Why you need to secure a written tenancy with your agricultural tenants

Are you leasing land to agricultural tenants? You may be surprised to learn that even if it’s just an informal or unwritten arrangement, they still have legal rights – and the longer they have occupied the land, the stronger those rights could be.

Selling land that is currently occupied

Take sisters Mary and Elizabeth, who inherited property from their mother as an example. The sisters wished to sell part of the land, which a farmer had been using for grazing, to the owner of one of the adjoining properties so that they could extend their garden.

As there was no written lease to document the farmer’s tenancy, the sisters assumed they could simply evict him and sell the land on. What they hadn’t realised is that the farmer’s tenancy of over 20 years automatically gave him rights as a farm business tenant.

That meant he would need to legally surrender his tenancy of the land the sisters were selling before it could be sold on with ‘vacant possession’; that is, free of occupiers (and the sheep!) in the eyes of the law, for use as a garden.

Had he been there before 12 July 1984 and met certain other conditions, the agricultural tenant could have acquired succession rights under the Agricultural Holdings Act, allowing his children and in turn, his grandchildren, to take over the tenancy when he died.

Not only would a Deed of Surrender of Part be required to release the land from the tenants’ possession; both parties could also be entitled to claim compensation. In the case of the tenant, this could be for some physical improvements made to the land subject to the landlord’s consent.

Evicting agricultural tenants

Regardless of how long your land has been used for agricultural purposes, and whether it’s land you already own, have inherited or are looking to buy, the occupant will have certain rights.

It’s much easier (and cheaper) to agree a process for evicting your tenants in advance and put the terms in writing than it is to deal with a situation like Mary and Elizabeth’s – although theirs was not insurmountable.

Luckily for them, the amenable farmer fenced off the land that was to be sold and agreed the Deed of Surrender of Part. Had he refused to do so, we would have been unable to guarantee vacant possession and further, more costly action would have been needed to release the land before transferring it to the buyer.

Our real estate team at LCF Law has successfully helped many property owners in Yorkshire and throughout the UK by drafting legal agreements for farm tenancies and can help you protect your interests too.

Equally, if you wish to reclaim or sell land that is being used by farmers but don’t currently have an agreement in place, we can help you work out the best course of action and support you through the process.

How can Emily help you?

Emily Hickling is a solicitor in LCF Law’s real estate team with specialist knowledge and experience in the agricultural sector. She can be contacted on 01423 502211 or .ku.o1728467504c.fcl1728467504@gnil1728467504kcihe1728467504

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