice 12 of his intention to do so (or in the
event of alteration in or additions to the statutory provisions relating to the service of notices and making of claims by a

tenant that are required to be served or made during the currency of the tenancy, such longer notice as will permit the
Tenant to serve such notices or make such claims as he may be entitled to serve or make under the Agricultural
Holdings Act 1986) resume possession at any time of any portion of the Holding 13 (not exceeding [%(or)
hectares] of it in any one calendar year), for any non-agricultural purpose 14 whether the use of the land for any such
purpose is to be made by the Landlord or his licensee or by a purchaser, tenant or assignee from the Landlord, and such
resumption of possession is not to terminate the tenancy created by this agreement except in regard to the land taken.
[3088]

5.2

Re-entry

If at any time:
5.2.1

the rent or any part of it is in arrear for at least 21 days after becoming due, or

5.2.2

there is any breach or non-observance by the Tenant of any of the covenants and conditions contained in this
agreement, or

5.2.3

an interim receiver is appointed in respect of the Tenants property or a bankruptcy order is made in respect of
the tenant15. or

5.2.4

the Tenant enters into any composition with his creditors, or

5.2.5

the interest of the Tenant under this agreement is taken in execution, or

5.2.6

execution is levied on any of the Tenants goods or chattels, or

5.2.7

any stock or crops on the Holding are taken under a bill of sale

then the Landlord may, without previously demanding any rents that may be due, (after giving to the Tenant 2 calendar
months notice) re-enter immediately upon the Holding or any part of it in the name of the whole, and the tenancy is
then to determine absolutely without prejudice to the rights of the Landlord in respect of any breach or non-observance
of any of the covenants and conditions contained above and on the part of the Tenant to be performed and observed or
any other rights and remedies of the Landlord; provided that if the tenancy terminates under the provisions of this
clause without sufficient warning to enable either party to give any notices or take any steps necessary to support and
enforce and proper claims for compensation on outgoing from the Holding or termination of the tenancy, that party is
nevertheless to have exactly the same position and rights as if all notices had been duly given and steps duly taken to
support the claims to which that party might otherwise be properly entitled 16.
[3089]

5.3

Distress

5.3.1

Upon any seizure by the Landlord under distress for rent the Landlord is not to be obliged to sell any hay,
straw or crops upon the terms that they may be removed from the Holding, but may exercise the power of
sale of distrained goods conferred by statute by selling the same subject to the condition that such produce is
to be consumed on the Holding or subject to some other condition securing that the manurial value of the hay,
straw or crops is returned to the Holding.

5.3.2

Upon any seizure and sale by the Landlord under distress for rent, the Landlord may grant to any purchaser of
hay, straw or crops, for such period or periods as the Landlord may think fit, the use of the threshing machine
(if any) upon the Holding and also the use of such part or parts of the Holding as the Landlord may think
necessary or proper for the purpose of threshing, storing, consuming or otherwise dealing with such hay,
straw or crops and without making any compensation to the Tenant in that respect.

5.4

Set-off

Either party may set off against and deduct from any money that may at any time be payable by him in respect of the
Holding, other than rent, any money that may be payable to him by the other in respect of the Holding whether the
sums so payable by or to him are of a liquidated character or not.

5.5

Redundant buildings

If at any time or times during the continuance of the tenancy either party desires to treat any buildings on the Holding
(other than those included in schedule 5) as redundant to the proper requirements of the Holding, then in default of
agreement that party may, on giving one months notice in writing to the other, have the question whether such

buildings or any of them are redundant referred to the decision of a single arbitrator to be appointed in default of
agreement between the parties by the President of the Royal Institution of Chartered Surveyors; and if it is agreed or if
the arbitrator awards that such buildings or any of them are redundant then as from the date of the agreement or award
(as the case may be) the buildings so agreed or awarded to be redundant are to be deemed to be included in schedule 5
and both parties are to be relieved from all liability as to any antecedent breach of any undertaking to repair them 17.
[3090]

5.6

Buildings and equipment in schedule 5

5.6.1

If any buildings or other items of fixed equipment are not necessary for the proper cultivation or working of
the Holding and have been included in schedule 5, this agreement is to be construed in all respects as if those
buildings were not existing on the Holding at the commencement of the tenancy.

5.6.2

The Tenant may use buildings included in schedule 5 at his own risk and without any obligation to carry out
any repairs to them, but he must keep them in a clean and tidy condition: provided that the Landlord has the
right at any time at his own expense to enter and repair them or remove them.

5.7

Repair exclusions

Nothing contained in [schedule 4 (or) the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment)
Regulations 1973] is to create any liability on the part of either the Landlord or the Tenant:
5.7.1

to maintain, repair or insure any item of fixed equipment if the Landlord and the Tenant agree in writing that
neither party is to be liable to maintain, repair or insure that item; or

5.7.2

to execute any work if and so far as the execution of that work is rendered impossible (except at prohibitive
or unreasonable expense) by reason of subsidence of any land or by the blocking of outfalls not under the
control of either the Landlord or the Tenant.

5.8

Sale of Holding

In the event of the sale of the Holding the responsibility for the landlords covenants under this agreement is to pass to
the buyer and no action is to lie against the seller for their non-observance after the date on which the rent accrues to
the buyer.
[3091]

5.9

Cost of records

The cost of making any record required under the Agricultural Holdings Act 1986 section 22 18 is to be borne by the
person requiring that record except in the case the records that must be made under clause 3.23, the cost of which must
be borne by the Tenant.

5.10

Exclusion of custom

The rights of the parties under this agreement or otherwise in respect of the tenancy are not to depend on or be affected
by any custom of the country.

5.11

Tenants fixtures

5.11.1

The fixtures and fittings specified in schedule 6 are fixtures belonging to the Tenant in respect of which the
Agricultural Holdings Act 1986 section 10 is to apply.

5.11.2

If the Tenant does not within 3 calendar months after the termination of the tenancy remove from the Holding
any fixtures and fittings subsequently installed to which the Agricultural Holdings Act 1986 section 10
applies and which the Landlord has not given notice of his intention to purchase under that section, such
fixtures and fittings, on the expiration of that period, are immediately to become the property of the Landlord
without payment unless the Landlord otherwise elects in which case the Tenant must remove such fixtures
and fittings from the Holding and make good any damage occasioned to the Holding as a result.

5.12

Landlords agent

Any right or power under this agreement granted to the Landlord may be exercised by the Landlord or the Landlords
duly authorised agents or servants and any notice that must be given to or by the Landlord is to be deemed to have been
properly served if served on or by the Landlords agents.

5.13

VAT

Where under the terms of this agreement the Tenant is obliged to make any payment to the Landlord that attracts VAT
(or any tax replacing it) the Tenant is to be responsible for the payment of the VAT (or any tax replacing it) 19.
[3092]

Stamp duty

The Landlord and the Tenant certify that there is no agreement for lease to which this lease gives effect.
IN WITNESS etc (see vol 12 (1994 Reissue) DEEDS, AGREEMENTS AND DECLARATIONS)

SCHEDULE 1
The Holding
(describe holding)
[3093]

SCHEDULE 2
The Reservations to the Landlord
1

Mines and minerals etc

All mines, minerals, quarries, stones, sand, brick earth, clay, gravel, turf, petroleum and its relative hydrocarbons and
all other gases and substances in or under the Holding of a kind ordinarily worked or removed by underground or
surface working, with power for the Landlord and all persons authorised by him:
1.1

to enter on the Holding to search for, win, dress and make them merchantable,

1.2

to carry them away from the Holding and from neighbouring land over any roadways on the Holding or over
any other part of the Holding, and

1.3

to execute all incidental works

including the right to let down the surface of the Holding, the Tenant being paid reasonable compensation for all
damage caused to him by the exercise of such power.

Water

The right for the Landlord and all persons authorised by him to enter the Holding and (subject to the provisions of the
Water Resources Act 1991) take water from any stream, spring or other source of supply on the Holding by means of
pipes or otherwise howsoever, provided sufficient water is left for the Tenant for domestic and agricultural purposes.

Wayleaves and entry

The right to grant any wayleave, contract, easement or licence to any public or local authority or public utility company
or other company or persons with the right to authorise servants and agents of such parties with or without vehicles,
horses, machinery and plant to enter upon the Holding and carry out their works (subject to the payment of reasonable
compensation for damage provided a claim in writing is made by the Tenant to the Landlord within a reasonable time
from the occurrence of the damage) together with the benefit of all such contracts, agreements for easements or
licences and all rents and other payments reserved.
[3094]

Timber

All timber and other trees (except fruit trees), saplings, pollards and underwood with liberty for the Landlord and all
persons authorised by him to enter upon the Holding to mark, fell, cut and carry them away, and to plant replacements,
and to cart the cut timber, trees saplings, pollards and underwood from the Holding and from neighbouring land over
any roadways on the Holding or over any other part of the Holding, without making any payment to the Tenant for the
use but making reasonable compensation to the Tenant for any damage done in the exercise of the rights reserved
provided a claim in writing is made by the Tenant to the Landlord within a reasonable time.

Possession

The right to recover possession in accordance with the provisions of clause 5.1.

[6

Game etc

6.1

All game, wildfowl, woodcock, snipe and other wild birds listed in the Wildlife and Countryside Act 1981,
Schedule 2, their nests and eggs and all fish together with the exclusive right for the Landlord and all persons
authorised by him to go upon the Holding:
6.1.1
to rear, preserve, shoot, kill and take them away, and
6.1.2
to shoot, hunt, hawk, sport and fish on or over the Holding.

6.2

Subject to the Ground Game Act 1880 and the Ground Game (Amendment) Act 1906, the right for the
Landlord and all persons authorised by him to kill, shoot and take away rabbits, hares, pigeons or any other
pests20.]

[3095]

Entry

7.1

The right for the Landlord and all persons authorised by him with or without vehicles, horses, machinery and
plant to enter on any part of the Holding at all reasonable times for all the purposes mentioned above and all
reasonable purposes.

7.2

In particular, but without prejudice to the generality of subparagraph 7.1, the right to run pipes, drains,
conduits, cables, wires or other works (either already existing or any new ones) for the benefit of any other
part of the Landlords estate and the right to carry out works for the benefit of any other part of the same
estate, the Tenant being paid reasonable compensation for all damage caused to him by the exercise of the
right for the benefit of any other part of the same estate 21.

Existing rights

All rights of way (if any) used or enjoyed up to and including the date of this agreement across any part of the Holding
whether by the Landlord or his tenants in respect of other property of the Landlord or otherwise howsoever.

Existing wayleaves

The benefit of all wayleave agreements entered into by the Landlord and existing at the date of this agreement and all
rents and other money payable under them, and the power to carry out on the Holding at the Landlords cost anything
required to be done under them by the Landlord.
[3096]

SCHEDULE 3
The Rent Formula
The yearly rent of reserved in clause 2 is to be subject to increase as follows 22:
1

The Landlord or the Tenant may by notice in writing given to the other not less than 12 nor more than 18
months before any and every third anniversary of the term date require the rent as from such anniversary (the
Relevant Date of Review) to be reviewed.

From the Relevant Date of Review the yearly rent (in default of agreement) is be the yearly rent of ,
or a yearly rent amount equal to the rack rent value of the Holding as at that date to be determined by
arbitration as if the provisions of the Agricultural Holdings Act 1986 Section 12 and Schedule 2 were
applicable subject only to all necessary modifications for those provisions to be applied to a fixed term lease
rather than a tenancy from year to year, whichever is the greater.

For the purpose of this schedule the rack rent value of the Holding at the Relevant Date of Review is to be the
rent that an arbitrator appointed on such date would determine to be payable in respect of the Holding if
3.1
the Holding had been let on a tenancy from year to year but otherwise on the terms of this lease
(excluding the provisions of this schedule) and
3.2
the Landlord or the Tenant had by notice in writing demanded a reference to arbitration under the
Agricultural Holdings Act 1986 of the question what rent should be payable in respect of the
Holding as from the Relevant Date of Review and
3.3
none of the circumstances specified in the Agricultural Holdings Act 1986, Schedule 2 paragraph 4
applied at the date of such demand.

[3097]

SCHEDULE 4

[(where liability is apportioned in accordance with the Agriculture (Maintenance, Repair and Insurance of Fixed
equipment) Regulations 1973 as amended and it is desired to set out the model clauses in extenso, Form 102 [3051]
ante may be included here)]
[(where the tenant is to be responsible for repairs)

Repairing obligations of the Tenant23


1

Repair

The Tenant must repair and keep and leave clean and in good, tenantable repair, order and condition the farmhouse,
cottages and all buildings and fixed equipment on the Holding including the main walls, roofs and timbers, all fixtures
and fittings in all buildings, water supply systems and fittings (whether situated above or below ground) and all
installations connected with them, sewage disposal systems including septic tanks filtering media and cesspools
(including covers and tops), fences (live and dead), hedges, walls, ditches, roads and yards and all other fixed
equipment in or upon the Holding or that during the tenancy may be erected or provided on it.

Replacement

The Tenant must replace anything mentioned in paragraph 1 of this schedule that has worn out or otherwise become
incapable of further repair.

Guttering etc

The Tenant must keep clean and in good working order all roof valleys, guttering and downpipes, wells, septic tanks,
cesspools and sewage disposal systems.
[3098]

Painting outside

As often as may be necessary in order to prevent deterioration and in any case at intervals of not more than 5 years, the
Tenant must properly paint with at least 2 coats of a suitable quality or properly and adequately gas-tar, creosote or
otherwise effectively treat with a preservative material all outside wood and ironwork of the farmhouse, cottages and
farm buildings, the inside wood and ironwork of all external outward opening doors and windows of the farm buildings
(but not of the farmhouse or cottages), and the interior structural steelwork of open-sided farm buildings that have
previously been painted, gas-tarred, creosoted or otherwise treated with preservative material or that it is necessary so
to paint, gas-tar, creosote or treat with preservative material in order to prevent deterioration: provided that in this
paragraph open-sided means having the whole or the greater part of at least one side or end permanently open apart
from roof supports if any.

Painting inside

As often as may be necessary and in any case at intervals of not more than 7 years, the Tenant must properly clean,
colour, whiten, paper, paint, limewash or otherwise treat with materials of suitable quality the inside of the farmhouse,
cottages and farm buildings including the interior of outward opening doors and windows of the farmhouse and
cottages that have been previously so treated.

Hedges

The Tenant must cut trim or lay a proper proportion of the hedges in each year of the tenancy so as to maintain them in
good and sound condition.
[3099]

Ponds and ditches

The Tenant must dig out, scour and cleanse all ponds, watercourses, ditches and grips as may be necessary to maintain
them at sufficient width and depth and must keep all field drains and their outlets clear from obstruction.

Cost of decorating outside

If the last year of the tenancy is not a year in which the Tenant is liable under paragraph 4 of this schedule to paint, gastar, creosote or otherwise treat the doors, windows, eaves, guttering and downpipes of buildings the Tenant must pay to
the Landlord at the end of such last year either the estimated reasonable cost of it or a sum equal to the aggregate of
one-fifth of that cost in respect of each year that has elapsed since such last painting, gas-tarring, creosoting or other
treatment as above was completed whichever is the less.

