CHANGES in legislation for tenants and landlords have prompted the publication of a new Guide to the Essential Features of the Modern Limited Duration Tenancy.
Scotland’s Tenant Farming Commissioner, Bob McIntosh, issued the guide to MLDTs, which came into effect on November 30, 2017, replacing Limited Duration Tenancies, as part of ScotGov's efforts to provide tenants and landlords with a range of flexible tenancy options.
Dr McIntosh explained: “The MLDT is intended to offer tenancy options which help make investment by the tenant worthwhile but not of such duration as to deter landlords from letting land. It is now be the main vehicle for letting land for more than five years.
"The MLDT has increased flexibility in respect of agreement over issues such as the rent review mechanism and the maintenance and renewal of fixed equipment and it greatly extends the range of people to whom the tenancy may be bequeathed or assigned. While normally having a minimum term of 10 years, provision is available in the MLDT for a break clause at five years in the case of a new entrant.
"It is to be hoped that this new form of tenancy will lead to an increase in the number of tenancies being created and renewed and will help landlords and tenants to develop a constructive and mutually beneficial business relationship," said the TFC.
“Whilst every care has been taken to ensure that this guide reflects the main features of the legislation, tenants and landlords are advised to obtain independent legal advice relevant to their circumstances.”
Scottish Tenant Farmers Association chairman Christopher Nicholson commented: “This is a welcome addition to the TFC’s growing stable of codes of practice and advice notes. Tenancy legislation is complicated and the new guidance gives an easy to read explanation of this new form of letting.
"We hope that MLDTs will soon become the norm in letting land and we are pleased to see signs that some of the more forward-looking landowners are on the point of entering into these tenancies, some for substantial periods on time," he added.
The guide can be found on the Land Commission’s website www.landcommission.gov.scot.
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