Land Reform (Scotland) Act 2016

(38A) (1) This section applies where— (a) the Land Court has made an order (but not an interim order) under section 84(1)(b) requiring the landlord of a 1991 Act tenancy to remedy a material breach of the landlord's obligations in relation to the tenant, or (b) an arbiter appointed under section 61A(3) of the 1991 Act has by virtue of section 61A(5) made an award having the same effect as such an order. (2) Subject to subsection (5), the tenant may apply to the Land Court for an order for sale if the landlord fails to comply with the order or award mentioned in subsection (1)— (a) in a material regard, and (b) by the date specified in the order or award by virtue of section 84(2) or, as the case may be, section 61A(5) of the 1991 Act. (3) An “order for sale” is an order that the tenant has the right to buy the land comprised in the lease. (4) The tenant must give notice of the application— (a) to the landlord, (b) where there is a heritable security over an interest in the land comprised in the lease, to the creditor who holds the security, (c) to such other persons as the Scottish Ministers may prescribe by regulations. (5) Where— (a) the tenant acquired a right to buy the land comprised in the lease under section 28, and (b) the right to buy was extinguished under section 29(6) or 32(8), the tenant may apply for an order for sale only if the period of 12 months, beginning with the date on which the right to buy was extinguished, has expired. (38B) (1) The Land Court may make an order for sale if satisfied that— (a) the landlord has failed to comply with the order or award mentioned in section 38A(1)— (i) in a material regard, and (ii) by the date specified in the order or, as the case may be, the award, (b) the failure substantially and adversely affects the tenant's ability to fulfil the tenant's responsibilities to farm the holding in accordance with the rules of good husbandry, (c) greater hardship would be caused by not making the order than by making it, and (d) in all the circumstances it is appropriate. (2) The Land Court may make an order for sale despite the fact that the owner is subject to a legal incapacity or disability which would affect the owner's ability to transfer or otherwise deal with the land in respect of which the order is made. (3) Where the owner is subject to an enforceable personal obligation to transfer the land to a person other than the tenant, the Land Court may not make an order for sale unless— (a) the transfer is a transfer mentioned in subsection (4), and (b) the transfer— (i) is or forms part of a scheme or arrangement or is one of a series of transfers, and (ii) the main purpose or effect, or one of the main purposes or effects, of the scheme, arrangement or, as the case may be, series is the avoidance of the making of an order for sale. (4) The transfer referred to in subsection (3) is a transfer— (a) otherwise than for value, (b) between spouses in pursuance of an arrangement between them entered into at any time after they have ceased living together, (c) between companies in the same group, or (d) in consequence of— (i) the assumption, resignation or death of one or more of the partners in a partnership, or (ii) the assumption, resignation or death of one or more of the trustees of a trust. (5) For the purposes of subsection (4)(c), companies are in the same group if they are, or are included in a number of, companies which, by virtue of section 170 of the Taxation of Chargeable Gains Act 1992, together form a group for the purposes of sections 171 to 181 of that Act. (6) The Land Court must give notice of the making of the order to— (a) the landlord, (b) the owner (where the owner is not the landlord), (c) where there is a heritable security over an interest in the land comprised in the lease, the creditor who holds the security, (d) the Keeper of the Registers of Scotland, (e) such other persons as the Scottish Ministers may prescribe by regulations. (7) In subsection (1)(b), what is good husbandry is to be construed by reference to schedule 6 of the Agriculture (Scotland) Act 1948. (8) In this Part, “owner” includes a person in whom the land is vested for the purposes of any enactment relating to— (a) sequestration, bankruptcy, winding-up or incapacity, or (b) the purposes for which judicial factors may be appointed. (38C) (1) The Scottish Ministers may by regulations make provision prohibiting persons from transferring or otherwise dealing with land in respect of which an order for sale has been made under section 38B. (2) Regulations under subsection (1) may in particular include provision— (a) specifying the persons to whom the prohibition is to apply, (b) specifying the period during which the prohibition is to apply, (c) specifying transfers or dealings which are and are not prohibited by the regulations, (d) requiring information to be incorporated in deeds relating to the land (including specifying the information that is to be incorporated, the circumstances in which it is to be incorporated and the deeds in which it is to be incorporated), (e) requiring such information to be removed and the circumstances in which it is to be so removed. (38D) (1) Where an order for sale is made under section 38B, the rights mentioned in subsection (3) are— (a) suspended as from the date when the Land Court makes the order, and (b) revived— (i) when a transfer by virtue of the order is completed, or (ii) if such a transfer is not completed before the end of the period mentioned in subsection (2), or if the order for sale ceases to have effect, on the end of that period or on the order ceasing to have effect, whichever occurs first. (2) The period referred to in subsection (1)(b)(ii) is whichever of the following periods ends later— (a) the period of 12 months beginning with the day on which notice under section 38E(3) is given, or (b) such longer period fixed by or agreed under section 38F(4) or, as the case may be, specified in an order under section 38I(4)(b)(ii). (3) The rights referred to in subsection (1) are any rights— (a) of pre-emption, redemption or reversion, or (b) deriving from any other option to purchase, exercisable over the land in respect of which the order for sale has been made. (4) The Scottish Ministers may by regulations make provision about the suspension and revival of other rights in or over land in respect of which an order for sale has been made. (5) Regulations under subsection (4) may in particular include provision specifying— (a) the rights to which the regulations do and do not apply, (b) the period during which such rights are suspended, (c) the circumstances in which the rights are revived (which may include the ending of a period as specified in the regulations). (6) Nothing in this section— (a) affects the operation of an inhibition on the sale of the land, (b) prevents an action of adjudication from proceeding, or (c) affects the commencement, execution or operation of any other diligence. (38E) (1) Where— (a) an order for sale is made under section 38B, and (b) the period within which an appeal against the making of the order may be brought has expired without an appeal being brought or, where such an appeal has been brought, it has been abandoned or dismissed, the tenant has the right to buy the land in respect of which the order has been made from the owner. (2) Where a tenant has a right to buy under subsection (1), the tenant may proceed in accordance with section 38F to buy the land from the owner provided that notice is given under subsection (3). (3) Notice is given under this subsection if, before the period mentioned in subsection (4) has expired, the tenant gives notice that the tenant intends to buy the land to— (a) the owner, (b) the Keeper of the Registers of Scotland, and (c) the Land Court. (4) That period is the period of 28 days beginning with— (a) the day after the last day on which an appeal may be brought (no appeal having been brought), or (b) an appeal having been brought, the day after the day on which the appeal was abandoned or dismissed. (5) If at any time the tenant does not intend to proceed in accordance with section 38F to buy the land, the tenant must give notice of that fact to— (a) the owner, (b) the Keeper of the Registers of Scotland, and (c) the Land Court. (6) Where the tenant— (a) does not give notice under subsection (3), or (b) gives notice under subsection (5), the tenant's right to buy is extinguished. (38F) (1) It is for the tenant to make the offer to buy in exercise of the tenant's right to buy under section 38E. (2) The offer is to be at a price— (a) agreed between the tenant and the person from whom the land is to be bought (“the seller”), or (b) where there is no such agreement— (i) payable by the tenant in accordance with section 34(8), or (ii) if the price is determined in an appeal