Cost of decorating inside

If the last year of the tenancy is not a year in which such cleaning, colouring, whitening, papering, painting or other
treatment as is mentioned in paragraph 5 of this schedule is due to be carried out the Tenant must pay to the Landlord at

the end of such last year either the estimated reasonable cost of it or a sum equal to the aggregate of one-seventh part of
that cost in respect of each year that has elapsed since such last cleaning, colouring, whitening, papering, painting or
other treatment as above was completed whichever is the less.

10

Compensation assessment

In the assessment of any compensation payable by the Tenant on the termination of the tenancy in respect of
dilapidations any accrued liability under paragraphs 8 and 9 of this schedule is to be taken into account.
[3100]

11

Right to remedy failure to repair

If the Tenant does not start work on the repairs or replacements for which he is liable under this schedule within 2
months or if he fails to complete them within 3 months of receiving from the Landlord a written notice 24 (not being a
notice to remedy breach of tenancy agreement by doing work of repair, maintenance or replacement in a form
prescribed under the Agricultural Holdings Act 1986) specifying the necessary repairs or replacements and calling on
him to execute them the Landlord may enter and execute such repairs or replacements and recover the reasonable cost
from the Tenant immediately.

12

Contesting liability

12.1

If the Tenant wishes to contest his liability to execute any repairs or replacements specified in a notice served
upon him by the Landlord under paragraph 11 of this schedule he must within one month serve a counternotice25 in writing upon the Landlord specifying the grounds on which and the items of repair or replacement
in respect of which he denies liability and requiring the question of liability in that respect to be determined
by arbitration under the terms of the Agricultural Holdings Act 1986.

12.2

Upon service of the counter-notice on the Landlord the operation of the notice (including the running of time
under it) is to be suspended in so far as it relates to the items specified in the counter-notice until the
termination of an arbitration determining the question of liability in respect of those items: provided that in
this paragraph termination in relation to an arbitration means the date on which the arbitrators award is
delivered to the Tenant.

[3101]

13

Redundant buildings

Nothing in this schedule shall impose upon the Tenant any liability for the repair or replacement of any buildings listed
as redundant in schedule 5 or deemed to be included in it under clause 5.6.

14

Work rendered impossible

Nothing in this schedule shall create any liability on the Tenant to execute any work if and in so far as the execution of
such work is rendered impossible (except at prohibitive or unreasonable expense) by reason of subsidence of any land
or the blocking of outfalls which are not under the control of the Tenant]

SCHEDULE 5
Redundant fixed equipment
(insert details)
SCHEDULE 6
Tenants fixtures and fittings
(insert details)
(signature (or common seal) of the landlord: lease)
(signature of tenant: counterpart)
(signatures of witnesses)26
[3102]
1

As to stamp duty, see Information Binder: Stamp Duties [1]: Table of stamp duties (Lease or Tack) and (Duplicate or
Counterpart). Where the lease is for 21 years or more, application must be made to the Land Registry for registration within 2
months after the date on which it is granted, otherwise the lease will become void as regards the legal estate granted: see the
Land Registration Act 1925 s 123 (37 Halsburys Statutes (4th Edn) REAL PROPERTY). This Form provides for 3 possibilities
with regard to repairing obligations. Repairs may be apportioned in accordance with the Agriculture (Maintenance, Repair and
Insurance of Fixed Equipment) Regulations 1973/1473 as amended by SI 1988/281, made pursuant to the Agricultural Holdings

Act 1986 s 7(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). These are set out in Form 102 [3051] post and may be
included in schedule 4 to this form in extenso if required. If, however, it is desired that the parties should be subject to the
regulations from time to time currently in force, it is preferable to incorporate them referentially: see clauses 3.29 [3080] and 4.1
[3087] of this form. Finally, the tenant may be made liable for all repairs and replacements, as suggested in schedule 4 [3098] of
this form. The provisions set out in the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973
as amended are deemed to be incorporated in every contract of tenancy of an agricultural holding except in so far as they would
impose on one of the parties to an agreement in writing a liability that under the agreement is imposed on the other: see the
Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973 reg 3.
The holding must be fully described and a map or plan is desirable: see the Agricultural Holdings Act 1986 Sch 1 para 2. It is
common in leases of agricultural land to refer to fields and other areas by reference to the parcel numbers included in large scale
OS maps; the edition or revision of the OS map used should be stated, either by description or by reference to an annexed plan,
as the parcel numbers can vary. Where the landlords title is registered, it is appropriate to include the title number(s) to the land
in question even though the agreement is not itself registrable; office copies of the register of the landlords title should be
obtained to ensure that the landlord has title to grant the lease or tenancy. For the definition of agricultural holding, see
Paragraph 304 [2012] ante.
It may be desirable to include this subclause if the clause headings are included in the agreement as actually signed. In the case
of a contractual document it seems that any clause headings or marginal notes form part of the document and are not to be
ignored as in a statute, but they are to be treated as a general description of the provisions to which they relate, the words of
which also define the terms of the actual contract: see Digby v General Accident Fire and Life Assurance Corpn Ltd [1943] AC
121 at 136, [1942] 2 All ER 319 at 326, HL, and see also National Farmers Union Mutual Insurance Society Ltd v Dawson
[1941] 2 KB 424 at 430.

[3103]
4

The initial rent can be varied by agreement between the parties or by arbitration upon the demand of either landlord or tenant. As
to arbitration of rent, see Paragraphs 334 [2116]342 [2125] ante. A variation in the rent does not operate as a termination and
grant of a new tenancy: see Jenkin Lewis & Son Ltd v Kerman [1971] Ch 477, [1970] 3 All ER 414, CA. A reduction in rent
consequent upon a change in the holding itself (even if only the surrender of a building) will trigger a new 3-year period: Mann v
Gardner [1991] 1 EGLR 9, CA. As to the procedures regarding variation in rent during the currency of the tenancy, see the
Agricultural Holdings Act 1986 s 12 and Paragraphs 334 [2116]342 [2125] ante.
This clause has been drafted restrictively to prevent the tenant from seeking to occupy a number of separate farmhouses and
claiming each is his residence. The clause is designed to ensure that the tenant lives on the subject holding and, therefore, can
personally supervise and carry out all the necessary agricultural work, and not enjoy the holding as an absentee tenant and
proprietor of the farming business, enjoying the profits of the farming without a full personal commitment to the holding. Such
clauses are strictly enforceable: see Lloyds Bank Ltd v Jones [1955] 2 QB 298, [1955] 2 All ER 409, CA and Sumnal v Statt
(1984) 49 P & CR 367, CA.
This clause has been very restrictively drawn to prohibit not merely assignment and underletting but also sharing possession and
occupation of the holding. This is to prevent a tenant entering into partnership with a third party, possibly on terms where the
tenant is a mere sleeping partner with little more than a nominal involvement in the holding which is, in fact, farmed by the
working partner, possibly in conjunction with other holdings, so that the landlord loses control over the person in day to day
control of the farming. Breach of a prohibition upon assignment, subletting or parting with possession is incapable of remedy
(see Scala House and District Property Co Ltd v Forbes [1974] QB 575, [1973] 3 All ER 308, CA and Troop v Gibson (1985)
277 Estates Gazette 1134, CA) and, therefore, if the landlord can be shown to have suffered material prejudice as a result of such
a breach, a notice to quit can be given pursuant to the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case E in the event of a
breach being committed by the tenant. As to Case E, see Paragraph 383 [2282] ante. Farm workers occupying farm cottages will,
notwithstanding the terms of this clause, enjoy security of tenure under the Rent (Agriculture) Act 1976 (1 Halsburys Statutes
(4th Edn) AGRICULTURE) without the tenant being in breach of this prohibition. As to the Rent (Agriculture) Act 1976, see
Paragraph 601 [5001] et seq post.
The proviso in the Landlord and Tenant Act 1927 s 19(1) (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT), by
which there is to be implied a condition that consent to assignment etc is not to be unreasonably withheld, does not apply to a
tenancy of an agricultural holding: see the Landlord and Tenant Act 1927 s 19(4) as amended by the Agricultural Tenancies Act
1995 s 40, Schedule para 6. See also vol 23 LANDLORD AND TENANT.

[3104]
7
8

9
10

Ie the Town and Country Planning Act 1990 as amended (46 Halsburys Statutes (4th Edn) TOWN AND COUNTRY PLANNING).
On the death of the tenant the landlord has only 3 months from the date of the death in which to give notice to quit if he wishes
to avail himself of the right to give an incontestable notice contained in the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I
Case G. As to Case G, see Paragraph 385 [2284] ante. By virtue of the Agricultural Holdings Act 1986 s 26, Sch 3 Pt II para
12(b) the time limit does not start to run against the landlord until:
(1)
the personal representatives of the deceased tenant have given notice in writing of the death;
(2)
an applicant has given notice of an application to the Agricultural Land Tribunal for the grant of a new tenancy in
succession; or
(3)
if both events occur, whichever is the first.
It is not, therefore, critical for the landlord to discover by his own researches the occurrence of the death of his tenant. This
clause is nevertheless considered to be desirable since there is no statutory duty upon the personal representatives of the
deceased tenant to inform the landlord of the death, and it is desirable in the interests of the sound management of the landlords
estate that he should be aware of the identity from time to time of his tenant.
It is important to ensure that the respective obligations of landlord and tenant are inter-related.
This clause should be omitted if the second alternative schedule 4 [3098] is used.

11

12

Ie the Agriculture (Calculation of Value for Compensation) Regulations 1978/809 as amended by SI 1980/751, SI 1981/822 and
SI 1983/1475. This clause is largely declaratory of the compensation provisions in the Agricultural Holdings Act 1986 ss 6078,
many of which cannot be varied in any event.
The Agricultural Holdings Act 1986 s 25(2)(b) permits a provision in a tenancy agreement entitling the landlord to give notice to
quit part, in which event the general rule that not less than 12 months notice to quit must be given is varied. There is no statutory
provision as to the length of notice that may be substituted for 12 months but it was held in Coates v Diment [1951] 1 All ER 890
that the clause had to provide for sufficient notice to enable the tenant to give a counter-notice entitling the tenant to certain
forms of statutory compensation. It is considered, therefore, undesirable to provide for less than 2 months notice when drafting
short notice clauses of this sort.

[3105]
13

14

15

The Agricultural Holdings Act 1986 s 31(1),(2) entitles a landlord to give notice to quit part of the holding in very limited
circumstances as specified in those subsections. As to notice to quit part, see Paragraphs 372 [2245] and 373 [2246] ante. These
circumstances do not include general residential development, development for industrial purposes etc Clause 5.1 [3088] of this
form extends very widely the circumstances in which a landlord may give notice to quit part of the holding, without offending
the general common law rule that a notice to quit part is invalid: see Re Bebingtons Tenancy, Bebington v Wildman [1921] 1 Ch
559 and Woodward v Earl of Dudley [1954] Ch 283, [1954] 1 All ER 559.
The Agricultural Holdings Act 1986 s 25(2)(b) provides that the purpose for which the landlord can give short notice must be
specified in the agreement. However, it was held in Paddock Investments Ltd v Lory (1975) 236 Estates Gazette 803, CA that any
non-agricultural purpose was a specified purpose since a specified purpose did not need to be a specific purpose.
See the Insolvency Act 1986 as amended (4 Halsbury's Statutes (4th Edn) BANKRUPTCY AND INSOLVENCY). In the case of a
company tenant, the events should be:
(1)
the making of an administration order in respect of the company; and
(2)
any person becoming entitled to exercise the powers conferred on an administrative receiver. However, as to
company tenants, see Form 101 note 2 [3035] ante.
As regards the making of an administration order, it should be noted that the Insolvency Act 1986 s 10(1)(c) provides that no
proceedings, execution or other legal process may be commenced or continued, and no distress may be levied, against the
company or its property after a petition for an administration order has been presented except with the leave of the court and
subject (where the court gives leave) to such terms as the court may impose. The same applies after an administration order is
made (see the Insolvency Act 1986 s 11(3)(d)) save that proceedings, execution and process etc may be commenced or continued
with the administrators consent. Thus in such cases a landlord wishing to take advantage of the event will have to obtain consent
from the administrator or the court before commencing any proceedings or legal process. It is uncertain whether such consent
would be required as regards a landlords right of peaceable re-entry.

[3106]
16

17

18

19

20

Although the Agricultural Holdings Act 1986 imposes restrictions on the right of a landlord to give notice to quit, there are no
restrictions on the landlords alternative right to terminate the tenancy by forfeiture if a suitable forfeiture clause is included in
the tenancy agreement. It was, however, held in Parry v Million Pigs Ltd (1980) 260 Estates Gazette 281 that a forfeiture clause
that purported to entitle the landlord to resume possession without giving prior notice to the tenant of sufficient duration to
enable the tenant to serve the appropriate forms of counter-notice entitling him to compensation was invalid and ineffective for
the same reasons as in Coates v Diment [1951] 1 All ER 890 where it was held that a short notice clause entitling the landlord to
recover possession for development purposes was similarly invalid.
For the provisions entitling a landlord or tenant to seek arbitration as to whether or not a building or other piece of fixed
equipment on the holding is redundant to the farming of the holding, see the Agriculture (Maintenance, Repair and Insurance of
Fixed Equipment) Regulations 1973 as amended by SI 1988/281. There is no provision for arbitration on whether such an item is
obsolete.
The records that may be required under the Agricultural Holdings Act 1986 s 22 are records of the condition of fixed equipment
on the holding and of the general condition of the holding (which may be required by the landlord or the tenant: see the
Agricultural Holdings Act 1986 s 22(1)(a)) and records of any fixtures or building the tenant is entitled to remove and of existing
improvements executed by him or in respect of which he paid compensation to an outgoing tenant (which may be required by the
tenant: see the Agricultural Holdings Act 1986 s 22(1)(b)).
The supply of land under an agricultural lease would be exempt from VAT unless the landlord or a relevant associate of the
landlord elects to waive exemption from VAT: see the Value Added Tax Act 1994, Sch 9 Pt II group 1, Sch 10 paras 2, 3 (48
Halsburys Statutes (4th Edn) VALUE ADDED TAX AND CAR TAX). See Information Binder: Property [1]: VAT and Property.
Clause 3.32.4 [3081] of this Form contains a provision for the grant of limited sporting rights by the tenant and in clause 3.36
[3083] there is a provision for the inclusion of shooting rights in the letting. Schedule 2 paragraph 6 [3095] provides for the
exclusion of all sporting rights. Care must be taken to ensure that one or other provision applies but not both and that the
agreement is consistent throughout. As to the position regarding game damage claims, see the Agricultural Holdings Act 1986 s
20 and Paragraphs 450 [2501] and 451 [2502] ante. For a notice of occurrence of damage by game, see Form 219 [4011] and for
a notice of claim for damage by game, see Form 220 [4013] post. The grant of sporting rights otherwise than in connection with
the sale of the freehold may attract VAT if sold in the course or furtherance of business: see the Value Added Tax Act 1994, Sch 9
Pt II group 1 item 1(b).

