Negotiating an extended lease
- An existing16MW wind farm in Lincolnshire powering up to 9,000 homes per year and contributing approximately £14,000 annually in community benefits.
- The landlords were approached by the tenant seeking a 10-year extension to the existing lease.
- The landlords sought advisory services from Fisher German to ensure that due consideration was given to all commercial and practical implications of the extended term.
- A review of the existing lease was completed to understand the key terms of the landowner/operator relationship.
- All pros and cons were considered and recommendations were made to our clients over how best to approach the negotiations to secure the best outcome.
- A financial case was produced to support an uplift in rent to reflect current wind farm market terms.
- Terms for a new lease were agreed and implemented, providing for a 10-year extension of the original term.
- A considerable uplift in minimum rent was secured across the whole site, for the benefit of the landlords.