under section 37, as is so determined. (3) The offer must specify the date of entry and of payment of the price in accordance with subsection (4). (4) The date of entry and of payment of the price are to be— (a) a date not later than 6 months from the date when the tenant gave notice under section 38E(3) of the tenant's intention to buy, (b) where the price payable by the tenant is the subject of an appeal under section 37 which has not, before the expiry of the period of 4 months beginning with the date when the tenant gave such notice, been— (i) determined, or (ii) abandoned following agreement between the tenant and the seller, a date not later than 2 months after the appeal is so determined or, as the case may be, abandoned, or (c) such later date as may be agreed between the tenant and the seller. (5) The offer may include such other reasonable conditions as are necessary or expedient to secure the efficient progress and completion of the transfer. (6) The seller must— (a) make available to the tenant such deeds and other documents as are sufficient to enable the tenant to proceed to complete title to the land, (b) transfer title accordingly. (38G) (1) The provisions mentioned in subsection (2) apply to a sale implementing a tenant's right to buy by virtue of an order for sale as they apply to a sale implementing a tenant's right to buy under section 28, subject to the modifications mentioned in that subsection. (2) Those provisions are— (a) section 33 (appointment of valuer), subject to the modifications that— (i) in subsection (2), the reference to section 29(2) or (4) is to be read as a reference to section 38E(3), (ii) subsection (5) does not apply, (b) section 34 (valuation of land), subject to the modifications that— (i) in subsection (1), the reference to the date of notice under section 26 of the seller's proposal to transfer the land is to be read as a reference to the date of notice under section 38E(3), (ii) in subsection (8), the reference to section 32(2)(b)(i) is to be read as a reference to section 38F(2)(b)(i), (c) section 35 (special provision where buyer is general partner in limited partnership), subject to the modification that the reference to section 28 is to be read as a reference to section 38E, (d) section 36 (further provision on valuation), subject to the modifications that— (i) in subsection (6)(a), the reference to section 32(7) is to be read as a reference to section 38I(3), (ii) the following subsection is to be inserted after subsection (6)— (6A) Where— (a) the Land Court has made an order under section 38H(3), (b) the seller to whom the order applies has complied with the order, and (c) the tenant does not proceed with the purchase of the land from the seller, the tenant is liable to the seller for any expenses met by the seller by virtue of subsection (5). (e) section 37 (appeal to the Lands Tribunal against valuation), subject to the modification that, in subsection (3)(b), the reference to section 32(2)(b)(ii) is to be read as a reference to section 38F(2)(b)(ii), and (f) section 38 (referral of certain matters by the Lands Tribunal to the Land Court). (38H) (1) If the seller has not, within the period fixed by or agreed under section 38F(4)— (a) complied with section 38F(6)(a), or (b) done any of the things mentioned in subsection (2), the tenant may apply to the Land Court for an order under subsection (3). (2) The things are— (a) concluding missives for the sale of the land, or (b) taking all steps which the seller could reasonably have taken in the time available towards so concluding missives. (3) An order under this subsection may— (a) direct the seller to comply with section 38F(6)(a) within such period as the order may specify, (b) direct the seller— (i) to conclude missives, and (ii) to take such remedial action for the purpose of so concluding missives, within such period as the order may specify, and (c) direct the tenant and seller to incorporate into the missives any term or condition in respect of the sale of the land as the order may specify. (4) If the seller fails to comply— (a) with an order under subsection (3), or (b) with section 38F(6)(b), the Land Court may, on the application of the tenant, authorise its principal clerk to adjust, execute and deliver such deeds or other documents as will complete the transfer of ownership of the land to the tenant to the same force and effect as if done by the seller. (38I) (1) If the tenant has not, within the period fixed by or agreed under section 38F(4), done any of the things mentioned in subsection (2), the seller may apply to the Land Court for an order under subsection (3). (2) The things are— (a) concluding missives for the sale of the land, or (b) taking all steps which the tenant could reasonably have taken in the time available towards so concluding missives. (3) An order under this subsection may— (a) direct the tenant— (i) to conclude missives, and (ii) to take such remedial action for the purpose of so concluding missives, within such period as the order may specify, and (b) direct the tenant and seller to incorporate into the missives any term or condition in respect of the sale of the land as the order may specify. (4) The right to buy is extinguished if— (a) the tenant fails to comply with an order under subsection (3), or (b) no order having been applied for under section 38H(3) or under subsection (3), missives have not been concluded before the end of— (i) the period of 12 months beginning with the date when the tenant gave notice under section 38E(3) of the tenant's intention to buy, or (ii) such longer period as the Land Court may, on the application of the tenant, order. (38J) (1) The price paid for the transfer of ownership of the land to the tenant is to be paid not later than the final settlement date. (2) The “final settlement date” is the date on which the period, fixed or agreed under section 38F(4) or, as the case may be, specified in an order under section 38I(4)(b)(ii), expires. (3) Where, on the final settlement date, the seller is not able to effect the grant of a good and marketable title to the tenant— (a) the price, or (b) if, for any reason, the price has not been ascertained, such sum as may be fixed by the valuer appointed under section 33, is to be consigned into the Land Court until that title is granted, the tenant gives notice under section 38E(5) to the court of the tenant's decision not to proceed to complete the transaction or, as the case may be, the Land Court orders its release. (4) Except where subsection (3) applies, where the price remains unpaid after the date not later than which it is to be paid, the tenant's right to buy is extinguished. (5) Any heritable security which burdened the land immediately before title is granted to the tenant in pursuance of this section ceases to do so on the registration of that title in the Land Register of Scotland. (6) Where such a security also burdens land other than the land in respect of which title is granted to the tenant, the security does not, by virtue of subsection (5), cease to burden that other land. (7) Unless the creditors holding any such security otherwise agree, the tenant must pay to them according to their respective rights and preferences any sum which would, but for this subsection, be paid to the seller by the tenant as the price for the land. (8) Any sum paid by a tenant under subsection (7) is to be deducted from the sum which the tenant is to pay to the seller as the price for the land. (9) Any legal incapacity or disability of an owner has no effect on the title passed to a tenant to which land has been sold in accordance with this Part. (38K) (1) Where a right to buy is extinguished under section 38E(6), 38I(4) or 38J(4), the tenant may acquire a subsequent right to buy the same land or any part of it under section 28(1) but only if the conditions mentioned in subsection (2) are met. (2) Those conditions are that— (a) the period of 12 months from the extinguishing of the right to buy under section 38E(6), 38I(4) or 38J(4) has expired, or (b) before that period has expired— (i) the land is transferred to another person whether under an order for sale or otherwise, and (ii) that person requires to give notice under section 26 in relation to a subsequent transfer. (38L) (1) This section applies where a tenant's right to buy land in respect of which an order for sale has been made is extinguished under section 38E(6), 38I(4) or 38J(4). (2) The tenant may, before the expiry of the period mentioned in subsection (3), apply to the Land Court for the order for sale to be varied to allow the land in respect of which the order has been made to be offered for sale on the open market. (3) That period is the period of 28 days beginning with the date on which the right to buy was extinguished. (4) The tenant must give notice of the