Land Reform (Scotland) Act 2016

Land Reform (Scotland) Act 2016

2016 asp 18

Commentary on Sections

Part 10 – Agricultural Holdings

Chapter 1 – Modern Limited Duration Tenancies

Conversion of 1991 Act tenancies

Section 91 - Conversion of limited duration tenancies into modern limited duration tenancies

441. Section 91 of the Act inserts a new section 2B into the 2003 Act to provide for conversion of LDTs into MLDTs.

442. Subsections (1) and (2) of new section 2B of the 2003 Act state that the tenant and the landlord may agree in writing that the LDT is to be terminated on a fixed date provided that an MLDT lease of a duration not less than the term remaining under the LDT lease is entered into that comprises the same land under the LDT tenancy and that the MLDT has effect from the date on which the LDT terminates under the agreement.

443. Subsection (3) provides that the landlord or tenant is entitled to revoke the agreed termination of the LDT and the planned MLDT lease at any time before the date fixed for termination.

444. Subsection (4) and (5) of new section 2B provide that the tenant is not entitled to compensation under Part 4 of the 2003 Act (or, as the case may be, under the lease) for improvements at the point of conversion but that improvements for which compensation is due upon termination of the LDT are to be regarded as if they were improvements carried out under the MLDT.

445. Subsection (6) disapplies section 8 of the 2003 Act, on the continuation and termination of LDTs, in relation to LDTs terminated under subsection (1) of this section.

446. Subsection (7) of new section 2B ensures that an MLDT converted from an LDT may not provide for a break clause.