PART 10

Agricultural holdings
CHAPTER 1

Modern limited duration tenancies

Modern limited duration tenancies

Modern limited duration tenancies: termination and continuation
87
1
The 2003 Act is amended as follows.
2
After section 8 insert—

Termination of modern limited duration tenancies by agreement
8A
A modern limited duration tenancy may be terminated by agreement between the landlord and tenant if the agreement is in writing and—
a
is entered into after the commencement of the tenancy, and
b
makes provision as to compensation payable by the landlord or the tenant to the other.

Termination of modern limited duration tenancies by landlord
8B
1
At the expiry of the term of a modern limited duration tenancy, the landlord may terminate the tenancy by giving a notice under this subsection to the tenant.
2
A notice under subsection (1) must—
a
be in writing and state that the tenant must quit the land on the expiry of the term of the tenancy, and
b
be given not less than 1 year nor more than 2 years before the expiry of the term of the tenancy, provided that not less than 90 days have elapsed from the date on which the intimation mentioned in subsection (3) is given.
3
A notice under subsection (1) is of no effect unless the landlord has given written intimation of the landlord’s intention to terminate the tenancy to the tenant not less than 2 years nor more than 3 years before the expiry of the term of the tenancy.

Termination of modern limited duration tenancies by tenant
8C
1
At the expiry of the term of a modern limited duration tenancy, the tenant may terminate the tenancy by giving a notice under this subsection to the landlord.
2
A notice under subsection (1) must—
a
be in writing and state that the tenant intends to quit the land on the expiry of the term of the tenancy, and
b
be given not less than 1 year nor more than 2 years before the expiry of the term of the tenancy.

Termination of modern limited duration tenancies subject to break clause
8D
1
This section applies where the lease constituting a modern limited duration tenancy contains a break clause by virtue of section 5B.
2
The tenant may terminate the tenancy after 5 years by giving a notice under this subsection to the landlord.
3
A notice under subsection (2) must—
a
be in writing and state that the tenant intends to quit the land on the expiry of the period of 5 years beginning with the day the tenancy commenced, and
b
be given not less than 1 year nor more than 2 years before the expiry of that period.
4
The landlord may terminate the tenancy after 5 years by giving a notice under this subsection to the tenant.
5
A notice under subsection (4) must—
a
be in writing and state—
i
that the tenant must quit the land on the expiry of the period of 5 years beginning with the day the tenancy commenced, and
ii
the landlord’s reasons for terminating the tenancy, and
b
be given not less than 1 year nor more than 2 years before the expiry of that period.
6
The landlord may give notice under subsection (4) only if the tenant—
a
is not using the land in accordance with the rules of good husbandry, or
b
is otherwise failing to comply with any other provision of the lease.
7
For the purposes of subsection (6)(a), what is good husbandry is to be construed by reference to schedule 6 of the Agriculture (Scotland) Act 1948.

Continuation and extension of modern limited duration tenancies
8E
1
At and after the expiry of the term of a modern limited duration tenancy, the tenancy continues to have effect for a further term of 7 years unless it is terminated in accordance with section 8A, 8B or 8C.
2
During the term of a modern limited duration tenancy, the term of the tenancy may be extended by the landlord and tenant by agreement in writing.
.