Third party land rights

If you are a farmer or property owner who has rural or unused land, it is possible that you may have been or will be approached by a third party company who is interested in obtaining rights over your land.

There are a number companies who may be interested in your land for the following types of project:

Renewable energy

These companies approach landowners who have properties suitable for wind or solar farm projects or hydro schemes.  They may need your land for part of a project eg for access or cables or for the development itself.

Battery / storage projects

These projects are relatively new, but are part of an increasing area of use.  Developers can site such projects on fields, in warehouses or on unused part of industrial estates.  The batteries / generators are used to generate additional energy which can be used by National Grid when required.

Fracking

These projects impact on a few landowners as drilling is vertical and is within a relatively small area, but once beneath the ground can then spread out horizontally.

Telecoms

Sites required can be small areas, even on a church spire!  Currently such sites tend to be existing ones requiring equipment upgrades or additional equipment.

Cable or pipeline easements / electricity wayleaves.

These tend to affect a number of landowners along a particular route.  The operator may be in the position to use statutory powers to obtain suitable rights.

But what do you do if you are approached by a third party or their land agent for such a project?

Firstly you need to consider if you want such a project on your property.  Although you may be interested in the project eg a wind farm, you also need to consider the impact on the local area and therefore any impact back from the local area.  Some of the projects listed above can cause high feeling.  Developers do tend to understand this and will be able to advise and assist with any issues.

Secondly – do you have an Agent?  If not, it is recommended to appoint one to assist and advice on the negotiation of the rental and option sums to be agreed for the project.  Such sums can vary tremendously and if the developer is only offering a small option sum eg £100 for you to tie your land for an option period of 3 years, then you need to consider if this project is worth proceeding with, or could your Agent approach another developer who could pay more?  Obviously if you have already signed an exclusivity agreement with the developer then you would not be able to approach others.

The developers requiring your property usually do pay for legal and professional costs and this needs to be agreed before matters proceed.  Your agent and solicitor are usually aware of suitable fees for such projects and so you can proceed without concern.

At Allington Hughes, we are experienced in dealing with all the projects detailed above and are happy to discuss any proposals with you, that you may have received.  It is highly recommended to appoint an Agent and Solicitor at the start of any discussions with the developer and not at the last minute to check before you sign!  Ideally we would be involved at the initial stage of agreeing Heads of Terms as we can advise on key issues which would need to be included that may not have been proposed.

If you need any further assistance, please contact Lucienne Sutton on [email protected] or 01244 312 166