[3107]
21

22

The Agricultural Holdings Act 1986 s 23 gives the landlord a statutory right of entry for 3 specific purposes:
(1)
to view the state of the holding,
(2)
to fulfil his responsibilities to manage it according to the rules of good estate management and
(3)
to provide or improve fixed equipment other than in fulfilment of those responsibilities.
Those rights are extended considerably by this paragraph.
The initial rent can be varied by agreement between the parties or by arbitration upon the demand of either landlord or tenant:
see Paragraphs 334 [2116]342 [2125] ante. A variation in the rent does not operate as a termination and grant of a new tenancy:

23

see Jenkin Lewis & Son Ltd v Kerman [1971] Ch 477, [1970] 3 All ER 414, CA. A reduction in rent consequent upon a change in
the holding itself (even if only the surrender of a building) will trigger a new 3-year period: Mann v Gardner [1991] 1 EGLR 9,
CA. As to the procedures regarding variation in rent during the currency of the tenancy, see the Agricultural Holdings Act 1986 s
12 and Paragraphs 334 [2116]342 [2125] ante.
It is increasingly popular for landlords to insist upon tenants undertaking full repairing and insuring obligations. However,
landlords and tenants should be aware of the fact that if an agreement giving the tenant full repairing and insuring obligations is
entered into, either party may refer to an arbitrator the question whether the modifications contained in the agreement, ie the
differences between the statutory obligations and the contractual obligations, are justifiable: see the Agricultural Holdings Act
1986 s 8(2),(3). If the arbitrator varies the contractual obligations to bring them into line with the model clauses then he may
also vary the rent, and assess in the award the accumulated dilapidations payable by the party being relieved of his obligation by
the award.
For a landlords notice requesting and specifying repairs, see Form 124 [3515] post.
For a tenants counter-notice requiring arbitration, see Form 125 [3517] post.
As to the statutory requirements for valid execution of a deed, see vol 12 (1994 Reissue) DEEDS, AGREEMENTS AND
DECLARATIONS.

24
25
26

[3108][3115]

104
Agreement for letting farm from year to year containing the minimum statutory requirements 1
THIS AGREEMENT is made the day of BETWEEN:
(1)

(name of landlord) of (address) (the Landlord, which expression where the context permits includes the
person for the time being entitled to the rent payable under this agreement) and

(2)

(name of tenant) of (address) (the Tenant, which expression where the context permits includes his
successors in title)2

NOW IT IS AGREED as follows:

Holding

The Landlord agrees to let and the Tenant agrees to take the agricultural holding including the shooting rights over it
known as (name of holding) (the Holding) situate at (insert details) and extending to approximately hectares
( acres) the particulars of which are set out in the schedule and shown [for the purpose of identification only]
edged red on the plan attached to this agreement 3 together with all the Landlords fixtures and fittings on the Holding.
[3116]

Term

The tenancy is to commence on (commencement date) and continue from year to year until determined at the end of
any year of the tenancy by either party giving to the other not less than 12 months previous notice in writing.

Rent and outgoings

The Tenant must pay during the tenancy:


3.1

the annual rent of by [2] equal [half-yearly] payments on [25 March] and [29 September] clear of all
deductions, the first payment to be made on (date); and

3.2

all land tax and rates (including drainage rates) (if any).

Agreements by the Tenant

The Tenant agrees with the Landlord as follows:

4.1

Return of manurial values

In the event of the destruction by fire of harvested crops grown on the Holding for consumption on it, the Tenant must
return to the Holding the full equivalent manurial value of the crops destroyed in so far as the return is required for the
fulfilment of his responsibilities to farm in accordance with the rules of good husbandry.

[4.2

Insurance

The Tenant must insure against damage by fire all dead stock on the Holding and such harvested crops as are referred to
in subclause 4.1.]4

4.3

Assignment

The Tenant must not assign, sublet or part with possession of the Holding or any part of it without the Landlords
consent in writing. 5

[4.4

Repair

(insert details of repairing obligation)]6


[3117]

Right of re-entry

If at any time:
5.2.1

the rent or any part of it is in arrear for at least 21 days after becoming due, or

5.2.2

there is any breach or non-observance by the Tenant of any of the covenants and conditions contained in this
agreement, or

5.2.3

an interim receiver is appointed in respect of the Tenants property or a bankruptcy order is made in respect of
the tenant7. or

5.2.4

the Tenant enters into any composition with his creditors, or

5.2.5

the interest of the Tenant under this agreement is taken in execution, or

5.2.6

execution is levied on any of the Tenants goods or chattels, or

5.2.7

any stock or crops on the Holding are taken under a bill of sale

then the Landlord may, without previously demanding any rents that may be due, (after giving to the Tenant 2 calendar
months notice) re-enter immediately upon the Holding or any part of it in the name of the whole, and the tenancy is
then to determine absolutely without prejudice to the rights of the Landlord in respect of any breach or non-observance
of any of the covenants and conditions contained above and on the part of the Tenant to be performed and observed or
any other rights and remedies of the Landlord; provided that if the tenancy terminates under the provisions of this
clause without sufficient warning to enable either party to give any notices or take any steps necessary to support and
enforce and proper claims for compensation on outgoing from the Holding or termination of the tenancy, that party is
nevertheless to have exactly the same position and rights as if all notices had been duly given and steps duly taken to
support the claims to which that party might otherwise be properly entitled 8.

Stamp duty

The Landlord and the Tenant certify that there is no agreement for lease to which this lease gives effect.
AS WITNESS etc (see vol 12 (1994 Reissue) DEEDS, AGREEMENTS AND DECLARATIONS)

SCHEDULE
Description of Holding
(describe holding)
(signatures of (or on behalf of) the parties)9
[3118]
1

As to stamp duty, see Information Binder: Stamp Duties [1]: Table of stamp duties (Lease or Tack) and (Duplicate or
Counterpart). This Form is appropriate for use between the parties where no special terms and conditions have been agreed save
for the identity of the parties, the rent and the extent of the holding. Any special terms should be incorporated as appropriate. If
there is no agreement in writing between the parties or there is only a defective agreement not containing the minimum
requirements of the Agricultural Holdings Act 1986 s 6(1), Sch 1 (1 Halsburys Statutes (4th Edn) AGRICULTURE), either party
may request the other to enter into such an agreement in writing: see Paragraph 316 [2043] et seq ante. In default of agreement
the matter may be referred to arbitration: see the Agricultural Holdings Act 1986 s 6(1). This form of agreement covers all the
matters required by the Agricultural Holdings Act 1986, Sch 1, so that the opportunity of referring the terms to arbitration will
not arise.
Only in rare circumstances would a landlord be well advised to let a company into occupation as tenant, as doing so could
amount to a letting virtually in perpetuity. A company cannot die and therefore the landlord may have no opportunity to
terminate the tenancy under the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case G. The right to give notice to quit on the

death of the tenant in the case of joint tenants applies on the death of the sole or sole surviving tenant: see the Agricultural
Holdings Act 1986 s 26(2), Sch 3 Pt I Case G. As to Case G, see Paragraph 385 [2284] ante.
The holding must be fully described and a map or plan is desirable: see the Agricultural Holdings Act 1986, Sch 1 para 2. For the
definition of agricultural holding, see Paragraph 304 [2012] ante.
This clause should not be inserted if the interest of the tenant is held for the purposes of a Government department or where the
tenant has made provision approved by the Minister in lieu of such insurance: see the Agricultural Holdings Act 1986 s 6(1), Sch
1 para 7.
As to the effect of a request for a written agreement on the right to assign, see Paragraph 318 [2045] ante.
If any special terms have been agreed insert the appropriate details. If no express provisions are inserted as to repair, the parties
will be bound by the model clauses, for which see Form 102 [3051] ante.

5
6

[3119]
7

See the Insolvency Act 1986 as amended (4 Halsbury's Statutes (4th Edn) BANKRUPTCY AND INSOLVENCY). In the case of a
company tenant, the events should be:
(1)
the making of an administration order in respect of the company; and
(2)
any person becoming entitled to exercise the powers conferred on an administrative receiver. However, as to
company tenants, see note 2 above.
As regards the making of an administration order, it should be noted that the Insolvency Act 1986 s 10(1)(c) provides that no
proceedings, execution or other legal process may be commenced or continued, and no distress may be levied, against the
company or its property after a petition for an administration order has been presented except with the leave of the court and
subject (where the court gives leave) to such terms as the court may impose. The same applies after an administration order is
made (see the Insolvency Act 1986 s 11(3)(d)) save that proceedings, execution and process etc may be commenced or continued
with the administrators consent. Thus in such cases a landlord wishing to take advantage of the event will have to obtain consent
from the administrator or the court before commencing any proceedings or legal process. It is uncertain whether such consent
would be required as regards a landlords right of peaceable re-entry.
Although the Agricultural Holdings Act 1986 imposes restrictions on the right of a landlord to give notice to quit, there are no
restrictions on the landlords alternative right to terminate the tenancy by forfeiture if a suitable forfeiture clause is included in
the tenancy agreement. It was, however, held in Parry v Million Pigs Ltd (1980) 260 Estates Gazette 281 that a forfeiture clause
that purported to entitle the landlord to resume possession without giving prior notice to the tenant of sufficient duration to
enable the tenant to serve the appropriate forms of counter-notice entitling him to compensation was invalid and ineffective for
the same reasons as in Coates v Diment [1951] 1 All ER 890 where it was held that a short notice clause entitling the landlord to
recover possession for development purposes was similarly invalid.
A lease for 3 years or less (including a periodic tenancy) taking effect in possession may be created by parol or by writing which
need not be executed as a deed: see the Law of Property Act 1925 s 52(2) (37 Halsburys Statutes (4th Edn) REAL PROPERTY)
and the Law of Property (Miscellaneous Provisions) Act 1989 s 2(5)(a) (37 Halsburys Statutes (4th Edn) REAL PROPERTY). As
to the requirements for valid execution as a deed, see vol 12 (1994 Reissue) DEEDS , AGREEMENTS AND DECLARATIONS..

[3120][3300]

105
Agreement for letting from year to year land to be cultivated as a market garden 1
THIS AGREEMENT is made the day of BETWEEN:
(1)

(name of landlord) of (address) (the Landlord, which expression where the context permits includes the
person for the time being entitled to the rent payable under this agreement) and

(2)

(name of tenant) of (address) (the Tenant, which expression where the context permits includes his
successors in title)

NOW IT IS AGREED as follows:

Definitions and interpretation

In this agreement:
1.1

the Holding means the agricultural holding [including the shooting rights over it] known as situate
at and extending to approximately hectares ( acres) particulars of which are set out in
schedule 1, shown [for the purpose of identification only] edged red on the plan attached to this agreement 2;

1.2

the Commencement Date means (date);

1.3
[3301]
1.4

the Commencing Rent means the rent stated in subclause 5.1;


words importing corporations include persons (whether masculine or feminine as the case may be) and vice
versa, words importing the masculine gender only include the feminine gender, words importing the singular
number only include the plural number and vice versa and where there are two or more individuals included

in the expression the Tenant covenants expressed to be made by him or them are to be deemed to be made
by such persons jointly and severally;
1.5

reference to any Act or statutory instrument includes reference to any re-enactment or modification of such
Act or statutory instrument;

1.6

clause headings in this agreement do not form part of this agreement 3;

1.7

save where otherwise stated any reference to a numbered clause or schedule means the clause or schedule in
this agreement that is so numbered.

[3302]

The Holding

The Landlord agrees to let and the Tenant agrees to take the Holding together with all Landlords fixtures and fittings
excepting and reserving to the Landlord as more particularly set out in schedule 2.

Term

The tenancy is to commence on the Commencement Date and continue from year to year until determined at the end of
any year of the tenancy by either party giving to the other not less than 12 months previous notice in writing.

Existing easements and reservations

The Holding is let subject to all public and private rights of way and all other easements and agreements (if any)
affecting it and to the exceptions and reservations mentioned below.

Rent

5.1

The rent is to be a year and is to continue at the same yearly sum until such time as a different rent
is substituted for it4 either by agreement or by arbitration under the provisions of the Agricultural Holdings
Act 1986 after which the rent is to be the substituted rent.

5.2

Any agreement by which a new rent for the Holding is agreed is to be deemed to be made under this clause
and not to create a fresh tenancy agreement unless otherwise specifically stated.

5.3

The rent is to be payable half yearly [in advance (or) in arrears] on 25 March and 29 September in each year
the first payment (being a proportionate part of the rent) to be made on (date).

5.4

The Commencing Rent is to be reviewed on the [third] anniversary of the Commencement Date (if the
tenancy so long continues) and the rent payable from that date is to be the rent (not being less than the
Commencing Rent) that an arbitrator appointed immediately before that date pursuant to a reference to
arbitration properly demanded by the Landlord under the Agricultural Holdings Act 1986 section 12 would
determine to be properly payable in respect of the Holding under the provisions of that section, and in default
of agreement the rent payable is to be determined by a single arbitrator to be appointed in accordance with
the provisions of the Agricultural Holdings Act 1986.

[3303]

Agreements by the Tenant

The Tenant agrees with the Landlord as follows:

6.1

Rent

The Tenant must pay the rent reserved above and all existing and future rates, land drainage charges and other taxes and
outgoings of an annual or recurring nature except owners drainage rates.

6.2

Reimbursement ingoing

[The Tenant must pay to the Landlord on demand the amount payable or to become payable by the Landlord to the
outgoing tenant in respect of the Holding (other than disturbance compensation and game damage) under a claim
arising on or out of the termination of his tenancy of the Holding together with all reasonable and necessary costs and
expenses incurred by the Landlord in respect of any valuation or arbitration in ascertaining such sum or sums without
deducting any payments made or payable by the outgoing tenant to the Landlord and to expend any amount paid to the
Tenant by the Landlord towards carrying out his (the Tenants) obligations under this agreement.
(or)

The Tenant must pay to the Landlord all sums properly payable by an incoming tenant for growing crops, tillages, dead
stock and other matters to which the Landlord would be entitled if he were an outgoing tenant holding under the terms
of this agreement after deducting all sums the Landlord would be liable to pay if he were an outgoing tenant holding on
those terms, the amount so payable to be ascertained in default of agreement according to a valuation to be made by a
single valuer (to be appointed in default of agreement by the President of the Royal Institution of Chartered Surveyors)
whose valuation is to be final, the amount so ascertained to be payable on demand by the Tenant to the Landlord.]
[3304]

6.3

Water extraction

On entering the Holding the Tenant must give all necessary notices and make all necessary applications and payments
to preserve any existing licence granted in respect of the Holding under the Water Resources Act 1991 or any similar
enactment, and subsequently must continue the licence in force during the tenancy and must not surrender it without
the consent in writing of the Landlord or by any act or omission jeopardise the licence.

6.4

Use

The Tenant must not use or permit or suffer the use of the Holding or any part of it for any purposes other than as a
market garden5 and in particular not for the display of advertisements, camping, the parking of caravans, the purpose of
fairs, racing, coursing, matches, games, contests, rallies, musical festivals or bathing by the public and must manage
and farm the Holding as a market garden for which sole purpose it is let under this agreement.

6.5

System of farming

The Tenant must not change the above system of farming without the consent in writing of the Landlord.

6.6

Good husbandry

The Tenant must cultivate and manage the Holding according to the rules of good husbandry (as defined in the
Agriculture Act 1947 section 11 and as applicable to a market garden) so as not to impoverish or deteriorate the land
and to keep and leave the Holding clean and in good heart and condition.
[3305]

6.7

Pests

The Tenant must take all reasonable and practicable steps to keep the Holding free from infestation by insects and other
pests and must destroy rabbits, moles, rats and other vermin and spread mole hills and ant hills upon the Holding.

