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ARTICLE · 13 SEPTEMBER 2002

Insolvent Agricultural Tenants

United KingdomAccounting and Audit
Christopher Jessel
Christopher Jessel

At a time when all farmers have money problems, what is a landlord to do when a tenant who has the protection of the Agricultural Holdings Act 1986 runs out of cash?

A landlord who has a farm tenant in difficulties will need, and in most cases will wish, to proceed with care and sensitivity, but there are special problems that apply where the tenant holds under the Agricultural Holdings Act 1986 ("the 1986 Act"). This can only arise if the present tenant either had a tenancy before September 1995 or has succeeded to someone who had such a tenancy. Although the tenancy is nominally from year to year, in practice the tenant has lifetime security and members of the family may have succession rights. Financial problems lead to two consequences. The first is a major problem for the tenant and his family who risk losing their home and business. The second is that land subject to an agricultural tenancy will be less valuable than vacant land, so that there may be a substantial gain if

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