Telephone Mast - New Leases

I write this article at a time when clients and property owners are increasingly being asked to enter new leases by Telephone Mast Operators, predominately under their Telecommunication Code powers.

We are thankfully getting more clarity over the rents and terms that can be negotiated and agreed, although all owners should be aware that the rents are now significantly lower than they were in the past.

This article however, revolves around one of the relevantly minor but very important offer terms.

Almost without exception, you will be made an offer that includes payment of surveyors and solicitors fees.

Firstly, you should be mindful that these are non-binding until such time as the deal is done. I have seen instances where masts have not proceeded for a number of reasons, often to the liking of the client, but with an outstanding fee to be paid.

It is clear from reasoned case law, that telecom firms are required to pay the reasonable professional expenses of the affected parties, and often this is not reflected in the terms that are offered.

Most particularly, the legal fees are quite often limited to a level which is significantly below the true cost of the work undertaken to draw up an agreement.Take for example a case which crossed my desk recently, where legal fees had been proposed at £1,500 and the Heads of Terms included a requirement for the owner to warrant good title.The title in that particular case was unusually complex and required consent of various parties, including other owners and the bank.Whilst all of those were likely to be forthcoming, it was simply impractical for that work to be undertaken by the owners solicitor, within the fee that had been offered.

The moral is, take care with these agreements and ensure that you are as protected as you can be.

John Robson

10th April 2025