Phone mast shocker for landowners
Many clients who have existing mobile phone masts with leases coming to the end of their term are receiving communication from the network provider to review the terms of the lease.
In some cases, the new offer has proved quite a shock, following the introduction of the Electronic Communications Code last December.
With mobile operators looking to slash their costs, they are taking advantage of new rules on the siting of masts to offer landowners far less than their existing agreement.
How is this possible? Well agreements under the previous code for masts were settled at values that both parties accepted based on fair market value of such a site. Under the new code, the valuation approach starts with finding the market value of the agreement but, in particular, now disregards the value for use.
Many operators are now offering values for existing mast sites based on the site’s existing use value. This approach sees proposals made for substantial rental reductions on renewing existing agreements.
Reports in the press cite farmers who had previously been offered thousands of pounds per year are now being offered less than £50 for a 10-year deal.
While the new code must be welcomed for its aim of speeding up nationwide access to the digital economy – and we all know that’s especially important when it comes to rural communities – it can’t be right that farmers and landowners are being penalised in this way.
Now you would probably expect me to say employ an agent to get the best deal for you and, on this occasion, you’re absolutely right. They can do the leg work for you and the good news is that with agents like ourselves, the fees are paid for by the operators, not the landowners.
An agent will be able to spend the time and have the resources to find comparable agreement prices of new sites since the code came in, together with small sites similar to telecommunication sites such as digital advertising, polytunnels, parking areas for HGV, small wind turbines and so on.
These should be used as evidence to get the best agreement on your own site going forward.
With the Electronic Communications Code still relatively new, it’s a learning curve for everyone within the industry, but now is definitely the time to challenge a low offer when it comes to contract renewal.
Talk to an agent who in turn will do the research and liaise with national valuation bodies to get you the best deal.
Jenny Layton Mills, Rural Partner, McCartneys
