Real Estate Archives

HMRC changes in processing option to tax form

Posted on 27 January 202330 March 2025 by Sarah O'Sullivan

From 1 February 2023, HM Revenue and Customs (HMRC) will no longer confirm the existence of an option to tax when requested to do so by property owners or solicitors, except in specific circumstances. These circumstances are limited to where the option to tax was likely to have been notified more than 6 years ago or if the enquiry is from an appointed receiver or insolvency practitioner administering the property in question.

In addition, HMRC will no longer issue option to tax acknowledgement letters once an option to tax has been notified. Property owners will therefore need to keep a record of the notification of their option to tax and we strongly recommend that all notifications are sent to HMRC via email to: optiontotaxnationalunit@hmrc.gov.uk. The email should include in the subject line the full property address and the effective date of the option to tax. This is because an automated response to the email will be received, which can be used as evidence that the option to tax has been notified to HMRC. Property owners and businesses are currently required to keep their VAT records, including options to tax, for six years, however, we advise that these records will now need to be kept throughout the ownership of the property in question to ensure that the correct tax treatment is applied on a sale or lease.

You can read more about the changes on the Goverment website here.

My career as a commercial property lawyer

Posted on 14 July 202230 March 2025 by Sarah O'Sullivan

High-quality work right on my doorstep: As part of our new series of ‘talk to Tees’ we will be talking to our lawyers and other team members about their time and experiences. In our first episode we speak to Kay Piper, commercial property partner, about her move from a London firm to Tees.

Q: Why did you choose to work for Tees?

It is a very well-established brand and I was impressed with the forward-thinking structure Tees has and the ability that this gives Tees for succession planning and investment into the firm. Tees is in a strong place as a business and on a progressive, growth trajectory. As I live in Bishop’s Stortford it gives me the ability to have a varied caseload of excellent quality work with clients, and also with properties that are familiar to me. There is the added benefit of working so close to home that I get to spend more time with my family and the commute is lot shorter than previously. Having the office nearby gives me lots of flexibility and choices for the best way to work.

Q: How do you find the work you’re now doing?

You always want quality work – the real complex interesting work where we can add value, and there is never a shortage of this at Tees. My workload keeps me very busy, and the variety makes it extremely interesting.

I work for a wide range of clients including large landowners, farmers, developers of all size, companies and high-net-worth individuals. We offer a bespoke, all-round service to these clients and there is lots of client interaction which I’ve always enjoyed. We get to know our clients and become their trusted advisers.

Q: How big is the team and how does it operate?

The commercial property team covers five of Tees’ six offices, with the largest team sitting in the Bishop’s Stortford office. Overall, there are five partners, two consultants (who are former partners at Tees), seven solicitors, three paralegals and a trainee solicitor.

We each have our own workload and clients, but we also work together in sub-teams on the more complex matters. I enjoy working with the team to come up with the best solution for the client.

We recognise that our clients might require other services from other teams, such as advice on company commercial matters, property litigation and from the private client team for advice on estate planning for those selling their land. With Tees having a breadth of experience and services, we are able to offer our clients a one stop shop for all legal and financial requirements.

Q: Is your team expanding?

Yes absolutely. We are always looking for new people to join the team and it is a very interesting time to join Tees with our future plans of growth. Client demand is high, so we need to keep up with this.

Q: How do you see the commercial property market currently?

The market is buoyant and there is a lot of movement, especially in relation to residential development. As with most things, the Covid pandemic has had an impact on the market, especially the retail aspect, but we are seeing this change and the retail market is beginning to pick up again. There is talk of a recession and/or a slowdown in the property market on the horizon. With our breadth of services, Tees is excellently placed to withstand any changes to the economy.

Q: What’s the working culture like at Tees?

In short, it’s great. We are supportive and collaborative in the way we work. We enjoy working hard but encourage everyone to talk to each other and find the best solutions for our clients in a good team working environment. Tees knows its people are key to its success and from my experience is committed to giving everyone the chance to be their best to succeed and grow. I am part of our trainee recruitment programme and it’s fantastic to be part of this important initiative. Many of our Partners trained at Tees which is a testament to the investment and trust we put in our people.

We operate in an open plan office with an ‘open-door’ policy: questions and running things past each other are encouraged – even when people are working from home. We discuss matters regularly in our weekly team meetings or monthly department meetings. I really like that Tees is a multi-discipline firm because clients are often looking for advice that crosses several departments, so we really get to see the whole project through and spend time with our clients. All in all, I’m delighted with the choice I made to move to Tees.

