PART 10Agricultural holdings

CHAPTER 1Modern limited duration tenancies

Modern limited duration tenancies

85Modern limited duration tenancies: creation

I1I21

The 2003 Act is amended as follows.

I32

Section 5 (limited duration tenancies) is repealed.

I1I23

After section 5 insert—

5AModern limited duration tenancies

1

Where—

a

agricultural land is let under a lease entered into on or after the coming into force of this section for a term of not less than 10 years,

b

the land comprised in the lease is not let to the tenant during the tenant's continuance in any office, appointment or employment held under the landlord, and

c

the lease does not constitute a 1991 Act tenancy or a repairing tenancy,

the tenancy under the lease is, by virtue of this subsection, a modern limited duration tenancy.

2

Where—

a

at any time before the expiry of the term of a short limited duration tenancy, the landlord and the tenant agree in writing to convert the tenancy to a modern limited duration tenancy, or

b

the tenant remains in occupation of the land after the expiry of the term of a short limited duration tenancy of 5 years (including such a term fixed by virtue of section 4(2) or (3)) with the consent of the landlord,

the tenancy has effect as if it were for a term of 10 years commencing at the start of the term of the short limited duration tenancy, and the tenancy is, by virtue of this subsection, a modern limited duration tenancy.

3

Where subsection (5) of section 4 results in a short limited duration tenancy purporting to be for a term of more than 5 years, the tenancy has effect as if it were for a term of 10 years; and the tenancy is, by virtue of this subsection, a modern limited duration tenancy.

4

Without prejudice to subsections (2) and (3), where a lease constituting a tenancy of agricultural land, as described in paragraphs (b) and (c) of subsection (1), purports to be for a term of more than 5 years and less than 10 years, the tenancy has effect as if it were for a term of 10 years; and the tenancy is, by virtue of this subsection, a modern limited duration tenancy.

5

Section 5B does not apply to a modern limited duration tenancy created under subsection (2), (3) or (4).

5BModern limited duration tenancies: break clauses

1

This section applies where the tenant under a lease constituting a modern limited duration tenancy is a new entrant to farming.

2

The lease may contain a provision that the tenancy may be terminated after 5 years in accordance with section 8D (a “break clause”).

3

The Scottish Ministers may by regulations make further provision about the tenants who are new entrants for the purposes of this section.