Do you have an agricultural tenancy granted to you before 1 September 1995?
Farming is not just an occupation; it is a way of life. That is why the law seeks to protect what are known as ‘Agricultural Holdings Act tenancies’, or ‘AHA’ tenancies. These are agricultural tenancies granted before 1 September 1995.
The law recognises that an agricultural tenant who has built a life and a business on their landlord’s land, spent a longevity pasturing or cultivating it, has procured rights and protection when their landlord decides their tenancy should end.
The law distinguishes between those tenancies granted before 1 September 1995, and those granted on or after this date. In this article, we will consider those granted before.
Notice to quit
Most AHA tenancies operate on a yearly periodic basis. This means your landlord is required to give at least 12 months’ notice of their intention to terminate the tenancy. This notice should be provided in a ‘notice to quit’ served upon the tenant.
So, what are the options available to you as a tenant of an agricultural holding who is served with a notice to quit?
This will depend on the class of notice which has been served on you. The notice by the landlord may be served in two forms:
- Unqualified notice: the landlord does not have to specify in the notice the reason for such notice. If the notice is unqualified, you the tenant are then able to serve a counter-notice on the landlord within one month of the notice being served. This will essentially mean the landlord’s notice will have no effect, and the landlord must then obtain consent from a tribunal to terminate your tenancy. There is no prescribed form for the tenant’s counter-notice.
- An incontestable notice to quit or a ‘case notice’: unlike an unqualified notice, being served with an incontestable notice to quit gives no right to the tenant to serve a counter notice. Usually, therefore, it is the Landlord’s preferred choice of notice. Though it is still possible for a tenant to challenge the notice, the process is less straight forward and would usually involve arbitration or challenging its effectiveness in court.
In either case, if you as the tenant take no action, and the notice to quit was served in the prescribed form, the notice will be valid and your tenancy will come to an end on the termination date. You need to be sure what kind of notice you have been served with.
Compensation
Where a valid notice to quit is served and you as the tenant do not oppose the notice, you may still claim compensation from the landlord.
This is a complex area of the law and we would strongly recommend seeking legal advice if this is something you believe you may be entitled to. However, broadly speaking, the categories of compensation available are:
- Compensation for disturbance – you may be entitled to a basic level of compensation or additional compensation, depending on the reason for which your Landlord has served you the notice. Any claim for additional compensation requires written notice by the tenant to the Landlord, of their intention to make such claim, at least one month before the termination of the tenancy. It is essential, therefore, to seek advice as soon as possible.
- A tenant’s improvements made to the land – both short-term and long-term improvements.
- ‘Tenant right matters’ – covering any expenditure on materials and labour which does not translate directly into an ‘improvement’, for example the value of growing or harvested crops.
The law relating to agricultural tenancies can be complicated. If you believe you have an agricultural tenancy and have been served with a notice to quit by your landlord, we know that it can be a difficult and often frightening time.
Consider your options as soon as possible and seek legal advice; there are legal provisions which may protect you.
If you are a tenant looking for further advice, contact the Dispute Resolution department on 01756 799000, or alternatively email c.greenwood@mewiessolicitors.co.uk for an initial consultation.
Article by by Chloe Greenwood.