One farming family, over 30 years of trusted legal and financial advice

Posted on 12 April 202129 March 2025 by Sarah O'Sullivan

For over three decades, Tees has provided expert legal services to multiple generations of the Miller* family, a prominent agricultural family with extensive farming, land and property interests located across several English counties.

Our senior partner and specialist in rural succession and estate planning, Catherine Mowat, has worked closely with the Millers for many years, helping them capitalise on opportunities for efficient estate planning and take advantage of valuable Inheritance Tax reliefs.

Alongside Catherine’s team, our Commercial Property, Residential Property, Commercial and Wealth Management teams have worked together collaboratively in order to help the Miller family effectively manage their business and property interests.

Passing assets on to the next generation

Catherine has worked extensively with the Millers over a number of years to put in place comprehensive arrangements that will enable more senior family members to pass on their assets effectively to future generations, whilst minimising the Inheritance Tax (IHT) payable on their estate.

The family were advised to make substantial lifetime gifts to their children and grandchildren, enabling assets to be passed on to younger generations in a controlled way.

How does Inheritance Tax (IHT) work?

IHT is a tax on the capital value of assets (including money, property and possessions) either when somebody has died or on some gifts made during lifetime. On death, it is generally payable at a rate of 40% on all assets over the value of £325,000, although there are exemptions and reliefs that can be used to lessen the amount due. Another way of reducing the IHT payable on your estate is to make lifetime gifts. If you make gifts more than seven years before you die, there will usually be no IHT due on these gifts on your death. If tax does arise, only gifts given less than three years before you die attract the full 40% IHT rate, making lifetime gifts an excellent opportunity for passing on assets to minimise tax.

These lifetime gifts also caused the estate value belonging to the children to rise, increasing their IHT liability. Here, our Wealth team stepped in to help set up suitable life insurance arrangements, written in trust to minimise the impact of a significant tax bill.

Why should I write my life insurance policy in trust?

Writing your life insurance in trust is a way to avoid paying IHT on the eventual payout. When you place an asset into a trust, you essentially give up ownership of that asset to the trust and appoint trustees to oversee it (this can be a solicitor, like Catherine, or somebody else). As the assets (in this case, the life insurance policy) don’t officially belong to you, they aren’t classed as being part of your estate and are therefore not subject to IHT.

Catherine has also worked with the Millers to draft essential estate planning documents such as Wills and Powers of Attorney, and acts as a trustee for the various trusts within which the family’s business and property assets are held. Her many years spent advising this family have enabled her to build a strong relationship with the Millers, bound by mutual trust and respect.

Taking advantage of Inheritance Tax (IHT) relief

Over the years, our Wills, Trusts and Probate team has worked closely with the Millers to ensure their entitlement to valuable IHT reliefs. For example, Catherine’s advice has enabled the family to take full advantage of Agricultural Property Relief (APR) on their eligible assets.

What is Agricultural Property Relief (APR)?

APR allows farming families to pass on agricultural property at a reduced or 0% rate of IHT, either during a person’s lifetime or in their Will. To apply for APR, the land or property must have been owned for at least seven years, or occupied for two years and must be used for growing crops or rearing animals, or take the form of farm buildings, cottages or houses. It does not apply to farm equipment or machinery, derelict buildings, harvested crops or livestock. APR can be due at 100% or 50%, depending on the circumstances.

Catherine also regularly reviews the balance of the Millers’ business activities to ensure that no entitlement to Business Relief (BR) is lost, by using the ‘Balfour’ test.

What is Business Relief (BR)?

BR allows business owners to pass on certain business assets at a reduced or 0% rate of IHT, either while they are still alive or via their Will. The owner must have owned the assets for at least two years before they died for them to be eligible. BR is due at 100% for:

A business, or interest in one
Shares in an unlisted company

It is due at 50% for:

Shares controlling over 50% of the voting rights in a listed company
Land, buildings or machinery owned by the deceased and used in a business in which they were a partner or controlled
Land, buildings or machinery used in the business and held in a trust the business has the right to benefit from

To be eligible for BR, a business must also be classed as a predominantly trading business. However, many farms are becoming increasingly diversified, with activities such as cottage rentals and holiday lets shifting the balance from trading to investment.

Catherine used the Balfour test to assess the Millers’ farming business and used the results to advise the family on achieving the best balance between trading versus investment activities within the farming partnership for BR purposes.