6.8

Weeds

The Tenant must take all reasonable steps to control and destroy all harmful or injurious weeds throughout the Holding.

6.9

Notifiable diseases

The Tenant must notify the Landlord in writing immediately of any outbreak or suspected outbreak of any notifiable
disease of crops on the Holding.

6.10

Sprays

When using any sprays the Tenant must take all reasonable care to ensure that adjoining hedges, trees and crops are not
adversely affected and must make good or replant as necessary should any damage occur; and so far as possible the
Tenant must select and use chemicals, whether for spraying seed dressing or any other purposes whatsoever, that will
cause the least harm to game birds and other wildlife other than vermin or pests.

6.11

Pruning etc

The Tenant must preserve, prune, spray and manage the fruit trees and fruit bushes permanently set out and plants and
roots on the Holding; must not cut or remove any trees or bushes permanently set out except such as are dead, worn
out, unfruitful or damaged and the removal of which would benefit the Holding; and forthwith or as soon as practicable
must replace any trees or bushes that die or become worn out or unfruitful by others of an equally valuable good and
suitable kind.
[3306]

6.12

Grassland

The Tenant must not plough or break up any land described in schedule 1 as meadow, grass or permanent pasture
without the previous written consent of the Landlord.

6.13

Turf and topsoil

The Tenant must not remove from the Holding any turf or top soil without the previous written consent of the Landlord.

6.14

Cropping

Subject to his rights under the Agricultural Holdings Act 1986 section 15, the Tenant must not take from the arable land
more than straw crops in succession and must not have more than of such crops in corn or grain and on
quitting must leave reasonable and proper proportions in or in course for winter corn, spring corn, maiden seeds, leys or
roots and forage crops.

6.15

[Sale of keep (or) Agistment]

[(Sale of keep)The Tenant must not sell any grass, keeping, grazing or growing crops on the Holding or take in
livestock of any third party or in which a third party has an interest to keep without the previous written consent of the
Landlord.]
[(Agistment) The Tenant must not without the previous written consent of the Landlord grant to any person a licence to
graze stock on the Holding, or take to feed on the Holding stock belonging to any other person.]
[3307]

6.16

Charges

The Tenant must notify the Landlord in writing of any charge made under the authority of the Agricultural Credits Act
1928 immediately on the completion of any document evidencing such charge.

6.17

Sale of crops

The Tenant must not sell off or remove, but must consume on the Holding, all grasses, clover and forage crops whether
harvested or not and all fodder, straw and roots grown on the Holding in the last year of the tenancy or remaining
unconsumed from previous years, and must leave for the use of the Landlord or incoming tenant all such grasses,
clover and forage crops, fodder, straw and roots that remain unconsumed when the Tenant quits the Holding.

6.18

Manure

The Tenant must return to the Holding the full equivalent manurial value of any grasses, clover or forage plants
whether green or conserved or any fodder, straw, roots or other produce of the Holding sold or removed from it at any
time prior to the last year of the tenancy.

6.19

Records of cropping etc

The Tenant must keep and on the request of the Landlord produce at any reasonable time true records of all cropping
and true accounts with all necessary vouchers of all hay, straw and other produce sold off the Holding and of the
provision made for the return to the Holding of the full equivalent manurial value of all crops sold off or removed from
the Holding and of the provisions made to protect the Holding from injury or deterioration in consequence of the
exercise by the Tenant of his right to cropping and sale of produce under the Agricultural Holdings Act 1986 section 15.

6.20

Dung

The Tenant must spread annually on the Holding all farmyard manure and compost produced and made on the Holding
and at the termination of the tenancy must leave carefully stored all such farmyard manure and compost not already
spread.
[3308]

6.21

Orchards and gardens

The Tenant must keep all orchards and gardens in a proper state of cultivation, well manured and in good heart and
must protect the Holding from damage by cattle or otherwise howsoever.

6.22

Pruning

The Tenant must prune all fruit trees and bushes at proper seasons and at his own expense replace dead and worn out
fruit trees with other fruit trees suitable to the district, provided that the Tenant may at his option, in lieu of replacing
individual trees, grub up and replace the whole or a substantial part of an orchard in accordance with a scheme
approved by the Landlord or in default of such approval found to be a reasonable scheme by an arbitrator agreed
between the parties or in default of agreement appointed by the President of the Royal Institution of Chartered
Surveyors.

6.23

Soil analysis

When so required by and at the expense of the Landlord the Tenant must have taken a proper analysis of the soil of the
Holding (or of such part of it as may be specified by the Landlord) by such Ministry or other body as the Landlord may
specify.

6.24

Tree damage

The Tenant must not permit or suffer any waste, or cut down, top or lop or drive nails into or otherwise injure any trees
growing on the Holding and must protect all trees from damage by cattle or otherwise howsoever.
[3309]

6.25

Repairs

[(where the tenant is to repair)


6.25.1
The provisions of schedule 3 are to have effect with regard to the repair and replacement of fixed equipment
on the Holding.
6.25.2

If the Tenant fails to execute repairs for which he is liable within [1 month] of receiving from the Landlord a
written request specifying the necessary repairs and calling on him to execute them, the Landlord may enter
and execute such repairs and recover the reasonable costs from the Tenant immediately after the completion
of such repairs.]

[(where the model clauses are not set out but repair is apportioned in accordance with them)
The Tenant must carry out such repairs and works as are required of him under the provisions of the Agriculture
(Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973 as amended from time to time.]
[(where the model clauses are set out in extenso)
The provisions of schedule 3 are to have effect with regard to the repair and replacement of fixed equipment on the
Holding.]

6.26

Additional buildings

The Tenant must not alter, remove or make additions to any building or erect any new buildings or make any other
improvements specified in the Agricultural Holdings Act 1986, Schedule 7 without the previous written consent of the
Landlord (subject always to the Tenants right to apply for consent to an Agricultural Land Tribunal under the
Agricultural Holdings Act 1986 section 67).

6.27

Farmhouse

The Tenant must at all times during the Tenancy personally reside in the principal farmhouse on the Holding as his sole
residence and dwellinghouse 6.
[3310]

6.28

Assignment

The Tenant must not assign, underlet, part with or share possession or occupation of the whole or any part of the
Holding7 provided that:
6.28.1

if the Tenant shares occupation of the Holding with [his wife (or) her husband] or child or children that is not
to operate as a breach of the terms of this subclause or subclause 6.27;

6.28.2

the Tenant may permit any cottages and gardens [and (or) but not] the principal farmhouse comprised in this
agreement to be occupied under service agreements by agricultural workers employed by the Tenant full time
on the Holding but not so as to create any tenancy of any of the cottages and gardens and only if the
occupation of any of the cottages [or the farmhouse] is necessary in order to enable the agricultural worker to
perform his duties under a service agreement adequately and provided that [the farmhouse and] each cottage
[is (or) are] occupied by only one such agricultural worker and his family;

6.28.3

the Tenant may let any cottage not from time to time required to be so occupied to such person or persons and
on terms that are first approved by the Landlord in writing and

6.28.4

the Tenant may grant a licence limited to a season to a third party to exercise sporting rights on the Holding
provided that the terms of any such licence are first approved in writing by the Landlord.

6.29

Insurance of buildings

The Tenant must keep the farmhouse and cottages insured on a comprehensive policy, and the agricultural buildings
insured against loss or damage by fire, in each case with an insurance company and in a sum or sums to be approved by
the Landlord and must pay out any insurance money received in or towards the rebuilding or reinstatement of any

property damaged or destroyed and must produce the policy of insurance and the receipt for the current premium to the
Landlord or his agent whenever called upon to do so.
[3311]

6.30

Insurance of live and dead stock

The Tenant must:


6.30.1

insure the live and dead stock and the whole of the meadow and clover and hay, fodder and straw and other
crops stored on the Holding or in the buildings with an insurance company of a category approved by the
Landlord, against loss or damage by fire, to their full market value and must keep them so insured at all times
during the tenancy;

6.30.2

produce the policy of insurance and the receipt for the current premium to the Landlord or his agent
whenever called upon to do so; and

6.30.3

in the event of any of such produce being destroyed by fire, as soon as reasonably practicable replace the
produce destroyed or purchase its full manurial and mechanical equivalent in good farmyard manure or
approved artificial fertilisers or feeding stuffs to be expended on the Holding.

6.31

Avoidance of Landlords policy

The Tenant must avoid any act or omission by which any policy of insurance of the Landlord may be invalidated and
must indemnify the Landlord against any losses, charges, costs or expenses incurred through any such invalidation and
must keep in the buildings an adequate number of fire extinguishers in good working order and must take all other
reasonable precautions to safeguard the Landlords property against fire and other risks.
[3312]

6.32

Game

[(shooting reserved) The Tenant must preserve game, wildfowl, woodcock, snipe and other wild birds included in the
Wildlife and Countryside Act 1981, Schedule 2 (including their nests and eggs) and fish and must ward off
unauthorised persons from molesting or destroying them or trespassing on any part of the Holding for that purpose and
must give notice to the Landlord of anyone so offending or trespassing and otherwise must preserve the Landlords
interests reserved in schedule 2 paragraph 6.]
[(shooting rights included) The Tenant must exercise the shooting rights included in this tenancy in a fair and
sportsmanlike manner and at proper seasons so as to preserve and not to diminish stocks of game, and must keep down
vermin so as to prevent their becoming injurious to the game, the Holding, the woods and any other interest of the
Landlord and must ward off unauthorised persons from destroying or molesting them.]

6.33

Encroachments

The Tenant must prevent any new footpaths or other encroachments or easements from being made in or acquired over
any part of the Holding save as provided in schedule 2 paragraph 3.

6.34

Nuisance

The Tenant must not do or suffer to be done on the Holding anything that may be or become a nuisance or annoyance to
the Landlord or the owners or occupiers of any adjoining land and must indemnify the Landlord against any claims by
third parties in respect of any breach of this subclause.

6.35

Production of notices

At all times, immediately upon receipt of any notice order direction or other matter whatever affecting or likely to
affect the Holding, the Tenant must produce it for the Landlords inspection and permit the Landlord to make a copy.

6.36

Compliance with notices

The Tenant must comply immediately with, and give sufficient effect to, every direction or notice duly made and served
upon him by a competent authority and must keep the Landlord effectually indemnified against all relative proceedings,
damages, penalties, costs and claims.
[3313]

6.37

Planning

The Tenant must not omit or suffer to be omitted any act, matter or thing in, on or respecting the Holding that is
required to be omitted (as the case may be) by the Town and Country Planning Act 1990 8 (which expression is to

include any orders, regulations or directions for the time being in force made issued or given under that Act), or do or
suffer to be done any act or thing that contravenes the provisions of that Act and must at all times keep the Landlord
effectually indemnified against all actions, proceedings, costs, expenses, claims and demands in respect of any such act
matter or thing contravening the provisions of that Act.

6.38

Compensation

Where damage results from the laying of pipelines, sewers and other apparatus underground or from the erection of
poles, pylons and other apparatus above the ground the Tenant must use the monetary compensation to remedy such
damage and fully to restore the Holding or must obtain a suitable indemnity from the statutory or acquiring authority.

6.39

Pollution

The Tenant must not contravene the Rivers (Prevention of Pollution) Act 1961.

6.40

Specialist crops

The Tenant must not make any contracts with any producers for growing specialist crops on the Holding except on
condition that:
6.40.1
[3314]
6.40.2

any contract in writing is to be prepared and signed by both parties before the grower enters upon the
Holding;
any contract must provide specifically that the grower is granted non-exclusive rights of occupation and must
not give to the grower any security of tenure;

6.40.3

any contract must not (or if more than one contract is granted all the contracts together must not) relate to a
greater area in any one year than 20% of the total arable area of the Holding and must not in any case be for a
period exceeding 364 days and

6.40.4

no contract or contracts may be made that operate during the last year of the tenancy unless the Landlord has
first given consent in writing.

6.41

Notice of death

If the Tenant [or any of them] dies during the continuance of the tenancy his executors or administrators or other person
or persons in whom any interest in the tenancy is vested immediately after his death must within one month of his death
give notice in writing to the Landlord of such death and its date 9.

6.42

Vacant possession of cottages

In the last year of the tenancy (whether it is terminated by the Landlord or the Tenant) the Tenant must take all steps
reasonably required by the Landlord in or towards obtaining vacant possession of any of the cottages on the Holding
that may be occupied by agricultural workers or others (including the commencement and prosecution of court
proceedings if appropriate) but so that the Tenant gives no warranty or guarantee that vacant possession will be given of
any property subject to an occupation or tenancy permitted under the terms of this agreement.

6.43

Deduction of sums due

All sums due from the Tenant to the Landlord in respect of rent, dilapidations, deteriorations or otherwise must be
deducted from the amount of compensation due from the Landlord to the Tenant under subclauses 7.37.5.
[3315]

6.44

Records for calculating compensation

For the purpose of supporting a claim to receive full compensation at the determination of the tenancy for the residual
value of feeding stuffs, fertilisers and lime and the value of temporary pasture under the statutory provisions and
compensation regulations then current the Tenant, must maintain and produce to the Landlord on demand a true record
of the manner and periods in each season in which the permanent pasture and leys have been grazed or conserved and
the quantity of all corn and both the quantity and nutrient content of all cake and other feeding stuffs consumed and the
fertilisers applied to the Holding together with details of the production and disposal of all slurry.

6.45

Yielding-up

At the expiration or sooner determination of the tenancy the Tenant must yield up the Holding with vacant possession
of every part of it in a condition consistent with the due performance by him of the provisions contained above.

Agreements by the Landlord10

The Landlord agrees with the Tenant as follows:

[7.1

Repairs

The Landlord must carry out such repairs and works as are [(where the model clauses are set out in extenso) specified
in schedule 3 (or where the model clauses are not set out but liability for repair is apportioned) required of him under
the provisions of the Agriculture (Maintenance, repair and Insurance of Fixed Equipment) Regulations 1973 as
amended from time to time].]11
[3316]

[7.2

Building insurance

The Landlord must keep the farmhouse and cottages insured on a comprehensive policy and the agricultural buildings,
except those listed as redundant in schedule 4, insured against loss or damage by fire and must lay out any insurance
money received in or towards the rebuilding or reinstatement of any property damaged or destroyed.]

7.3

Compensation

7.3.1

Upon the Tenant giving up possession of the Holding, he is to be compensated for matters of tenant-right as
provided for under the Agricultural Holdings Act 1986.

7.3.2

The measure of compensation for improvements within the Agricultural Holdings Act 1986, Schedule 7 is to
be as provided for under the Agricultural Holdings Act 1986 section 66.

7.3.3

The measure of compensation for tenant-right improvements and other matters within the Agricultural
Holdings Act 1986, Schedule 8 is to be as provided for by the Agricultural Holdings Act 1986 section 66 and
by the Agriculture (Calculation of Value for Compensation) Regulations 1978 12.

