New phone mast code's rent poser
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 and, unfortunately, the rent paid under the new Electronic Communications Code.
Agreements under the previous code for masts were settled by agreement 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.
This is where our work as agents comes in – to try and find comparables 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.
We also become involved in ascertaining cable rights to new masts, where a cable needs to cross another landowner's land to get to the new mast.
Never sign or accept to do this for free. We have comparables on file to help with this.
Our fees to advise people on this are paid by the operators. It is a learning curve for all within the industry, but we will seek the best advice from our valuation national bodies to in turn give people the best advice.
Jenny Layton-Mills, McCartneys LLP livestock & rural professional department
