Agricultural Holdings (Scotland) Act 2003

55 Right to compensation for yielding vacant possession S

(1) This section applies to—

(a) a 1991 Act tenancy; F1 ...

(b) a limited duration tenancy created under section 2 [F2 , and

(c) a modern limited duration tenancy.]

(2) Where the landlord wishes to sell the land with vacant possession, the landlord may enter into an agreement in writing with the tenant that—

(a) the tenant will give notice of intention to quit and then vacate the land by such date as may be specified in the agreement; and

(b) the landlord, having sold the land, will pay to the tenant an amount of compensation for so doing calculated by reference to subsection (3) below.

(3) That amount is, subject to subsection (8), half of the difference between—

(a) the price for which the land is sold; and

(b) the estimated value of the land if it had been sold with the tenant still in occupation,

minus half of the cost of the valuation carried out for the purposes of paragraph (b).

(4) Where [F3 the tenancy is a limited duration tenancy or a modern limited duration tenancy and] the tenant wishes to quit the land, the tenant may enter into an agreement in writing with the landlord that—

(a) the tenant will give notice of intention to quit and then vacate the land by such date as may be specified in the agreement; and

(b) the landlord will pay to the tenant an amount of compensation for so doing calculated by reference to subsection (5) below.

(5) That amount is, subject to subsection (8), half of the difference between—

(a) the estimated value of the land if sold with vacant possession; and

(b) the estimated value of the land if sold with the tenant still in occupation,

minus half of the cost of the valuations carried out for the purposes of paragraphs (a) and (b).

(6) Any valuation for the purposes of this section is to be carried out by a valuer appointed by agreement between the landlord and the tenant or by a person nominated by them; and in this section “valuer” includes two valuers with an oversman.

(7) A valuer appointed or nominated under subsection (6) is to act, so far as practicable, as if the valuation was subject to subsections (2) to (7) of section 34.

(8) The amount of compensation under subsection (3) or (5) shall take account of—

(a) where the tenancy is a limited duration tenancy, the proportion of the term of the tenancy [F4 or a modern limited duration tenancy] which is unexpired; and

(b) in any case, any—

(i) investments;

(ii) improvements; and

(iii) repairs and maintenance,

in the holding made by both tenant and landlord over the period of the lease.

Textual Amendments

F1 Word in s. 55(1) repealed (30.11.2017) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 7(22)(a)(i) (with s. 128); S.S.I. 2017/299, reg. 2, sch.

F2 S. 55(1)(c) and word inserted (30.11.2017) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 7(22)(a)(ii) (with s. 128); S.S.I. 2017/299, reg. 2, sch.

F3 Words in s. 55(4) inserted (28.2.2021) by Land Reform (Scotland) Act 2016 (asp 18), ss. 111(3), 130(1) (with s. 128); S.S.I. 2020/428, reg. 2

F4 Words in s. 55(8)(a) inserted (30.11.2017) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 7(22)(b) (with s. 128); S.S.I. 2017/299, reg. 2, sch.

Commencement Information

I1 S. 55 in force at 27.11.2003 by S.S.I. 2003/548, art. 2(d) (with Sch.)