Ending or transferring a tenancy
Relinquishment and assignation provisions can help tenants with a secure 1991 Act tenancy leave their tenancy while also creating opportunities for new entrants and progressing farmers.
A tenant can either:
- relinquish the tenancy in return for compensation from the landlord, or
- assign the tenancy to a new entrant or progressing farmer if the landlord does not wish to take the tenancy back.
The Tenant Farming Commissioner has a formal role in the relinquishment process and must appoint an independent valuer to calculate the amount payable to the tenant. The Commissioner maintains a panel of experienced valuers with knowledge of the tenant farming sector.
Tenants and landlords can nominate a preferred valuer. Where appropriate, that valuer will normally be appointed. If no preference is provided, the Tenant Farming Commissioner will appoint a valuer from the panel.
Further guidance is available in the Tenant Farming Commissioner guide to relinquishment and assignation of 1991 Act tenancies.
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.