Plan ahead for agricultural rent reviews in 2017
As many agri-businesses find themselves facing the continued pressure related to farm incomes, now is the time to consider the potential impact of tenancy reviews and whether the existing rent is appropriate or a rent review is required.
It is important to remember that rent formulas are different for Farm Business Tenancies (FBTs) and Agricultural Holdings Tenancies, so consideration will need to be given to the correct basis and whether there is scope to review the rent.
With a minimum of one year’s notice required, notices would need to be served this autumn to enable the review to take place in autumn 2017. This gives time to consider the economic climate and prepare for discussions with the other party.
Rent formulas under FBTs don’t have to follow the normal market value approach. It is worth considering whether more flexible or creative rent formulas could be of benefit for both parties. For example, arable rents could be linked to the price of wheat.
It is also worth considering adding a Brexit clause to your tenancy agreement, preparing for the possibility of changes to EU support payments.
- This article was first published in the Autumn 2016 edition of our quarterly newsletter Outlook
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It’s been impossible to get away from the issue of the European Union referendum and the vote to leave. However, it’s important to consider what it might mean for the whole planning environment and how […]Find out more
The best beaches in Kent and East Sussex
We explore the best beaches in Kent and East Sussex — for your children, dogs and foodie friends — as we work our way round the South East’s beautiful coastline. It’s a funny thing that […]Find out more
Why do kitchens sell houses?
The party is in the kitchen! When we have a party at our house my wife and I spend hours making our living room look nice and then most of the evening trying to get […]Find out more
Is selling some land an option in 2016?
There appears to be very little confidence of an improvement in outlook for the agricultural sector in the short term. So, is selling an option for some in 2016? The controversial option is to sell […]Find out more
New team rising to challenge
New team rising to challenge To ensure Hobbs Parker Property Consultants respond to the need for the best possible property, land, planning and development advice, we have made a number of changes to our senior […]Find out more