life - EQUESTRIAN
Thinking of
renting a yard?
by Mark Charter
As equestrianism grows
into one of the nation’s
favourite sports, more
and more facilities are
required to cater for the
increasing number of
equines and their owners.
Given the escalating cost of buying
property with equine facilities,
the alternative solution for many
is to rent. Suitable property-to-let
ranges from the one-acre pony
paddock with a field shelter to
the purpose-built competition
yard with an indoor school and a
horse-walker and everything in
between. In view of the decline in
agricultural food production in this
country, the market has seen an
increasing supply of farmland and
buildings being let for equestrian
use. If you are thinking of leasing
property for equine use you
need to consider the following:
The legalities
The horse-world is infamous for
agreements formed by the shake
of a hand without so much as a
scrap of paper documenting what
has been agreed. Whether you are
letting a two-acre pony paddock
or a 200-acre polo yard, it is vital
that you have the correct legallybinding agreement setting out
the parties’ intentions. Without
an agreement, particularly as a
landlord or land owner, what you
thought was a temporary informal
arrangement can amount to a
business tenancy with security of
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tenure for the tenant. This
could make it difficult and
expensive for a landlord to
regain vacant possession.
Business lease
If you intend to rent a yard for
a commercial purpose, the most
appropriate form of lease in most
cases will be a Business Lease,
which is excluded from the
Landlord and Tenant Act 1954
Security of Tenure provisions.
The lease will set out clearly the
landlord’s and tenant’s obligations
and protects both. For example,
if the lease is fairly short such
as a one-year term, you would
not normally expect the tenant
to replace the ménage surface.
However, if the lease is for a longer
term, maintenance of the buildings
and ménage would be usual.
When you agree the length
of the lease, unless there is a
provision to bring the letting to
an end before the end of the term,
you will be contractually bound
to pay the rent and observe the
tenant’s covenants until the end
of the term. So if you are signing
up to a long lease, ensure there are
break clauses in place to terminate
the lease if your business runs
into financial difficulties or
your circumstances change.
Below are typical elements which
should be included in the lease:
• term
• rent + VAT
• permitted use
• alterations
• who is responsible for
buildings insurance
• clause limiting liability
for landlord
• water/services/rates expense
• whether the parties can
bring the lease to an end
• whether the horses have
to belong to the tenant or are
third party animals included
• restrictions on dogs,
parking, vehicular access
• rent review
• renewal
• assignment to a third party
• repairs – who is responsible
• maintenance of fields
• who will apply for
planning if building works
are to be carried out
• references
The above list is not exhaustive
but is a helpful guide when
you are negotiating a lease.
Grazing licence
On a smaller scale, if you are
considering taking on a field for
your ponies for your own use,
a grazing licence may be more
appropriate. A grazing licence
usually permits you to graze the
land and normally would exclude
commercial activities. Grazing
licences are temporary in nature
and should run for less than a year.
Under a licence, you would not
normally be expected to carry out
improvements such as fencing and
hedge laying. It is important that
if you own land and are issuing
a licence that you do not include
provisions in the licence which are
more akin to a tenancy agr eement,
otherwise you may find yourself
unwittingly granting a tenancy
which was never intended.
If you are taking on a licence
ensure that you confirm with
the landowner whether you
will be responsible for paying
for the water supply (if any)
to the field and check if the
supply has a water meter.
Conclusion
Taking on your own premises
can be the ideal step from
keeping your horse at livery, but
you must ensure that you have
the correct legal agreements
in place so that you don’t find
yourself trapped in an agreement
with no means of escape.
Kerry Dovey
Solicitor in the Equine law team
at Blake Lapthorn Tarlo Lyons
T: 01489 555274
E: [email protected]
www.bllaw.co.uk/equine
Sponsored by Froghill and Brickfields