FARMERS and landowners engaged in Limited Duration Tenancies are being warned to make sure that they are aware of the correct notice provisions for their tenancies, when and if they wish to terminate such arrangements.
LDTs were introduced by the Land Reform (Scotland) Act 2003, and have been commonly utilised since as a letting arrangement. On November 30, they were superseded by the new Modern Limited Duration Tenancy, which could result in more parties looking at their options and considering if they wish to end current LDT arrangements. They should also ensure that where LDTs are not terminated, they are aware of the duration of any continuation they are operating under.
NFUS legal policy manager Gemma Cooper commented: "Parties who are engaged in LDTs should be clear about the notice requirements for these tenancies, and ensure that these are adhered to. For landlords, these tenancies have a ‘double notice’ provision, this requires service of two notices over a three year period.
“The first notice is served not more than three and not less than two years before the expiry of the term or continuation. Following this, once 90 days has elapsed, a second notice is required which is not more than two years and not less than one year before the intended end date of termination or continuation," she explained. “For tenants, there is a single notice provision which requires service of a notice not more than two years and not less than one year before the expiry of the term or continuation.
“Some parties may wish to continue on their LDT, and where there are no notices served – or the correct notice procedure is not followed – the LDT will roll on for a further three year period.
“It is very important from a business planning perspective that both landlords and tenants are aware of the remaining term on their LDT, and plan accordingly for this. Parties may wish to enter discussions about their arrangements, which they may choose to leave as they are, or they may wish to consider moving to the new MLDT style of tenancy."
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