Source: http://www.legislation.gov.uk/ukpga/1986/5/part/IV/crossheading/succession-on-death-of-tenant
Timestamp: 2020-01-25 19:46:46
Document Index: 457420960

Matched Legal Cases: ['art. 2', 'art. 2', 'art. 4', 'art. 10', 'art. 2', 'art. 5', 'art. 10', 'art. 1', 'art. 5', 'art. 10', 'art. 1']

Changes over time for: Cross Heading: Succession on death of tenant
There are currently no known outstanding effects for the Agricultural Holdings Act 1986, Cross Heading: Succession on death of tenant.
35 Application of sections 36 to 48.E+W
(1)Sections 36 to 48 below (except sections 40(5), 42 and 45(8) which are of general application) shall apply where—
(a)an agricultural holding is held under a tenancy which falls within paragraph (a) or (b) of section 34(1) above, and
(b)the sole (or sole surviving) tenant (within the meaning of that section) dies and is survived by a close relative of his.
(2)In sections 36 to 48 below (and in Part I of Schedule 6 to this Act)—
the wife [F1, husband or civil partner] of the deceased;
a brother or sister of the deceased;
any person (not within (b) or (c) above) who, in the case of any marriage [F2or civil partnership] to which the deceased was at any time a party, was treated by the deceased as a child of the family in relation to that marriage [F2or civil partnership];
“the date of death” means the date of the death of the deceased;
“the deceased” means the deceased tenant of the holding;
“the holding” (except where the context otherwise requires) means the agricultural holding mentioned in subsection (1) above;
[F3(3)Where this Act applies in relation to a tenancy by virtue of section 4(1)(g) of the Agricultural Tenancies Act 1995, the reference in subsection (2) above (in the definition of related holding) to a substantial part of the land comprised in the holding means a substantial part determined by reference to either area or value.]
F1S. 35(2): words in definition of "close relative" substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(2), Sch. 8 para. 36(2); S.I. 2005/3175, {art. 2(1), Sch. 1}
F2S. 35(2): words in definition of "close relative" inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(2), Sch. 8 para. 36(3); S.I. 2005/3175, {art. 2(1), Sch. 1}
F3S. 35(3) inserted (19.10.2006) by The Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), art. 4(2) (with art. 10)
36 Right of any eligible person to apply for new tenancy on death of tenant.E+W
(1)Any eligible person may apply under section 39 below to the Tribunal for a direction entitling him to a tenancy of the holding unless excluded by subsection (2) or section 37 or 38 below.
(2)Subsection (1) above (and section 41 below) shall not apply if on the date of death the holding was held by the deceased under—
(a)a tenancy for a fixed term of years of which more than twenty-seven months remained unexpired, or
(b)a tenancy for a fixed term of more than one but less than two years.
(3)For the purposes of this section and sections 37 to 48 below, “eligible person” means (subject to the provisions of Part I of Schedule 6 to this Act and without prejudice to section 41 below) any surviving close relative of the deceased in whose case the following conditions are satisfied—
(a)in the seven years ending with the date of death his only or principal source of livelihood throughout a continuous period of not less than five years, or two or more discontinuous periods together amounting to not less than five years, derived from his agricultural work on the holding or on an agricultural unit of which the holding forms part, and
(4)In the case of the deceased’s wife the reference in subsection (3)(a) above to the relative’s agricultural work shall be read as a reference to agricultural work carried out by either the wife or the deceased (or both of them).
[F4(4A)In the case of the deceased’s civil partner the reference in subsection (3)(a) above to the relative’s agricultural work shall be read as a reference to agricultural work carried out by either the civil partner or the deceased (or both of them).]
(5)Part I of Schedule 6 to this Act, which supplements subsection (3) above and makes provision with respect to the assessment of the productive capacity of agricultural land for the purposes of paragraph (b) of that subsection, shall have effect.
[F5(6)The reference in subsection (3)(a) above to agricultural work carried out by a person on the holding or on an agricultural unit of which the holding forms part includes—
F4S. 36(4A) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(2), Sch. 8 para. 37; S.I. 2005/3175, {art. 2(1), Sch. 1}
F5S. 36(6) inserted (19.10.2006) by The Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), art. 5(1) (with art. 10)
37 Exclusion of statutory succession where two successions have already occurred.E+W
(1)Section 36(1) above (and section 41 below) shall not apply if on each of the last two occasions when there died a sole (or sole surviving) tenant of the holding or of a related holding there occurred one or other of the following things, namely—
(a)a tenancy of the holding or of a related holding was obtained by virtue of a direction of the Tribunal under section 39 below, or such a tenancy was granted (following such a direction) in circumstances within section 45(6) below, or
(b)a tenancy of the holding or of a related holding was granted by the landlord to a person who, being a close relative of the tenant who died on that occasion, was or had become the sole or sole remaining applicant for such a direction.