application— (a) to the owner, (b) where there is a heritable security over an interest in the land to which the application relates, to the creditor who holds the security, (c) to such other persons as the Scottish Ministers may prescribe by regulations. (5) The Land Court may, if it considers it appropriate in all the circumstances, grant the application and vary the order for sale to require the land to be offered for sale on the open market. (6) Where— (a) no application is made under subsection (2), or (b) the Land Court refuses such an application, the order for sale ceases to have effect. (38M) (1) The Scottish Ministers may by regulations make further provision about the sale of land in relation to which the Land Court has, under section 38L, varied an order for sale to allow the land to be offered for sale on the open market. (2) Regulations under subsection (1) may in particular include provision about— (a) the appointment of a person to sell the land, (b) the valuation of the land (including the appointment of a valuer, who need not be a different person to the person appointed to sell the land), (c) the procedure for the sale of the land (including sale by private bargain or by public roup), (d) the period within which the land is to be sold (including provision for applications to the Land Court to extend such a period), (e) the persons to whom the land cannot be sold, (f) the powers of the person appointed to sell the land, including powers to adjust, execute or deliver any deeds or other documents necessary to complete the transfer of ownership of the land, (g) the duties of the person appointed to sell the land, which must include— (i) a duty to ensure that the price at which the land is sold is the best that can reasonably be obtained, and (ii) a duty to compensate any person who incurs a loss caused as a result of the appointed person's negligence in the sale of the land, (h) the distribution of the proceeds of sale, (i) liability for any expenses incurred by the person appointed to sell or value the land, (j) reports by the person appointed to sell the land to the Land Court, (k) the effect on any rights such as are mentioned in section 38D(3), (l) the effect on any heritable securities which burden the land in respect of which the order for sale has been made, (m) what happens if the land is not sold within a period specified in the regulations. (3) Regulations under subsection (1) may apply the provisions of this Act, that apply to the sale of land comprised in a lease to a tenant by virtue of an order for sale, to the sale of such land on the open market, with or without modifications. (4) Regulations under subsection (1) may modify any enactment (including this Act). (38N) (1) This section applies where a third party buys the land comprised in the lease of a 1991 Act tenancy by virtue of an order for sale varied under section 38L. (2) During the period of 10 years beginning with the date the third party acquired title to the land, sections 22 to 24, 26 and 43 of the 1991 Act have effect in relation to the tenancy subject to the following modifications. (3) Section 22(2) has effect as if— (a) paragraphs (a) and (b) were omitted, (b) for paragraph (c) there were substituted— (c) the Land Court, on an application made— (i) by a landlord who bought the land constituting the tenancy by virtue of an order for sale varied under section 38L of the Agricultural Holdings (Scotland) Act 2003 Act, (ii) not more than 9 months before the giving of the notice to quit, granted a certificate under section 26(1) that the tenant was not fulfilling the tenant's responsibilities to farm the holding in accordance with the rules of good husbandry, (c) for “any of paragraphs (a) to (f)” there were substituted “ any of paragraphs (c) to (f) ”. (4) Section 24(1)(e) has effect as if, for “not falling within section 22(2)(b) of this Act”, there were substituted “ and, in a case where the use requires permission under the enactments relating to town and country planning, such permission has been obtained ”. (5) Section 26 has effect as if, after subsection (1), there were inserted— (1A) The Land Court must not grant a certificate under subsection (1) where subsection (1B) applies. (1B) This subsection applies where— (a) the application under subsection (1) is made by a landlord who bought the land constituting the tenancy by virtue of an order for sale varied under section 38L of the Agricultural Holdings (Scotland) Act 2003 Act (the “2003 Act”), and (b) the tenant's failure to farm in accordance with the rules of good husbandry is attributable to a material breach of the former landlord's obligations in relation to the tenant on the basis of which the Land Court made the order under section 84(1)(b) of the 2003 Act referred to in section 38A(1)(a) of that Act. (6) Section 43 has effect as if, for subsection (2), there were substituted— (2) Compensation is not payable under this section where— (a) the notice to quit relates to land being permanent pasture which the landlord has been in the habit of letting annually for seasonal grazing or of keeping in the landlord's own occupation and which has been let to the tenant for a definite and limited period for cultivation as arable land on condition that the tenant must, along with the last or waygoing crop, sow permanent grass seeds, or (b) the application of section 22(1) to the notice to quit is excluded by any of paragraphs (c) to (f) of subsection (2) of that section. (38O) (1) This section applies where— (a) a tenant or, as the case may be, a third party (the “original buyer”) buys land under an order for sale made in respect of the land, and (b) the land is subsequently sold— (i) before the end of the period of 10 years beginning with the date on which the original buyer acquired title to the land (the “original date”), (ii) at a price higher than the price paid by the original buyer to the person from whom the land was bought (the “original seller”). (2) The original buyer must pay to the original seller a proportion of the difference between the price at which the land is subsequently sold and the price paid by the original buyer to the original seller. (3) The proportion of the difference which must be paid to the original seller is to be— (a) 100 per cent where the subsequent sale occurs before the end of the period of 5 years beginning with the original date, (b) 66 per cent where it occurs after the end of that period but before the end of the period of 8 years beginning with that date, (c) 33 per cent where it occurs after the end of the period of 8 years beginning with that date. (4) The Scottish Ministers may by regulations make further provision about the payment that the original buyer must make to the original seller. (5) Regulations under subsection (4) may in particular include provision about— (a) the exclusion, for the purposes of subsection (2), of so much of the price at which the land is subsequently sold as is attributable to an increase in the value of the land resulting from such causes as may be specified in the regulations (which may include improvements of the kind mentioned in schedule 5 of the 1991 Act), (b) payment where part only of the land bought under the order for sale is subsequently sold within the period of 10 years mentioned in subsection (1)(b), (c) the granting of standard securities over the land in relation to the liability to make a payment under this section (including the priority of such securities in relation to any other securities over the land), (d) circumstances in which no liability to make a payment under this section arises. (38P) (1) Any person, including an owner or former owner of land comprised in the lease of a 1991 Act tenancy, who has incurred loss or expense— (a) in complying with the requirements of this Part following the making of an application by a tenant under section 38A(2) or 38L(2), or (b) where the tenant gave notice under section 38E(3) of the tenant's intention to buy the land, as a result of the failure of the tenant or the seller to complete the purchase, is entitled to recover the amount of that loss or expense from the Scottish Ministers. (2) The Scottish Ministers may by regulations make provision about— (a) the losses and expenses which may and may not be compensated, (b) the procedure for claiming compensation (including who determines whether compensation is payable), (c) the amount of compensation payable (including the manner in which such compensation is calculated). (3) Where, at the expiry of such period of time as may be fixed for the purposes of this subsection by regulations under subsection (2)(b), any question as to whether compensation is payable or as to the amount of any compensation payable has not been settled as between the parties, either of them may refer the question to the Lands Tribunal for Scotland.

