Surrender value of AHA tenancy

Brisel

Member
Arable Farmer
Location
Midlands
A sitting tenant can buy at 50% vacant possession value, therefore could ask for half the uplift in value. FBTs are more tax efficient for the landlords than AHA. Join the TFA - this is a common question.
 

chipchap

Member
Mixed Farmer
Location
South Shropshire
It's a joke in terms of return, would it even pay the interest if the land was mortgaged ?
Should it pay the interest?
The interest is the cost of the money borrowed to buy the land, not the cost of owning the land. There is a subtle difference in that the value of money stays the same in £ terms, whereas the value of land rises perhaps in line with inflation.
 

DRC

Member
How can you say that? How much is the rent, £150 an acre? Not much of a return on a 10k assett
Most estates weren’t bought for 10k, they were bought for much less , often generations ago. So not the tenants fault that land values have increased so much.
If they want to sell, which most don’t, then offer the sitting tenant a decent payout.
After all the tenant and his family have bought the farm many times over in rent.
 

DRC

Member
A sitting tenant can buy at 50% vacant possession value, therefore could ask for half the uplift in value. FBTs are more tax efficient for the landlords than AHA. Join the TFA - this is a common question.
I believe it’s not the case if your landlords are trustees.
 

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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