Telecom Mast Leases – worth a review?
In recent years there has been a lot of negative press when it comes to telecom masts, and deservedly so. The introduction of the now not-so-new Electronic Communications Code placed more power in the hands of the telecom operator when it comes to lease renewal negotiations, which amongst other things has seen annual rents fall significantly. Thankfully, some common sense is beginning to prevail with an increasing number of Tribunal decisions placing rents for rural masts in the region of £2,000 per annum. Still some way short of where they once were but at least a little more meaningful, the Tribunal decisions being a starting point from which to negotiate.
It is though important to note that if you have a mast on your property and are still under an existing fixed term agreement, it is highly likely that there will be an inflation linked rent review provision at three or five yearly intervals. If the rent hasn’t been reviewed or if rent reviews have been missed, there may be significant back rents that could be claimed. We have had a great deal of success for retained clients on such negotiations, with back rents ranging from £10,000 to £45,0000 agreed. It is critically important that the back rent position is considered before any new lease is signed, otherwise the opportunity will be lost.
If you would like a member of our rural professional team to review your lease to identify whether or not there may be such an opportunity, please contact Jon Booth or Esther Goodhew.