(2)If on any occasion prior to the date of death, as a result of an agreement between the landlord and the tenant for the time being of the holding or of a related holding, the holding or a related holding became let—
(a)under a tenancy granted by the landlord, or
(b)by virtue of an assignment of the current tenancy,
to a person who, if the said tenant had died immediately before the grant or assignment would have been his close relative, that occasion shall for the purposes of subsection (1) above be deemed to be an occasion such as is mentioned in that subsection on which a tenancy of the holding or a related holding was obtained by virtue of a direction of the Tribunal under section 39 below.
(3)If any such tenancy was granted as mentioned in subsection (2) above for a term commencing later than the date of the grant, the holding under that tenancy shall for the purposes of that subsection not be taken to have become let under that tenancy until the commencement of the term.
(4)Subsections (1) and (2) above—
(a)shall apply whether or not any tenancy granted or obtained (otherwise than by virtue of an assignment) as mentioned in those provisions related to the whole of the land held by the tenant on the occasion of whose death, or with whose agreement, the tenancy was so granted or obtained, as the case may be, and
(b)shall apply where a joint tenancy is granted by the landlord to persons one of whom is a person such as is mentioned in either of those subsections as they apply where a tenancy is granted by the landlord to any such person alone.
(5)Subsection (2) above shall apply where a tenancy is assigned to joint tenants one of whom is a person such as is mentioned in that subsection as it applies where a tenancy is assigned to any such person alone.
(6)Where a tenancy of the holding or of a related holding was obtained by virtue of a direction of the Tribunal under section 53(7) below, that occasion shall for the purposes of subsection (1) above be deemed to be an occasion such as is mentioned in that subsection on which a tenancy of the holding or a related holding was obtained by virtue of a direction of the Tribunal under section 39 below.
(7)Subsection (2) above shall, in relation to any time before 12th September 1984, have effect with the substitution for the words from “as a result” to “grant or assignment” of the words “the holding or a related holding became let under a new tenancy granted by the landlord, with the agreement of the outgoing tenant, to a person who, if the outgoing tenant had died immediately before the grant”.
(8)Subsections (4) and (5) above shall not apply in relation to any tenancy if—
(a)it was granted before 12th September 1984,
(b)it was obtained by virtue of any direction given in any proceedings arising out of an application made under Part II of the M1Agriculture (Miscellaneous Provisions) Act 1976 before 12th September 1984, or
(c)it was granted (following such a direction) in circumstances within section 23(6) of the said Act of 1976.
(9)In this section “tenant” has the same meaning as in section 34 above.
M11976 c. 55.
(4)Those sections shall not apply if the holding consists of land held by a smallholdings authority or the Minister for the purposes of smallholdings within the meaning of Part III of the M2Agriculture Act 1970 (whether the tenancy was granted before or after the commencement of the said Part III).
39 Applications for tenancy of holding.E+W
(1)An application under this section by an eligible person to the Tribunal for a direction entitling him to a tenancy of the holding shall be made within the period of three months beginning with the day after the date of death.
(2)Where only one application is made under this section the Tribunal, if satisfied—
(a)that the applicant was an eligible person at the date of death, and
shall determine whether he is in their opinion a suitable person to become the tenant of the holding.
(5)If under the preceding provisions of this section only one applicant is determined by the Tribunal to be in their opinion a suitable person to become the tenant of the holding, the Tribunal shall, subject to subsection (10) and section 44 below, give a direction entitling him to a tenancy of the holding.
(6)If under the preceding provisions of this section each of two or more applicants is determined by the Tribunal to be in their opinion a suitable person to become the tenant of the holding, the Tribunal—
(a)shall, subject to subsection (9) below, determine which of those applicants is in their opinion the more or most suitable person to become the tenant of the holding, and
(b)shall, subject to subsection (10) and section 44 below, give a direction entitling that applicant to a tenancy of the holding.
(8)In making a determination under subsection (2) above in the case of a particular applicant, or a determination under subsection (6) above as between two or more applicants, the Tribunal shall have regard to all relevant matters including—
(a)the extent to which the applicant or each of those applicants has been trained in, or has had practical experience of, agriculture,
(b)the age, physical health and financial standing of the applicant or each of those applicants, and
(10)Where the person or persons who would, subject to section 44 below, be entitled to a direction under this section entitling him or them to a tenancy or (as the case may be) to a joint tenancy of the holding agree to accept instead a tenancy or joint tenancy of a part of the holding, any direction given by the Tribunal under subsection (5), (6) or (9) above shall relate to that part of the holding only.
