LIMITED DURATION TENANCY
AGREEMENT
between
and
Subjects:
2016
//
DRAFT
The foregoing document is an indicative style only and it is strongly recommended that
parties take independent legal advice before entering into any Agreement.
Community Land Advisory Services accept no liability for any loss, damage or injury
suffered or caused by any party as a result of entering into any Agreement based on the
foregoing indicative style.
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LIMITED DURATION TENANCY AGREEMENT
between
(1)
, residing at Insert landlord's address (who and whose successors and assignees
whomsoever are hereinafter referred to as the "Landlord")
and
(2)
, residing at Insert tenant's address and their permitted assignees and successors
whomsoever (“Tenant”)
IT IS CONTRACTED and AGREED between the Landlord and the Tenant as follows:The Landlord in consideration of the rent and other benefits and with and under the reservations,
conditions and others hereafter specified, HEREBY LETS to the Tenant but expressly excluding
successors and sub-tenants whether legal or conventional ALL and WHOLE Insert conveyancing
description being the subjects coloured in Insert colour on the plan annexed and signed as relative
hereto (“Leased Subjects"), together with any internal roads and any existing buildings and erections
thereon and service infrastructure installed therein and thereon and (which Subjects, together with the
fixed equipment as listed in the schedule annexed and signed as relative hereto (“Fixed Equipment”)
are hereinafter referred to as the “Leased Holding");
And in the Lease, the singular includes the plural and the masculine includes all other genders unless
the context otherwise requires.
1
Duration
Notwithstanding the date or dates hereof, the Leased Holding is let from Insert date of entry
("Date of Entry") to Insert date of termination, a term of Insert duration years inclusive and the
Lease is by virtue of the Agricultural Holdings (Scotland) Act 2003 Act ("2003 Act"), a limited
duration tenancy as defined by Section 5 of the 2003 Act under declaration that where the
Lease is silent on any matter, or where the terms hereof conflict with the same, the provisions
of the 2003 Act relative to Limited Duration Tenancies are applied to and imported into the
Lease, in particular those relating to fixed equipment specified in Section 16 of the 2003 Act.
2
Initial Rent
The initial yearly rent payable by the Tenant will be £Insert rent per annum, exclusive of VAT,
from the Date of Entry until Insert date initial rent ends. The yearly rent will be payable in
Enter arrears or advance on Insert date and Insert date in each year, the first payment being
due on the Date of Entry. The Landlord will not at any time be barred from claiming damages
from the Tenant for failure to implement the Tenant's obligations under the Lease by reason
of the fact that the rents may have been accepted by the Landlord.
3
Rent Review
With effect from the expiration of Insert duration years from the Date of Entry and
expiration of each succeeding period of Insert duration years throughout the period of
Lease the initial yearly rent is to be reviewed. For the purposes of such a rent review,
terms of Section 9, sub-sections (3) to (7) inclusive of the 2003 Act will apply and for
avoidance of all doubt, the revised rent will be payable in the manner outlined in Clause 2.
4
the
the
the
the
Purpose
The Tenant will be permitted to use the Leased Holding for Insert purpose. The Tenant shall
not use any part of the Leased Property for any non-agricultural purpose except as he may be
permitted to do pursuant to and in compliance with Part 3 of the 2003 Act.
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5
Sub-letting
The Tenant will not be permitted to sub-let any part or parts of the Leased Holding.
