Rural Hub

Telecoms case provides more guidance on lease renewals

2 mins

A recent decision in the County Court has provided more guidance on how the terms from a previous telecoms lease should be taken into account when agreeing a new lease, the approach to assessment of rent payable and relevance of incentives in comparable evidence.

The case concerned the renewal of a Landlord and Tenant Act 1954 telecommunications mast lease, with the term having expired and being held over since 2014.

The case is more complicated than it first appears as it revolves around some relatively new and much litigated telecom specific legislation (The Electronic Communications Code), colloquially known as the Code and how it interacts with leases for telecommunications sites, which are subject to the security of tenure provisions under the Landlord and Tenant Act 1954.

This is the second case that has been heard by Martin Rodger QC, Deputy Chamber President, Upper Tribunal (Lands Chamber) sitting as a Judge of the County Court where a telecoms lease is being renewed under the 1954 Act.  The interplay between the two regimes creates additional complexity in relation to the rights to be agreed and the valuation approach to be taken during renewal negotiations which resulted in a referral to the County Court.

The Court decided that many of the terms in the previous lease should be carried over to the new one, following what is known as the O’May principle.

It also decided how lease terms that were not clear in the previous agreement should be dealt with, including rights to upgrade apparatus and management of access to the site, which is situated within a facility used for hostile environment training. 

It also dealt with how premiums – which are commonplace in new deals under the Code – were to be treated when assessing comparable transactions. Where it came to valuation of rent, each regime carries its own assumptions, with the 1954 Act in this instance taking precedence over the Code, which disregards the value to the tenant in what is termed a ‘no network assumption’.

Please contact James Hill (England and Wales) or Larry Irwin (Scotland) if you would like to discuss the case, with which Strutt & Parker was directly involved.

James Hill
Associate Director
+44 (0)7880 108498
Send a message to James Hill
2 mins

Related Articles


Take part in CLA and Strutt & Parker ‘Future of Farming’ survey

A new survey designed to gather insight into how quickly farmers and landowners are responding to the changing world they find themselves operating in, has been launched by Strutt & Parker and the CLA.  The rural sector is facing a huge amount of change in terms of agricultural policy and the wider challenges posed by […]

Grants of up to £300,000 for farmers to ‘add value’

A new scheme offering grants of up to £300,000 to enable farmers and landowners in England to add value to agricultural products is now open. Defra has released guidance on a new ‘Adding Value’ grant which is the third stream of funding being offered through the Farming Transformation Fund (FTF). Previous rounds of the FTF have […]

The UK’s Shared Prosperity Fund – A rural perspective

EU rural development money has been an important source of grant funding for many farms and estates over the years, funding a wide variety of diversification projects and supporting investment in equipment to boost farm productivity. Traditionally, this money has flowed via the European Agricultural Fund for Rural Development Programme (EAFRD), known as ‘Pillar 2’ […]

7 things to know about the updated Peatland Code

The UK’s Peatland Code has been revised to allow for the quicker delivery of projects and to ensure that the scheme integrates more closely with existing management practices and environment schemes. The Peatland Code is the quality assurance framework for peatland creation projects in the UK, which allows the generation of independently verified carbon units […]

Talk to us

Want to talk to us about our rural specialisms? Send us a message and we will make sure it gets to the right person.

Please write your name
Please write a message

Sign up

Sign up to be notified when we launch new publications so you’re always ahead of the research.

Please write your name
Please write a correct email address
Send me updates about
Please tick a box