Real Estate Archives

Tees Law now boasts six Top Tier practice areas in Legal 500

Posted on 6 October 202329 March 2025 by Sarah O'Sullivan

Tees Law enjoyed widespread success in this year’s Legal 500 directory, adding Private Client – Personal tax, trusts and probate in Essex to the highest Top Tier ranking.

Ian Johnston, Partner and lead of the Private Client team in Tees’ Essex based offices of Chelmsford, Brentwood and Saffron Walden, moved up the rankings becoming a Next Generation Partner. One client commented, “Ian Johnston is a fine example of the ability of the firm to deliver the human approach to what can be very serious discussions.”

The Personal tax, trusts and probate team is described as having an “outstanding reputation for quality” and as being “consummately professional, and yet provide a service which feels warm, friendly and personal. All considerations are covered and delivered in an understandable yet thorough manner.”

In total, 27 different Tees Law practice areas were ranked in the latest update of the world’s leading directory of Law Firms.

Tees Law was delighted to see a total of 8 Leading Individuals, 5 Next Generation Partners and 7 Rising Stars. A staggering 46 of the firm’s solicitors have been listed as Recommended Lawyers with an increase of 16 this year.

Tees Law is a major regional law firm with offices in Bishop’s Stortford, Cambridge, Royston, Saffron Walden, Brentwood and Chelmsford. As part of the local community for over a century, Tees Law has supported clients from generation to generation.

The recurring theme throughout the client testimonials published this year highlights the firm’s focus on the client’s needs. An Essex Commercial Property client stated, “The team are great to work with. They all put each case in such high regard. All members of the team are professional and hold your best interest as a client highly.”

Another client praised “A first class firm with many talented individuals. Their client focus, commerciality and friendliness has been outstanding.”

Group Managing Director at Tees Law, Ashton Hunt, commented: “Once again the success and dedication of our teams and individuals shines through in the Legal 500 rankings. I am delighted to see so many practice areas receiving accolades and to have increased our number of Tier 1 rankings. At Tees, we always strive to be renowned experts and provide personal and commercially tailored advice to our clients.”

Catherine Mowat, Senior Partner at Tees Law, who was this year named in the Hall of Fame, added: “This year’s results highlight the diligence and commitment of our highly skilled teams. It is an honour to be named in the Hall of Fame and I would like to thank all of our clients and referrers for their wonderful feedback.”

Tees advises on the purchase of over 230 acres of land and an industrial site

Posted on 12 September 202327 March 2025 by Sarah O'Sullivan

Looking back over the last 12 months; Tees are thrilled to have advised longstanding clients, R S Coleman and Schwier Farms Limited, on their joint purchase of over 230 acres of arable land and a muti-let industrial site in Essex in December 2022.

Simon Dixon Smith of Land Partners acted for the purchasers from an agency perspective and Paul Walker of Whirledge & Nott was the sellers’ agent.

Paul Walker stated:

“This sale was one of the largest areas of land offered to the market in the Rodings area for some time. Strong local interest was expected, especially from neighbours many of whom are well known by the vendors and themselves valued clients of W&N. Confidentiality and an understanding the parties’ objectives and sensitivities is always paramount but even more so in this case, given the personal connections. The strong professional relationship between the respective agents and solicitors greatly helped in navigating the complexities of this transaction to keep all parties aligned through to completion.”

From the legal side; Partner, Daniel Fairs of Tees’ Rural and Commercial Property team, took the lead in advising both purchasers on all aspects of the transaction. A third party was also involved in this and purchased a third parcel.

A number of complications arose during the transaction; including unregistered land, overage in favour of the Seller, bank funding, and the separate parcels of land needed rights over each other. Further elements to this transaction, related to a Farm Business Tenancy and a Pre-emption Agreement with all elements needing to be completed at the same time as the purchase.

Daniel was able to navigate all the complications and issues and advise the clients through the purchase, resulting in an excellent outcome for all involved.

Daniel Fairs commented:

“The Coleman and Schwier families have been clients of Tees for a number of years, and I have worked closely with the clients for the last 4 years to understand their farming business. I was delighted to have advised the clients in connection with this complex purchase and worked closely with all the professionals to get this deal across the line. I hope to continue supporting the clients with expanding their business from both a farming and diversification point of view in the future.”

