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Section 5 (limited duration tenancies) is repealed.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.