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For well over 20 years I have lived happily in the beautiful countryside of northern England, on the edge of a village adjacent to a farm rearing cows and sheep. The farm is a long-held tenancy.
About 18 months ago, the tenant farmers began expanding, building a large food silo and using the barn nearest to my house for pig bed and breakfast — intensive rearing under cover. The 570 pigs squeal persistently; this is very distressing. The smell is pernicious and lorries deliver and collect pigs and food as early as 5am.
The farmers, when approached, have been hostile. I have kept logs on the advice of the local authority’s environmental health department. I love where I live. Is there anything I can do to stop the pig B&B? Finally, if this is not possible and I have to move, can I be compensated if the value of my house has slumped?
Veronica Carey, special counsel in the real estates disputes team at Withers, says it sounds as though the neighbouring farming activity is distressing and a real nuisance to you.
We use the term “nuisance†in everyday speech, but it has a specific and narrower meaning in law. A nuisance in law is usually caused by a person doing something on their own land which they are lawfully entitled to do, but which becomes a nuisance when the consequences of their action causes an unreasonable interference with the use or enjoyment of neighbouring land.Â
Nuisance in law can extend to objectionable noises and foul odours. Smells caused by keeping pigs have been held to constitute a nuisance in certain circumstances. However, there is no set standard to measure whether noise and odours amount to a nuisance in law. It’s a question of degree whether the interference is sufficiently serious to constitute a nuisance.
You can take action against the tenant farmers yourself. This may ultimately involve having to commence court proceedings if they fail to address your concerns and find a workable solution with you. If you demonstrate that the farming activities are causing an unreasonable annoyance, the court can grant you an injunction (an order requiring the farmers stop or modify their activities) and/or damages to compensate you for inconvenience and any losses, which might involve a reduction in the value of your property.
However, before commencing proceedings, you should collect evidence that the nuisance caused by the pig B&B is substantial. As suggested by the local authority, you should keep an ongoing record of the activity and its effect on you. Time of occurrence, duration and frequency are all relevant factors for the purpose of establishing substantial nuisance. It may also be worth calling in some experts, such as acoustic consultants, who can provide objective measurements and expert opinion that could persuade a court.
You will also want to gather any evidence you can of the surge in pig numbers at the farm and the intensive way the farm is now used. That will help to show that the farmers’ activities are excessive and should be restricted.
You ask if you can claim compensation if you have to sell and move. You should bear in mind that you can only make a claim while you own the affected property. You will lose this if you sell, even if you believe you have sold your property cheaply.
If you can collect sufficient evidence, the local authority may serve a notice on the farmers requiring the abatement of a “statutory nuisanceâ€. This would provide you with an alternative to taking action yourself because the local authority can take enforcement action if the farmers fail to comply with it.
A further alternative is to appeal to the farmers’ landlord. Their tenancy may contain provisions requiring the farmers not to cause a nuisance to neighbouring owners and occupiers. If the landlords own adjoining land, they may be willing to enforce the terms of the tenancy.Â
Should I extend my flat’s leasehold now?
I own a flat in south-west London and the lease has about 82 years left on it. My solicitor has told me I need to extend it before it drops below 80 years, when it will become much more expensive. I read that the government intends to introduce laws making it much cheaper to do so. Should I wait?
Anna Favre, partner at Cripps Pemberson Greenish, says that in January Robert Jenrick, the housing secretary, announced the government’s intention to introduce radical reforms to leasehold enfranchisement in England and Wales to make it easier and cheaper for leaseholders to extend their lease or buy their freehold. Promises included introducing rights for flat leaseholders to extend their lease to 99 years at zero ground rent and introducing an online calculator to assess the price of extending a lease.
Most controversially is the proposed abolition of “marriage value†which is set to wipe out an estimated £1bn of value from landlords’ assets. Under the current law, when a lease drops below 80 years the premium to extend the lease rises because “marriage value†becomes payable.
Our next question
My partner passed away last year and left me his portfolio, which consists primarily of cryptocurrencies. I’m about to pay my inheritance tax (IHT) bill but I’m concerned about the fluctuating value of my holdings. Those investments are worth considerably less than when the estate was valued for IHT purposes. Do I still need to pay the same amount of inheritance tax, or would HMRC take into account the drop in value of those assets?
Marriage value is the increase in the value of the flat arising from the grant of the new lease and makes it significantly more expensive for leaseholders to extend their lease or to acquire the freehold.
In about 12 months your lease will drop below the statutory limit of 80 years. This presents a dilemma: either to delay the lease extension claim in the hope the new law will be introduced before then, or risk incurring marriage value and increased costs if it is not. The government intends to reform the law as soon as time permits. However, it admits that reform is complex and it will take time to get the detail right. Draft legislation is also expected to face resistance during its passage through Parliament.
Leases are dwindling assets and lose value as the term gets shorter. Some banks will also refuse to lend on shorter leases. You should get advice to assess the price for a lease extension made today in contrast to a year’s time when marriage value may still be payable. Speculating and waiting may prove expensive. It could be logical to extend the lease now but it will depend on your financial resources and your attitude to risk.
The opinions in this column are intended for general information purposes only and should not be used as a substitute for professional advice. The Financial Times Ltd and the authors are not responsible for any direct or indirect result arising from any reliance placed on replies, including any loss, and exclude liability to the full extent.
Do you have a financial dilemma that you’d like FT Money’s team of professional experts to look into? Email your problem in confidence to money@ft.com.
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