Buying a tenancy

egbert

Member
Am i reading it right in the FW?..... for £1.25 million, fella will sell you his company, which has a secure AHA tenancy on 500+ acre farm in Lincs.
The farm is now owned by a charitable trust the fella has set up, and has current rent of £45k

A curious situation.
 

Bald Rick

Moderator
Livestock Farmer
Location
Anglesey
For £1,25m you get to farm it in perpetuity provided that you meet the terms of the tenancy agreement. In other words, it goes beyond an AHA three generation term. Must be tax implications to do it this way rather than sell
 

egbert

Member
For £1,25m you get to farm it in perpetuity provided that you meet the terms of the tenancy agreement. In other words, it goes beyond an AHA three generation term. Must be tax implications to do it this way rather than sell

Thats what I read. I'm presuming the owner set it up for some tax reason.

My concern buying it would be the relationship with the 'owner', and the owners aspirations for their freehold.

As many can attest -although I'm not one- a cut throat owner can make an AHA tenants life fairly miserable. (and I've no knowledge of this one, I'm just thinking out loud)

Or a change in the law.

It would be an unusual way to spend £1.25 million


I knew a fella whose farming company had tenure of a good sized farm owned by a borough council.
That was fairly different in the the borough would be hard pressed to put any pressure on him without risking a lot of PR flak.
Haven't seen the old chap for a while -he was pretty vintage when I knew him.
 

glasshouse

Member
Location
lothians
For £1,25m you get to farm it in perpetuity provided that you meet the terms of the tenancy agreement. In other words, it goes beyond an AHA three generation term. Must be tax implications to do it this way rather than sell
He is selling a company with a perpetual tenancy . Its not unusual, in fact its very common in australia etc
Perpetual tenancies are now a tradeable asset in scotland thanks to the scottish govt who managed to break away from the death grip of the landed lobby
 
Last edited:

Chae1

Member
Location
Aberdeenshire
He is selling a company with a perpetual tenancy . Its not unusual, in fact its very common in australia etc
Perpetual tenancies are now a tradeable asset in scotland thanks to the scottish govt who managed to break away from the death grip of the landed lobby
Are they tradeable now?

I didn't think the legislation has been passed yet.
 

glasshouse

Member
Location
lothians
Are they tradeable now?

I didn't think the legislation has been passed yet.
Deals are being done, i have only heard of family assignations for value so far, as that is law, but wider assignation is bogged down a bit.
A lot of lairds are selling to tenants now as the wider assignation means they will never achieve vacant posession.
 

Chae1

Member
Location
Aberdeenshire
Deals are being done, i have only heard of family assignations for value so far, as that is law, but wider assignation is bogged down a bit.
A lot of lairds are selling to tenants now as the wider assignation means they will never achieve vacant posession.
They've stopped up here.

Did a few. But policy seems to have changed .
 

Exfarmer

Member
Location
Bury St Edmunds
The tenancy will fail if the rent is not paid. The rent may be upwards only. These company tenancies are occasionally in the market and I would have thought this offers a good chance for someone to get a foot into farming or increase their holding substantially.
The only fly in the ointment is that generally the landlord can get repossession if he gains planning on the property. I think then the capital would be lost
 

David.

Member
Mixed Farmer
Location
J11 M40
It's not new, Twyford Seeds that were, sold the tenancy of a college farm to a neighbouring estate about 15/20 yrs ago locally.
It is not especially straightforward to keep succession either as I am told, unless your successor is full time on the business, and not too many diversifications to muddy the water.
It is probably now the only way to secure a farm at a sensible rent though..
 

glasshouse

Member
Location
lothians
The tenancy will fail if the rent is not paid. The rent may be upwards only. These company tenancies are occasionally in the market and I would have thought this offers a good chance for someone to get a foot into farming or increase their holding substantially.
The only fly in the ointment is that generally the landlord can get repossession if he gains planning on the property. I think then the capital would be lost
Rent cant be upwards only on aha
Planning permission is a problem, but that needs changing
A landlord getting £300m for an entire farm and the tenant getting sod all just sucks
 

egbert

Member
It's not new, Twyford Seeds that were, sold the tenancy of a college farm to a neighbouring estate about 15/20 yrs ago locally.
It is not especially straightforward to keep succession either as I am told, unless your successor is full time on the business, and not too many diversifications to muddy the water.
It is probably now the only way to secure a farm at a sensible rent though..
An AHA held by a Ltd Co never uses a succession though, does it?

And yes, earning too much from non farming business could jeopardise tenure
 

egbert

Member
I thought no new tenancy could be AHA after the introduction of FBT's?
Must be some kind of term leasehold perhaps?
I'm only going on whats presented, it says AHA....anyway an FBT wouldn't be worth tuppence by comparison

(and I'm not sure, I have it mind that AHAs can still be granted...can they?)(although why any landlord would isn't clear)

Aside....
I notice an element of hatred of those rich land grabbing landlords about the place, which I find baffling.
Unless you're a committed Corbynista, wouldn't you accept that someone owning a farm, and prepared to rent it out should be treated with some respect, and be expected to get as much rent as the market would stand.
I'm both tenant and landlord, and endeavour to treat others how I prefer to be treated myself.

I quite like the idea of buying a farm in Scotland, but wouldn't give it a thought while the SNP are saying what they are.
Imagine if I fell ill, and needed to rent it out?
Little wonder farms are a lot cheaper north of the border.
 

Latest Poll on TFF

  • Yes

    Votes: 22 14.9%
  • No

    Votes: 126 85.1%

JCB launches Fastrac ‘iCon’

  • 161
  • 0
Written by Charlotte Cunningham from CPM Magazine

JCB has launched new Fastrac 4000 and 8000 Series tractors with an all-new electronics infrastructure which is claimed to deliver higher levels of performance. According to JCB, the new Fastrac iCon operator environment has three key features: iConfigure – creating a bespoke control experience for every operator iConnect – integrating advanced precision agriculture technology iControl – redefining operation through new driveline software The 175hp to 348hp (133kW to 260kW) Fastracs feature the new iCon armrest console and touch-screen display to provide flexibility in operator allocation and operator information, as well as a new transmission control strategy to enhance operator comfort and powertrain efficiency, says the manufacturer...
Top