6
Reservations
There are reserved to the Landlord (but in all cases only in so far as belonging to them):6.1
the whole ores, mineral substances, whether metalliferous or not, including precious
and other metals and sand, gravel and building stone, fossils and artefacts, on or
under the Leased Holding, with full power to do everything necessary to prospect
for, work, win and carry away, let or dispose of the same, including power to erect
buildings and plant in connection therewith but subject to payment for surface
damage or damage to fixed equipment or other property of the Tenant and an
appropriate adjustment of rent which, failing agreement, will be determined by the
Land Court;
6.2
if required by the Landlord, acting reasonably the power to alter marches and
excamb land with any neighbouring proprietor or tenant, an appropriate adjustment
of rent being made on the basis of the annual value of any additions to or
deductions from the Leased Holding, which adjustment will, failing agreement, be
determined by the Land Court;
6.3
all water in lochs, rivers, streams or springs with access thereto; with powers to
regulate the flow, to alter the route of any watercourses and to conduct springs and
streams of water from or through the Leased Holding but always subject to the
Tenant's right to use the same for domestic purposes. The Tenant is expressly
prohibited from causing any pollution of water on, adjoining or flowing through the
Leased Holding and, without the prior written consent of the Landlord, from irrigating
the Leased Holding or any part thereof. In particular, the Tenant shall avoid causing
any pollution to any water supplies flowing through the Leased Holding and shall
give to the Landlord not less than twenty four hours' notice of any farming
operations which might conceivably affect such water supplies. The Tenant shall
obtain all necessary consents in respect of the Tenant's operations on the Leased
Holding and shall comply at his own expense with all (if any) conditions on which
such consents are granted;
6.4
all plantations and trees on the Leased Holding with all necessary rights to the
Landlord to cut down and carry away trees DECLARING that timber may be
removed through the Leased Holding by the Landlord by convenient routes pointed
out by the Tenant not more than ten metres in width through any part of the Leased
Holding free of charge but subject to payment of compensation for all damage to the
Leased Holding thereby occasioned;
6.5
the whole ground and winged game, deer, hares, rabbits and wildfowl on the
Leased Holding and the fish in any waters on, adjoining or flowing through the
Leased Holding, with the exclusive right of sporting, hunting, shooting, coursing,
fishing, trapping and snaring, subject to the Tenant's right to kill rabbits and other
Ground Game under the Ground Game Act 1880 as amended and declaring that
the Tenant is hereby given power to kill deer found on arable land or enclosed
pasture: And subject as aforesaid the Tenant, so far as in his power, shall protect
the game, deer, wildfowl and fish on the Leased Holding and prevent poachers and
others from trespassing thereon and shall immediately give notice of poaching,
suspected poaching or trespassing to the Landlord;
6.6
all existing rights of way, wayleaves and servitudes, with power to grant further
wayleaves and servitudes, subject to payment to the Tenant for surface damage;
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6.7
the right to use all roads and means of access at present used or which are capable
of being so used over the Leased Holding to other lands and subjects, subject to
payment for or reinstatement of any surface damage caused; and
6.8
the right to enter and to authorise others to enter all parts of the Leased Holding for
the purpose of satisfying the Landlord that the conditions of the Lease are being
properly carried out, or for fulfilling the Landlord's obligations or exercising his rights
hereunder or for any other reasonable purpose; declaring that if any ground
damaged under any of the foregoing clauses is restored to its state previous to such
damage and if possession thereof is given to the Tenant at any time during the
currency of the Lease, the abatement of rent in respect of such ground will cease
and the Tenant will thereafter be bound to cultivate such land along with the rest of
the Leased Holding.
PROVIDED that all such rights and powers reserved to the Landlord in terms of this
Clause 6 shall be exercised so as to keep interference with farming activities to a
reasonable minimum.
7
Tenant’s Undertakings
7.1
The Tenant will pay all rates, taxes and other charges including water rates, usually
payable by a tenant or occupier and any Value Added Tax payable in respect of any
payment payable by the Tenant hereunder;
7.2
The Tenant accepts any buildings and other Fixed Equipment as being in a
thorough state of repair as at the Date of Entry and sufficient to enable the Tenant,
who guarantees that it is skilled in husbandry, to Insert purpose of lease on the
Leased Holding;
7.3
The Tenant binds himself during the Lease to keep the Fixed Equipment which is
and any other building or fixed equipment which may be provided by the Tenant or
the Landlord under any obligation contained in these presents or otherwise in a
thorough state of repair, and at the expiry or sooner termination of the Lease to
leave the same and any additional or substituted buildings, roads, bridges, hedges,
dykes, walls and fences, gates, gate posts, embankments, drains, ditches,
watercourses and water pipes, and fittings and all other fixed equipment on the
Leased Holding in the like good state and condition, natural decay and ordinary fair
wear and tear alone being excepted;
7.4
The Tenant will not alter or add to any building or fixed equipment or erect new
buildings or fixed equipment or carry out any capital improvement on the Leased
Holding unless with the prior written consent of the Landlord, which consent shall
not be unreasonably withheld or delayed.
