Selling farmland with a tenant or grazing licence
You can sell tenanted farmland, but the tenant's rights continue and affect the price and timing. Agricultural Holdings Act tenancies give tenants strong security, farm business tenancies are usually easier to end, and informal grazing licences may or may not be what they seem.
Updated October 2026. General information, not legal or tax advice.
What type of agreement is on my land?
Tenancies granted before September 1995 are usually Agricultural Holdings Act tenancies, which can carry lifetime security and sometimes succession rights. Later agreements are usually farm business tenancies. Informal grazing arrangements may be licences, but long-running ones need checking.
Can I end the tenancy to sell?
Farm business tenancies end in line with their terms: one granted for more than two years needs at least 12 months' written notice before its term date, or it continues from year to year. Agricultural Holdings Act tenancies are much harder to end, though notices can sometimes be served for land needed for development with planning permission. Take specialist advice.
Does the tenant get compensation?
Often, for improvements and in some cases for disturbance. Agreements and statute set the rules. Buyers factor this into their offers.
Should I talk to the tenant early?
Usually yes. Many tenants are open to agreeing terms, especially where part of the land is retained or compensation is fair. Get advice on how to approach it.
This guide is general information for landowners in England and Wales. It isn't legal, tax or financial advice. Take advice from a solicitor, surveyor or accountant about your own situation.