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CHAPTER 5 — Rent review

1991 Act tenancies: rent review

1991 Act tenancies: rent review

101

• (1) The 1991 Act is amended as follows.

• (2) For section 13 (variation of rent) substitute—

(13) Schedule 1A makes provision for review of the rent payable in respect of an agricultural holding.

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• (3) After schedule 1 insert—

SCHEDULE 1A (1) (1) The landlord of an agricultural holding to which this paragraph applies may initiate a review of the rent that is to be payable in respect of the holding by serving a notice in writing on the tenant of the holding. (2) The tenant of such an agricultural holding may initiate such a review by serving a notice in writing on the landlord of the holding. (3) A notice served under sub-paragraph (1) or (2) is a “rent review notice”. (4) This paragraph applies to an agricultural holding in respect of which— (a) the lease was entered into before 27 November 2003, or (b) the lease— (i) was entered into in writing on or after that date but prior to the commencement of the tenancy, and (ii) expressly states that this Act is to apply in relation to the tenancy. (2) (1) A rent review notice must be dated and state the following— (a) the names and designations of the landlord and the tenant of the agricultural holding, (b) the name (if any) and the address of the holding or such other description of the holding as will identify it, (c) the rent currently payable in respect of the holding, (d) the rent that the person serving the notice proposes should be payable, (e) the date by which the landlord and the tenant must reach agreement as to what the rent payable should be (the “rent agreement date”). (2) The rent review notice must be accompanied by information in writing explaining the basis on which the rent proposed by the person serving the notice has been calculated. (3) For the purposes of sub-paragraph (1)(e), the rent agreement date stated in the rent review notice must not fall— (a) earlier than 12 months from the date on which the notice is served, or (b) later than 2 years from that date. (4) The Scottish Ministers may by regulations make further provision about— (a) the form and content of rent review notices, (b) the information that must or may accompany them. (5) Regulations under sub-paragraph (4) are subject to the negative procedure. (3) (1) A rent review notice may not be served under paragraph 1 if the rent agreement date stated in the notice would fall before the end of the period of 3 years beginning with the latest of— (a) the commencement of the tenancy, (b) the date as from which a previous variation of rent (under paragraph 7(2)(a) or otherwise) took effect, (c) the date as from which a previous determination under paragraph 7(2)(b) that the rent should continue unchanged took effect. (2) For the purposes of sub-paragraph (1)(b), the following are to be disregarded— (a) a variation of rent under section 14, (b) an increase of rent under section 15(1), (c) a reduction of rent under section 31, (d) a variation of rent arising under— (i) the exercise or revocation of an option to tax under schedule 10 of the Value Added Tax Act 1994, or (ii) a change in the rate of value added tax applicable to grants of interests in or rights over land in respect of which such an option has effect. (4) (1) This paragraph applies where— (a) a rent review notice is served under paragraph 1, (b) no agreement has been reached between the landlord and the tenant as to the rent that is to be payable in respect of the holding, and (c) no determination has been made by the Land Court under paragraph 7(2) as to the rent that is to be payable in respect of the holding. (2) The person who served the rent review notice may withdraw it but only with the consent of the recipient of the notice. (5) A rent review notice ceases to have effect on the earliest of the following— (a) the date it is withdrawn, (b) the date the landlord and the tenant reach agreement as to the rent that is to be payable in respect of the holding, (c) where no referral is made to the Land Court under paragraph 6(2), the day after the rent agreement date, (d) where a referral is made to the Land Court under paragraph 6(2), the date on which the Land Court determines under paragraph 7(2) the question of what the rent payable in respect of the holding is to be. (6) (1) This paragraph applies where— (a) a rent review notice is served under paragraph 1, and (b) no agreement has been reached between the landlord and the tenant as to the rent that is to be payable in respect of the holding. (2) The landlord or the tenant of the holding may (whether the sender of the notice or not) refer the question of what the rent payable in respect of the holding should be to the Land Court. (3) The landlord or the tenant may not make such a referral after the rent agreement date. (7) (1) This paragraph applies where a landlord or a tenant makes a referral to the Land Court under paragraph 6(2). (2) The Land Court must determine what the rent payable in respect of the holding is to be as from the rent agreement date and may— (a) vary the rent currently payable in respect of the holding, or (b) determine that the rent should continue unchanged. (3) The rent that is to be payable in respect of the holding is the rent that the Land Court, taking account of all the circumstances, considers is the fair rent for the holding. (4) In determining the fair rent for the holding, the Land Court must have regard, in particular, to— (a) the productive capacity of the holding, (b) the open market rent of any surplus residential accommodation on the holding provided by the landlord, and (c) the open market rent of— (i) any fixed equipment on the holding provided by the landlord, or (ii) any land forming part of the holding, used for a purpose that is not an agricultural purpose. (8) The rent agreed between the landlord and the tenant or, as the case may be, determined in accordance with paragraph 7 is to take effect from the rent agreement date. (9) (1) The Scottish Ministers may by regulations make provision for the purposes of paragraph 7(4)(a) about the productive capacity of agricultural holdings, including— (a) how the productive capacity of an agricultural holding is to be determined, (b) the information to be provided by the landlord and the tenant of a holding to the Land Court to enable the court to have regard to the productive capacity of the holding. (2) Regulations under sub-paragraph (1) are subject to the affirmative procedure. (10) (1) Residential accommodation on an agricultural holding is surplus to the extent that it exceeds what is necessary to provide accommodation for the standard labour requirement of the holding. (2) In determining, for the purposes of paragraph 7(4)(b), whether residential accommodation is surplus the Land Court— (a) may take into account whether the standard labour requirement of the holding varies (seasonally or otherwise), (b) must disregard — (i) any accommodation all or part of which is occupied by the tenant of the holding, (ii) any accommodation if the tenant is prohibited (by the lease or otherwise) from subletting it. (3) But any such prohibition as is mentioned in sub-paragraph (2)(b)(ii) is to be ignored if the tenant has sublet the accommodation by virtue of section 39(3) of the Agricultural Holdings (Scotland) Act 2003. (4) In having regard for the purposes of paragraph 7(4)(b) to the open market rent for any surplus residential accommodation, the Land Court— (a) must take into account all the circumstances, including— (i) the condition of the accommodation and its location, and (ii) where accommodation is occupied by a retired agricultural worker, under an arrangement or agreement between the landlord and the tenant of the holding, at no rent or at a rent that is below what the open market rent for that accommodation would otherwise be, that fact, (b) where the accommodation is not currently let, must disregard that fact. (5) Where regard is had to the open market rent for surplus residential accommodation for the purposes of paragraph 7(4)(b), that accommodation is to be disregarded for the purposes of paragraph 7(4)(c). (6) The Scottish Ministers may by regulations make provision about the standard labour requirement of agricultural holdings, including— (a) how the standard labour requirement of an agricultural holding is to be determined, (b) the information to be provided by the landlord and the tenant of a holding to the Land Court to enable the court to determine the standard labour requirement of the holding. (7) Regulations under sub-paragraph (6) are subject to the affirmative procedure. (11) For the purposes of paragraphs 7(4) and 10(4)(a)(ii), the “open market rent” means the rent at which— (a) any surplus residential accommodation, or (b) any fixed equipment or land used for a purpose that is not an agricultural purpose, might reasonably be expected to be let on the open market by a willing landlord to a willing tenant. (12) (1) This paragraph applies where the Land Court determines under paragraph 7(2) that the rent payable in respect of an agricultural holding (the “new rent”) is to be— (a) 30% or more higher, or (b) 30% or more lower, than the rent currently payable in respect of the holding (the “original rent”). (2) The tenant or the landlord may apply to the Land Court to have the new rent phased in. (3) The Land Court may, if it considers that it would cause the tenant or, as the case may be, the landlord undue hardship were the new rent to be payable from the rent agreement date, order that the new rent be phased in over a 3 year period in accordance with sub-paragraphs (4) to (6). (4) The rent payable in the first year after the rent agreement date is— (a) where sub-paragraph (1)(a) applies, the sum of the original rent and one third of the difference between the new rent and the original rent, or (b) where sub-paragraph (1)(b) applies, the original rent less one third of the difference between the original rent and the new rent. (5) The rent payable in the second year after the rent agreement date is— (a) where sub-paragraph (1)(a) applies, the sum of the original rent and two thirds of the difference between the new rent and the original rent, or (b) where sub-paragraph (1)(b) applies, the original rent less two thirds of the difference between the original rent and the new rent. (6) The rent payable from the third year after the rent agreement date is the new rent. (13) In this schedule— - “open market rent” has the meaning given by paragraph 11, - “rent agreement date” has the meaning given by paragraph 2(1)(e), - “rent review notice” has the meaning given by paragraph 1(3), - “surplus residential accommodation” has the meaning given by paragraph 10.