7.4

Quiet enjoyment

The Tenant paying the rent reserved above and performing and observing the agreements on his part contained above,
the Landlord must permit him quietly to hold and enjoy the Holding without any interruption by the Landlord or by any
person rightfully claiming under or in trust for him.
[3317]

Further agreements

It is further agreed between the Landlord and the Tenant as follows:

8.1

Resumption of possession

The Landlord may upon giving to the Tenant 3 calendar months written notice 13 of his intention to do so (or in the
event of alteration in or additions to the statutory provisions relating to the service of notices and making of claims by a
tenant that are required to be served or made during the currency of the tenancy, such longer notice as will permit the
Tenant to serve such notices or make such claims as he may be entitled to serve or make under the Agricultural
Holdings Act 1986) resume possession at any time of any portion of the Holding 14 (not exceeding [%(or)
hectares] of it in any one calendar year), for any non-agricultural purpose 15 whether the use of the land for any such
purpose is to be made by the Landlord or his licensee or by a purchaser, tenant or assignee from the Landlord, and such
resumption of possession is not to terminate the tenancy created by this agreement except in regard to the land taken.

8.2

Re-entry

If:
8.2.1

the rent or any part of it is in arrear for at least 21 days after becoming due, or

8.2.2

there is any breach or non-observance by the Tenant of any of the covenants and conditions contained in this
agreement, or

8.2.3

an interim receiver is appointed in respect of the Tenants property or a bankruptcy order is made in respect of
the tenant16, or

8.2.4

the Tenant enters into any composition with his creditors, or

8.2.5
[3318]
8.2.6

the interest of the Tenant under this agreement is taken in execution, or


execution is levied on any of the Tenants goods or chattels, or

8.2.7

any stock or crops on the Holding are taken under a bill of sale

then the Landlord may, without previously demanding any rents that may be due, (after giving to the Tenant 2 calendar
months notice) re-enter immediately upon the Holding or any part of it in the name of the whole, and the tenancy is
then to determine absolutely without prejudice to the rights of the Landlord in respect of any breach or non-observance
of any of the covenants and conditions contained above and on the part of the Tenant to be performed and observed or
any other rights and remedies of the Landlord; provided that if the tenancy terminates under the provisions of this
clause without sufficient warning to enable either party to give any notices or take any steps necessary to support and
enforce and proper claims for compensation on outgoing from the Holding or termination of the tenancy, that party is
nevertheless to have exactly the same position and rights as if all notices had been duly given and steps duly taken to
support the claims to which that party might otherwise be properly entitled 17.

8.3

Distress

8.3.1

Upon any seizure by the Landlord under distress for rent, the Landlord is not to be obliged to sell any hay,
straw or crops upon the terms that they may be removed from the Holding, but may exercise the power of
sale of distrained goods conferred by statute by selling the same subject to the condition that such produce is
to be consumed on the Holding or subject to some other condition securing that the manurial value of the hay,
straw or crops is returned to the Holding.

8.3.2

Upon any seizure and sale by the Landlord under distress for rent, the Landlord may grant to any purchaser of
hay, straw or crops, for such period or periods as the Landlord may think fit, the use of the threshing machine
(if any) upon the Holding and also the use of such part or parts of the Holding as the Landlord may think
necessary or proper for the purpose of threshing, storing, consuming or otherwise dealing with such hay,
straw or crops and without making any compensation to the Tenant in that respect.

[3319]

8.4

Set-off

Either party may set off against and deduct from any money that may at any time be payable by him in respect of the
Holding, other than rent, any money that may be payable to him by the other in respect of the Holding whether the
sums so payable by or to him are of a liquidated character or not.

8.5

Redundant buildings

If at any time or times during the continuance of the tenancy either party desires to treat any buildings on the Holding
(other than those included in schedule 4) as redundant to the proper requirements of the Holding, then in default of
agreement that party may, on giving one months notice in writing to the other, have the question whether such
buildings or any of them are redundant referred to the decision of a single arbitrator to be appointed in default of
agreement between the parties by the President of the Royal Institution of Chartered Surveyors; and if it is agreed or if
the arbitrator awards that such buildings or any of them are redundant then as from the date of the agreement or award
(as the case may be) the buildings so agreed or awarded to be redundant are to be deemed to be included in schedule 4
and both parties are to be relieved from all liability as to any antecedent breach of any undertaking to repair them 18.
[3320]

8.6

Buildings and equipment in schedule 4

8.6.1

If any buildings or other items of fixed equipment are not necessary for the proper cultivation or working of
the Holding and have been included in schedule 4, this agreement is to be construed in all respects as if those
buildings were not existing on the Holding at the commencement of the tenancy.

8.6.2

The Tenant may use buildings included in schedule 4 at his own risk and without any obligation to carry out
any repairs to them, but he must keep them in a clean and tidy condition: provided that the Landlord has the
right at any time at his own expense to enter and repair them or remove them.

8.7

Repair exclusions

Nothing contained in [schedule 3 (or) the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment)
Regulations 1973] is to create any liability on the part of either the Landlord or the Tenant:
8.7.1

to maintain, repair or insure any item of fixed equipment if the Landlord and the Tenant agree in writing that
neither party is to be liable to maintain, repair or insure that item; or

8.7.2

to execute any work if and so far as the execution of that work is rendered impossible (except at prohibitive
or unreasonable expense) by reason of subsidence of any land or by the blocking of outfalls not under the
control of either the Landlord or the Tenant.

8.8

Sale of Holding

In the event of the sale of the Holding the responsibility for the landlords covenants under this agreement is to pass to
the buyer and no action is to lie against the seller for their non-observance after the date on which the rent accrues to
the buyer.
[3321]

8.9

Cost of records

The cost of making any record required under the Agricultural Holdings Act 1986 section 22 19 is to be borne by the
person requiring that record except in the case the records that must be made under clause 6.19, the cost of which must
be borne by the Tenant.

8.10

Exclusion of custom

The rights of the parties under this agreement or otherwise in respect of the tenancy are not to depend on or be affected
by any custom of the country.

8.11

Tenants fixtures

8.11.1

The fixtures and fittings specified in schedule 5 are fixtures belonging to the Tenant in respect of which the
Agricultural Holdings Act 1986 section 10 is to apply.

8.11.2

If the Tenant does not within 3 calendar months after the termination of the tenancy remove from the Holding
any fixtures and fittings subsequently installed to which the Agricultural Holdings Act 1986 section 10
applies and which the Landlord has not given notice of his intention to purchase under that section, such
fixtures and fittings, on the expiration of that period, are immediately to become the property of the Landlord
without payment unless the Landlord otherwise elects in which case the Tenant must remove such fixtures
and fittings from the Holding and make good any damage occasioned to the Holding as a result.

8.12

Landlords agent

Any right or power under this agreement granted to the Landlord may be exercised by the Landlord or the Landlords
duly authorised agents or servants and any notice that must be given to or by the Landlord is to be deemed to have been
properly served if served on or by the Landlords agents.

8.13

VAT

Where under the terms of this agreement the Tenant is obliged to make any payment to the Landlord that attracts VAT
(or any tax replacing it) the Tenant is to be responsible for the payment of the VAT (or any tax replacing it) 20.
[3322]
AS WITNESS etc (see vol 12 (1994 Reissue) DEEDS, AGREEMENTS AND DECLARATIONS)

SCHEDULE 1
The Holding
(describe holding)
SCHEDULE 2
The Reservations to the Landlord
[1

Mines and minerals etc

All mines, minerals, quarries, stones, sand, brick earth, clay, gravel, turf, petroleum and its relative hydrocarbons and
all other gases and substances in or under the Holding of a kind ordinarily worked or removed by underground or
surface working, with power for the Landlord and all persons authorised by him:
1.1

to enter on the Holding to search for, win, dress and make them merchantable,

1.2

to carry them away from the Holding and from neighbouring land over any roadways on the Holding or over
any other part of the Holding, and

1.3
to execute all incidental works
including the right to let down the surface of the Holding, the Tenant being paid reasonable compensation for all
damage caused to him by the exercise of such power.
[3323]

Water

The right for the Landlord and all persons authorised by him to enter the Holding and (subject to the provisions of the
Water Resources Act 1991) take water from any stream, spring or other source of supply on the Holding by means of
pipes or otherwise howsoever, provided sufficient water is left for the Tenant for domestic and agricultural purposes.

Wayleaves and entry

The right to grant any wayleave, contract, easement or licence to any public or local authority or public utility company
or other company or persons with the right to authorise servants and agents of such parties with or without vehicles,
horses, machinery and plant to enter upon the Holding and carry out their works (subject to the payment of reasonable
compensation for damage provided a claim in writing is made by the Tenant to the Landlord within a reasonable time
from the occurrence of the damage) together with the benefit of all such contracts, agreements for easements or
licences and all rents and other payments reserved.

Timber

All timber and other trees (except fruit trees), saplings, pollards and underwood with liberty for the Landlord and all
persons authorised by him to enter upon the Holding to mark, fell, cut and carry them away, and to plant replacements,
and to cart the cut timber, trees saplings, pollards and underwood from the Holding and from neighbouring land over
any roadways on the Holding or over any other part of the Holding, without making any payment to the Tenant for the
use but making reasonable compensation to the Tenant for any damage done in the exercise of the rights reserved
provided a claim in writing is made by the Tenant to the Landlord within a reasonable time.

Possession

The right to recover possession in accordance with the provisions of clause 8.1.
[3324]

[6

Game etc

6.1

All game, wildfowl, woodcock, snipe and other wild birds listed in the Wildlife and Countryside Act 1981,
Schedule 2, their nests and eggs and all fish together with the exclusive right for the Landlord and all persons
authorised by him to go upon the Holding:
6.1.1
to rear, preserve, shoot, kill and take them away, and
6.1.2
to shoot, hunt, hawk, sport and fish on or over the Holding.

6.2

Subject to the Ground Game Act 1880 and the Ground Game (Amendment) Act 1906, the right for the
Landlord and all persons authorised by him to kill, shoot and take away rabbits, hares, pigeons or any other
pests21.]

Entry

7.1

The right for the Landlord and all persons authorised by him with or without vehicles, horses, machinery and
plant to enter on any part of the Holding at all reasonable times for all the purposes mentioned above and all
reasonable purposes.

7.2

In particular, but without prejudice to the generality of subparagraph 7.1, the right to run pipes, drains,
conduits, cables, wires or other works (either already existing or any new ones) for the benefit of any other
part of the Landlords estate and the right to carry out works for the benefit of any other part of the same
estate, the Tenant being paid reasonable compensation for all damage caused to him by the exercise of the
right for the benefit of any other part of the same estate 22.

Existing rights

All rights of way (if any) used or enjoyed up to and including the date of this agreement across any part of the Holding
whether by the Landlord or his tenants in respect of other property of the Landlord or otherwise howsoever.

Existing wayleaves

The benefit of all wayleave agreements entered into by the Landlord and existing at the date of this agreement and all
rents and other money payable under them, and the power to carry out on the Holding at the Landlords cost anything
required to be done under them by the Landlord.
(or as the case may be)]
[3325]

SCHEDULE 3
[(where liability is apportioned in accordance with the Agriculture (Maintenance, Repair and Insurance of Fixed
equipment) Regulations 1973 as amended and it is desired to set out the model clauses in extenso, Form 102 [3051]
ante may be included here)]
[(where the tenant is to be responsible for repairs)23

Repair

The Tenant must [put into repair and] keep and leave clean, and maintain in good, tenantable repair, order and condition
the farmhouse, cottages and all buildings and fixed equipment on the Holding including the main walls, roofs and
timbers, all fixtures and fittings in all buildings, water supply systems and fittings (whether situated above or below
ground) and all installations connected with them, sewage disposal systems including septic tanks filtering media and
cesspools (including covers and tops), fences (live and dead), hedges, walls, ditches, roads and yards and all other fixed
equipment in or upon the Holding or that during the tenancy may be erected or provided on it.

Replacement

The Tenant must replace anything mentioned in paragraph 1 of this schedule that has worn out or otherwise become
incapable of further repair.

Guttering etc

The Tenant must keep clean and in good working order all roof valleys, guttering and downpipes, wells, septic tanks,
cesspools and sewage disposal systems.
[3326]

Painting outside

As often as may be necessary in order to prevent deterioration and in any case at intervals of not more than 5 years, the
Tenant must properly paint with at least 2 coats of a suitable quality or properly and adequately gas-tar, creosote or
otherwise effectively treat with a preservative material all outside wood and ironwork of the farmhouse, cottages and
farm buildings, the inside wood and ironwork of all external outward opening doors and windows of the farm buildings
(but not of the farmhouse or cottages), and the interior structural steelwork of open-sided farm buildings that have
previously been painted, gas-tarred, creosoted or otherwise treated with preservative material or that it is necessary so
to paint, gas-tar, creosote or treat with preservative material in order to prevent deterioration: provided that in this
paragraph open-sided means having the whole or the greater part of at least one side or end permanently open apart
from roof supports if any.

Painting inside

As often as may be necessary and in any case at intervals of not more than 7 years, the Tenant must properly clean,
colour, whiten, paper, paint, limewash or otherwise treat with materials of suitable quality the inside of the farmhouse,
cottages and farm buildings including the interior of outward opening doors and windows of the farmhouse and
cottages that have been previously so treated.

Hedges

The Tenant must cut trim or lay a proper proportion of the hedges in each year of the tenancy so as to maintain them in
good and sound condition.
[3327]

Ponds and ditches

The Tenant must dig out, scour and cleanse all ponds, watercourses, ditches and grips as may be necessary to maintain
them at sufficient width and depth and must keep all field drains and their outlets clear from obstruction.

Cost of decorating outside

If the last year of the tenancy is not a year in which the Tenant is liable under paragraph 4 of this schedule to paint, gastar, creosote or otherwise treat the doors, windows, eaves, guttering and downpipes of buildings the Tenant must pay to
the Landlord at the end of such last year either the estimated reasonable cost of it or a sum equal to the aggregate of

20% of that cost in respect of each year that has elapsed since such last painting, gas-tarring, creosoting or other
treatment as above was completed whichever is the less.

Cost of decorating inside

If the last year of the tenancy is not a year in which such cleaning, colouring, whitening, papering, painting or other
treatment as is mentioned in paragraph 5 of this schedule is due to be carried out the Tenant must pay to the Landlord at
the end of such last year either the estimated reasonable cost of it or a sum equal to the aggregate of one-seventh part of
that cost in respect of each year that has elapsed since such last cleaning, colouring, whitening, papering, painting or
other treatment as above was completed whichever is the less.

10

Compensation assessment

In the assessment of any compensation payable by the Tenant on the termination of the tenancy in respect of
dilapidations any accrued liability under paragraphs 8 and 9 of this schedule is to be taken into account.
[3328]

11

Right to remedy failure to repair

If the Tenant does not start work on the repairs or replacements for which he is liable under this schedule within 2
months or if he fails to complete them within 3 months of receiving from the Landlord a written notice 24 (not being a
notice to remedy breach of tenancy agreement by doing work of repair, maintenance or replacement in a form
prescribed under the Agricultural Holdings Act 1986) specifying the necessary repairs or replacements and calling on
him to execute them the Landlord may enter and execute such repairs or replacements and recover the reasonable cost
from the Tenant immediately.