Coleman and Schwier families commented:

“We can’t speak highly enough of Daniel Fairs of Tees. We have used him for a variety of different cases, and we have always been pleased with his work. Daniel takes the time to explain things in layman’s terms, helping to clarify any and all points that can be lost in the translation of legal documents. We were also impressed with the solutions Daniel proposed to complicated situations that arose during the cases that he has taken for us. Daniel is an excellent solicitor, and we would thoroughly recommend him.”

Planet Education’s £3.8M freehold purchase: York House deal

Posted on 4 September 202327 March 2025 by Sarah O'Sullivan

Tees have recently advised Planet Education Networks (Planet Education) on its £3.8 million freehold purchase of York House in Birmingham.

Planet Education runs a global network of education institutes aiming to provide high-quality higher education courses. With the purchase of York House, which sits on a prominent corner location at Newhall Street and Great Charles Street and is a substantial five storey building of 22,175 sq ft, Planet Education intends to turn the property into an education campus to expand its existing campus in Birmingham.

Partner, Daniel Fairs, who was assisted by solicitor, Andrew Harrison, worked quickly and efficiently to finalise the purchase within Planet Education’s required timescales. Leaning on their experience, Daniel and Andrew were able to complete the transaction within six weeks of the agreement of the Heads of Terms.

Daniel Fairs’ commented:

“It was a pleasure to have advised the purchasers, Planet Education Networks Ltd, with their strategic purchase of York House. All the professionals worked tirelessly to get this deal across the line. I look forward to hearing more as the property develops and seeing the end result when the campus is up and running”.

This project is a great example of the potential and growing trend to repurpose city centre office buildings such as York House for alternative purposes such as for the educational and living sector.

Guide to farm diversification opportunities after the Basic Payment Scheme (BPS)

Posted on 1 September 202324 April 2025 by Sarah O'Sullivan

The post-BPS era has brought about significant changes in the agricultural landscape of the United Kingdom. Whilst there are several different grants and schemes available to landowners, farm diversification is a viable strategy to secure financial stability and thrive in the changing environment, as farmers face the challenges of adapting to this new reality. This article will explore farm diversification, examining the legal considerations and opportunities for farmers in the post-BPS era.

Understanding farm diversification

Farm diversification refers to the practice of expanding agricultural operations to include non-traditional activities or ventures. By diversifying their income streams, farmers can reduce reliance on the uncertain profitability of traditional farming practices and mitigate the impact of the loss of BPS. However, it is important to note that farm diversification can involve legal complexities that must be carefully navigated to ensure compliance with regulatory frameworks.

Guiding you through diversification opportunities

Our Agricultural team at Tees can play a crucial role in assisting farmers in enabling and advising on potential diversification opportunities. We have an in-depth understanding of the legal and regulatory frameworks governing various sectors, enabling us to guide farmers through the process alongside their accountants and land agents. Some common avenues for farm diversification include:

Renewable energy projects: With the increasing demand for clean energy, farmers can explore opportunities in wind, solar, battery, biomass energy or anaerobic digestion. Our renewable energy team can assist by advising on contracts, options and leases including addressing planning and environmental mitigation schemes.

Agri-tourism: Many farmers have found success by opening their farms to the public and offering attractions such as farm tours, educational workshops, camping, glamping or other farm-stay experiences. Our team of solicitors can help you navigate the related regulations, liability, health and safety and business structures including commercial agreements and terms and conditions.

Food and beverage production: Value-added activities such as on-site food processing, artisanal products or farm shops can provide additional revenue streams. We can assist in establishing appropriate business structures and ensuring compliance with food safety regulations.

Rural recreation and leisure: Using farm assets for activities such as nature reserves, fishing lakes, equestrian centres, adventure parks, events, festivals and secure dog walking fields can attract visitors and generate income. We can help farmers address legal matters related to liability and public access rights, as well as advice on commercial agreements and terms and conditions.

Natural resources: Biodiversity Net Gain can offer alternative income streams for farmers. Our Natural Capital Team can assist with drafting and negotiating long term Farm Business Tenancies (FBT’s) for Biodiversity Net Gain and Woodland Carbon Units, negotiating documentation for landowners documenting arrangements with habitat bank providers including FBT’s and Habitat Management Agreements, dealing with Section 106 Agreements where offsite offsetting is being provided for development sites getting approval of lenders to enter into such agreements where land is charged to a bank.

