3 Tenancies for two years or more
5.46 By virtue of s 3 a tenancy of an agricultural holding for a fixed term of two years or more continues, after the date on which its fixed term expires, as a tenancy from year to year.
The anniversary date of the yearly tenancy thus created will be fixed on expiry of the fixed term, at which point it becomes a tenancy from year to year by statutory conversion.119 Statutory extension of a fixed term, into an annual tenancy, did not take place where either party gave written notice of his intention to determine the tenancy not less than one year and not more than two years before the expiry of the tenancy. A notice in this form was, however, deemed to be a notice to quit120 and will be subject to the restrictions in Part I of the 1986 Act. The section does not apply to leases for life converted by s 149(6) of the Law of Property Act 1925 into fixed terms of ninety years.121 So, a tenancy of uncertain duration which was construed as a tenancy for life in accordance with the principle in Mexfield Housing Cooperative v Berrisford,122 would not continue on termination by effluxion of time as a periodic protected tenancy.5.47 In the case of tenancies granted on or after 12 September 1984, special provisions deal with the situation where a tenant with a fixed term died prior to the end of the term. By s 4 of the 1986 Act,123 where the tenant died one year or more before the term date, the tenancy does not continue as a yearly tenancy, and terminates on the date fixed for expiry of the fixed term. By virtue of s 4(2)(b), however, if the tenant dies within the last year of tenancy, and no valid notice to quit has been given, then the tenancy shall continue for 12 months and expire on the first anniversary of the term date. For the purpose of claims for compensation under the 1986 Act, tenancies terminated in accordance with s 4 are treated as having been terminated by landlord’s notice to quit.
5.48 The combined effect of ss 2 and 3 of the 1986 Act is therefore that all agricultural tenancies to which they apply automatically continued on the expiry of their term as tenancies from year to year, except fixed term tenancies where the tenant died before the term date of the fixed term.