PART 10

Agricultural holdings
CHAPTER 6

Assignation of and succession to agricultural tenancies

Assignation

Assignation of modern limited duration tenancies
105
1
The 2003 Act is amended as follows.
2
After section 7A (as inserted by section 86) insert—

Assignation of modern limited duration tenancies
7B
1
A lease constituting a modern limited duration tenancy may be assigned by the tenant if, following notice under subsection (2), the landlord consents to a proposed assignation.
2
The tenant must give the landlord a notice in writing of any intention of the tenant to assign the lease; and the notice must include the particulars of the proposed assignee, the terms upon which the assignation is to be made and the date on which it is to take effect.
3
Subject to subsection (4), the landlord may withhold consent to the proposed assignation if there are reasonable grounds for doing so; and, in particular, the landlord may withhold consent if not satisfied that the proposed assignee—
a
would have the ability to pay—
i
the rent due under the lease, or
ii
for adequate maintenance of the land, or
b
has the skills or experience that would be required properly to manage and maintain the land in accordance with the rules of good husbandry.
4
Where the tenant proposes to assign the lease to a person who is a near relative of the tenant, the only grounds on which the landlord can withhold consent to the proposed assignation are the following—
a
that the person is not of good character,
b
that the person does not have sufficient resources to enable the person to farm the land with reasonable efficiency,
c
subject to subsection (5), that the person has neither sufficient training in agriculture nor sufficient experience in the farming of land to enable the person to farm the land with reasonable efficiency.
5
The ground of objection in subsection (4)(c) does not apply where the person—
a
is engaged in or will begin, before the expiry of the period of 6 months beginning with the date of the notice under subsection (2), a course of relevant training in agriculture which the person is expected to complete satisfactorily within 4 years from that date, and
b
has made arrangements to secure that the land is farmed with reasonable efficiency until the person completes that course.
6
Any such withholding of consent (and the grounds for withholding it) is to be intimated in writing to the tenant within 30 days of the giving of the notice under subsection (2); and, if no such intimation is made, the landlord is deemed to have consented to the proposed assignation.
7
For the purposes of subsection (3)(b), what is good husbandry is to be construed by reference to schedule 6 of the Agriculture (Scotland) Act 1948.
8
For the purposes of subsection (4), “near relative”, in relation to a tenant of an agricultural holding, means—
a
a parent of the tenant,
b
a spouse or civil partner of the tenant,
c
a child of the tenant,
d
a spouse or civil partner of such a child,
e
a grandchild of the tenant,
f
a brother or sister of the tenant,
g
a spouse or civil partner of such a brother or sister,
h
a child of a brother or sister of the tenant,
i
a grandchild of a brother or sister of the tenant,
j
a brother or sister of the tenant’s spouse or civil partner,
k
a spouse or civil partner of such a brother or sister,
l
a child of such a brother or sister,
m
a grandchild of such a brother or sister.
.