Legal Considerations when diversifying your farming business

Engaging solicitors familiar with agricultural law is essential for farmers pursuing diversification projects. Here are some legal considerations we can assist with:

Considering the tax implications with your accountant, both on terms of taxation of income streams and capital taxes is vital. Our property and commercial team can assist with implementing tax advice given by re-structuring business and finance and/or moving land and assets into separate legal entities.
contracts and agreements: developing robust contracts is vital when engaging in activities such as leasing land for renewable energy projects, negotiating supply agreements, or partnering with third-party businesses. Our commercial team can ensure the protection of farmers’ interests and avoid potential disputes.
regulatory compliance: diversification activities are subject to a range of regulations, including health and safety, environmental protection, food safety, and licensing. Our regulatory team can guide farmers in meeting compliance requirements and reducing legal risks.
intellectual property: farmers involved in product development or branding should consider protecting their intellectual property through trademarks, copyrights, or patents. Our commercial team can assist in securing these protections and enforcing them if necessary.
succession planning: farm diversification often involves long-term investments. We can help farmers navigate succession planning, ensuring a smooth transition of assets and business operations to future generations running the business.

What’s the difference between Section 106 agreements and the Community Infrastructure Levy (CIL)?

Posted on 1 August 202324 April 2025 by Sarah O'Sullivan

When new developments happen developers are usually asked to pay a contribution towards the funding of associated infrastructure. Historically this was through ‘Section 106’ agreements negotiated between local authorities and developers although the Planning Act 2008 introduced a new way of doing this – the Community Infrastructure Levy, or CIL.

Section 106 agreements

S106 contributions remain the primary means to ensure that developments pay for infrastructure that supports them. However S106 agreements are by their nature uncertain in terms of what they can deliver. S106 contributions are negotiated between the local authority and the developer and can pay for anything from new schools or clinics to roads and affordable housing.

The Community Infrastructure Levy (CIL)

Introduced by the Planning Act 2008, local authorities are allowed but, not required, to introduce a CIL. CIL is different to S106 payments in that it is levied on a much wider range of developments and according to a published tariff schedule. This spreads the cost of funding infrastructure over more developers and provides certainty as to how much developers will have to pay. It is simpler and more transparent.

CIL is now the preferred method for collecting pooled contributions to fund infrastructure. S106 agreements have been scaled back to just cover site regulation and site specific issues (whether or not the local authority has introduced a CIL) and are subject to a statutory test since 2014. CILs cover the generic payments that a development imposes.

CIL only applies in areas where a LPA has a charging schedule in place which sets out its CIL rates. Any local authority that charges the levy must publish a charging schedule on its website. Since CIL is a discretionary charge, there continues to be a phased take-up of CIL by local authorities, but local authorities continue to be encouraged to adopt a CIL.

The advantage of the CIL is the rate is transparent and does not need to be negotiated. To ensure developers do not pay for the same infrastructure under both schemes, local authorities are required to publish a list of what will be funded by the CIL and those items cannot be covered by a S106 agreement.

CIL is paid primarily by owners or developers of land that is developed. In an area where CIL operates, most new development which creates net additional floor space of 100 square metres or more, or creates a new dwelling, is potentially liable for the levy. Some development is eligible for relief or exemption from CIL such as residential extensions and houses and flats which are built by self-builders. There is however a strict criteria that must be met and procedures followed to obtain the relief or exemption.

Tees are here to help

We have many specialist lawyers who are based in:

Cambridgeshire: Cambridge
Essex: Brentwood, Chelmsford, and Saffron Walden
Hertfordshire: Bishop’s Stortford and Royston

But we can help you wherever you are in England and Wales.

Quarter days explained

Posted on 22 June 202324 April 2025 by Sarah O'Sullivan

Many leases provide for annual rent to be paid in four equal instalments “on the usual quarter days” and clients are often surprised to learn that these are 25th March, 24th June, 29th September and 25th December.

What are the usual quarter days?

These days are not, as one might expect, the first days of the first, third, sixth and ninth months of the calendar year and the quarters which result are not all of the same length.

The explanation lies rooted in the past when England was largely an agricultural country and labourers were hired on annual contracts.

Most people could not read or write and so there needed to be a simple system that everybody understood so that they knew when such contracts would begin and end.

