Leasing Land

Freddy learns about leasing land


After a busy few months on the farm, Farmer Freddy iss taking a well-earned day off and was meeting up with Pebbles for lunch in town.

“How’s everything going?” Pebbles asks. “You’re looking a bit tired, Dad!”

“I am,” Freddy sighs, “I have to wonder if I am getting too old for this farming business. I’m not quite ready to quit work yet though, what would I do all day? Play bowls?  No thanks”.

“Have you considered downsizing?” Pebbles asks.  “You could always lease out the block of land across the road to someone.”

A light bulb went off in Freddy’s head and he remembers a conversation he recently had with Farmer Joe down the road about him needing more space for grazing out his replacement heifers but there was nothing around.

“I’ve got it,” Freddy exclaims with excitement, knocking over his cup of tea as he practically leaps out of his chair.

“Got what,” Pebbles queries, wondering just what had got Freddy so excited.

“I will lease the block across the road to Joe, he told me he was looking for something. I had better call him straight away.” Freddy was now bubbling with excitement.

“Hold on a moment,” Pebbles tells Freddy. “There are a few things you need to think about before you talk to Joe.”

“You need to think about the terms that you want recorded in the lease like for instance: the size of the land you wish to lease; how long you wish to lease the land for; responsibilities of the lessee and what maintenance they are required to do; and of course how much you are going to rent the land out for.”

“It would be useful to get a Valuer out to have a look at the land and give a market rental appraisal.”

Freddy takes a deep breath and ponders all of the information he had just been told by Pebbles.

“Well that all does sound quite sensible,” says Freddy.  “Perhaps I will give it some thought, and you can prepare something for me to give to Joe to look over.”

“Of course,” says Pebbles, surprised at Freddy taking a practical approach to something for a change.

“Shall we order another cup of tea,” says Freddy, making the most of his well-earned day off.

 

The content of this document is necessarily general and readers should seek specific advice on particular matters and not rely solely on this document.

If you would like more information on any of the topics in this document, please contact your usual Auld Brewer Mazengarb & McEwen adviser. 

 

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