12

Contesting liability

12.1

If the Tenant wishes to contest his liability to execute any repairs or replacements specified in a notice served
upon him by the Landlord under paragraph 11 of this schedule he must within one month serve a counternotice25 in writing upon the Landlord specifying the grounds on which and the items of repair or replacement
in respect of which he denies liability and requiring the question of liability in that respect to be determined
by arbitration under the terms of the Agricultural Holdings Act 1986.

12.2

Upon service of the counter-notice on the Landlord the operation of the notice (including the running of time
under it) is to be suspended in so far as it relates to the items specified in the counter-notice until the
termination of an arbitration determining the question of liability in respect of those items: provided that in
this paragraph termination in relation to an arbitration means the date on which the arbitrators award is
delivered to the Tenant.

[3329]

13

Redundant buildings

Nothing in this schedule shall impose upon the Tenant any liability for the repair or replacement of any buildings listed
as redundant in schedule 4 or deemed to be included in it under clause 8.6.

14

Impossible work

Nothing in this schedule shall create any liability on the Tenant to execute any work if and in so far as the execution of
such work is rendered impossible (except at prohibitive or unreasonable expense) by reason of subsidence of any land
or the blocking of outfalls which are not under the control of the Tenant.]

SCHEDULE 4
Redundant fixed equipment
(insert details)
SCHEDULE 5
Tenants fixtures and fittings
(insert details)
(signature (or common seal) of landlord: tenancy agreement)
(signature of tenant: counterpart)26
(annex plan)

[3330]
1

As to stamp duty, see Information Binder: Stamp Duties [1]: Table of stamp duties (Lease or Tack) and (Duplicate or
Counterpart). This Form provides for 3 possibilities with regard to repairing obligations. Repairs may be apportioned in
accordance with the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973/1473 as amended
by SI 1988/281, made pursuant to the Agricultural Holdings Act 1986 s 7(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE).
These are set out in Form 102 [3051] ante and may be included in schedule 3 to this form in extenso if required. If, however, it is
desired that the parties should be subject to the regulations from time to time currently in force, it is preferable to incorporate
them referentially: see subclauses 6.25 [3310] and 7.1 [3316] of this form. Finally, the tenant may be made liable for all repairs
and replacements, as suggested in schedule 3 [3326] of this form. The provisions as set out in the Agriculture (Maintenance,
Repair and Insurance of Fixed Equipment) Regulations 1973 as amended are deemed to be incorporated in every contract of
tenancy of an agricultural holding except in so far as they would impose on one of the parties to an agreement in writing a
liability that under the agreement is imposed on the other: see the Agriculture (Maintenance, Repair and Insurance of Fixed
Equipment) Regulations 1973 reg 3.
The holding must be fully described and a map or plan is desirable: see the Agricultural Holdings Act 1986, Sch 1 para 2. It is
common in leases of agricultural land to refer to fields and other areas by reference to the parcel numbers included in large scale
OS maps. The edition or revision of the OS map used should be stated, either by description or by reference to an annexed plan,
as the parcel numbers can vary. Where the landlords title is registered, it is appropriate to include the title number(s) to the land
in question even though the agreement is not itself registrable; office copies of the register of the landlords title should be
obtained to ensure that the landlord has title to grant the lease or tenancy. For the definition of agricultural holding, see
Paragraph 304 [2012] ante.
It may be desirable to include this subclause if the clause headings are included in the agreement as actually signed. In the case
of a contractual document it seems that any clause headings or marginal notes form part of the document and are not to be
ignored as in a statute, but they are to be treated as a general description of the provisions to which they relate, the words of
which also define the terms of the actual contract: see Digby v General Accident Fire and Life Assurance Corpn Ltd [1943] AC
121 at 136, [1942] 2 All ER 319 at 326, HL, and see also National Farmers Union Mutual Insurance Society Ltd v Dawson
[1941] 2 KB 424 at 430.

[3331]
4

The initial rent can be varied by agreement between the parties or by arbitration upon the demand of either landlord or tenant:
see Paragraphs 334 [2116]342 [2125] ante. A variation in the rent does not operate as a termination and grant of a new tenancy:
see Jenkin Lewis & Son Ltd v Kerman [1971] Ch 477, [1970] 3 All ER 414, CA. A reduction in rent consequent upon a change in
the holding itself (even if only the surrender of a building) will trigger a new 3-year period: Mann v Gardner [1991] 1 EGLR 9,
CA. As to the procedures regarding variation in rent during the currency of the tenancy, see the Agricultural Holdings Act 1986 s
12 and Paragraphs 334 [2116]342 [2125] ante.
A market garden is merely a species of agricultural holding for which special provisions as to compensation, including the
Evesham Custom, apply. See in particular the Agricultural Holdings Act 1986 ss 7981, Sch 10 (1 Halsburys Statutes (4th
Edn) AGRICULTURE), Paragraphs 442 [2471]445 [2474] ante and 1(2) Halsburys Laws (4th Edn Reissue) AGRICULTURE para
444 et seq.
This clause has been drafted restrictively to prevent the tenant from seeking to occupy a number of separate farmhouses and
claiming each is his residence. The clause is designed to ensure that the tenant lives on the subject holding and, therefore, can
personally supervise and carry out all the necessary agricultural work, and not enjoy the holding as an absentee tenant and
proprietor of the farming business, enjoying the profits of the farming without a full personal commitment to the holding. Such
clauses are strictly enforceable: see Lloyds Bank Ltd v Jones [1955] 2 QB 298, [1955] 2 All ER 409, CA and Sumnal v Statt
(1984) 49 P & CR 367, CA.
This clause has been very restrictively drawn to prohibit not merely assignment and underletting but also sharing possession and
occupation of the holding. This is to prevent a tenant entering into partnership with a third party, possibly on terms where the
tenant is a mere sleeping partner with little more than a nominal involvement in the holding which is, in fact, farmed by the
working partner, possibly in conjunction with other holdings, so that the landlord loses control over the person in day to day
control of the farming. Breach of a prohibition upon assignment, subletting or parting with possession is incapable of remedy
(see Scala House and District Property Co Ltd v Forbes [1974] QB 575, [1973] 3 All ER 308, CA and Troop v Gibson (1985)
277 Estates Gazette 1134, CA) and, therefore, if the landlord can be shown to have suffered material prejudice as a result of such
a breach, a notice to quit can be given pursuant to the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case E in the event of a
breach being committed by the tenant. As to Case E, see Paragraph 383 [2282] ante. Farm workers occupying farm cottages will,
notwithstanding the terms of this clause, enjoy security of tenure under the Rent (Agriculture) Act 1976 (1 Halsburys Statutes
(4th Edn) AGRICULTURE) without the tenant being in breach of this prohibition. As to the Rent (Agriculture) Act 1976, see
paragraph 601 [5001] et seq post.
The proviso in the Landlord and Tenant Act 1927 s 19(1) (23 Halsburys Statutes (4th Edn) LANDLORD AND TENANT), by
which there is to be implied a condition that consent to assignment etc is not to be unreasonably withheld, does not apply to a
tenancy of an agricultural holding: see the Landlord and Tenant Act 1927 s 19(4) as amended by the Agricultural Tenancies Act
1995 s 40, Schedule para 6. See also vol 23 LANDLORD AND TENANT.

[3332]
8
9

Ie the Town and Country Planning Act 1990 as amended (46 Halsburys Statutes (4th Edn) TOWN AND COUNTRY PLANNING).
On the death of the tenant the landlord has only 3 months from the date of the death in which to give notice to quit if he wishes
to avail himself of the right to give an incontestable notice contained in the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I
Case G. As to Case G, see Paragraph 385 [2284] ante. By virtue of the Agricultural Holdings Act 1986 s 26, Sch 3 Pt II para
12(b) the time limit does not start to run against the landlord until:
(1)
the personal representatives of the deceased tenant have given notice in writing of the death;
(2)
an applicant has given notice of an application to the Agricultural Land Tribunal for the grant of a new tenancy in
succession; or

10
11
12

13

(3)
if both events occur, whichever is the first.
It is not, therefore, critical for the landlord to discover by his own researches the occurrence of the death of his tenant. This
clause is nevertheless considered to be desirable since there is no statutory duty upon the personal representatives of the
deceased tenant to inform the landlord of the death, and it is desirable in the interests of the sound management of the landlords
estate that he should be aware of the identity from time to time of his tenant.
It is important to ensure that the respective obligations of landlord and tenant are inter-related.
This clause should be omitted if the tenant is to be responsible for repairs.
Ie the Agriculture (Calculation of Value for Compensation) Regulations 1978/809 as amended by SI 1980/751, SI 1981/822 and
SI 1983/1475. This clause is largely declaratory of the compensation provisions in the Agricultural Holdings Act 1986 ss 6078,
many of which cannot be varied in any event.
The Agricultural Holdings Act 1986 s 25(2)(b) permits a provision in a tenancy agreement entitling the landlord to give notice to
quit part, in which event the general rule that not less than 12 months notice to quit must be given is varied. There is no statutory
provision as to the length of notice that may be substituted for 12 months but it was held in Coates v Diment [1951] 1 All ER 890
that the clause had to provide for sufficient notice to enable the tenant to give a counter-notice entitling the tenant to certain
forms of statutory compensation. It is considered, therefore, undesirable to provide for less than 2 months notice when drafting
short notice clauses of this sort.

[3333]
14

15

16

The Agricultural Holdings Act 1986 s 31(1),(2) entitles a landlord to give notice to quit part of the holding in very limited
circumstances as specified in those subsections. As to notice to quit part, see Paragraphs 372 [2245] and 373 [2246] ante. These
circumstances do not include general residential development, development for industrial purposes etc Clause 8.1 [3318] extends
very widely the circumstances in which a landlord may give notice to quit part of the holding without offending the general
common law rule that a notice to quit part is invalid: see Re Bebingtons Tenancy, Bebington v Wildman [1921] 1 Ch 559 and
Woodward v Earl of Dudley [1954] Ch 283, [1954] 1 All ER 559.
The Agricultural Holdings Act 1986 s 25(2)(b) provides that the purpose for which the landlord can give short notice must be
specified in the agreement. However, it was held in Paddock Investments Ltd v Lory (1975) 236 Estates Gazette 803, CA that any
non-agricultural purpose was a specified purpose since a specified purpose did not need to be a specific purpose.
See the Insolvency Act 1986 as amended (4 Halsbury's Statutes (4th Edn) BANKRUPTCY AND INSOLVENCY). In the case of a
company tenant, the events should be:
(1)
the making of an administration order in respect of the company; and
(2)
any person becoming entitled to exercise the powers conferred on an administrative receiver. However, as to
company tenants, see Form 101 note 2 [3035].
As regards the making of an administration order, it should be noted that the Insolvency Act 1986 s 10(1)(c) provides that
no proceedings, execution or other legal process may be commenced or continued, and no distress may be levied, against the
company or its property after a petition for an administration order has been presented except with the leave of the court and
subject (where the court gives leave) to such terms as the court may impose. The same applies after an administration order is
made (see the Insolvency Act 1986 s 11(3)(d)) save that proceedings, execution and process etc may be commenced or continued
with the administrators consent. Thus in such cases a landlord wishing to take advantage of the event will have to obtain consent
from the administrator or the court before commencing any proceedings or legal process. It is uncertain whether such consent
would be required as regards a landlords right of peaceable re-entry.

[3334]
17

18

19

20

21

Although the Agricultural Holdings Act 1986 imposes restrictions on the right of a landlord to give notice to quit, there are no
restrictions on the landlords alternative right to terminate the tenancy by forfeiture if a suitable forfeiture clause is included in
the tenancy agreement. It was, however, held in Parry v Million Pigs Ltd (1980) 260 Estates Gazette 281 that a forfeiture clause
that purported to entitle the landlord to resume possession without giving prior notice to the tenant of sufficient duration to
enable the tenant to serve the appropriate forms of counter-notice entitling him to compensation was invalid and ineffective for
the same reasons as in Coates v Diment [1951] 1 All ER 890 where it was held that a short notice clause entitling the landlord to
recover possession for development purposes was similarly invalid.
For the provisions entitling a landlord or tenant to seek arbitration as to whether or not a building or other piece of fixed
equipment on the holding is redundant to the farming of the holding see the Agriculture (Maintenance, Repair and Insurance of
Fixed Equipment) Regulations 1973 as amended by SI 1988/281. There is no provision for arbitration on whether such an item is
obsolete.
The records that may be required under the Agricultural Holdings Act 1986 s 22 are records of the condition of fixed equipment
on the holding and of the general condition of the holding (which may be required by the landlord or the tenant: see the
Agricultural Holdings Act 1986 s 22(1)(a)) and records of any fixtures or building the tenant is entitled to remove and of existing
improvements executed by him or in respect of which he paid compensation to an outgoing tenant (which may be required by the
tenant: see the Agricultural Holdings Act 1986 s 22(1)(b)).
The supply of land under an agricultural lease would be exempt from VAT unless the landlord or a relevant associate of the
landlord elects to waive exemption from VAT: see the Value Added Tax Act 1994, Sch 9 Pt II group 1, Sch 10 paras 2, 3 (48
Halsburys Statutes (4th Edn) VALUE ADDED TAX AND CAR TAX). See Information Binder: Property [1]: VAT and Property.
Sub-clause 6.28.4 [3311] of this Form contains a provision for the grant of limited sporting rights by the tenant and in sub-clause
6.32 [3313] there is a provision for the inclusion of shooting rights in the letting. Paragraph 6 [3325] of schedule 2 provides for
the exclusion of all sporting rights. Care must be taken to ensure that one or other provision applies but not both and that the
agreement is consistent throughout. As to the position regarding game damage claims, see the Agricultural Holdings Act 1986 s
20 and Paragraphs 450 [2501] and 451 [2502] ante. For a notice of occurrence of damage by game, see Form 219 [4011] post
and for a notice of claim, see Form 220 [4013] post. The grant of sporting rights otherwise than in connection with the sale of the
freehold may attract VAT if sold in the course or furtherance of business: see the Value Added Tax Act 1994, Sch 9 Pt II group 1
item 1(b).

[3335]

22

23

The Agricultural Holdings Act 1986 s 23 gives the landlord a statutory right of entry for 3 specific purposes:
(1)
to view the state of the holding,
(2)
to fulfil his responsibilities to manage it according to the rules of good estate management and
(3)
to provide or improve fixed equipment other than in fulfilment of those responsibilities.
Those rights are extended considerably by this paragraph.
It is increasingly popular for landlords to insist upon tenants undertaking full repairing and insuring obligations. However,
landlords and tenants should be aware of the fact that if an agreement giving the tenant full repairing and insuring obligations is
entered into, either party may refer to an arbitrator the question whether the modifications contained in the agreement, ie the
differences between the statutory obligations and the contractual obligations, are justifiable: see the Agricultural Holdings Act
1986 s 8(2),(3). If the arbitrator varies the contractual obligations to bring them into line with the model clauses then he may
also vary the rent, and assess in the award the accumulated dilapidations payable by the party being relieved of his obligation by
the award.
For a tenants notice requesting and specifying repairs, see Form 124 [3515] post.
For a landlords counter-notice requiring arbitration of the question of liability to execute repairs, see Form 125 [3517] post.
A lease for 3 years or less (including a periodic tenancy) taking effect in possession may be created by parol or by writing which
need not be executed as a deed: see the Law of Property Act 1925 s 52(2) (37 Halsburys Statutes (4th Edn) REAL PROPERTY)
and the Law of Property (Miscellaneous Provisions) Act 1989 s 2(5)(a) (37 Halsburys Statutes (4th Edn) REAL PROPERTY). As
to the requirements for valid execution as a deed, see vol 12 (1994 Reissue) DEEDS , AGREEMENTS AND DECLARATIONS.

