Relinquishment and Assignation
New provisions for relinquishment and assignation come into force at the end of February 2021. They enable a tenant with a secure tenancy to relinquish the tenancy in return for a payment by the landlord based on the valuation methodology set out in the Act. Or, if the landlord does not wish to buy the tenancy, to assign it for value to a new entrant or progressing farmer. The aim of these provisions is to help existing tenants wishing to retire or quit the tenancy to do so and to help provide new opportunities for young people to enter the profession.
This TFC Guide to the Relinquishment and Assignation of 1991 Act Tenancies provides an overview of the process, including the responsibilities of both tenants and landlords.
The Tenant Farming Commissioner has a specific statutory role in that he must appoint a suitably qualified independent valuer to calculate the amount payable by the landlord to the tenant for the relinquishment of the tenancy. To meet this requirement, the TFC has set up a panel of suitably qualified and experienced valuers to draw on to calculate the compensation due to the tenant.
Tenants and landlords will be invited to nominate their preferred valuer, and subject to checks for independence and suitable knowledge and experience, the norm will be for the TFC to appoint that valuer. However, if the tenant does not notify the TFC of a preferred valuer, the TFC will appoint a valuer from the panel to undertake the valuation.
Details of the panel of valuers are available here.
A useful podcast from CAAV on Relinquishment and Assignation of Agricultural Tenancies in Scotland can be listened to here. If you require an accessible transcript please contact CAAV.
FAS held a 'Relinquishment and Assignation of Tenancies' webinar which focussed on the potential opportunities for new entrants you can watch it here.