Landowners can improve returns from telecom lease renewals
21/02/05

Landowners with telecom masts could considerably improve the rent they receive, according to chartered surveyors Fisher German. The firm, which is a leading specialist working in this field, says many agreements are now coming up for review, and landowners should be pressing for higher returns.

"Early telecoms leases were often poorly drafted and are now coming to the end of their life," explains Mark Newton from the Fisher German Telecoms Department. "These leases can now be terminated and a new lease renegotiated with a higher rent, sometimes up to two or three times. The best increase we have managed to negotiate was 60 times the original rental."

There are also opportunities to re-negotiate where masts are being upgraded for the new 3G network. "This long-awaited high speed mobile phone services is now rolling out fast and often warrants a considerable mast upgrade. Landowners need to be aware that they are in a strong position to push up the rent and improve terms, provided they have a good agent and solicitor working on their behalf and they are not restricted by their current lease."

Those in a good bargaining position are landowners with leases contracted out of sections 24-28 of Landlord and Tenant Act 1954, Mr Newton advises. "If this is the case, often the best course of action is to terminate the lease and ask the telecoms operator to leave the site. They may claim protection under the Communications Act 2003 but normally they will stay and agree more acceptable terms."

The key message to landowners is to know what your bargaining position is and to ensure you make the most of it, says Mr Newton. "Don't let yourself be bullied into taking a deal you later find out is a fairly poor one."

Fisher German has extensive experience in negotiating new telecoms leases and has dealt with over 3,000 new leases and lease renewals so they can achieve the best rental for landowners.

The telecoms market first started to take off in the mid 1990s. Many leases were granted for only 10 year periods, some for as short a period as five years.

For further information and advice from Fisher German's specialists telecoms department contact 01858 411229.