4 Application for tenancy

8.81 The nominated successor must, within one month following service of the retirement notice, apply to the Agricultural Land Tribunal for a direction entitling him to a tenancy of the holding.

(a)Suitability of the nominated successor

8.82 If the Tribunal is satisfied that the nominated successor is ‘eligible’ for succession they must then determine whether he is in their opinion a ‘suitable’ person to become tenant of the holding.¹⁴⁷ When assessing the applicant’s suitability they must have regard to all relevant matters including:

(a)The extent to which he has been trained in, or had practical experience of, agriculture,

(b)His age, physical health and financial standing,

(c)The views (if any) stated by the landlord as to his suitability.¹⁴⁸

8.83 Although these three criteria must be considered in every case, the tribunal’s assessment of the applicants suitability is at large and can be based on a wide range of other matters, providing they are ‘relevant’ to his suitability to become tenant of the holding. So, for example, the fact that the landlord had offered the applicant a ten year farm business tenancy of the holding, if he withdrew his application for retirement succession, was considered to be not only relevant but determinative of this question in one recent case.¹⁴⁹ The tribunal took the view that the applicant could not be suitable to become a tenant of the holding under a farm business tenancy, and at the same time unsuitable to be the tenant of an agricultural holding.¹⁵⁰

8.84 Before deciding the applicant’s suitability to take a direction for succession to the holding, the Tribunal must afford the landlord an opportunity to state his views as to the suitability of the applicant. The onus of proof as to suitability is on the nominated successor.

(b)Greater hardship

8.85 If the nominated successor is both ‘eligible’ and ‘suitable’ he is prima facie entitled to succeed to the tenancy. The landlord has one further defence, however. By virtue of s 53(8) the tribunal must give a direction for succession to an eligible/suitable applicant, unless, on an application made by the landlord, it appears that greater hardship would be caused by giving the direction than by refusing the application.¹⁵¹ This will be a question of fact for the tribunal.

(c)Effect of Dismissal of Application

8.86 If the application for succession is dismissed the retirement notice is treated as of no effect. As we have seen, the tenant will be precluded from serving a fresh notice specifying an alternative successor. It is therefore advisable to ensure, before serving a retirement notice, that the nominated successor is both eligible, and is likely to be adjudged a suitable person to succeed to the tenancy. If the application is withdrawn at some stage prior to its final determination, then it is treated as if it had never been made.¹⁵² In the latter case, the retiring tenant will be able to serve a further retirement notice, as the bar on further retirement notices only applies where a notice has been followed by an application to the Tribunal by the nominated successor, and only continues while that application is outstanding or where it is dismissed.