The Church was an important part of most peoples’ lives and so the Church’s calendar was followed. Under that calendar each new year began on 25th March (the Feast of the Annunciation) known as Lady Day, so that became the date from which employment contracts ran. That date then also came to be the date from which to calculate other important financial transactions, and further dates evolved upon which payments, including rent, had to be made.

So that these could be remembered easily, important fixed religious feast days were chosen throughout the year, approximately three months apart, to split the year into quarters hence the name “Quarter Days”.

The four quarter days in England and Wales accordingly came to be Lady Day (25th March), Midsummer Day (24th June, the Feast of St John the Baptist), Michaelmas Day (29th September, the Feast of St Michael and all Angels) and Christmas Day (25th December).

Different days tended to be used in Northern England, Scotland and Ireland.

In 1582 Pope Gregory XIII introduced a new calendar, the Gregorian Calendar, to reform the previous Julian Calendar and to bring it more into line with the lunar year so that Easter Day could be calculated. As a result 10 days were skipped over and lost from that year.

In 1752 the law was changed so that each calendar year started on 1st January but the way in which people had become accustomed to pay their rent did not change and the “rent year” continued to commence on 25th March. In many leases, that remains the case to this day.

More modern quarter days

Some landlords have, however, moved away from the traditional quarter days and many modern leases now provide for quarterly rents to be paid on 1st January, 1st April, 1st July and 1st October.

By way of an aside, as well being the first day of the “rent year”, Lady Day was also the start of the tax year. When Pope Gregory introduced his new calendar in 1582 the problems associated with the loss of the ten days were too much to cope with so the start of the tax year remained as the “old” Lady Day. This became 6th April under the new calendar which explains why, more than 400 years later, this remains for us the date upon which each new tax year starts.

Tees are here to help

We have many specialist lawyers who are based in:

Cambridgeshire: Cambridge
Essex: Brentwood, Chelmsford, and Saffron Walden
Hertfordshire: Bishop’s Stortford and Royston

But we can help you wherever you are in England and Wales.

Considering leasing your land for a solar farm project?

Posted on 21 June 202324 April 2025 by Sarah O'Sullivan

Solar farms are one of the fast-growing renewable energy initiatives which are springing up across the country. Solar developers are constantly looking for land to build new solar projects on, so if you are a landowner with some unused land, this gives you the opportunity to lease your land and diversify your income, usually by way of a rental income over a fixed period of years.

Solar farms, also known as solar fields or solar parks, are the large-scale application of solar photovoltaic (PV) panels to generate green, clean electricity at scale, usually to feed into the national grid. Solar farms can cover anything between 1 acre and 250 acres and are usually developed in rural areas.

Approximately 25 acres of land are required for every 5 megawatts (MW) of installation – see our checklist below to find out if your land may be suitable.

As well as providing you with an additional income stream, there are a host of other environmental benefits associated with solar farms. Embracing solar farms as part of your land diversification strategy contributes to a sustainable and prosperous future both for you, your family and society as a whole.

What are the benefits of solar farm land diversification?