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Limited duration tenancies, modern limited duration tenancies and repairing tenancies: rent review

Limited duration tenancies, modern limited duration tenancies and repairing tenancies: rent review

102

• (1) The 2003 Act is amended as follows.

• (2) In section 9 (review of rent under limited duration tenancies)—

• (a) in subsection (A1), after “tenancy” insert “ , a modern limited duration tenancy or a repairing tenancy ”,

• (b) in subsection (1), after “tenancy” insert “ or a modern limited duration tenancy ”,

• (c) after subsection (1) insert—

(1A) The rent due as payable under a lease constituting a repairing tenancy is to be reviewed and determined in accordance with this section.

,

• (d) for subsections (2) to (8) substitute—

(2) The landlord may initiate a review of the rent that is to be payable under the lease by serving a notice in writing on the tenant. (3) The tenant may initiate such a review by serving a notice in writing on the landlord. (4) A notice served under subsection (2) or (3) is a “rent review notice”.

,

• (e) the title of the section becomes “ Review of rent under limited duration tenancies, modern limited duration tenancies and repairing tenancies ”.

• (3) After section 9 insert—

(9A) (1) A rent review notice must be dated and state the following— (a) the names and designations of the landlord and the tenant, (b) the name (if any) and the address of the land comprised in the lease or such other description of the land as will identify it, (c) the rent currently payable in respect of the land, (d) the rent that the person serving the notice proposes should be payable, (e) the date by which the landlord and the tenant must reach agreement as to what the rent payable should be (the “rent agreement date”). (2) The rent review notice must be accompanied by information in writing explaining the basis on which the rent proposed by the person serving the notice has been calculated. (3) The Scottish Ministers may by regulations make further provision about— (a) the form and content of rent review notices, (b) the information that must or may accompany them. (9B) (1) On review, the rent payable is the fair rent for the tenancy taking account of all the circumstances and having regard, in particular, to— (a) the productive capacity of the land comprised in the lease, (b) the open market rent of any surplus residential accommodation on the land provided by the landlord, and (c) the open market rent of— (i) any fixed equipment on the land provided by the landlord, or (ii) any land comprised in the lease, used for a purpose that is not an agricultural purpose. (2) In this section and section 9C(4)(a)(ii), the “open market rent” means the rent at which— (a) any surplus residential accommodation, or (b) any fixed equipment or land used for a purpose that is not an agricultural purpose, might reasonably be expected to be let on the open market by a willing landlord to a willing tenant. (3) The Scottish Ministers may by regulations make provision for the purposes of this section about the productive capacity of land comprised in leases of limited duration tenancies, modern limited duration tenancies and repairing tenancies, including how the productive capacity of such land is to be determined. (4) The rent determined in accordance with this section is to take effect from the rent agreement date. (9C) (1) Residential accommodation on land comprised in the lease of a limited duration tenancy, a modern limited duration tenancy or a repairing tenancy is surplus to the extent that it exceeds what is necessary to provide accommodation for the standard labour requirement of the land. (2) In determining whether residential accommodation is surplus— (a) whether the standard labour requirement of the holding varies (seasonally or otherwise) may be taken into account, (b) any accommodation— (i) all or part of which is occupied by the tenant, or (ii) which the tenant is prohibited (by the lease or otherwise) from subletting, is to be disregarded. (3) But any such prohibition as is mentioned in subsection (2)(b)(ii) is to be ignored if the tenant has sublet the accommodation by virtue of section 39(3). (4) In having regard for the purposes of section 9B(1)(b) to the open market rent for any surplus residential accommodation— (a) all the circumstances must be taken into account, including— (i) the condition of the accommodation and its location, and (ii) where accommodation is occupied by a retired agricultural worker, under an arrangement or agreement between the landlord and the tenant, at no rent or at a rent that is below what the open market rent for that accommodation would otherwise be, that fact, (b) the fact that the accommodation is not currently let is to be disregarded. (5) Where regard is had to the open market rent for surplus residential accommodation for the purposes of section 9B(1)(b), that accommodation is to be disregarded for the purposes of section 9B(1)(c). (6) The Scottish Ministers may by regulations make provision about the standard labour requirement of land comprised in leases of limited duration tenancies, modern limited duration tenancies or repairing tenancies, including how the standard labour requirement of such land is to be determined.

