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Tenant Farming Commissioner issues Guide to Essential Features of the Modern Limited Duration Tenancy

Scotland’s Tenant Farming Commissioner, Bob McIntosh, has issued a Guide to the Modern Limited Duration Tenancy to summarise the essential features of the legislation for tenants and landlords.

The Modern Limited Duration Tenancy (MLDT) came into effect on 30 November 2017 and continues the efforts made by the Scottish Government to provide tenants and landlords with a range of flexible tenancy options.

Bob McIntosh explains:

“The Modern Limited Duration Tenancy 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 will now be the main vehicle for letting land for more than 5 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 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 for a break clause at 5 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.

“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.”

The Guide to the Essential Features of the Modern Limited Duration Tenancy can be found on the Land Commission’s website www.landcommission.gov.scot.