Page 7 - ALG Issue 2 2022

legal matters
Different types of Allotment Agreements
Allotment plots can be let as ‘direct let’ sites where the landlord, council or otherwise have a tenancy agreement directly with the plotholder; this will be in the format of an agreement for 12 months.
Many allotment associations take
on some form of self / devolved management. In this instance, the agreement will be between the landlord and the association in the form of either a combined lease with management responsibilities or lease for the land and separate management agreement. The term of the lease available varies between 5 years to 50 years in some instances. The agreement between the parties will contain a clause to allow the association to sub-let to the individual plotholders.
A term of lease over 7 years would need to be registered by the association under a compulsory scheme with the Land Registry. This protects the Tenant Association to obtain a right enforceable against third parties.
WHO SHOULD SIGN THE TENANCY AGREEMENT?
In the case of a direct let tenancy agreement, it would be the plotholder.
Where an association is taking on
the agreement, as an unregistered group (not limited company) with no legal identity, then Holding Trustees would have to be appointed and the Association’s Constitution should reflect the provision for this to happen. There should be provision for trustees to resign or be removed also for new trustees to be appointed. A minimum of two trustees should be appointed to sign the lease or the landowner may request three / four.
Another option would be for the association to enter into incorporation (become a limited company). There are a number of options available,
and this may vary depending on the circumstances of the association. NAS will give advice to members who are entering into new agreements, taking on self / devolved management, or considering ownership of land.
HEADS OF TERMS
A tenancy agreement / lease is a contract between parties and, like any other arrangement of this kind, is
negotiable. During such negotiations, it may be appropriate for the landowner to produce a Heads of Terms document. This will generally cover the main clauses to be included, such as the term of the lease, the rent, the area of the land, access, use of the land, insurance and termination.
WHAT NEEDS TO BE INCLUDED IN A TENANCY AGREEMENT?
As an individual on a direct let site, when taking on a tenancy agreement, the individual is entering into a legally binding document. The landowner of the site needs to ensure that the land is managed in a way outlined within the agreement. Therefore, the agreement will outline to the tenant exactly what can and cannot be done with the plot; this is an important part of having an allotment.
The terms and conditions required by law in an agreement will include:
• The names and addresses of the parties who form part of the
Many
associations
negotiate
peppercorn
rents,
whereby
they do not
pay any
rent to the
Allotment
Authority
and are then
able to use
the money
so much in layout and facilities it is difficult to produce an agreement to suit all situations, so the NAS draft has a schedule containing many clauses which can be used on a ‘pick and mix’ basis.
The National Allotment Society have
a questionnaire for associations considering devolved management. This will help the group to consider in detail the obligations of taking on the running of the site. Many associations negotiate peppercorn rents, whereby they do not pay any rent to the Allotment Authority and are then able to use the money to run and maintain the site.
Public Liability Insurance (PLI) is
an important aspect for a devolved managed group. All activities undertaken carry an element of risk and allotment sites are no exception. Without PLI, an allotment association and its individual members may be liable for claims made where someone is injured, and the claimant can prove the negligence of the association.
In many cases Employers Liability Insurance should also be considered, as it may be possible that volunteers could be classed as an employee. It is not the PAYE aspect that is considered, it is how much control there is over the way in which the work is carried out.
Please contact Head Office if you require assistance with your agreements – 01536 266 576.
Liz Bunting, Legal and Operations Manager
to run and agreement. maintain
• The area of land included with the agreement.
• The term of the agreement, with an association to plotholder, or council to plotholder agreement; this will generally be a 12-month term.
• The amount of rent payable per annum and what extras may be included e.g., payment of water.
• The date the rent is due.
• The tenants’ obligations for the plot, including erection of sheds and greenhouses, preventions of causing nuisance or annoyance to other plotholders. The agreement will also include prohibition of trade or business from the allotment, keeping of hens and rabbits and in some instances, bees.
• The lease will also include the landlord’s obligations to the tenants, which will include a right of exclusive possession where the tenants observe the agreement.
The lease will also include a termination clause (determination of tenancy) and outline the events that may lead to
a Notice to Quit under the terms of
the agreement. Allotment sites vary
the site
NAS have produced a webinar covering “Your New Lease” and also ‘Incorporation” and we are working with Chris Knott on a trustee webinar, which should be available shortly.
Allotment and Leisure Gardener 7