Strategic land and property solutions

Our Commercial Property team regularly steps in to assist the Miller family in matters relating to the lease or sale of land and properties, which include a range of sites with commercially let units, and other strategic deals such as granting options. Rural specialists within our Commercial Property team will negotiate and facilitate these various land transactions.

An example of the type of planning advice we offer might be in relation to land owned by a family trust on which planning permission has been obtained for development. In this situation our Corporate team would step in to advise on the incorporation of a ‘freezer’ company.

The team would also prepare bespoke articles of association, ‘freezing’ the value of certain interests in the company in order to cap ownership. This ensures that the growth and value of the land will be passed on to the next generation tax-efficiently and limit their IHT liability.

What is a ‘freezer’ company?

Also known as a family investment company (FIC), a ‘freezer’ company is essentially a private limited company whose shareholders are all family members. Commercial solicitors can help the family prepare bespoke articles of association that set out the rights and interests each party holds within the company. For example, the parents can set themselves up as voting shareholders – thus maintaining control over the company – but ‘freeze’ the value of their interests in the company to cap their ownership.

Meanwhile, the children can be non-voting shareholders but own the majority of the shares, allowing the growth and value to pass on tax-efficiently to the next generation. This makes ‘freezer’ companies an ideal vehicle for intergenerational wealth management, allowing assets to be passed on during your lifetime whilst still retaining control of them. If you live for more than seven years after setting up the company, no IHT will be due (according to the rules of lifetime gifting).

A full- service firm rural families can depend on

For over a century, Tees has been a trusted partner to farming families like the Millers, helping them pass the family business from generation to generation. In this time, our agricultural specialists have developed a unique understanding of the challenges facing the rural community.

From tailored business advice to passing your land and assets tax-efficiently to the next generation, our specialist agricultural lawyers can help you navigate the complex relationship between business, land and family interests.

*Please note that the family’s name has been changed for anonymity.

Looking to secure new business premises? You need a good set of Heads of Terms

Posted on 13 December 202019 March 2025 by Sarah O'Sullivan

The pandemic forced us to make fundamental changes to the way we all live and work which has in turn, created new challenges but also opportunities for businesses of all sizes to think about how and where they do business. Many of us have got used to working from home but for most retail, manufacturing, hospitality and even some service industries, this is simply not an option, so business premises will be needed.

In order to ensure your commercial property transaction (whether it be the grant of a lease, transfer of an existing lease, purchase of a freehold or anything related) is as streamlined as possible, well-drafted Heads of Terms are essential.

In this article Jane Winfield, Partner and expert commercial property lawyer, highlights how Heads of Terms can bring clarity and focus for both parties in the transaction, as well as provide the basis for subsequent negotiations.

What are Heads of Terms?

Heads of Terms are essentially a document which sets out the terms of a commercial transaction that are agreed in principle between the parties involved. As commercial property lawyers, if we are provided with comprehensive Heads of Terms, this will enable us to create a legal document that accurately reflects what each party is looking to achieve in the transaction and the parties can then agree how to proceed by way of a definitive agreement.

If you’re about to undertake a commercial property transaction, talk to us today.

What makes good Heads of Terms?

There are different Heads of Terms for different transactions. Where the grant of a lease is involved, there are a number of items you will need to consider; you may need to take advice from a number of different sources including your legal adviser, surveyor, bank (if loan finance is needed), building contractor, architect or accountant.

Such items include:

Property – What are its boundaries? Are you taking on responsibility for the interior and exterior under a lease? What about air space above? Do you need rights of access over adjoining property or the landlord’s property? Where will you be able to park? Are you expecting the have the benefit of any other areas outside of the property boundary? Do you want to be able to build upwards?
Title to the property – What legal estate or title are you acquiring? Does the freeholder have a good title to the property? If you are being granted a lease, does the “owner” own the freehold or itself have a leasehold title? If the latter, does the consent of another landlord need to be obtained? Will there be a need to enter other separate documents with third parties, for example, deeds of covenant?
Length of term of a lease – How long are you likely to want to remain in that property? Do you want to have the ability to stay at the end of the length of the term of the lease? Do you expect to be able to vacate easily at the end of the term or do you want the right to remain at the property and to build your business and goodwill?

In commercial property leases it is common for the parties to agree a term of, say, 10 years but to include a right for the tenant to break the lease after the first five years of the term. This is called a “tenant break right”.

If you want flexibility, should you be thinking about requesting a break right? Is it reasonable for the landlord also to be granted a break right? If so, what is the quid pro quo for the landlord having flexibility? What conditions are to be attached to the exercise of the break right? How often would you want to have the break right available and on what period of notice should it be exercised? Is the break right to be personal to you as the tenant or to anyone who may take the lease from you in the future?