7.5
The Tenant will be bound to cultivate and manage the Leased Holding according to
the rules of good husbandry as defined in the Sixth Schedule to the Agriculture
(Scotland) Act 1948 so as not to impoverish or deteriorate the Leased Holding and
to keep and leave the same clean and in good heart and in particular and without
prejudice to the generality of the foregoing obligation, for the proper management of
the Leased Holding the Tenant undertakes:7.5.1
always to keep the Leased Holding fully equipped with his own Insert
stock or crop and the Tenant accepts the Leased Holding at the Date of
Entry in the then state of cultivation without claim or objection and the
Tenant will manage the Leased Holding as a Insert purpose, according
to the rules of good husbandry in all respects;
7.5.2
not to sell or remove from the Leased Holding, but to consume thereon,
the whole straw, hay, silage and other fodder growing yearly thereon
unless provision has been made for the return to the Leased Holding of
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the full equivalent manurial value of all crops sold off or removed from
the Leased Holding;
7.5.3
not without the previous consent in writing of the Landlord to remove
any turf or top soil from the Leased Holding;
7.5.4
to keep all hedges neatly cut but not without the previous consent in
writing of the Landlord to remove or destroy hedges on the Leased
Holding such consent not to be unreasonably withheld or delayed;
7.5.5
to cut or spray all thistles, nettles, dockens and other weeds on the
Leased Holding as necessary and to take all practicable steps to
prevent the growth of wild oats and ragwort and the spread of whins
and bracken;
7.5.6
subject always to the provisions of the Ground Game Act 1880 so far
as reasonably practicable to keep down all moles, rats and other
vermin on the Leased Holding and spread all molehills;
7.5.7
to notify the Landlord in writing forthwith of any outbreak or suspected
outbreak of any notifiable disease on the Leased Holding;
7.5.8
to take all necessary steps to prevent fire from spreading to adjoining
hedges, plantations, fences or any other part of the Leased Holding
and to reinstate or pay the full cost of reinstating any damage caused
to the property of the Landlord or any other third party by the spread of
fire;
7.5.9
not to dam natural water supplies or bore to obtain supplies for the
purposes of irrigating grassland or crops without the previous consent
in writing of the Landlord;
7.5.10
not to apply any chemicals or other preparations in such manner as to
cause damage to hedges, crops, game birds or other wild creatures
(whether on the Leased Holding or on any adjoining land) and forthwith
to make good or pay compensation for any damage caused by the
breach of this condition to the property of the Landlord or any third
party;
7.5.11
to take all reasonable precautions to prevent the introduction or spread
of potato root eelworm on the Leased Holding and in particular not to
grow on the same land during any four consecutive years more than
one crop or potatoes or other crop which is susceptible to eelworm;
7.5.12
to have taken a proper analysis of the soil on the Leased Holding or
part thereof as is consistent with the rules of good husbandry and,
when requested to do so in writing by the Landlord, to provide copies of
such analyses to the Landlord; DECLARING that a soil analysis taken
as at the Date of Entry or as soon as practicable thereafter shall be
included in and form part of the Record of the Holding to be made in
accordance with the provisions of clause 8.
7.5.13
to preserve copies of all agricultural returns made by the Tenant to the
Scottish Government Rural Payments and Inspection Directorate or its
successors and, when requested to do so in writing to the Landlord, to
exhibit the same, or any of them, to the Landlord;
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7.5.14
8
to indemnify the Landlord from all claims and demands howsoever
arising in connection with any tipping which may occur on the Leased
Holding by the Tenant (such tipping being hereby prohibited by the
Landlord) and no warranty whatsoever is given by the Landlord to the
Tenant that any tipping on the Leased Holding which may have
occurred was permitted under planning or any other relevant regulatory
framework.
7.6
The Tenant shall use the Leased Holding only as an agricultural leased holding as
defined by Sections 1 and 85 (1) of the Agricultural Leased Holdings (Scotland) Act
1991 ("1991 Act") except as otherwise permitted by the terms of the 2003 Act.
7.7
All Notices (including Notices to Quit), intimations, claims, requests, and consents to
be made or given by either party under the Lease or under statute shall be in writing
and served in the manner provided by Section 85 of the 1991 Act, and any notice,
intimation or claim which the Landlord may require to serve on the Tenant shall be
deemed to have been validly served if it has been served in the manner foresaid.