Stable income – leasing or selling the land for solar farm development provides an increased, diversified and stable source of income for you as a landowner. This can enable financial security and potential long-term revenue streams.
Reversible land use – solar farms represent a time-limited, reversible land use option for landowners. Unlike permanent infrastructure, such as buildings or roads, solar farms can be decommissioned relatively easily, allowing the land to be repurposed for other agricultural or developmental activities in the future.
Efficient use of land – one of the remarkable aspects of solar farms is their ability to generate substantial electricity while occupying a relatively small portion of land. For instance, installing 10,000 megawatts (MW) of solar capacity on the ground in the UK would only utilize 0.1% of the country’s agricultural land area. Despite occupying a small fraction of available land, this solar capacity could generate enough electricity to power over 3 million homes. This efficient land utilisation allows for the coexistence of agricultural activities alongside renewable energy generation.
Significant energy generation and carbon reduction – solar farms have a significant impact on energy production and carbon reduction. With every 5 MW of installed capacity, a solar farm can annually power more than 1,500 homes. Considering the average annual household electricity consumption of 3,300 kWh, this represents a substantial contribution to meeting energy demands. Moreover, the environmental benefits of solar farms are evident in the reduction of carbon dioxide (CO2) emissions. A solar farm with a 50 MW installation can save approximately 21,500 tonnes of CO2 annually, contributing to mitigating climate change and improving air quality.
Grid resilience and energy independence – distributed solar farms across various locations contribute to grid resilience and energy independence. By decentralizing energy generation, solar farms reduce the dependence on a single centralized power source, minimizing the risk of widespread outages. In cases of extreme weather events or natural disasters, solar farms can continue to generate electricity, providing essential power supplies to nearby communities. This resilience helps ensure a stable and reliable energy infrastructure.
Land conservation and biodiversity promotion: solar farm land diversification can be designed to incorporate conservation measures, supporting local ecosystems and biodiversity. By implementing pollinator-friendly vegetation, such as wildflowers or native grasses, solar farms can serve as habitats for bees, butterflies, and other beneficial insects. These efforts contribute to the preservation and restoration of wildlife populations, enhancing biodiversity in the surrounding areas. Additionally, by preventing agricultural land from being converted into urban or industrial areas, solar farms can play a role in conserving valuable natural resources.
Community and economic development: Solar farms can have a positive impact on local communities by fostering economic development. During the construction phase, solar farms create job opportunities, providing employment for local workers and boosting the local economy. Furthermore, solar farms can establish partnerships with neighbouring communities, supporting educational initiatives, renewable energy awareness campaigns, and community-based projects. This collaboration promotes a sense of ownership and involvement in the transition to clean energy, creating a more sustainable future.

Is my land suitable for a solar farm?

This checklist gives a guide as to the likely suitability of your land for a solar farm project and things you should consider:

Is the land flat? If not, what is its gradient and orientation? The incline of the proposed land impacts the ease of building and access.
Is there access to the site? Roads and paths will be essential for construction vehicles and crews to enter and exit the construction site. As part of the solar project, the developer may wish to install accessways or enlarge what is already there.
Is the ground rocky? How deep is the topsoil? Rocky ground may be more challenging to build on or insert ground mounts into. Topsoil depth also affects the structural stability of foundations.
Is the proposed location of the solar panels in an Area of Outstanding Natural Beauty (AONB) or a national park? It is unlikely that a solar farm will receive planning consent if it is located within either of these two categories of land.
Can the field be seen from a road? If the site is visible from the road there may be additional planning considerations due to the perceived impact on the visual amenity of the area which refers to the views and surroundings that comprise the backdrop to an area.
Is there any substantial energy consumption on the premises? You need to factor in whether the proposed solar farm is being considered for powering and offsetting the electricity bills of commercial premises.
Where is the nearest substation/power connection? Proximity to a substation or power connector is desirable because voltage drop/power losses through power cables increase with distance. The size of the power line is also important: a 33kVa line or above is ideal, however 11kVa lines are also suitable. A developer will need rights to install cabling under your land (and potentially under neighbouring land). In addition, they may well need rights to allow the installation of a new substation on your land.
Is there any existing solar PV installed on the property currently? Installing a new system on a property where one already exists may have an impact on the feed-in tariff eligibility of the first system. Additional electrical connection considerations will also apply to a second system.
Are there any substantial solar PV or wind farm installations nearby? Receiving permission to connect to the grid may depend on the state of the network in the region of the proposed installation. An already high penetration of solar power or wind (both types of ‘distributed generation’) may affect the ease of granting a grid connection permission.

How does the leasing on a solar farm work?

As a landowner, typically you will receive rental income on the leased land, in exchange for a rental income for a fixed number of years – usually around 30 years. Rental payments are index-linked, rising annually with inflation and made in advance from the point at which construction of the site begins.

How Tees can help

The experienced renewable energy team at Tees can advise both developers and landowners at every stage of the property aspects of a solar project. This includes all stages from the early lease negotiations, through to helping secure funding and offering ongoing assistance with the operation of the solar site throughout the term of the lease.

Is subletting an option for unwanted office space?

Posted on 1 June 202324 April 2025 by Sarah O'Sullivan

With multiple economic pressures facing businesses, many are looking at their expenses to see where money can be saved. After salaries, rent is often a business’s largest expense. Post-Covid, many businesses have already made investments and adaptions to make working from home possible, and some may well be questioning whether they can save funds on office space which was empty for months during the pandemic. But what options does a commercial tenant have if they find themselves tied into a lease and paying rent for offices that are now larger than they need?