24
25
26

[3336][3400]

106
Agreement by tenant to permit landlord to enter holding in last year of tenancy for purposes of cultivation 1
The Tenant must permit the Landlord to enter upon the [Holding] after (date) in the last year of the tenancy, with
workmen and all necessary machinery, to (specify permitted activity) [and after (date) in that year to (specify permitted
activity)] and to carry out all such other reasonable acts of husbandry as the Landlord may require.
1

In view of recent decisions, it would appear that contractual arrangements whereby an incoming tenant may enter land for the
purpose of cultivation (or otherwise for the purpose of agricultural exploitation of the land) may result in security of tenure being
inadvertently conferred: Padbury v York [1990] 41 EG 65. No reference to the incoming tenant should therefore be made in any
agreement of this nature.

[3401]

107
Clauses for tenancy agreement of hill farm tying sheep stock1

[3]

Tenants agreements

[3.5]

Maintenance of flock

The Tenant must keep and maintain on the Holding a breeding flock of approximately hill sheep, including the
requisite number of breeding rams in regular ages from hoggs to 6 years, according to the most approved system of hill
sheep farming for the area.

[3.6]

Inspection

The Tenant must make the flock available for inspection at the time when the sheep are gathered for clipping or dipping
or upon reasonable notice from the Landlord [or his agent].

[3.7]

Sale to Landlord1

[3.7].1

At the termination of the tenancy the Tenant must sell to the Landlord or his nominee and the Landlord or his
nominee must purchase all the breeding flock of hill sheep that is hefted onto the Holding.
The value of the flock is to be the market value of the sheep plus such amount if any as represents the value
attributable to the acclimatisation or settlement of the sheep on the Holding calculated in accordance with the
Agriculture (Calculation of Value for Compensation) Regulations 19781983 2 or any subsequent amendment
of those regulations.

[3.7].2

1
2

This Form was supplied by Messrs Nicholson, Wood and Gregg, Hexham, Northumberland. Such a restriction on the tenants
right to dispose of his flock has been found necessary in order to facilitate the re-letting of certain hill farms.
See the Agriculture (Calculation of Value for Compensation) Regulations 1978/809 as amended by SI 1980/751, SI 1981/822
and SI 1983/1475.

[3402]

108
General clauses for protection of quotas (excluding milk quota) or premium under marketing schemes 1

(add to definitions clause)


1.

Quota means all quota or other right of production or right to payment or subsidy whether under any
scheme for the production or marketing of agricultural produce or otherwise or any right of restriction on
production or the use of the Holding for farming or any licence or consent required for such production or use
(other than milk quota) that is now or at any time in the future may be allocated, transferred or made
available to the Tenant in respect of the Holding;

Quotas and premiums

.1

The Tenant must preserve the benefit of any Quota transferred to or made available to him at the
commencement of the Term or subsequently as the occupier for the time being of the Holding.

.2

On termination of the Term the Tenant must transfer the benefit of the Quota or make the Quota available to
the Landlord or to any incoming occupier (as appropriate).

These clauses are designed for addition to a lease of an agricultural holding, for example, Form 101 [3001] ante. It should be
remembered that these provisions protect the landlords and not the tenants position.

[3403]

109
Clause for protection of landlords milk quota attached to the holding and transferred to the tenant for the
duration of the tenancy1
(add to definitions clause)
1.

Milk Quota means litres of [wholesale (or) direct sales] milk quota with a butterfat base of %
attached to the Holding at the commencement of the Term;

Milk quota

.1

Tenants obligations

The Tenant agrees with the Landlord as follows:


.1.1

The Tenant must farm the Holding throughout the Term and comply with any Act of Parliament, subordinate
legislation or any European Union legislation or decree having effect of law in the United Kingdom, and any
direction made by the Landlord, so as to ensure that the entirety of the Milk Quota continues to be attached to
the Holding (and to no other land) to the intent that it will be transferable to the Landlord or at his direction
on the termination of this agreement.

.1.2

The Tenant must not charge or lease the Milk Quota.

.1.3

The Tenant must not do or omit to do anything that results or may result in all or part of the Milk Quota being
reduced, lost, charged or removed from the Holding whether permanently or temporarily, or otherwise being
unavailable to a future occupier of the Holding.

[3404]
.1.4

The Tenant must co-operate with the Landlord on the termination of the Term in signing and lodging (in
accordance with all time limits that may be applicable) all necessary documents including any required by
any Authority to effect the transfer of the Milk Quota to the Landlord or as the Landlord may direct.

.1.5

Subject to subclause .3, in the event of the Milk Quota or any part of it not being transferred to the
Landlord or at his direction upon the change of occupation consequent upon termination of this agreement,
the Tenant must compensate the Landlord for all lawfully recoverable losses thereby sustained including the
cost to the Landlord of acquiring milk quota of comparable butterfat base and usage to the Milk Quota or any
such part.

.1.6

If quantification of the whole or any part of the loss suffered by the Landlord in circumstances referred to in
subclause .1.5 is impossible, the sum payable to the Landlord is to be a sum equal to any reduction in the
value of the Holding consequent upon such loss.

.2

Reductions

.2.1

The obligations contained in clause .1 are not to apply in so far as the Milk Quota has been subject to
reductions imposed by any competent authority unless the reductions are cancelled or reinstated in part, and

.2.2

if the reductions are cancelled or reinstated in part the obligations are to apply to the extent of the partial
cancellation or reinstatement.
If any such reductions referable to any period after the expiry of the Term result in the payment of any
compensation to the Tenant or to any partnership or company of which the Tenant is a member or officer in
which he has or had any interest (irrespective of when the same is paid) such compensation is to be treated as
belonging to the Landlord and must be paid to the Landlord without deduction immediately upon receipt.

[3405]

.3

Restrictions in last 12 months of Term

During the period from 31 March in the last 12 months of the Term to the end of the Term, the Tenant must not during
any month produce any greater quantity of milk than one twelfth of the total production entitlement permitted by any
authority for that 12 month period or as specified in any milk production monthly profile produced by any authority,
whichever be the greater.

.4

Request for prospective apportionment

The Tenant must at any time during the Term at the direction of the Landlord request a prospective apportionment of
the Milk Quota in relation to the Holding pursuant to regulation 11 and Schedule 1 of the Dairy Produce Quotas
Regulations 1994 and must use his best endeavours to obtain the consent of all interested parties (as defined by the
Dairy Produce Quotas Regulations 1994) to the prospective apportionment.
1

These clauses are designed for addition to a lease of an agricultural holding, for example, Form 101 [3001] ante. It should be
remembered that these provisions protect the landlords and not the tenants position.

(the next form number is 116)


[3406][3500]

B: MATTERS ARISING DURING TENANCY


116
Request to enter into written tenancy agreement where none exists 1
AGRICULTURAL HOLDINGS ACT 1986 SECTION 6(1)

NOTICE REQUIRING A WRITTEN AGREEMENT


To:
of:

(name of landlord or name of tenant)


(address)

(name or description of holding)


WHEREAS [it is your contention that there is no (or) there is uncertainty whether there is any]2 agreement in writing
between us embodying all the terms of the tenancy of the above holding
NOW I, (name of tenant or name of landlord) of (address), REQUEST YOU, in accordance with the Agricultural
Holdings Act 1986 section 6(1), to enter into a written agreement embodying all the terms of the tenancy 3 and
containing provision for all the matters specified in the Agricultural Holdings Act 1986, Schedule 1 4.
[3501]
Dated:
Signed:
(signature of landlord or tenant)
1

2
3

This Form should be used where there is no written agreement or there is uncertainty as to whether one exists. For a notice for
use where there is a written agreement but it does not make provision for all the matters specified in the Agricultural Holdings
Act 1986, Sch 1 (1 Halsburys Statutes (4th Edn) AGRICULTURE), see Form 117 [3503] post. As to the right to written terms, see
Paragraphs 316 [2043]319 [2046] ante.
The alternative may be used, eg, where there may be a tenancy agreement but, if there is, it has been mislaid.
Any terms established after the execution of the written agreement by the operation of regulations pursuant to the Agricultural
Holdings Act 1986 s 7 are deemed to be incorporated in the written agreement except in so far as they would impose on one of
the parties to a written agreement a liability that, under the agreement, is imposed on the other: see the Agricultural Holdings Act
1986 s 7(3).
The Agricultural Holdings Act 1986 s 6(1)(b), Sch 1 establishes terms to be included in the written agreement, but see also note
3 above and Paragraphs 316 [2043]319 [2046] ante.

[3502]

117
Request to enter an agreement to supplement an existing written tenancy agreement 1
AGRICULTURAL HOLDINGS ACT 1986 SECTION 6(1)

NOTICE REQUIRING A SUPPLEMENTARY AGREEMENT


To:
of:

(name of landlord or name of tenant)


(address)

(name or description of holding)


WHEREAS the tenancy agreement dated , in respect of the above holding, contains no provision for the
following matters specified in the Agricultural Holdings Act 1986, Schedule 1 2: (specify relevant matters)
NOW I, (name of tenant or name of landlord) of (address), REQUEST YOU, in accordance with the Agricultural
Holdings Act 1986 section 6(1), to enter into an agreement supplemental to the tenancy agreement containing provision
for such matters.
[3503]
Dated:
Signed:
(signature of landlord or tenant)
1

This Form should be used when there is a written agreement in existence but it does not provide for all the matters specified in
the Agricultural Holdings Act 1986, Sch 1 (1 Halsburys Statutes (4th Edn) AGRICULTURE). Where there is no written agreement
or there is uncertainty as to whether one exists, Form 116 [3501] ante should be used. As to the situation where the terms of the
tenancy neither make provision for nor make provision inconsistent with the Agricultural Holdings Act 1986, Sch 1 para 9 and
the landlord serves a request under section 6(1), see the Agricultural Holdings Act 1986 s 6(5). As to the right to written terms,
see Paragraphs 316 [2043]319 [2046] ante.
Any prescribed terms relating to the maintenance, repair and insurance of fixed equipment specified by the Agriculture
(Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973/1473 as amended by SI 1988/281 are, and any
subsequent regulations will be deemed to be, incorporated in the agreement except in so far as they would impose on one of the
parties a liability that under the agreement is imposed on the other: see the Agricultural Holdings Act 1986 s 7(3). Where the
written agreement contains terms that are inconsistent with the prescribed provisions, either party may refer the matter to
arbitration provided that a notice requesting the variation of the terms has been served and no agreement has been reached: see
the Agricultural Holdings Act 1986 s 8(1),(2). As to fixed equipment generally, see Paragraphs 320 [2061] and 321 [2062] ante.

[3504]

118
Notice of intention to refer the terms of a tenancy to arbitration where no written agreement has been entered
into after a request1
AGRICULTURAL HOLDINGS ACT 1986 SECTION 6

NOTICE OF INTENTION TO REFER TERMS TO ARBITRATION


To:
of:

(name of landlord or name of tenant)


(address)

(name or description of holding)


WHEREAS following my request to you dated (date of request) to enter into [a written agreement embodying all the
terms of the tenancy between us in accordance with the Agricultural Holdings Act 1986, Schedule 1 (or) an agreement,
supplemental to the tenancy agreement between us dated (date of agreement) in respect of the above holding,
containing provision for certain matters specified in the Agricultural Holdings Act 1986, Schedule 1 but not provided
for in the tenancy agreement] no [supplemental] agreement has been concluded
NOW I, (name of tenant or name of landlord) of (address), GIVE YOU NOTICE under the Agricultural Holdings Act
1986 section 6 that I require that the terms of the tenancy be referred to arbitration under that Act.
Dated:
Signed:
(signature of landlord or tenant)

Reference of the terms of a tenancy to arbitration must be preceded by a request to enter into a written agreement (for which see
Form 116 [3501] ante) or a request for the terms of a written agreement to be supplemented (for which see Form 117 [3503]
ante), following which no agreement has been reached between the parties: see the Agricultural Holdings Act 1986 s 6(1) (1
Halsburys Statutes (4th Edn) AGRICULTURE). This notice may be sent with a letter giving the names of suggested arbitrators. If
there is a written tenancy agreement, any relevant arbitration clause must be borne in mind, particularly the method of appointing
arbitrators. As to the right to written terms, see Paragraphs 316 [2043]319 [2046] ante.

[3505]

119
Request to vary the terms of a tenancy agreement to comply with the model clauses relating to maintenance etc
of fixed equipment1
AGRICULTURAL HOLDINGS ACT 1986 SECTION 8

REQUEST TO VARY TERMS OF TENANCY


To:
of:

(name of landlord or name of tenant)


(address)

(name or description of holding)


WHEREAS the tenancy agreement between us dated (date) in respect of the above holding effects substantial
modifications in the operation of the regulations prescribed by the [Minister of Agriculture Fisheries and Food (or)
Secretary of State]2 under the Agricultural Holdings Act 1986 section 7(1) relating to the maintenance repair and
insurance of fixed equipment
[3506]
NOW I, (name of tenant or name of landlord) of (address), REQUEST YOU to vary the tenancy agreement so that it
complies with the provisions of those regulations 3.
Dated:
Signed:
(signature of landlord or tenant)
1

This Form is for use where the tenancy agreement contains provisions that are inconsistent with any regulations made pursuant
to the Agricultural Holdings Act 1986 s 7(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). If no agreement is reached
between the parties, the party requiring the variation may refer the matter to arbitration: see the Agricultural Holdings Act 1986 s
8(1),(2). For notice of reference to arbitration, see Form 120 [3508] post. As to fixed equipment, see Paragraphs 320 [2061] and
321 [2062] ante.
The regulations are prescribed in England by the Minister of Agriculture, Fisheries and Food and in Wales by the Secretary of
State: see the Agricultural Holdings Act 1986 s 9(1).
The prescribed regulations currently in force are the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment)
Regulations 1973/1473 as amended by SI 1988/281.

[3507]

120
Notice of reference of the terms of an existing agreement to arbitration on failure to agree variation of terms to
comply with the model clauses relating to fixed equipment 1
AGRICULTURAL HOLDINGS ACT 1986 SECTION 8

NOTICE OF REFERENCE TO ARBITRATION


To:
of:

(name of landlord or name of tenant)


(address)

(name or description of holding)


WHEREAS no agreement has been reached between us following my request to you dated (date of request) to vary the
tenancy agreement between us dated (date of agreement) in respect of the above holding so that it complies with the
provisions of the prescribed regulations relating to maintenance repair and insurance of fixed equipment
NOW I, (name of tenant or name of landlord) of (address), GIVE YOU NOTICE under the Agricultural Holdings Act
1986 sections 8(1) and 8(2) that I refer to arbitration under that Act the terms of the tenancy between us with respect to
the maintenance repair and insurance of fixed equipment.
Dated:

Signed:
(signature of landlord or tenant)
1

This Form is for use where the party requiring arbitration has requested the other party to vary the terms of the tenancy
agreement so that they comply with the provisions of the model clauses and no agreement has been reached between the parties.
For the form of request to vary, see Form 119 [3506] ante. If the arbitrator varies any terms of the agreement and he considers it
appropriate, he may vary the rent payable: see the Agricultural Holdings Act 1986 s 8(4) (1 Halsburys Statutes (4th Edn)
AGRICULTURE). Particular arbitrators may be suggested. Where there has been a reference to arbitration under the Agricultural
Holdings Act 1986 s 8, no further such reference relating to that tenancy may be made for 3 years from the coming into effect of
the award of the arbitrator on the previous reference: see the Agricultural Holdings Act 1986 s 8(6). As to fixed equipment, see
Paragraphs 320 [2061] and 321 [2062] ante.