[F6(5)Provision shall be made by Tribunal Procedure Rules and by order under section 73(3) of the Agriculture Act 1947 (procedure of Agricultural Land Tribunal) for requiring any person making an application to the Tribunal under section 39 or section 41 to give notice of the application to the landlord of the agricultural holding to which the application relates and to take such steps as the rules or the order may require for bringing the application to the notice of other persons interested in the outcome of the application.]
F6S. 40(5) substituted (1.7.2013) by The Transfer of Tribunal Functions Order 2013 (S.I. 2013/1036), art. 1, Sch. 1 para. 205 (with Sch. 3)
[F7(7)The references in subsections (1) and (6) above to agricultural work carried out by a person on the holding include—
F7S. 41(7) inserted (19.10.2006) by The Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), art. 5(2) (with art. 10)
[F842 Procedure where deceased held more than one holding.E+W
F8S. 42 substituted (1.7.2013) by The Transfer of Tribunal Functions Order 2013 (S.I. 2013/1036), art. 1, Sch. 1 para. 206 (with Sch. 3)
43 Restriction on operation of notice to quit given by reason of death of tenant.E+W
(1)A notice to quit the holding given to the tenant of the holding by reason of the death of the deceased and falling within Case G shall not have effect unless—
(a)no application to become the tenant of the holding is made (or has already at the time of the notice to quit been made) under section 39 above within the period mentioned in subsection (1) of that section, or
(b)one or more such applications having been made within that period—
(i)none of the applicants is determined by the Tribunal to be in their opinion a suitable person to become the tenant of the holding, or
(ii)the Tribunal consent under section 44 below to the operation of the notice to quit in relation to the whole or part of the holding.
(2)Where the Tribunal consent under section 44 below to the operation of a notice to quit to which subsection (1) above applies in relation to part only of the holding, the notice shall have effect accordingly as a notice to quit that part and shall not be invalid by reason that it relates only to part of the holding.
44 Opportunity for landlord to obtain Tribunal’s consent to operation of notice to quit.E+W
(1)Before giving a direction under section 39(5) or (6) above in a case where a notice to quit to which section 43(1) above applies has been given the Tribunal shall afford the landlord an opportunity of applying for their consent under this section to the operation of the notice.
(2)Subject to subsection (5) below, section 27 above shall apply in relation to an application for, or the giving of, the Tribunal’s consent under this section as it applies in relation to an application for, or the giving of, their consent under section 26 above.
(3)The Tribunal shall not entertain an application for their consent to the operation of a notice to quit to which section 43(1) above applies unless it is made in pursuance of subsection (1) above.
(4)Subject to subsection (5) below, if the Tribunal give their consent on an application made in pursuance of subsection (1) above, they shall dismiss the application or each of the applications made under section 39 above.
(5)Where in any case—
(a)a notice to quit to which section 43(1) above applies has been given, and
(b)section 39(10) above applies,
the Tribunal shall give their consent to the operation of the notice to quit in relation to the part of the holding which would, in accordance with section 39(10), be excluded from any direction given by the Tribunal with respect to the holding under section 39; and subsections (2) and (4) above shall not apply.
(6)If on an application made in pursuance of subsection (1) above the Tribunal give their consent to the operation of a notice to quit—
(a)within the period of three months ending with the date on which the notice purports to terminate the tenancy (“the original operative date”), or
(b)at any time after that date,
the Tribunal may, on the application of the tenant, direct that the notice shall have effect from a later date (“the new operative date”).
(7)The new operative date, in the case of a notice to quit, must be a date not later than the end of the period of three months beginning with—
(a)the original operative date, or
(b)the date on which the Tribunal give their consent to the operation of the notice,
45 Effect of direction under section 39.E+W
(1)A direction by the Tribunal—
(a)under section 39(5) or (6) above entitling an applicant to a tenancy of the holding, or
(b)under section 39(9) above entitling two or more applicants to a joint tenancy of the holding,
shall entitle him or them to a tenancy or joint tenancy of the holding as from the relevant time on the terms provided by sections 47 and 48 below; and accordingly such a tenancy or joint tenancy shall be deemed to be at that time granted by the landlord to, and accepted by, the person or persons so entitled.
(2)Where the deceased’s tenancy was not derived from the interest held by the landlord at the relevant time, the tenancy or joint tenancy deemed by virtue of subsection (1) above to be granted to, and accepted by, the person or persons so entitled shall be deemed to be granted by the person for the time being entitled to the interest from which the deceased’s tenancy was derived, instead of by the landlord, with like effect as if the landlord’s interest and any other supervening interest were not subsisting at the relevant time.
(3)The reference in subsection (2) above to a supervening interest is a reference to any interest in the land comprised in the deceased’s tenancy, being an interest created subsequently to that tenancy and derived (whether immediately or otherwise) from the interest from which that tenancy was derived and still subsisting at the relevant time.