Repair – What part of the property are you responsible for in terms of repair and other tenant covenants? Is it the interior only or the entire building? If the latter, is there a service charge? If the property is not in a great state of repair, do not assume that you have to give it back to the landlord in a similar state of repair!
Assignment and subletting – Can you transfer the lease to a third party or sublet either the whole or part to a third party? Please note that even if you can, you will be responsible for the landlord’s costs.
Alterations and fit-out – Do you have plans to carry out fit-out works at the property when you move in? If so, you should get those details agreed with your prospective landlord as part and parcel of the lease negotiations so that you can avoid having to make a separate application to the landlord for consent at a later stage. Do you want to have the ability to carry out general alterations without landlord’s consent (and thus having to pay the landlord’s legal and professional costs)?
Rental – What is the agreed level of rental? You will need to take specialist advice on this. Will there be a rent review and how will that rent review be dealt with? Is it on an open market “upwards only” basis or an RPI increase linked basis? Should you be seeking a rent-free period?
Other security – Will the landlord expect other security, for example, the payment of a rent deposit or the provision of guarantors? How long will the landlord hold the deposit for? Who could stand as guarantor if the landlord requires this?
Service charge – Even if you believe that you will only be responsible for the repair of the interior of a property as a tenant, it is possible that you will also have to contribute towards the repair of the exterior and any other facilities under a service charge. Do you know enough about the potential service charge before you enter into the lease negotiations? Is it appropriate to request a service charge cap or a carve out of service charge liability in the Heads of Terms Agreement?
Insurance – Who will be insuring the premises and what is the cost of the premium? What risks are covered?
Permitted use – What can you use the property for and will this give you enough flexibility to be able to transfer the lease in the future? What is the impact of the permitted use on rent review provisions?
Costs – Is each party to be responsible for payment of its own costs in connection with the preparation of the legal documentation? A tenant might be asked to make a contribution towards the landlord’s costs or to give an undertaking to be responsible for the landlord’s costs if the tenant withdraws from the transaction. Have you allowed for this within your cashflow?

Are Heads of Terms legally binding?

It is important that all correspondence relating to any proposed property transaction is marked “subject to contract” so that there is no possibility that the heads of terms become legally binding and therefore constitute a contract in themselves. Also, be aware that a contract or a lease does not have to be written for it to be binding.

Here to help

At Tees, we are very happy to advise you on Heads of Terms once they have been drafted, outlining any particular concerns and identifying any areas where further clarification is needed. We’re here to ensure you’ll be well set up for the property side of your exciting new venture.

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.

Three new female partners tip the balance at Tees

Posted on 1 April 202030 March 2025 by Sarah O'Sullivan

Three new female partners have swelled the senior ranks at Tees Law, a Top 200 law firm with offices in Bishop’s Stortford, Brentwood, Cambridge, Chelmsford, Royston, and Saffron Walden. Letty Glaister, Eleanor Burroughs, and Kay Piper’s promotions to the partnership mean that female lawyers now comprise the majority of the firm’s partners. In a profession where women typically occupy less than a third of partnership roles, Tees is leading the way in supporting female lawyers to access senior positions and progress in their careers.

Commitment to diversity and equality

Tees’ head of HR, Amy O’Brien, commented: “Tees encourages and values diversity and is committed to equality for its entire staff. Fifty-three percent of partners at Tees are women, and having such a balanced split works really well for us. Each partner, be they male or female, brings different strengths and qualities to the team and contributes to driving the company forward. These principles of equality of opportunity and non-discrimination also extend to the manner in which our employees interact with our clients, our business partners, and our visitors.”

Kay Piper’s vision for commercial property

Kay Piper is head of Tees’ commercial property department in the Bishop’s Stortford office. Speaking of her appointment, Kay says: “I am looking forward to increasing the team’s presence and connections within the community, reaching out to build local awareness of Tees’ expertise in commercial property matters. I am also very keen to further develop a collaborative team within Tees, ensuring that we work together to deliver a joined-up service for our clients. Whilst the entire Tees team is currently working from home, we’re still working hard to keep connected with our clients and to each other. We’re actually finding that we’re communicating more than ever.”

