Selling land with tenant.

[Goweresque]

Incidentally, a bit OT but related, does the subsidy level affect the rent when calculating under a AHA tenancy? Or is it purely on the physical productive capacity of the land? Especially now the ownership of land and subsidy rights are separated?

 

[Billboy1]

Surely the subsidy level effects the rent level on aha land it’s part of the earning capacity?

 

[glasshouse]

Surely the subsidy level effects the rent level on aha land it’s part of the earning capacity?

It shouldnt, but it does.

 

[Surgery]

Incidentally, a bit OT but related, does the subsidy level affect the rent when calculating under a AHA tenancy? Or is it purely on the physical productive capacity of the land? Especially now the ownership of land and subsidy rights are separated?

Incidentally, a bit OT but related, does the subsidy level affect the rent when calculating under a AHA tenancy? Or is it purely on the physical productive capacity of the land? Especially now the ownership of land and subsidy rights are separated?

in most cases the entitlements are owned by the farmer on aha rather than coming with the land on some fbt cases , there is no provision written into an aha tenancy about entitlements ,(in our case anyway) as there are on fbt so as far as I am concerned sub should have no effect on aha rent

 

[Billboy1]

Well if subs go and prices remain similar to today I for one will be looking for a reduction in rent (aha)

 

[Forever Fendt]

in most cases the entitlements are owned by the farmer on aha rather than coming with the land on some fbt cases , there is no provision written into an aha tenancy about entitlements ,(in our case anyway) as there are on fbt so as far as I am concerned sub should have no effect on aha rent

so if subs go,no reduction in rent to cover this

 

[Surgery]

so if subs go,no reduction in rent to cover this

Probably not as often houses and buildings included

 

[Billboy1]

Houses being included in reviews is a recent thing and shouldn’t be allowed its done to help make up for poor returns in the ag sector

 

[Goweresque]

in most cases the entitlements are owned by the farmer on aha rather than coming with the land on some fbt cases , there is no provision written into an aha tenancy about entitlements ,(in our case anyway) as there are on fbt so as far as I am concerned sub should have no effect on aha rent

Thats what I assumed to be the case but wasn't sure. So in the OPs case he could well be wise to wait and see what happens with subs, he could find his tenant walks of his own accord.

 

[Goweresque]

so if subs go,no reduction in rent to cover this

There probably would be but its going to depend how much the landlord wants his land back. If they want to sell up, as in the OP's case, they'd just demand the AHA rent and hope the tenant either gives up or doesn't pay, then get the land back. If the landlord wanted to keep a tenant the most likely scenario is that they will offer a lower rent but only if the tenant gives up the AHA tenancy.

 

[chickens and wheat]

The issue is being overcomplicated, rent is based on the margins the farm is capable of.
Value of land can only have an underlying affect on rent, as to charge rent on theoretical land value would triple or quadruple rents overnight, then with no tenants willing to play ball. Such high land values would become unrealistic with a glut of vacant farms in any one area.
Sub-let properties here were kept out of rent calcs, the landlord simply took half or the sub-let rent.

A landlord will struggle to remove an Aha tenant by increasing the rent expidentially, any decent land agent could fight that off one handedly