What Is a Farm Business Tenancy?
The Farm Business Tenancy (FBT) is an agreement between an individual and a company that allows one party to lease another person’s land. These contracts are often entered into in the individual’s name, but the terms and conditions differ slightly. The AH provides compensation for improvements to the land, such as planting an orchard or building. Short-term improvements, such as applying fertiliser, liming or chalking the land, may also qualify as an improvement. The FBT requires that the landlord provide 12 months’ notice in advance of the Break Date, which is defined below.
The character of the tenancy is also important, as it is important to consider whether the land is suitable for farming. The landlord must be in a position to maintain the tenancy if necessary, so he must make sure that the agreement is suitable for this use. The farm business occupant has the right to impose terms on the landlord, and the landlord must not be allowed to dictate them. It is a good idea to consult a lawyer who specialises in drafting these contracts.
The Farm Business Tenancy (Long Term) should include provisions defining the maintenance of the land. In some cases, tenants can agree to take on all maintenance duties, which means that the landlord will not have to be involved in the day-to-day operations of the business. The tenant will usually be responsible for the daily maintenance of the land, as well as the buildings, while the landlord retains the responsibility for anything that adds value to the property.
When choosing a Farm Business Tenancy, it is important to make sure that both parties understand their responsibilities. For instance, the tenant may want to manage the day-to-day operations, which could involve limiting the landlord’s involvement. However, landlords should check that there are no covenants affecting the title. If they are, then they should remove them. This will ensure that the landlord doesn’t become a liability in the future.
A Farm Business Tenancy must also be agricultural. The tenancy must be used for farming purposes at any time. A Farm Business Tenancy must have an agricultural character at all times. This means that the tenancy must be agricultural at the beginning and end. In addition, the Farm is a business, so the rent must be fair to both parties. The lease must specify what the tenant will be doing on the property. A landlord can charge a rent increase that is lower than the market rate.
Before the farm business tenancy starts, it is important to clearly state who will be responsible for the maintenance of the property. A landlord can agree to take on all of the maintenance duties, while the tenant can minimize the landlord’s involvement. Generally, the tenant is responsible for the land and the day-to-day management of the building, while the landlord is responsible for the things that add value to the land. A tenant can also negotiate an agreement that covers all aspects of the land, including the property and buildings.