Secure Your Financial Interest In A Property By Getting Legal Advice

Secure Your Financial Interest In A Property By Getting Legal Advice

A man spent hundreds of thousands of pounds renovating a country property and a barn so he could use them for holiday lets. However, as he had not sought legal advice he lost all of the money because he had no long- term secure tenancy.

The business man found the empty and neglected property and thought that he could make some money from it. He agreed with the owner who was a farmer to lease the property for a 15 year period and further agreed an annual rent of £400. There was a lease drawn up which was not signed by the farmer and at no time did the business man seek legal advice.

The tenancy continued through the 15 years as agreed and continued for an additional six years with a rent increase to £1,000. The refurbishments and repairs had cost him in excess of £200,000 which had increased the property value from £190,00 to approximately £375,000.

The farmer transferred the property’s freehold to his son, who sought to repossess the property and served a notice to quit. The businessman challenged this and asked that he should be given a new lease because he had an equal interest in the property and relied on the Agricultural Holdings Act 1986. To support his claim.

His claim failed however as the Court determined that the property failed the agricultural holding test. It added that the farmer and son had not given the businessman any indication that he could hold onto the property forever.

The businessman had taken a chance on being able to recover his investments by letting the properties out as holiday homes, unfortunately this wasn’t the case and he had to bear the losses, as the farmer’s son would now be looking to repossess the property. Had the businessman sought legal advice he could have saved himself a great deal of money.

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