Subletting commercial property

If the lease does not prohibit subletting, then one option would be for the tenant to find a suitable business to occupy part of the property with them. In this arrangement, the original tenant’s rent commitment to the head landlord would remain, but the original tenant would receive rent from the subtenant and any service charge may be apportioned between the two tenants appropriately. Subletting therefore is a simple way for a tenant to reduce their rent expenditure without having to uproot their business.

The terms of the lease must be read thoroughly before a tenant decides to sublet, not only because this action itself may be prohibited by the lease, but if it’s permitted then it will in all likelihood require the landlord’s consent. Additionally, a tenant will want to be protected should their subtenant cause any damage or nuisance – after all, the original tenant’s repairing and maintenance obligation under the head lease will still apply to the whole property, whether they occupy it or not. Should a tenant wish to negotiate a sublease, legal advice is certainly recommended.

Break clause

An alternative to subletting, it may be that a lease contains a break clause which enables the tenant to bring the lease to an end early. This will of course be the most straightforward way of terminating a lease, however, it’s vital that the break clause is read carefully, and that any and all conditions are met, so as to give a tenant a right the break the lease. It is common for the lease itself to prescribe how a break notice can be served, and when it is then deemed received by the landlord.

It’s imperative that a tenant follows the terms of the lease exactly because any variance can invalidate the tenant’s notice and they may lose the right to bring the lease to an end. Many break clauses are drafted in such a way that if a tenant is not 100% compliant with the terms of the lease, they lose the opportunity to break the lease for the remainder of the lease term, or for several years until the next break date. A tenant should strongly consider seeking the advice of a solicitor in advance of sending a break notice to their landlord.

Assignment

If a tenant has decided that their current office space is excessive, or no longer suits their needs, but their lease does not have a break date, or one soon enough, then assignment may be the best course of action. Assignment is the process whereby the existing lease is transferred to a new tenant.

Again, a tenant should read their lease carefully because assignment can be prohibited in a similar way to subletting, and even if assignment is permitted, it will likely require the landlord’s consent. Quite often, the assignment of a lease has attached to it various conditions on the basis that it’s often a higher risk to the landlord than subletting because the landlord is letting a regular and consistently paying tenant go, and a relatively unknown third party take over the lease. A landlord will almost certainly want evidence of any new tenant’s financial worth and stability, as well as references from those currently doing business with the new tenant. Additionally, the landlord may want the outgoing tenant to enter into an ‘AGA’ – Authorised Guarantee Agreement. An AGA essentially keeps the outgoing tenant ‘on the hook’ for a period of time in the event that the new tenant defaults on the payment of rent in the future.

In most leases, an assignment will not be permitted unless the outgoing tenant enters into an AGA. It’s essential therefore for a tenant to read their lease thoroughly and seek legal advice if they are considering an assignment of their lease.

Surrender

If a lease has no upcoming break date, and if subletting and assignment are prohibited under the terms of the lease, then a tenant has very few options should they want to vacate that property and escape their liabilities under the lease.

However, one remaining option in these circumstances is negotiating a surrender of the lease, that is, bringing the lease to an end early. In some situations, this can be the best commercial decision for landlord and tenant alike. If a lease has only 8 months left to run, for example, and if a new tenant has shown interest in taking a lease of the property, then a landlord would be more receptive to surrendering the lease and ‘locking in’ a new tenant for several years.

Because a tenant is seeking to escape their liabilities and obligations, there is usually a high degree of negotiation involved when it comes to surrendering a lease; more so if a third party is intending to take on a new lease once the existing lease is surrendered. A landlord may impose conditions on the tenant, such as more onerous repair and maintenance obligations or perhaps a ‘reverse premium’, that is, the tenant must pay a sum to the landlord in consideration of the surrender.

Here at Tees, we have experienced commercial property solicitors who can assist you in negotiating and formalising any subleases, assignments or surrenders, so as to maximise your business’ potential for a healthy future during these uncertain times.

Refurbishment for residential development

Just as tenants are reassessing their individual position post-Covid and with other economic pressures, landlords will undoubtedly want to protect their position too. This article has discussed options open to a tenant should they want to reduce their current office space usage, but these options are attractive to a landlord also. For instance, many landlords would sooner permit their tenant to sublet part of a property if that means the original tenant can afford to keep trading, rather than refuse permission to sublet and then risk their tenant becoming insolvent.

