Many families will want to continue to farm the land following the retirement or death of an agricultural tenant farmer. In this Q&A, landlord and tenant specialist, James Holton, examines the issues for someone applying for a succession tenancy to consider.
WHAT ARE THE CIRCUMSTANCES IN WHICH THERE MAY BE SUCCESSION RIGHTS?
Provided the relevant criteria are met and no exclusions apply, a close relative of the tenant has a statutory right under the Agricultural Holdings Act 1986 to apply for a succession tenancy in the following circumstances:
- On the death of a sole or sole surviving tenant
- On retirement of a tenant of a yearly tenancy where they have been nominated as their successor
CAN I CLAIM A SUCCESSION TENANCY?
A tenant must prove both their eligibility and suitability for a succession tenancy.
HOW CAN I PROVE MY ELIGIBILITY?
The eligibility test is formed of two parts:
- The person must be a close relative.
- The person must be able to demonstrate that the holding is their only or principal source of income from agricultural work.
A close relative can be any of the following:
- Wife, husband or civil partner
- Brother or sister
- Child
- A person treated by the deceased or retiring tenant as a child of the family
HOW CAN I PROVE MY SUITABILITY?
The test of a person’s suitability will include:
- The person’s likely capability and capacity to farm the holding commercially, with or without other land, taking into account the need for high standards of efficient production and care for the environment in relation to managing that holding.
- The person’s experience, training and skills in agriculture and business management.
- The person’s financial standing and their character.
- The character, situation and condition of the holding.
- The terms of the tenancy.
This will include providing evidence of the person’s training and experience in agricultural and farming matters such as providing copies of certificates and business accounts. There is also now a greater emphasis on environmental land management so this will need to be demonstrated in any succession application.
ARE ANY TENANCIES ARE EXCLUDED FROM SUCCESSION RIGHTS?
Some types of tenancy are excluded from succession rights. The most common examples include:
- A tenancy granted on or after 12 July 1984 (unless for example it is stated to include succession rights).
- Where two successions have already occurred.
- The landlord has served a valid notice to quit.
WHEN SHOULD I MAKE AN APPLICATION?
An application should be made to the First-tier Tribunal:
- Within three months of notification of the tenant’s death; or
- within one month of service of a notice from the tenant of their retirement. The retirement notice will specify the name of the tenant’s successor.
It is therefore imperative that a person takes early advice from specialists such as an agricultural solicitor and from a surveyor specialising in agricultural succession.
YOUR TRUSTED AGRICULTURAL SOLICITORS
DTM Legal has a wealth of experience across all farming and agricultural matters and our experts provide a full legal service for rural land, property and estates clients. It is important to plan early ahead of retiring from an agricultural tenancy and our agriculture team can assist you with this.
James Holton is named as a leading associate in the Legal 500, recognised for his regular involvement in our key work, as well as being recognised by peers and clients as being “one to watch”. To contact James please email him at james.holton@dtmlegal.com or telephone 01244 354800.
