Island Life Magazine Ltd August/September 2007 | Page 88

life

EQUESTRIAN

Thinking about
buying a yard
and/or land?
by Mark Charter

In the last
issue Kerry
touched on
the legalities
of renting a
yard and the
importance
of having an
appropriate formal written
agreement in place and not
simply relying on the age-old
horseworld tradition of a
handshake! On the flipside,
you may be lucky enough to
buy your equestrian property.
Whether you are looking to buy
a two-acre pony paddock or a
200-acre polo estate it is vitally
important that your legal adviser
specialises in equestrian/

rural property. This is not your
‘bog-standard’ purchase of a
2/3 bed house with a garden
– you are purchasing land and
your intention is to carry out
equestrian activities on this
land. You want to know that
your adviser has experience
of high value properties that
involve land and not just
simply a large garden!
Factors buyers (or indeed
sellers) need to be aware of
when considering purchasing
their equestrian property,
whether for residence or as
a commercial venture are:

0- agri-environment

schemes – these can affect
larger properties and may affect
your proposed use of the land

but the consequences of
compliance requirements
must be considered

0- business transfer – if the
acquisition includes an element
of an equestrian business you
need to consider VAT treatment
and employees’ rights under
employment legislation

0- taxation – you cannot
assume that your estate will
be eligible for Agriculture
Property Relief (Inheritance
Tax), or for a seller that his
Principal Private Residence
Relief makes him immune from
any Capital Gains Tax Liability

0- existing human or equine/
animal occupation – check that
there are no rights in favour of
others, which will result in long
term occupation of the property
you would not want. This could
include a groom living at the
property who may be entitled
to an agricultural occupancy
or indeed grazing agreements
granted to a local sheep herd
0- planning permission

– equestrian buildings and
facilities are not synonymous
with agricultural development.
Check planning permission
exists for equestrian facilities

0- public access – public
access and rights of way should
be checked carefully. For
example a BOAT (Byway Open
to All Traffic) used regularly
by motorbikes next to a brood
mares field may not be a happy
combination or indeed, a public
footpath running through the
middle of your dressage arena!
0- Single Farm Payment
Entitlement – the seller
may have such Entitlement
to sell or transfer to you,
which may appear attractive,
88

0- water supply – equestrian
properties can be high users
of water. If the property is
reliant on a private supply and/
or abstraction you must check
that all the necessary rights
and consents are available to
ensure that supply continues
Conclusion
Your legal adviser will carry
out all the necessary checks
and fully report to you before
you exchange contracts for
the purchase. Hopefully, the
report will confirm that the
land / property can be used
for exactly what you want it
for. But, if not, at least you are
fully aware of what the land is
suitable for before you hand
over your hard-earned cash!
Kerry Dovey
Solicitor in the Equine law team
at Blake Lapthorn Tarlo Lyons
Tel: [phone]

Island Life - www.islandlife.tv