Radio mast operators usually offer a contribution towards an owner’s professional fees incurred during a lease renewal approach when they look to retain their phone masts and associated equipment on property owned by farmers and other property owners.

This fee contribution is part of a broader negotiation strategy under the 2017 Electronic Communications Code to renew contracts at significantly reduced rent levels and terms in the radio mast operator’s favour.

Offers on costs are often presented as a standard contribution toward "transactional costs" as part of an overall agreement package, aimed at securing a "consensual agreement" and avoiding the costs of a Tribunal hearing.

Some radio mast operators are now offering the landowner a one-off payment equivalent to the proposed contribution towards agents’ fees on the basis that they proceed without professional representation, so instead of appointing an agent, a landowner receives the sum directly.

This tactic looks to deprive the owner of proper professional advice, according to Mike Reid, Head of Energy at the independent property adviser Galbraith. More importantly, it encourages owners to proceed without representation.

“Under the Electronic Communications Code, the operator is required to cover the reasonable and proper professional costs of the site provider, with no fixed cap set in legislation. In practice, however, operators tend to agree to pay fees in legal undertakings up to agreed caps with provision for these to be extended by agreement,” he said.

“Without professional advice, there is a real risk that key provisions are missed or diluted, particularly around matters such as the proper rental value of the site, redevelopment rights or other protections, which can have long-term detrimental implications for the site.”

Mike Reid cautioned owners against being persuaded to proceed without professional advice in exchange for an inducement payment. “To protect your position and maximise value, always seek proper professional advice. The overall site value and protecting your rights over the longer term are far more critical than receiving a relatively small initial one-off payment.”

For more than 25 years we have been maximising revenue on mobile phone mast sites and assisting landowners with telecoms management services and negotiations with telecoms companies across the UK. If you are a landowner and unsure how to proceed in discussions with a mobile network operator, please do get in touch with your local Galbraith office.