Lease Renewal

Telecoms lease renewal under the new Code

Many landlords are facing telecoms lease renewal for the first time in 15 or 20 years. Agreements granted that long ago are expiring or approaching expiry. Operators are increasingly approaching landlords to renew these agreements under the new Code. They aim for greater rights and lower rents than the original terms allowed.

There are three main types of telecoms lease renewal. Which applies depends on the agreement you hold. Unprotected leases and licences over land, including greenfield and rooftop sites, renew through an application to the Upper Tribunal. The new Code’s “No Scheme” or “No Network” approach governs this route. It ignores the telecoms use and assesses only the site’s most valuable alternative use.

The Landlord and Tenant Act 1954 protects some agreements instead. These typically renew through the county court under that Act’s process. The market value approach still assumes No Network, but the new Code’s lower valuation regime may still apply. Genuine competition for the site, including from another operator, can still secure a higher rent. The Hanover case demonstrated this, where Tom Bodley Scott acted as the landlord’s Expert Valuer.

Site share agreements work differently again. These cover landlord-owned masts or towers, and generally sit outside the new Code, since the equipment itself is not defined as land. This usually means more flexibility and higher rents for the landlord. Operators are increasingly pushing to bring these agreements in line with the Code regardless.

We work with your solicitor throughout. Together, we secure the best available terms on renewal, or establish whether a statutory ground lets you resist the operator’s renewal rights instead.