Why no subletting AHA?

[Overby]

What are the benefits of no AHA subletting to the landlord?

I don't mean if a tenant took on a farm, split up all the buildings and let them out as offices, nothing that dramatic, or stupid, more what are the reasons for the landlord barring any subletting at all?

Are there tax implications?

There is a very strict AHA requirement re never having 2 businesses operating from 1 farm (what is the huge issue?)

Intrigued.

 

[betweenthelines]

Tenant would only sub let if he was recieving a higher rent than he was paying.

What would you say if you let a house out for £500/month and your tenant had 6 lodgers @ £100/month ?

 

[Overby]

I get that.
Someone round here let one of his pals run his tree surgery business out of his AHA farm yard, peanuts as they were mates. Landlord went mental. Not allowed 2 businesses on AHA premises. That's more what I was meaning.

 

[rhsmyth]

Any unauthorized letting a landlord would go nuts. Depending on the use the sub tenant is potentially able to have a protected tenancy and that is what no landlord wants. We have the right to let a property to whoever we want.

However with an AHA the terms are all around agricultural use of a holding and does not allow much scope for diversification therefore if a non agricultural use becomes established say a open storage unit, then it could be perceived the tenancy becomes 1954 act commercial tenancy. FBT’s are slightly different as they allow some other uses etc.

AHA’s are dying out with time as you can’t create a new tenancy since early 1995 with the exception of succession tenancies which are harder and harder to obtain. I would think the risk as a tenant to sublet would be higher than the potential harm to the Landlord.

 

[Bongodog]

The clue is in the name Agricutural Holding Act - You are renting a property to use for agricuture not for diversification or sub letting.

 

[possumbility]

If I were a landlord, I would be very happy for you to sublet on your AHA tenancy, then I could chuck you out and sell up without having to pay you half the proceeds.

 

[Overby]

 

[Surgery]

I get that.
Someone round here let one of his pals run his tree surgery business out of his AHA farm yard, peanuts as they were mates. Landlord went mental. Not allowed 2 businesses on AHA premises. That's more what I was meaning.

To be fair tree surgeons-forestry work would cone under ag use anyway , the fact is he never had the landlords permission to sub let nothing to do with running two businesses from one yard as you mentioned, I’m sure if he approached the landlord with x amount of money per annum to sub let the shed-area he would accept it.