7.8
The Tenant shall not do or suffer to be done on the Leased Holding anything which
may be or becomes a nuisance, annoyance or danger to the Landlord or the
owners, occupiers or users of any adjoining land or roads and shall indemnify the
Landlord against any claims by third parties in respect of any breach of this
condition.
7.9
Without prejudice to any duty imposed on the Tenant by any statute the Tenant shall
as soon as reasonably practicable following the receipt of any Notice, Order,
Direction or other matter affecting or likely to affect the Leased Holding produce the
same to the Landlord and shall permit the Landlord or his Agents to make a copy
thereof.
7.10
The Tenant shall not be entitled in any circumstances to withhold any payment of
rent or any other sum payable to the Landlord, unless with the express authorisation
of the Land Court and in the event of the Tenant failing to make payment of any sum
payable or recoverable by the Landlord under this Lease (including rent) on the date
upon which the same becomes due, it shall be bound to pay interest thereon to the
Landlord at a rate five percentage points above the base rate of the Bank of
England in force from time to time from the date on which the said sum becomes
due until payment thereof and such interest shall be recoverable as if the same
were rent in arrears and due under the Lease.
7.11
The Tenant will be bound in the last year of the Lease:7.11.1
not to sell or remove from the Leased Holding the whole of the straw,
hay, silage and other fodder made or grown during the last year of the
Lease so far as not consumed; and
7.11.2
to leave the Landlord or incoming Tenant the one year old grass, and
to plough and harrow the fallow ground.
Record
As soon as reasonably practicable after the Date of Entry a record of the condition of the
Fixed Equipment shall be made up at the joint cost of the Landlord and the Tenant.
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9
Irritancy
If, during the Lease the Tenant goes into liquidation, receivership, appoints an administrator
or is struck off the Register of Companies or if any deed or diligence is performed against the
Tenant or the Tenant's property including the Tenant's crop on the Leased Holding and
remains undischarged after a period of 7 days or if the Tenant allows rent to remain unpaid for
one month after it has become due, or if the Tenant fails within a reasonable time to remedy
any material breach, capable of being remedied, of any condition of the Lease not
inconsistent with his responsibilities as Tenant, or on the commission by him of a breach of
the conditions of the Lease, then and in any of these events it will be in the power of the
Landlord by written intimation addressed to the Tenant forthwith to put an end to the Lease
and to resume possession of the Leased Holding in whatever state it may then be without any
declarator or process of law and without prejudice to the Landlord' claim for past, due and
current rents or for dilapidation or for deterioration of the land comprised within the Leased
Holding et cetera, and neither the Tenant nor any of his creditors will in such an event have
any right or claim for meliorations or otherwise against the Landlord; Provided (One) that the
Landlord shall not be prevented from exercising the right of irritancy hereby created or any
other rights to which it may be entitled either in terms of the Lease or by any statute by reason
of the fact that it is or may be in breach of any obligations incumbent upon him in terms of the
Lease or in any other manner and (Two) any sums paid to the Landlord in respect of any
period of occupancy by the Tenant subsequent to the irritancy of the Lease will not be
regarded as payment of rent and shall not have the effect of purging the irritancy.
10
Vacation
The Tenant binds and obliges himself to flit and leave the Leased Holding vacant for the
Landlord or incoming Tenant at the expiry or sooner termination of the Lease provided always
that the Landlord has followed the correct notice procedures in terms of section 8 of the 2003
Act.
11
Expenses
The Landlord and the Tenant shall each bear their own legal expenses incurred in the
preparation, adjustment and completion of this Lease.
12
Dispute Resolution
Every case which may require a settlement between the Landlord and the Tenant shall be
determined in accordance with Part 7 of the 2003 Act.
13
Stamp Duty Land Tax
The Tenant shall pay any Stamp Duty Land Tax exigible in respect of the tenancy hereby
created.
14
Registration
The parties hereto consent to registration hereof for preservation and execution:
WITNESS WHEREOF
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SCHEDULE OF FIXED EQUIPMENT
This is the schedule referred to in the foregoing Limited Duration Tenancy Agreement between and
dated Insert date.
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