Similarly, agreeing to a tenant’s request to surrender a lease may provide the opportunity for a landlord to convert the property and refurbish it for residential or mixed use. The conversion of commercial property to residential use has been increasingly popular over the last decade and this trend may increase if the demand for commercial property declines as a result of the Coronavirus pandemic.

If you are a landlord looking into converting your commercial property to residential use, Tees’ experienced commercial property solicitors and conveyancing solicitors can assist you all the way from the initial review of your title, through to the sale of the residential properties.

Tees are here to help

We have many specialist lawyers who are based in:

Cambridgeshire: Cambridge
Essex: Brentwood, Chelmsford, and Saffron Walden
Hertfordshire: Bishop’s Stortford and Royston

But we can help you wherever you are in England and Wales.

Letters of authority and exclusivity agreements for renewable energy projects

Posted on 26 April 202319 March 2025 by Sarah O'Sullivan

As the UK moves towards a greener energy infrastructure, developers are increasingly seeking out landowners whose land is suitable for renewable energy projects such as wind farms, solar farms, anaerobic digestion plants and battery storage projects. Often these landowners are farmers who may be looking to diversify their land use.

Quite often the first approach a developer makes to a landowner would be sending them a ‘letter of authority’ and an exclusivity agreement. Andrew Harrison, a specialist in renewable energy law, provides insights into what these documents entail and why it’s important to take specialist legal advice if you receive one. It’s important not to sign anything without advice, to make sure you secure a good deal.

What is a letter of authority?

Once signed, a letter of authority is a legally binding document. It authorises a third-party intermediary to act on the landowner’s behalf. What this third party can do will be set out in the body of the letter. However, this usually includes the ability to correspond with network operators or the national grid to explore the possibility of securing a grid connection. In some cases, the letter of authority will permit the third-party intermediary to make an application for a grid connection on behalf of the landowner.

What is an exclusivity agreement?

It is not uncommon for an exclusivity agreement to be provided alongside – or within the body of the letter of authority. Once signed, an exclusivity agreement is a legal contract between two parties that restricts one party – typically the landowner – from entering negotiations with any other developer concerning any renewable projects on their land for a set period.

These agreements can sometimes grant rights to a developer to access your property to carry out initial works and inspections to determine the feasibility of a renewable energy project.

It is important that you carefully review any letter of authority or exclusivity agreement before signing, as either may contain terms and conditions that could impact your rights or obligations.

It is recommended that you seek expert legal or professional advice before entering into any form of an exclusivity agreement. Ideally, a landowner will only enter into such an agreement once the heads of terms of the transaction are agreed.

What should I do if I get a letter of authority and/or an exclusivity agreement?

Here are some steps to take if you receive a letter of authority:

Read the document carefully. Make sure you understand what the developer is asking for and what their rights and responsibilities are
Seek legal advice. It is advisable to consult with a solicitor who specialises in renewable energy projects to understand the legal implications of the documents you are being asked to sign
Negotiate terms. If you are willing to grant the authority or exclusivity requested, you can negotiate the terms of the respective agreement with the developer. This may include the scope of the work, the duration of any authority or agreement and any compensation or other benefits
Protect your interests. It is important to protect your interests and ensure that you are not granting more rights than necessary or being taken advantage of in any way. A solicitor can help you navigate the legal process, but it is recommended that you also employ a suitably experienced land agent who can negotiate the best possible commercial terms for you
Keep copies of all documents. Make sure to keep copies of all correspondence, agreements and any other relevant documents. This will be useful in case of any disputes or issues that may arise in the future

If you’ve received a letter of authority or an exclusivity agreement, it can be important to seek legal advice from a trusted and experienced team like Tees. Our expert team of solicitors can provide you with the guidance and support you need.

Tees are here to help

We have many specialist lawyers who are based in:

Cambridgeshire: Cambridge
Essex: Brentwood, Chelmsford, and Saffron Walden
Hertfordshire: Bishop’s Stortford and Royston

But we can help you wherever you are in England and Wales.

Countdown to the MEES Deadline: What to know

Posted on 6 March 202319 March 2025 by Sarah O'Sullivan

Commercial properties are required to be more energy efficient now than ever before.

