Grazing Farm Business Tenancy Agreement (Term up to 2 Years)
This Grazing Farm Business Tenancy Agreement (Term up to 2 Years) allows a Landlord to let bare land for grazing horses. The term must not exceed two years. This template should be used where the grazing is connected with a trade or business and the character of the tenancy is wholly or primarily agricultural.
This template could be used, for example, where horses are grazed on the Holding but used at a riding school on other premises. This would be an agricultural use of the Holding. If however the horses were grazed on the riding school site, the landlord would need to grant a business tenancy. See the Lease to Riding School.
The lease is based on our standard Farm Business Tenancy Agreement and contains detailed provisions setting out the Tenant’s responsibilities. There is no rent review.
Before entering into this lease, the Landlord and Tenant should exchange notices confirming that the agreement is to be and remain a Farm Business Tenancy. See the Landlord’s FBT Notice and the Tenant’s FBT Notice templates.
This lease has Land Registry Prescribed Clauses at the beginning. The Prescribed Clauses are not strictly necessary for a lease with a term 7 years or less but it is advisable to use them as they helpfully record the main terms.
Prescribed Clause LR3 includes a field for an optional Guarantor. If there is no Guarantor, this field can be left blank and Clause 11 (Guarantor’s covenant) should be deleted.
Prescribed Clause LR4 makes reference to a plan. A lease with a term of 7 years or less does not necessarily need to include a plan but it is strongly recommended that a plan is included so that the extent of the Holding (the property that is being leased to the Tenant) is clear.
The plan should as a minimum show the Holding edged red. The plan may also need to show the Landlord’s Neighbouring Property edged blue and show with green edging the areas (if any) over which rights are granted to the Tenant in the First Schedule to the lease if these areas cannot be adequately described in words.
In Clause 2 the Landlord grants the lease to the Tenant. The Tenant must pay the Rent.
Clause 3 contains the Tenant’s covenants. These cover matters such as payment of utilities charges, the Landlord’s rights of entry, use and maintenance of the land, alterations, alienation (a prohibition on assignment and underletting), indemnity and payment of Landlord’s costs.
Clause 4 contains the Landlord’s covenant for quiet enjoyment (the Tenant’s right to use the Holding without interference from the Landlord).
Clause 5 relates to the Basic Payment Scheme under the Common Agricultural Policy.
Clause 6 states that notices have been exchanged under Section 1(4) of the Agricultural Tenancies Act 1995 confirming that the tenancy is a Farm Business Tenancy.
Clause 7 contains various standard lease clauses including forfeiture.
Clause 8 deals with service of notices by the Landlord and Tenant.
Clauses 9 and 10 contain optional break clauses (termination rights) for the Landlord and Tenant. These clauses should be amended or deleted as appropriate.
The Tenant’s break option is conditional on rent have been paid up to date, the tenant giving up possession of the Holding (i.e. vacating) and the tenant not leaving any underleases in place. If these conditions are not satisfied, the Tenant’s break will not be effective and the lease will continue. If the Tenant is in breach of other terms of the lease, the break will be effective but the Landlord will retain the right to sue the Tenant for any breaches of the lease.
Clause 11 contains optional Guarantor covenants.
Clauses 12 and 13 deal with dispute resolution and jurisdiction respectively.
The lease must be executed as a deed. Various types of execution clauses are included and the parties should choose the appropriate clauses.
The First Schedule sets out the rights that the Tenant has to use other property. These rights should be checked carefully and amended or deleted to suit the circumstances.
The Second Schedule sets out the rights that the Landlord has in respect of the Holding, including rights of entry and the right to carry out work to neighbouring property. If any additional rights are required they should be added to the Second Schedule.
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
This Grazing Farm Business Tenancy Agreement (Term up to 2 Years) is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
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