It is apparent that the presence of a mobile phone mast on your land could potentially be a very profitable venture; however, the venture can also be rather ill-conceived if the lease agreement is not well studied beforehand. The reason behind this would be the power that the telecommunication companies possess owing to the provisions of the Electronic Communications Code. It is apparent that there have been instances wherein the lease agreement renewal resulted in the reduction in the amount of rent because of the terms of the lease. It is vital that you are familiar with the business you are about to undertake. Hence, a few considerations must be kept in mind while purchasing any property, as illustrated below.

Identify the Applicable Type of Agreement

All mast agreements are not the same. The type of agreement that applies to the mast will influence practically everything else you need to do to carry out your due diligence. Types of agreements include:

• Code Agreements: These refer to leases or licences that are subject to the Electronic Communications Code, which provide the operators with statutory rights.
• Traditional Leases: Refers to agreements that were put in place before the Code came into effect in 2017.
• Wayleave Agreements and Licences: These are informal short-term agreements that may prove easier to cancel.

Ask for a copy of the agreement entered into and not just a snippet from the contract.

Review the Lease or Licence Terms in Detail

Once you get the lease agreement, look into the actual conditions of the lease rather than just the headline rental. The following are some of the issues you need to be looking into:

• Length of term, termination provisions and any provisions for renewal and/or right to hold-over.
• Rental review provisions, which might be indexed against some form of index or comparison.
• Condition of permitted use, together with restrictions against any other equipment and joint use with other parties.
• Restoration and dilapidation provisions at the end of the term.
• Maintenance access provisions, including those applicable to your property that does not comprise part of the mast site.

Examine the Implications of the Electronic Communications Code

The implementation of the 2017 Code and its amendments has provided operators with more extensive security than they enjoyed under the traditional lease arrangements. Although operators can only be dismissed from their lease after proper termination, landlords should not underestimate their chances of success. Rents for new Code leases are usually set at discounted rates that vary on a case-by-case basis compared to previous leases, making it vital for buyers to know the basis on which their rent has been determined because it could greatly affect the profitability of their investment in a future time period.

Review Rent Review Provisions and Historic Payment Records

Seek to acquire between three and five years of rental performance data, in order to have proof that the rent was paid regularly, without significant delays or disputes. If the rent review is “around the corner,” consider that it may lead to a decrease in the amount of rent payable.

Secure a Structural and Technical Survey

Mast installation could lead to rooftop loading, cabling, cabinets or even a compound that would have an impact on the structure of the larger site. A survey should be carried out in relation to:

• Structural integrity of any building housing the mast/equipment.
• Compliance of the installation with planning consent and building regulations.
• State of access paths, fencing and security for ground-based compounds.
• Any issues of interference, noise or vibration brought up by neighboring property owners.

Verify Planning Permission and Permitted Development Entitlements

You need to verify that the installation of the mast was carried out lawfully under the planning regulations, if there need; research if the masts have an approval. Identifying any restrictions that can be placed on the future use of the mast should also be done.

Conduct a Health, Safety, and Environmental Assessment

Ask them to show any letters of compliance with ICNIRP exposure guidelines together with the latest inspection certificates for the equipment and mast. Find out if any surveys, asbestos tests or electromagnetic surveys have been conducted if they have residential properties near the setup.

Determine Insurance and Liability Responsibilities

Not only does a mast add value by assuring rental income, but it may also dissuade some potential buyers and lenders, especially in the case of residential property. It is essential to consult a surveyor specializing in telecom sites in order to know the impact of the mast on market values and to inquire if specific lenders have rules regarding lending for properties with mast occurrences.

Review the Impact on Value and Future Disposal

The presence of the mast may actually increase the value of the land since it will act as a sure source of income in terms of rental, although in some cases, the presence of the mast will actually deter potential buyers or mortgage lenders from buying the land. Seek advice from a surveyor who understands telecommunication masts about the impact of the mast on the land’s market value.

Obtain Legal Advice Before Contract Exchange

Determine who will take responsibility for the mast structure insurance and make sure that the presence of a third party telecoms operator in your site does not affect the validity of your own buildings insurance policy. Check whether the operator has public liability insurance.

Conclusion

Acquiring a property with a mobile phone mast could be considered a viable investment and would produce a predictable income owing to the contribution of a national need for connectivity. Nevertheless, the legal scenario, especially the legal provisions conferring powers under the Electronic Communications Code, has tilted the power in favour of the service providers and may cause ill-prepared purchasers to be caught in conflicts like low rent payments, limitations to development, or unplanned liabilities in the future. Proper research is a necessity in determining the relevant type of agreement, rental background, the condition of the property in question, and finding appropriate legal counsel before entering into the deal.

FAQs

Is it possible for me to dismantle a mobile phone mast in order to use the property?

Generally, it is not easy to do so. There are laws protecting telecommunication companies through which they can prevent their removal as the process involves legal agreements that often require long notice periods and compensation if need arises.

Will installing a mobile phone mast impact my ability to obtain a mortgage?

Possibly it will. Some extra due diligence can be required from the lender in regard to the property, particularly if it is a residential one.

What is the basis of calculating rents payable under the Electronic Communications Code?

Rent in accordance with the Electronic Communications Code will be calculated using no scheme principle which completely ignores the value of the site as far as its usefulness to the network is concerned leading to lower rents when compared to traditional rental methods.

Who bears the financial responsibility for repairs to mobile phone masts?

Whether it is the operator who is responsible for repairs to mobile phone masts rests with lease terms governing each case.

Should I obtain specialized legal assistance?

It would be advisable to engage specialized legal assistance since agreements between the parties are different from conventional commercial property leases and may often give rise to confusion if not well understood.