EPCs and MEES

It is crucial for all landlords, investors, developers, and tenants to stay informed about the imminent modifications to MEES (Minimum Energy Efficiency Standards) and EPC regulations. Failure to adhere to the 1st April deadline and comply with the necessary measures may result in severe penalties for any involved party.

From 1st April 2023, the rules for commercial properties are changing. Are you ready?

The government has set a target to achieve a reduction of 78% in greenhouse gases by 2035 and net-zero emissions by 2050. The UK Green Building Council estimated that man-made structures are responsible for 40% of total greenhouse gas emissions in the UK. As part of the government’s plan, the rules on Energy Performance Certificates (EPCs) and Minimum Energy Efficiency Standards (MEES) are changing incrementally until 2030.

What are the current EPC ratings permitted under MEES?

Under the current rules, which apply to properties in England and Wales, landlords of commercial properties are prohibited from granting a new lease where the EPC rating is F or G. These are said to be ‘sub-standard’ properties. The current minimum EPC rating permitted under MEES is E.

A ‘new lease’ also includes any extension or renewal of an existing lease.

What are the exemptions for commercial properties under the MEES rules?

There are various exemptions to this rule, which are:

Devaluation – where the necessary improvements would damage the property or devalue it by 5% or more you can register a devaluation exemption. You would need to obtain a report from a RICS assessor to rely upon this exemption and any recommendations not covered by the report must still be carried out.
Seven-year payback – if the landlord can demonstrate that the initial costs of improvements would exceed the energy savings it would generate over the next seven years then this would not be considered a relevant energy efficient improvement.
Consent – where the landlord cannot obtain the necessary consents to carry out the required improvements (such as from a superior landlord or the local planning authority).
Improvements already carried out – if the landlord can show that they have carried out all cost-effective improvements to the property (or where there are none to be made) but the property still has a sub-standard EPC rating an ‘all-improvements’ exemption can be registered.

It is important to note that, if you plan to rely upon an exemption, it must first be registered on the government register of exemptions. Also, any exemption must also be renewed every five years for it to continue to apply.

Exemptions are personal and do not pass automatically when the property is sold. Any relevant exemption would need to be registered under the successor’s name.

The main penalty for failing to comply with MEES is a fine. This fine is calculated by reference to the rateable value of the property and the length of the breach, subject to a maximum of £150,000 (per breach). Additionally, there is also the possibility that the landlord’s details will be published on a public register setting out specific details of the breach, causing reputational damage to the landlord.

Non-compliance with MEES is not a criminal offence.

The current rules do not apply to existing leases. This is, however, about to change from April 2023.

1st April 2023 changes

From 1st April 2023, the above rules will apply not only to the grant of new commercial leases (including extensions and renewals of existing leases) but also to the continuation of any existing lease or tenancy agreement of the commercial property.

The exemptions mentioned above continue to apply, subject to the requirement to register and renew any exemption relied upon.

Looking forward

The government plans to require that all commercial properties have an EPC rating of at least B by 2030. It is anticipated that the next change will take effect from 1st April 2027, requiring a minimum EPC rating of C before later rising to B (or higher).

What should you do?

Landlords should review their portfolios to ensure that all existing leases have a valid EPC and consider the current rating.

If your property does not have an EPC, you should contact an energy assessor to arrange a survey. The government website has a function where you can find an accredited assessor local to you by inputting your postcode. As well as creating an EPC, an energy assessor will also prepare a Recommendation Report highlighting potential improvements and the impact this will have on the EPC rating.

If your property is ‘sub-standard’, with a rating of F or G, you should take urgent steps to consider what improvements can be made to bring the EPC rating to a minimum of E. You should also keep in mind the 2027 requirements for an EPC rate of C or higher. Can you take steps now to future proof your property to keep up with the future changes to MEES?

How can Tees help?

The law and guidance surrounding EPCs and MEES are complex and fast-changing. If you wish to discuss this topic further or require advice in connection with a new or existing lease and how the MEES will impact your transaction, please contact our Commercial Property Team.

Tees are here to help

We have many specialist lawyers who are based in:

Cambridgeshire: Cambridge
Essex: Brentwood, Chelmsford, and Saffron Walden
Hertfordshire: Bishop’s Stortford and Royston

But we can help you wherever you are in England and Wales.