[3508]

121
Request to landlord to provide, alter or repair fixed equipment 1
AGRICULTURAL HOLDINGS ACT 1986 SECTION 11

REQUEST TO [PROVIDE (or) ALTER (or) REPAIR] FIXED EQUIPMENT


To:
of:

(name of landlord)
(address)

(name or description of holding)


[3509]
Pursuant to the provisions of the Agricultural Holdings Act 1986 section 11, I (name of tenant) of (address), REQUEST
YOU to [provide (or) alter (or) repair] the fixed equipment particulars of which are set out in the schedule below.
Dated:

SCHEDULE
(describe work in sufficient detail to enable landlord to know what is required of him)
Signed:
(signature of tenant)
1

An agricultural land tribunal will not direct the landlord to carry out the work under the Agricultural Holdings Act 1986 s 11 (1
Halsburys Statutes (4th Edn) AGRICULTURE) unless, inter alia, the tenant has served the landlord with a request in writing and
the landlord has either refused to do the work in question or has not agreed to do it within a reasonable time: see the Agricultural
Holdings Act 1986 s 11(3)(b). As to fixed equipment, see Paragraphs 320 [2061] and 321 [2062] ante.

[3510]

122
Notice of requirement for arbitration of a claim against the landlord on transfer to the tenant of liability for
maintenance or repair of fixed equipment 1
AGRICULTURAL HOLDINGS ACT 1986 SECTION 9

NOTICE REQUIRING ARBITRATION OF CLAIM


To:
of:

(name of landlord)
(address)

(name or description of holding)


WHEREAS by virtue of the Agricultural Holdings Act 1986 section [6 (or) 7 (or) 8] liability for the maintenance or
repair of the item[s] of fixed equipment mentioned in the schedule to this notice has been transferred with effect from
(date of transfer) from you to me under the [agreement between us (or) award of (name of arbitrator) made on (date of
award)]
[3511]
NOW I, (name of tenant) of (address), REQUIRE that my claim in respect of your previous failure to discharge such
liability be referred to and determined by arbitration under the Agricultural Holdings Act 1986
Dated:

SCHEDULE
(state item(s) of fixed equipment the liability for maintenance of which is transferred to the tenant)
Signed:
(signature of tenant)
1

Reference to arbitration of a claim on transfer of liability for fixed equipment must be made within the prescribed time limit: see
the Agricultural Holdings Act 1986 s 9(3) (1 Halsburys Statutes (4th Edn) AGRICULTURE). The time limit is one month from
the date on which the transfer of liability takes effect: see the Agriculture (Miscellaneous Time Limits) Regulations 1959/171 reg
2(3). As to fixed equipment, see Paragraphs 320 [2061] and 321 [2062] ante.

[3512]

123
Notice of requirement for arbitration of the amount of compensation payable by the tenant on transfer of
liability for maintenance or repair of fixed equipment to the landlord 1
AGRICULTURAL HOLDINGS ACT 1986 SECTION 9

REQUEST FOR ARBITRATION OF COMPENSATION


To:
of:

(name of tenant)
(address)

(name or description of holding)


WHEREAS by virtue of the Agricultural Holdings Act 1986 section [6 (or) 7 (or) 8] liability for the maintenance or
repair of the item[s] of fixed equipment mentioned in the schedule to this notice has been transferred with effect from
(date of transfer) from you to me under the [agreement between us (or) award of (name of arbitrator) made on (date of
award)]
NOW I, (name of landlord) of (address), REQUIRE, under the Agricultural Holdings Act 1986 section 9(1), that the
amount of compensation2 due from you in respect of your liability up to the date of transfer as above be determined by
arbitration under the Agricultural Holdings Act 1986 and paid by you to me in accordance with the provisions of the
Agricultural Holdings Act 1986 sections 9(1) and 9(2).
[3513]
Dated:

SCHEDULE
(item(s) of fixed equipment liability for maintenance of which is transferred to the landlord
Signed:
(signature of landlord)
1

Reference to arbitration of a claim for compensation on transfer of liability for fixed equipment must be made within the
prescribed time limit: see the Agricultural Holdings Act 1986 s 9(1) (1 Halsburys Statutes (4th Edn) AGRICULTURE). The time
limit is one month from the date on which the transfer of liability takes effect: see the Agriculture (Miscellaneous Time Limits)
Regulations 1959/171 reg 2(2). As to fixed equipment, see Paragraphs 320 [2061] and 321 [2062] ante.
Ie the compensation that would have been payable under the Agricultural Holdings Act 1986 s 71(1),(3) in respect of any
previous failure by the tenant to discharge his liability in accordance with the Agricultural Holdings Act 1986 s 9(1) if he had
quitted the holding on the termination of his tenancy at the date on which the transfer takes effect: see the Agricultural Holdings
Act 1986 s 9(2).

[3514]

124
Notice requesting and specifying repairs to be effected by the tenant1
AGRICULTURAL HOLDINGS ACT 1986
AGRICULTURE (MAINTENANCE, REPAIR AND INSURANCE OF FIXED EQUIPMENT) REGULATIONS

1973
NOTICE TO EFFECT REPAIRS

To:
of:

(name of tenant)
(address)

(name or description of holding)


TAKE NOTICE that:
1

I, (name of landlord) of (address), request you, pursuant to the regulations made under the Agricultural
Holdings Act 1986 for the maintenance repair and insurance of fixed equipment 2, to execute the repair[s] for
which you are liable as specified in those regulations and set out in the schedule to this notice.

I call on you to execute such repair[s].

If you fail to carry out any such repair[s] within three months from the date of service of this notice I shall
exercise my right under the regulations to enter and execute such repair[s] and recover from you immediately
the reasonable cost of such repair[s] incurred by me.

[3515]
Dated:

SCHEDULE
(state item(s) for repair of which tenant is liable, and the necessary repair)
Signed:
(signature of landlord)
1

This notice is not a notice to remedy a breach of any term or condition of the tenancy failure to comply with which would entitle
the landlord to serve a notice to quit under the Agricultural Holdings Act 1986 s 26(2), Sch 3 Pt I Case D (1 Halsburys Statutes
(4th Edn) AGRICULTURE). If this notice is not complied with, however, the landlord may do the work himself and recover the
reasonable cost incurred by him from the tenant: see the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment)
Regulations 1973/1473 reg 3, Schedule para 4(2) (see Form 102 at [3053] ante). If the tenant wishes to dispute his liability, he
should serve a counter-notice on the landlord within one month, specifying the grounds on which and the items in respect of
which he denies liability: see the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973 reg 3,
Schedule para 4(3)(a). For a counter-notice, see Form 125 [3517] post.
The regulations are prescribed in England by the Minister of Agriculture, Fisheries and Food and in Wales by the Secretary of
State under the Agricultural Holdings Act 1986 s 7(1): see the Agricultural Holdings Act 1986 s 9(1). The current regulations are
the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973/1473 as amended by SI 1988/281.
This notice applies only to repairs for which the tenant is liable under the Agriculture (Maintenance, Repair and Insurance of
Fixed Equipment) Regulations 1973 reg 3, Schedule paras 58: see the Agriculture (Maintenance, Repair and Insurance of Fixed
Equipment) Regulations 1973 reg 3, Schedule para 4(2). The tenancy agreement may, however, have imposed the liability for
some of these items on the landlord in which case the tenancy agreement prevails unless the terms of the tenancy agreement have
been varied by an arbitrator under the Agricultural Holdings Act 1986 ss 7 or 8.

[3516]

125
Counter-notice requiring the question of the tenants liability to execute repairs or replacements to be
determined by arbitration1
AGRICULTURAL HOLDINGS ACT 1986
AGRICULTURE (MAINTENANCE, REPAIR AND INSURANCE OF FIXED EQUIPMENT) REGULATIONS

1973
COUNTER-NOTICE REQUIRING ARBITRATION OF LIABILITY TO REPAIR
To:
of:

(name of landlord)
(address)

(name or description of holding)


WHEREAS I have received from you notice dated (date of notice) specifying repairs or replacements and calling on me
to execute such repairs or replacements
TAKE NOTICE that

I, (name of tenant) of (address), wish to contest my liability to execute such of those items of repair or
replacement as are set out in the schedule below on the grounds set out in that schedule; and

I require the question of my liability to execute such items of repair or replacement to be determined by
arbitration under the provisions of the Agricultural Holdings Act 1986 2.

[3517]
Dated:

SCHEDULE
(items of repair or replacement in respect of which, and the grounds on which, the tenant denies liability)
Signed:
(signature of tenant)
1

This counter-notice must be served within one month of the tenants receipt of the landlords notice, for which see Form 124
[3515] ante. It must specify the grounds on which and the items of repair or replacement in respect of which he denies liability
and require the question of liability to be determined by arbitration: see the Agriculture (Maintenance, Repair and Insurance of
Fixed Equipment) Regulations 1973/1473 reg 3, Schedule para 4(3)(a) (see Form 102 at [3054] ante). On service of this counternotice on the landlord, the operation of the landlords notice (including the running of time under it) is suspended until the date
on which the arbitrators award is delivered to the tenant: see the Agriculture (Maintenance, Repair and Insurance of Fixed
Equipment) Regulations 1973 reg 3, Schedule paras 4(3)(b),(c).
Ie the Agricultural Holdings Act 1986 ss 7(2), 8(1),(2) (1 Halsburys Statutes (4th Edn) AGRICULTURE).

[3518]

126
Notice requesting and specifying repairs to be effected by the landlord1
AGRICULTURAL HOLDINGS ACT 1986
AGRICULTURE (MAINTENANCE, REPAIR AND INSURANCE OF FIXED EQUIPMENT) REGULATIONS

1973
NOTICE REQUESTING REPAIRS
To:
of:

(name of landlord)
(address)

(name or description of holding)


TAKE NOTICE that:
1

I, (name of tenant) of (address), request you, pursuant to the regulations made under the Agricultural
Holdings Act 1986 for the maintenance repair and insurance of fixed equipment, to execute the repairs or
replacements for which you are liable as [specified in the regulations and]2 set out in the schedule to this
notice.

I call on you to execute such repairs or replacements.

If you fail to carry out any such repairs or replacements within three months from the date of service of this
notice I shall exercise my right under the above regulations to execute any such repairs or replacements and
recover from you immediately the reasonable cost incurred by me, except to the extent if any to which I am
liable to bear the cost under the terms of the above regulations 3.

[3519]
Dated:

SCHEDULE
(state the items of repair or replacement for which the landlord is liable, and specify the necessary work)
Signed:
(signature of tenant)
1

Ie under the Agricultural Holdings Act 1986 s 7 (1 Halsburys Statutes (4th Edn) AGRICULTURE).

If this Form is used where the landlords liability for repairs or replacements arises from the tenancy agreement and not from the
regulations, the words specified in the regulations and should not be included. The regulations currently in force are the
Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973/1473 as amended by SI 1988/281 (see
Form 102 [3051] ante).
If the landlord fails to execute the specified repairs within 3 months from his receipt of the notice, the tenant may execute them
himself and recover the reasonable cost incurred (subject to the Agriculture (Maintenance, Repair and Insurance of Fixed
Equipment) Regulations 1973 reg 3, Schedule Pt I) from the landlord forthwith: see ibid reg 3, Schedule para 12(1),(2) as
substituted by SI 1988/281.
If the landlord fails to execute any replacements that are his liability within 3 months of receipt of the notice, the tenant
may execute the replacements himself and recover the reasonable cost incurred (subject to the Agriculture (Maintenance, Repair
and Insurance of Fixed Equipment) Regulations 1973 reg 3, Schedule Pt I) from the landlord except that the tenant may not
recover in any one year of the tenancy terminating after 24 March 1988 any sum in excess of either a sum equal to the rent of the
holding for that year or 2,000 whichever is the smaller: see ibid reg 3, Schedule para 12(3),(4) as substituted.
If the landlord fails to serve a counter notice, at the end of the 3-month period he loses the right to undertake the repair
work himself and from that date the tenants right to do the work himself and recover the costs from the landlord becomes
vested: Hammond v Allen (1992) Times, 21 July.
If the landlord wishes to contest liability, he should serve a counter-notice: see the Agriculture (Maintenance, Repair and
Insurance of Fixed Equipment) Regulations 1973 reg 3, Schedule para 12(5)(a) as substituted. For a counter-notice requesting
arbitration, see Form 127 [3521] post.
As to a tenants limited right of recovery against a landlord where the Agriculture (Maintenance, Repair and Insurance of
Fixed Equipment) Regulations 1973 apply, see Grayless v Watkinson [1990] 21 EG 163, CA.

[3520]

127
Counter-notice requesting question of the landlords liability for repairs or replacements to be determined by
arbitration1
AGRICULTURAL HOLDINGS ACT 1986
AGRICULTURE (MAINTENANCE, REPAIR AND INSURANCE OF FIXED EQUIPMENT) REGULATIONS

1973
COUNTER-NOTICE REQUESTING ARBITRATION OF LIABILITY TO REPAIR
To:
of:

(name of tenant)
(address)

(name or description of holding)


WHEREAS I have received from you notice2 dated (date of notice) specifying repairs and replacements and calling on
me to execute such repairs and replacements
[3521]
TAKE NOTICE that:
1

I, (name of landlord) of (address), wish to contest my liability to execute such of those items of repair and
replacement as are set out in the schedule below on the grounds set out in that schedule; and

I require the question of my liability to execute such items of repair and replacement to be determined by
arbitration under the provisions of the Agricultural Holdings Act 1986.

Dated:

SCHEDULE
(state items of repair and replacement in respect of which landlord denies liability, and grounds for denial
of liability)
Signed:
(signature of landlord)
1

Ie under the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973/1473 reg 3, Schedule para
12(5)(a) as substituted by SI 1988/281 (see Form 102 at [3060] ante). This counter-notice must be served within one month of
the landlords receipt of the tenants notice, for which see Form 126 [3519] ante. It must specify the grounds on which and the
items of repair or replacement in respect of which he denies liability and require the question of liability to be determined by
arbitration: see the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973/1473 reg 3, Schedule
para 12(5)(a) as substituted by SI 1988/281 (see Form 102 at [3060] ante). On service of this counter-notice on the tenant, the

operation of the tenants notice (including the running of time under it) is suspended until the date on which the arbitrators
award is delivered to the landlord: see the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations
1973 reg 3, Schedule paras 12(5)(b)(d) as substituted by SI 1988/281.
For the tenants notice, see Form 126 [3519] ante.

[3522]

128
Notice requiring the question