Letty Glaister’s rural community focus

Letty Glaister, who heads up the Royston office, hopes to further strengthen her relationships within the rural community and cement Tees as the law firm of choice for farming clients throughout Hertfordshire and Essex. “It’s really important that our clients trust us implicitly, and that can only be achieved by making a real effort to strengthen our links with the surrounding community, especially during these difficult times when many rural families are feeling concerned and isolated due to social distancing measures,” she says. “Particularly in the rural world, maintaining close relationships is vital as we are dealing with farms that have been in families for generations, meaning that emotions can run high for all concerned.”

Eleanor Burroughs’ commitment to Saffron Walden

Eleanor Burroughs, who has been working at Tees’ Saffron Walden office for 11 years, heads up its residential property department. In addition to her partnership promotion, she has also been promoted to head of the Saffron Walden office, effective from April. Going forward as a partner, Eleanor says she is “looking forward to maintaining the close links we have worked so hard to build up with the local community, and to building the Tees brand.”

A message from the group managing director

Ashton Hunt, group managing director at Tees, is delighted by the three new partners’ success: “At Tees, we have always been assiduous in ensuring our female solicitors are supported in progression to senior roles. Letty, Eleanor, and Kay have all consistently demonstrated their excellence in their fields and commitment to our firm during their time here. Whilst leading their teams remotely during these challenging times, they continue to deliver a consistently excellent service to their clients. Their promotion to partner is thoroughly well deserved.”

Electronic Communications Code

Posted on 25 September 201919 March 2025 by Sarah O'Sullivan

What do landowners need to know?

The old Electronic Communications Code was replaced on 28 December 2017. The intention was to simplify the planning procedures for network operators to install and maintain apparatus such as phone masts, exchanges and cabinets on public and private land. Landowners are now facing various practical challenges and are finding that the new code benefits the operator rather than the landowner.

The new code was designed to make it easier for operators to roll out or upgrade their services, such as the current focus on the rollout of 5G. Operators can now apply to Ofcom to obtain certain rights, allowing them to execute works for which they would have previously needed landlord’s prior consent. As a result, landowners have reported a noticeable loss of control over building works, poorer security, reduced access and difficulty in removing the operators from their property.

What’s changed?

If you are a landowner with a telecommunications agreement in place or are thinking about entering into a telecommunications agreement, there are several things to consider:-

Assignment – operators can now automatically assign their code rights to another operator without the need to obtain a landowner’s consent or provide payment.

Upgrading and Sharing – operators can upgrade or share their apparatus without the landowner’s consent and without having to pay additional rent.

Security of Tenure – under the old code, operators were able to rely on protection under the Landlord and Tenant Act 1954, meaning that the operator had a right to keep its apparatus on the land at the end of the agreement and the right to a new agreement. However, under the new code, the security of tenure provisions under the Landlord and Tenant Act 1954 have been excluded and the new procedures regarding termination should be followed.

Termination – landowners must now give at least 18 months’ notice to an operator in order to terminate an agreement.

There are now four statutory grounds for termination:-

substantial breaches by the operator of its obligations
persistent delays by the operator in making payment;
landowner’s intention to redevelop all or part of the land or any neighbouring land;
the test under paragraph 21 of the code has not been met by the operator, whereby, the operator must meet the two following conditions:-
that the prejudice caused to the landowner can be adequately compensated by money;
that the public benefit that is likely to be derived from the making of the order outweighs the prejudice to the landowner, bearing in mind the public interest in access to a choice of high quality electronic communications services.

In a leading case, landowners tried to bypass the grounds for termination under the new code. They claimed that they had an intention to redevelop the land by replacing operators’ existing masts with masts of their own. At the First Tier Tribunal, they were asked: ‘Would the landowner intend to carry out its redevelopment project if the operator was not seeking code rights?’

The tribunal decided that even though there was a reasonable prospect of bringing about the redevelopment proposal, the intention to bring it about was not genuine and the project was simply devised in order to prevent rights from being imposed by the operators. An intention of the landowner to redevelop must be something that is ‘firm and settled’.

Removal – a reasonable amount of time must now be given to an operator to remove apparatus. Issues arise when a landowner wishes to exercise a break option, as under the new code, the operator has to allocate both time and money for removal. Developers should consider the extended timescales when it comes to making plans for redevelopment and incorporate the new timescales into the development timetable.

Rental – landowners should be aware that the level of rental paid and any compensation payable by telecoms operators must now be calculated in accordance with the open market value of the land, without the benefit of the telecoms site. Ultimately, this is likely to reduce the achievable rent.

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.

Landlord and Tenant 1954 Act

Posted on 25 September 201919 March 2025 by Sarah O'Sullivan

A brief overview of the Landlord and Tenant 1954 Act and its practical implications for landlords and tenants.