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CHAPTER 6 — Assignation of and succession to agricultural tenancies

Assignation

Assignation of 1991 Act tenancies

103

• (1) Section 10A of the 1991 Act (assignation and subletting of tenancy) is amended as follows.

• (2) In subsection (1), for “any of the persons who would be entitled to succeed to his estate on intestacy by virtue of the Succession (Scotland) Act 1964 (c.41)” substitute “ any one of the persons mentioned in subsection (1A) ”.

• (3) After that subsection insert—

(1A) The persons referred to in subsection (1) are— (a) any person who would be, or would in any circumstances have been, entitled to succeed to the tenant's estate on intestacy by virtue of the Succession (Scotland) Act 1964, (b) a spouse or civil partner of a child of the tenant, (c) a spouse or civil partner of a grandchild of the tenant, (d) a spouse or civil partner of a brother or sister of the tenant, (e) a brother or sister of the tenant's spouse or civil partner, (f) a spouse or civil partner of such a brother or sister, (g) a child (including a step-child) of such a brother or sister, (h) a grandchild (including a step-grandchild) of such a brother or sister, (i) a step-child of the tenant, (j) a spouse or civil partner of such a step-child, (k) a descendant of such a step-child, (l) a step-brother or step-sister of the tenant, (m) a spouse or civil partner of such a step-brother or step-sister, (n) a descendant of such a step-brother or step-sister.

.

• (4) In subsection (3), for “The” substitute “ Subject to subsection (3A), the ”.

• (5) After that subsection insert—

(3A) Where the tenant proposes to assign the lease to a person who is a near relative of the tenant, the only grounds on which the landlord can withhold consent to the proposed assignation are the following— (a) that the person is not of good character, (b) that the person does not have sufficient resources to enable the person to farm the holding with reasonable efficiency, (c) subject to subsection (3B), that the person has neither sufficient training in agriculture nor sufficient experience in the farming of land to enable the person to farm the holding with reasonable efficiency. (3B) The ground of objection in subsection (3A)(c) does not apply where the person— (a) is engaged in or will begin, before the expiry of the period of 6 months beginning with the date of the notice under subsection (2), a course of relevant training in agriculture which the person is expected to complete satisfactorily within 4 years from that date, and (b) has made arrangements to secure that the holding is farmed with reasonable efficiency until the person completes that course.

.

• (6) After subsection (5) insert—

(6) In this section and in sections 12A and 12B, “near relative”, in relation to a tenant of an agricultural holding, means— (a) a parent of the tenant, (b) a spouse or civil partner of the tenant, (c) a child of the tenant, (d) a spouse or civil partner of such a child, (e) a grandchild of the tenant, (f) a brother or sister of the tenant, (g) a spouse or civil partner of such a brother or sister, (h) a child of a brother or sister of the tenant, (i) a grandchild of a brother or sister of the tenant, (j) a brother or sister of the tenant's spouse or civil partner, (k) a spouse or civil partner of such a brother or sister, (l) a child of such a brother or sister, (m) a grandchild of such a brother or sister.

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Assignation of limited duration tenancies

104

• (1) The 2003 Act is amended as follows.

• (2) In section 7 (assignation and subletting of limited duration tenancies)—

• (a) in subsection (3), for “The” substitute “ Subject to subsection (3A), the ”,

• (b) after that subsection insert—

(3A) Where the tenant proposes to assign the lease to a person who is a near relative of the tenant, the only grounds on which the landlord can withhold consent to the proposed assignation are the following— (a) that the person is not of good character, (b) that the person does not have sufficient resources to enable the person to farm the land with reasonable efficiency, (c) subject to subsection (3B), that the person has neither sufficient training in agriculture nor sufficient experience in the farming of land to enable the person to farm the land with reasonable efficiency. (3B) The ground of objection in subsection (3A)(c) does not apply where the person— (a) is engaged in or will begin, before the expiry of the period of 6 months beginning with the date of the notice under subsection (2), a course of relevant training in agriculture which the person is expected to complete satisfactorily within 4 years from that date, and (b) has made arrangements to secure that the land is farmed with reasonable efficiency until the person completes that course.

,

• (c) after subsection (5) insert—

(5A) For the purposes of subsection (3A), “near relative”, in relation to a tenant of an agricultural holding, means— (a) a parent of the tenant, (b) a spouse or civil partner of the tenant, (c) a child of the tenant, (d) a spouse or civil partner of such a child, (e) a grandchild of the tenant, (f) a brother or sister of the tenant, (g) a spouse or civil partner of such a brother or sister, (h) a child of a brother or sister of the tenant, (i) a grandchild of a brother or sister of the tenant, (j) a brother or sister of the tenant's spouse or civil partner, (k) a spouse or civil partner of such a brother or sister, (l) a child of such a brother or sister, (m) a grandchild of such a brother or sister.

.

Assignation of modern limited duration tenancies

105

• (1) The 2003 Act is amended as follows.