(5)Any tenancy of the holding inconsistent with the tenancy to which a direction such as is mentioned in subsection (1) above entitles the person or persons concerned shall, if it would not cease at the relevant time apart from this subsection, cease at that time as if terminated at that time by a valid notice to quit given by the tenant.
(6)If the person or persons whom such a direction entitles to a tenancy or joint tenancy of the holding as from the relevant time becomes or become the tenant or joint tenants of the holding before that time under a tenancy granted by the landlord to, and accepted by, the person or persons concerned, the direction shall cease to have effect and section 48 below shall not apply.
(7)The rights conferred on any person by such a direction (as distinct from his rights under his tenancy of the holding after he has become the tenant or joint tenant of the holding) shall not be capable of assignment.
(8)The Lord Chancellor may by regulations provide for all or any of the provisions of sections 36 to 48 of this Act (except this subsection) to apply, with such exceptions, additions or other modifications as may be specified in the regulations, in cases where the person or any of the persons whom such a direction entitles to a tenancy or joint tenancy of the holding dies before the relevant time.
F947 Terms of new tenancy unless varied by arbitration[F9or third party determination ].E+W
(1)Subject to the provisions of this section and section 48 below, the terms of the tenancy or joint tenancy to which a direction under section 39(5), (6) or (9) above entitles the person or persons concerned shall be the same as the terms on which the holding was let immediately before it ceased to be let under the contract of tenancy under which it was let at the date of death.
(2)If on the date of death the holding was held by the deceased under a tenancy for a fixed term of years, subsection (1) above shall have effect as if the tenancy under which the holding was let at the date of death had before that date become a tenancy from year to year on (with that exception) the terms of the actual tenancy as far as applicable.
(3)If the terms of the tenancy to which such a direction entitles the person or persons concerned would not, apart from this subsection, include a covenant by the tenant or each of the tenants not to assign, sub-let or part with possession of the holding or any part of it without the landlord’s consent in writing, subsection (1) above shall have effect as if those terms included such a covenant.
F9Words in s. 47 inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 15
F1048 Arbitration[F10or third party determination ] on terms of new tenancy.E+W
[F11(3)Where the provisions of this section apply—
(5)Where question (a) is referred to arbitration[F12or third party determination] under subsection (3) above (with or without question (b)), the arbitrator[F13or (as the case may be) the third party ]—
(b)without prejudice to the preceding paragraph, shall include in his award[F14or determination] such provisions, if any, as are necessary—
(6)Where question (a) but not question (b) is referred to arbitration[F15or third party determination] under subsection (3) above and it appears to the arbitrator[F16 or (as the case may be) the third party] that by reason of any provision included in his award[F17or determination ] under subsection (5) above (not being a provision of a kind mentioned in paragraph (b) of that subsection) it is equitable that the rent of the holding should be varied, he may vary the rent accordingly with effect from the relevant time.
(7)Where question (b) is referred to arbitration[F18or third party determination] under subsection (3) above (with or without question (a)), the arbitrator[F19or (as the case may be) the third party] shall determine what rent should be or should have been properly payable in respect of the holding at the relevant time and accordingly shall, with effect from that time, increase or reduce the rent which would otherwise be or have been payable or direct that it shall remain unchanged.
(10)On any reference under subsection (3) above the arbitrator may include in his award[F20or (as the case may be) the third party may include in his determination] such further provisions, if any, relating to the tenancy which the tenant is entitled to or has obtained by virtue of the direction as may be agreed between the landlord and the tenant.
(11)If the award of an arbitrator[F21or (as the case may be) the determination of a third party] under this section is made before the relevant time, section 47(1) above shall have effect subject to, and in accordance with, the award[F22or determination].
(12)If the award of an arbitrator[F23or (as the case may be) the determination of a third party ] under this section is made after the relevant time, it shall have effect as if the terms of the award[F24or determination] were contained in an agreement in writing entered into by the landlord and the tenant and having effect as from the relevant time.
F10Words in s. 48 inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(9)
F11S. 48(3) substituted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(2)
F12Words in s. 48(5) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(3)(a)(i)
F13Words in s. 48(5) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(3)(a)(ii)
F14Words in s. 48(5)(b) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(3)(b)
F15Words in s. 48(6) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(4)(a)
F16Words in s. 48(6) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(4)(b)
F17Words in s. 48(6) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(4)(c)
F18Words in s. 48(7) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(5)(a)
F19Words in s. 48(7) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(5)(b)
F20Words in s. 48(10) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(6)
F21Words in s. 48(11) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(7)(a)
F22Words in s. 48(11) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(7)(b)
F23Words in s. 48(12) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(8)(a)
F24Words in s. 48(12) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 16(8)(b)