What is the 1954 Landlord and Tenant Act?

The Landlord and Tenant Act 1954 gives commercial tenants the right to a lease renewal at the end of the contractual term of a lease and the ability to remain in occupation at the property. This provides the tenant with security of tenure. It should be noted that the 1954 Act applies to written and oral tenancy agreements.

What is security of tenure?

Security of tenure benefits the business tenant by securing business continuity. This is because the tenancy will not automatically come to an end and will continue on the same terms under the tenancy until renewed or terminated in accordance with the Act.

Does the 1954 Landlord and Tenant Act cover residential houses?

The Landlord and Tenant Act 1954 only applies to commercial business tenancies, it does not apply to residential tenancies.

How can I get my tenant out of my commercial property?

If you are a landlord, you will only be able to oppose a tenant’s request for a lease renewal on certain grounds which carry strict criteria which must be satisfied.

One of the most frequently used grounds for opposing a lease renewal is Section 30(1)(f) (Ground (f)) of the Landlord and Tenant Act 1954, where the landlord must provide substantial evidence of an intention to redevelop or reconstruct the property. This must be a firm and settled intention, rather than merely an idea. In a leading case the Court said that the landlord must prove its genuine intention to carry out works at the date of the trial, showing evidence such as plans and drawings for the development, financing and a building contract. Each case turns on its own facts.

How can I avoid giving a tenant security of tenure?

It is possible for a lease to be “contracted outside” the 1954 Act, meaning that the tenant will have no right to remain in occupation or renew the lease at the end of the contractual term. The tenant will therefore need to vacate the property or have completed a new lease by the end of the contractual term.

The 1954 Act status of a commercial tenant’s occupation of a property has significate repercussions on both a tenant’s and landlord’s rights at the end of the term of a lease. This status should be carefully considered in terms of business planning, repair obligations and the level of rental applied to any tenancy.

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.

Compensation for power lines on property explained

Posted on 14 March 201719 March 2025 by Sarah O'Sullivan

A series of compensation awards under the Electricity Act 1989 have been made by the courts to property owners whose property hosts, or is crossed by, high voltage electricity power lines on wooden poles.

Do unsightly wires running in or over your property hold a value after all?

If the wires run nearby but, not on or over your land, you will not be entitled to compensation.

If you’re hosting such wires on your land, or your land is crossed by them, then perhaps now is the time to review the basis and implications. This also potentially applies if your electricity network provider is asking you to sign a wayleave agreement for the first installation of electrical equipment or repositioning of the same. You should first take professional advice before agreeing to or signing anything.

So what’s new? Electricity network operators have commonly compensated property owners directly affected by the giant steel pylons carrying cables. Now property owners directly affected by wooden posts are also being compensated.

If you think you might be entitled to compensation what should you do?

First, check compensation has not been agreed previously – compensation is a one-off pay out – which could have been paid to a previous owner. When buying a property affected in this way, check to see if there is already an easement in place granting permission; often called a wayleave agreement (it follows that it is sensible that, if invited to sign a wayleave agreement, you do not do so without taking legal advice). Contact your distribution network operator (see energynetworks.org for details).
Second, check the pylon is on your land or the wires cross your land. A spoilt view does not qualify for a claim but, wires that are not directly over your land but their swing and/or sag affects your land may mean your are eligible for compensation.
Third, contact your electricity distributor direct to apply for compensation. But, remember this is a one off compensation entitlement that the electricity distributor will be looking to negotiate on favourable terms (for them not you). You may want to appoint a solicitor to negotiate the claim on your behalf, so as to achieve the best possible award and handle the majority of the paperwork on your behalf. If your property is mortgaged, you will need consent of your mortgage company to make a claim.

If your claim is admitted, the amount of compensation is assessed in terms of the impact the poles/wires have on the value of your property. The evidence of a Chartered Surveyor on valuation will be needed so as to assess the value or your claim. Such evidence can also be used in negotiations. Proximity and wattage are relevant to value of your claim. 1.5-4% of the value of your property is the average value but, this is a negotiation as there is no fixed scale.

Expect your claim to take 6 to 18 months. In practice, the power companies will pay your legal costs if your claim succeeds.

Any downsides? It is wise to go into such a claim without inflated expectation – the surveyor will advise on value. Also, it might seem obvious but, if you have not spent a long time studying your wooden pole in the garden; check it is an electricity pole and not a telegraph pole.

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.