• (2) After section 7A (as inserted by section 86) insert—

(7B) (1) A lease constituting a modern limited duration tenancy may be assigned by the tenant if, following notice under subsection (2), the landlord consents to a proposed assignation. (2) The tenant must give the landlord a notice in writing of any intention of the tenant to assign the lease; and the notice must include the particulars of the proposed assignee, the terms upon which the assignation is to be made and the date on which it is to take effect. (3) Subject to subsection (4), the landlord may withhold consent to the proposed assignation if there are reasonable grounds for doing so; and, in particular, the landlord may withhold consent if not satisfied that the proposed assignee— (a) would have the ability to pay— (i) the rent due under the lease, or (ii) for adequate maintenance of the land, or (b) has the skills or experience that would be required properly to manage and maintain the land in accordance with the rules of good husbandry. (4) Where the tenant proposes to assign the lease to a person who is a near relative of the tenant, the only grounds on which the landlord can withhold consent to the proposed assignation are the following— (a) that the person is not of good character, (b) that the person does not have sufficient resources to enable the person to farm the land with reasonable efficiency, (c) subject to subsection (5), that the person has neither sufficient training in agriculture nor sufficient experience in the farming of land to enable the person to farm the land with reasonable efficiency. (5) The ground of objection in subsection (4)(c) does not apply where the person— (a) is engaged in or will begin, before the expiry of the period of 6 months beginning with the date of the notice under subsection (2), a course of relevant training in agriculture which the person is expected to complete satisfactorily within 4 years from that date, and (b) has made arrangements to secure that the land is farmed with reasonable efficiency until the person completes that course. (6) Any such withholding of consent (and the grounds for withholding it) is to be intimated in writing to the tenant within 30 days of the giving of the notice under subsection (2); and, if no such intimation is made, the landlord is deemed to have consented to the proposed assignation. (7) For the purposes of subsection (3)(b), what is good husbandry is to be construed by reference to schedule 6 of the Agriculture (Scotland) Act 1948. (8) For the purposes of subsection (4), “near relative”, in relation to a tenant of an agricultural holding, means— (a) a parent of the tenant, (b) a spouse or civil partner of the tenant, (c) a child of the tenant, (d) a spouse or civil partner of such a child, (e) a grandchild of the tenant, (f) a brother or sister of the tenant, (g) a spouse or civil partner of such a brother or sister, (h) a child of a brother or sister of the tenant, (i) a grandchild of a brother or sister of the tenant, (j) a brother or sister of the tenant's spouse or civil partner, (k) a spouse or civil partner of such a brother or sister, (l) a child of such a brother or sister, (m) a grandchild of such a brother or sister.

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Assignation of repairing tenancies

106

• (1) The 2003 Act is amended as follows.

• (2) After section 7C (as inserted by section 93) insert—

(7D) (1) During the repairing period, a lease constituting a repairing tenancy may be assigned by the tenant if, following notice under subsection (2), the landlord consents to a proposed assignation. (2) The tenant must give the landlord a notice in writing of any intention of the tenant to assign the lease during the repairing period; and the notice must include the particulars of the proposed assignee, the terms upon which the assignation is to be made and the date on which it is to take effect. (3) The landlord may withhold consent to the proposed assignation during the repairing period if there are reasonable grounds for doing so; and, in particular, the landlord may withhold consent if not satisfied that the proposed assignee— (a) would have the ability to pay— (i) the rent due under the lease, or (ii) for investment in the land in order to bring it into a state capable of being farmed, after the expiry of the repairing period, in accordance with the rules of good husbandry, or (b) has the skills or experience that would be required properly to manage and improve the land in order to bring it into a state capable of being farmed, after the expiry of the repairing period, in accordance with the rules of good husbandry. (4) The ground of objection in subsection (3)(b) does not apply where the person— (a) is engaged in or will begin, before the expiry of the period of 6 months beginning with the date of the notice under subsection (2), a course of relevant training in agriculture which the person is expected to complete satisfactorily within 4 years from that date, and (b) has made arrangements to secure that the land is farmed with reasonable efficiency until the person completes that course. (5) Any such withholding of consent during the repairing period (and the grounds for withholding it) is to be intimated in writing to the tenant within 30 days of the giving of notice under subsection (2); and, if no such intimation is made, the landlord is deemed to have consented to the proposed assignation. (6) For the purposes of subsection (3), what is good husbandry is to be construed by reference to schedule 6 of the Agriculture (Scotland) Act 1948. (7) After the expiry of the repairing period, section 7B applies to the assignation of a lease constituting a repairing tenancy as to the assignation of a lease constituting a modern limited duration tenancy.

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Succession

Bequest of 1991 Act tenancies

107

In section 11 of the 1991 Act (bequest of lease)—

• (a) in subsection (1), for “his son-in-law or daughter-in-law or to any one of the persons who would be, or would in any circumstances have been, entitled to succeed to the estate on intestacy by virtue of the Succession (Scotland) Act 1964” substitute “ any one of the persons mentioned in subsection (1A) ”,

• (b) after that subsection insert—

(1A) The persons referred to in subsection (1) are— (a) any person who would be, or would in any circumstances have been, entitled to succeed to the tenant's estate on intestacy by virtue of the Succession (Scotland) Act 1964, (b) a spouse or civil partner of a child of the tenant, (c) a spouse or civil partner of a grandchild of the tenant, (d) a spouse or civil partner of a brother or sister of the tenant, (e) a brother or sister of the tenant's spouse or civil partner, (f) a spouse or civil partner of such a brother or sister, (g) a child (including a step-child) of such a brother or sister, (h) a grandchild (including a step-grandchild) of such a brother or sister, (i) a step-child of the tenant, (j) a spouse or civil partner of such a step-child, (k) a descendant of such a step-child, (l) a step-brother or step-sister of the tenant, (m) a spouse or civil partner of such a step-brother or step-sister, (n) a descendant of such a step-brother or step-sister.

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Limited duration tenancies, modern limited duration tenancies and repairing tenancies: succession

108

• (1) Section 16 of the Succession (Scotland) Act 1964 (provisions relating to leases) is amended as follows—

• (a) in subsection (4A), for “or a limited duration tenancy” substitute “ , a limited duration tenancy, a modern limited duration tenancy or a repairing tenancy ”,

• (b) in subsection (4C), for “or a limited duration tenancy” substitute “ , a limited duration tenancy, a modern limited duration tenancy or a repairing tenancy ”,

• (c) in subsection (9)—

• (i) in the definition of “agricultural lease”, for “or a limited duration tenancy” substitute “ , a limited duration tenancy, a modern limited duration tenancy or a repairing tenancy ”,

• (ii) for “and “limited duration tenancy”” substitute “, “limited duration tenancy”, “modern limited duration tenancy” and “repairing tenancy””.

• (2) The 2003 Act is amended as follows.

