Renting out land, legal responsibility?

[Crugeran Celt]

We are in the process of buying more land which is currently being rented out to a local couple for their three horses. They have been renting it for about 5 years and we are happy for them to continue to do so for the next year maybe 18 months while we sort out fencing and drainage on a another piece of land we are purchasing. I am unsure if they have a written agreement with the current owner but we will require one when we purchase the land. Is a down loaded one adequate or should we see a solicitor? The land is in very poor condition in places and the fencing is in need of replacing in places but they have continued to keep their horses there. The horses will have to be removed to carry out the work required to fencing and drainage. Would we be required to supply grazing land for these horses while the work is carried out or would they have to look for somewhere themselves? What sort of rent can we expect to charge bearing in mind the condition of the field, it has plenty of natural shelter and running water but it is very overgrown with brambles and trees and the drainage is poor resulting in parts of it being very wet and boggy. Saying that it is on a slope so the top three quarters is dry with plenty of grass. All told its about 7 acres.

 

[PeterNatt]

You need to put a grazing licence in place. A land surveyor will be able to produce one for you. Also make sure that they have a Third Party Public Liability insurance policy to no less than £20,000,000 (Twenty Million Pouns) per horse as they are responible for any accident that their horses causes. i.e get this included within the grazing agreement and make sure they let you have a copy of their policy each year.

 

[honetpot]

Before purchase, even if you are happy for them to stay there, I would get a condition of sale that they leave the property, so their tenancy is ended, or you may end up with a sitting tenant.
All the things you wish to do will cost a lot of money, we have spent £10K on drainage, and you wouldn't know when its really wet, fencing and the cost of putting it in is expensive, and it doubtful you will ever recoup the cost.
(2) Fencing Contractor costs | The Farming Forum
There are various ways to rent out land, the simplest which gives you the most control, is a licence to graze. You need your own insurance what ever you decide to do, theirs will probably only cover stock straying.
A good place to start, is the Net Lawman.
https://www.netlawman.co.uk/ial/letting-agricultural-land

 

[The Bouncing Bog Trotter]

Blimey, that article was only written 2 years ago and we are currently being quoted £10 per metre for stock fencing IF he can get hold of materials. We've been told it may well be a long wait.

I'd be getting formal legal advice on the implications of taking on land with tenants already in place. Things may be amicable now but renting land or property is never something to do on trust and verbal agreement.

 

[AmyMay]

If the horses have to be moved for fencing and drainage work, I’d simply give them notice when you complete.

 

[Tiddlypom]

As the fencing is currently poor, would you or the tenants be responsible if their horses escaped or got injured?

It might be simpler to give the tenants notice to leave so that the field is vacant while you take your time to attend to the drainage and fencing.

 

[Errin Paddywack]

I don't think you can establish a tenancy with horses. Livestock yes but not horses. Just give them reasonable notice.

 

[The Fuzzy Furry]

There are 2 x tenanted plots adjacent to my yard.
Both land owners have insurance for liability etc (through a small holder company) and they back charge the tenants on an annual basis. This ensures cover is adequately sorted.
Yes, both have contracts in place.
Both yards had fencing suitable for horses which was agreed to be in good repair at the start of their tenancy and the tenants are responsible for keeping it in a good state of repair.
They are (the tenants) also responsible for paying the water bill and regular muck heap removal. Both are limited by contract as to how many equines can be kept at each yard and are forbidden to sublet (have liveries)
Initial contract was for a year, with 3 monthly checks by owners agents, then each have renewed for a 2 year tenancy, with a 3 month notice period on either side.

The tenancy agreement is very much like a domestic property contract. Its worked for the last 14 years, nearest one to me has been there 4 years, the other 12 years.

Sounds very business like, but absolutely does the job, no grey areas at all.

 

[Crugeran Celt]

Thank you all, we are under no illusions of the cost of fencing and drainage already owned our small holding for nearly 30 years and are buying surrounding land purely to stop anybody else having it as we don't really need it for our own animals but it has been let to go by current owners for years so is overgrown and fencing rotting and falling over. Ideally we would not want any other horses on the land but realise how difficult it is to find land to rent and do not want these horses homeless. They are well looked after and would hate to be responsible for them having to be sold as their owners have nowhere to put them. I think we will give them notice once we have signed for the land and go from there.

 

[Sprig]

I would ask the current owner to give them notice and ensure that you have vacant possession on exchange.

 

[flying_high]

I think if you want to, you can ask for vacant possession on completion, and evidence of this in writing, but then allow the horses to come back and get the owners to sign a new contract with you.

I think you are very considerate being concerned where these other horses might find to live, as finding grazing isn’t easy. I think not evicting them, until you need to is a kind thing to do. But not sure how easy it is to move them for a day or so whilst you are completing?

If it is summer, it might be relatively easy to find a local field to borrow for a week?

 

[Polos Mum]

I also think it's really important to get proper legal advice but you definitely don't want sitting tenants.

You will want vacant possession on completion - even if they just leave for the day and then come back under terms of a new agreement with you.
Perhaps as what they are paying now to work out whether it's worth keeping them while you sort stuff out.