If you're a landlord with a telecoms mast or infrastructure on your land or building, you've likely felt the impact of the Electronic Communications Code (ECC), particularly the reduced rental income and increased rights granted to telecoms operators. In response, several companies now offer to purchase these telecoms assets, providing landlords with an immediate cash injection. But while the offer may seem attractive, selling your telecoms site is a significant decision that comes with both opportunities and risks.
At Fisher German, we’ve guided numerous clients through the complexities of selling telecoms assets. To shed light on what landlords should consider before making such a significant decision, we spoke with Henry Mawhood, a Senior Surveyor in our telecoms team, who shared his expert insights on how to approach the process strategically and avoid common pitfalls.
Opportunities of selling your telecoms site
- Immediate capital: Selling your site can provide a lump sum payment, which can be reinvested or used to meet other financial goals
- Reduced management burden: You may no longer need to deal with rent negotiations, site maintenance, or access issues
- Risk transfer: Future uncertainties around legislation, rent reductions, or site decommissioning are passed on to the buyer
Risks to Consider
- Loss of long-term income: Once sold, you forfeit any future rental income, which could be more valuable over time
- Ongoing responsibilities: Depending on the sale structure, you may still be responsible for site access or building maintenance
- Impact on redevelopment: Selling the site could complicate or restrict future development plans for your land or property
7 Steps to take before selling your telecoms asset
1. Ensure all rent reviews are up to date
Before selling, confirm that all rent reviews under the current agreement have been completed. This ensures you're maximising the asset’s value and not missing out on any owed income.
2. Understand the rental value under new legislation
Initial renewal offers from operators are often lower than what can be achieved. Professional valuation methodologies can help you determine a fair market rent under the ECC.
3. Consider redevelopment plans
If you have future plans to redevelop your land or building, think carefully. Selling the telecoms site could make it significantly harder to regain control of the land, especially if you no longer own it.
4. Speak to your accountant about tax implications
Capital Gains tax (CGT) Should be considered and discussed with your accountant at an early stage as the sale proceeds are likely to be coooded by the payment of tax.
CGT is currently charged on the increase in the value of the land that has arisen since the land came into your ownership (not the whole sale price), and there are allowances and reliefs available in certain circumstances. Taking advice at an early stage is always recommended as it will help to inform your decision about whether selling is for you
5. Test the market for better offers
Don’t settle for the first offer. There are multiple buyers in the market, and competitive bidding can help you achieve the best possible price.
6. Decide between selling the leasehold or freehold
This decision affects your ongoing responsibilities. For example, if the mast is on your roof, will the new owner take on maintenance duties? If it’s in a field, will you still need to provide access?
7. Review the sale terms carefully
Ensure the terms align with your long-term goals. You don’t want to inadvertently grant more rights than intended or limit future land use potential.
Selling your telecoms site can be a smart move, but only if done with full awareness of the implications. By following these seven steps and seeking professional advice, you can make a decision that aligns with both your financial goals and future plans.
Case Study
At Fisher German, we’ve successfully negotiated numerous telecoms site sales, always with the aim of adding value for our clients.
Read an example case study here.
Contact us
If you're considering selling, email Henry Mawhood, who will help you navigate the process with confidence.