• (3) In section 21 (bequest of lease)—

• (a) in subsection (1)—

• (i) for “or a limited duration tenancy” substitute “ , a limited duration tenancy, a modern limited duration tenancy or a repairing tenancy ”,

• (ii) for “the tenant's son-in-law or daughter-in-law or to any one of the persons who would be, or would in any circumstances have been, entitled to succeed to the estate on intestacy by virtue of the 1964 Act” substitute “ any one of the persons mentioned in subsection (1A) ”,

• (b) after that subsection insert—

(1A) The persons referred to in subsection (1) are— (a) any person who would be, or would in any circumstances have been, entitled to succeed to the tenant's estate on intestacy by virtue of the Succession (Scotland) Act 1964, (b) a spouse or civil partner of a child of the tenant, (c) a spouse or civil partner of a grandchild of the tenant, (d) a spouse or civil partner of a brother or sister of the tenant, (e) a brother or sister of the tenant's spouse or civil partner, (f) a spouse or civil partner of such a brother or sister, (g) a child (including a step-child) of such a brother or sister, (h) a grandchild (including a step-grandchild) of such a brother or sister, (i) a step-child of the tenant, (j) a spouse or civil partner of such a step-child, (k) a descendant of such a step-child, (l) a step-brother or step-sister of the tenant, (m) a spouse or civil partner of such a step-brother or step-sister, (n) a descendant of such a step-brother or step-sister.

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Landlord's objection to tenant's successor

Objection by landlord to legatee or acquirer on intestacy

109

• (1) The 1991 Act is amended as follows.

• (2) In section 11 (bequest of lease)—

• (a) in subsection (1), for “subsections (2) to (8) below” substitute “ subsections (2) and (3) and to sections 12A to 12C ”,

• (b) in subsection (2), after “this section” insert “ and in sections 12A to 12C ”,

• (c) in subsection (3), for “subsection (4) below” substitute “ section 12A(2) or 12B(2) ”,

• (d) subsections (4) to (7) are repealed,

• (e) in subsection (8), “, or if the bequest is declared null and void under subsection (6) above,” is repealed.

• (3) In section 12 (right of landlord to object to acquirer of lease)—

• (a) in subsection (1)—

• (i) after “this section” insert “ and in sections 12A to 12C ”,

• (ii) for “subsection (2) below” substitute “ section 12A(2) or 12B(2) ”,

• (b) subsections (2) to (5) are repealed,

• (c) the title of the section becomes “ Transfer of lease on intestacy ”.

• (4) After section 12 insert—

(12A) (1) This section applies where the person who gives notice to the landlord under section 11(2) or 12(1) is a near relative of the deceased. (2) The landlord may, within 1 month after the notice is given under section 11(2) or 12(1), give to the person a counter-notice intimating that the landlord objects to receiving the person as tenant under the lease. (3) The only grounds on which the landlord can object to receiving the person as tenant under the lease are the following— (a) that the person is not of good character, (b) that the person does not have sufficient resources to enable the person to farm the holding with reasonable efficiency, (c) subject to subsection (4), that the person has neither sufficient training in agriculture nor sufficient experience in the farming of land to enable the person to farm the holding with reasonable efficiency. (4) The ground of objection in subsection (3)(c) does not apply where the person— (a) is engaged in or will begin, before the expiry of the period of 6 months beginning with the date of the notice under section 11(2) or 12(1), a course of relevant training in agriculture which the person is expected to complete satisfactorily within 4 years from that date, and (b) has made arrangements to secure that the holding is farmed with reasonable efficiency until the person completes that course. (5) If the landlord gives a counter-notice under subsection (2), the landlord may, within 1 month after the counter-notice is given, apply to the Land Court for an order— (a) in the case of a legatee, declaring the bequest to be null and void, (b) in the case of an acquirer, terminating the lease. (6) If, on the hearing of such an application, any ground of objection stated by the landlord is established to the satisfaction of the Land Court, it must make an order— (a) in the case of a legatee, declaring the bequest to be null and void, (b) in the case of an acquirer, terminating the lease with effect as from such term of Whitsunday or Martinmas as the court specifies. (7) In any other case, the Land Court must make an order declaring the legatee or, as the case may be, the acquirer to be the tenant under the lease and the lease to be binding on the landlord and on the legatee or acquirer, as landlord and tenant respectively, as from the date of the death of the deceased tenant. (8) Where the landlord does not apply to the Land Court under subsection (5)— (a) the counter-notice ceases to have effect on the expiry of the period of 1 month mentioned in that subsection, and (b) the lease is to be binding on the landlord and on the legatee or acquirer, as landlord and tenant respectively, as from the date of the death of the deceased tenant. (12B) (1) This section applies where the person who gives notice to the landlord under section 11(2) or 12(1) is not a near relative of the deceased. (2) The landlord may, within 1 month after notice is given under section 11(2) or 12(1), give to the person a counter-notice intimating that the landlord objects to receiving the person as tenant under the lease and— (a) in the case of a legatee, declaring the bequest to be null and void, (b) in the case of an acquirer, terminating the lease with effect as from such term of Whitsunday or Martinmas as the landlord specifies, being a term at least 1 year but no more than 2 years from the date of the counter-notice. (3) If the landlord gives a counter-notice under subsection (2), the person may, within 1 month after the counter-notice is given, appeal to the Land Court. (4) If, on the hearing of such an appeal, any reasonable ground stated by the person— (a) in the case of a legatee, for not declaring the bequest to be null and void, (b) in the case of an acquirer, for not terminating the lease, is established to the satisfaction of the Land Court, it must make an order quashing the counter-notice. (5) In any other case, the Land Court must make an order confirming the counter-notice. (12C) (1) Pending any proceedings under section 12A or 12B, the legatee or acquirer is to have possession of the holding provided the executor in whom the lease is vested under section 14 of the Succession (Scotland) Act 1964 consents. (2) Subsection (1) does not apply where the Land Court, on the application of the landlord and on cause shown, directs otherwise. (3) In the case of a legatee, if the bequest is declared null and void— (a) under section 12A(6)(a), (b) by virtue of a counter-notice under section 12B(2), no appeal to the Land Court having been made under section 12B(3), or (c) by virtue of the Land Court confirming such a counter-notice on such an appeal, the right to the lease is to be treated as intestate estate of the deceased tenant in accordance with Part 1 of the Succession (Scotland) Act 1964. (4) In the case of an acquirer, if the lease is terminated— (a) under section 12A(6)(b), (b) by virtue of a counter-notice under section 12B(2), no appeal to the Land Court having been made under section 12B(3), or (c) by virtue of the Land Court confirming such a counter-notice on such an appeal, that termination is to be treated, for the purposes of Parts 4 and 5 of this Act (compensation), as termination of the acquirer's tenancy of the holding. (5) But nothing in this section is to entitle the acquirer to compensation for disturbance.

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• (5) Section 25 (termination of tenancies acquired by succession) is repealed.

CHAPTER 7 — Relinquishing and assignation of 1991 Act tenancies

Tenant’s offer to relinquish 1991 Act tenancy

110

• (1) The 1991 Act is amended as follows.

• (2) After section 32 insert—