Break clauses in phone mast leases can be tricky to negotiate.
Typically, a phone mast lease will run for ten years. Without a break clause, a landowner has no ability to evict the mast within the ten-year lease period. Landowners often want the flexibility of a break clause allowing them to evict a mast if the building is redeveloped.
The recent case of Cornerstone Telecommunications Infrastructure Limited (CTIL) v Chartered Institute for Personnel and Development (CIPD) (2024) has provided clarity on the ability to insist on a break clause and the terms of the redevelopment break wording.
Background and key issues
CTIL were looking to install telecommunications equipment on the roof of CIPD’s building in Wimbledon. While CIPD had a firm intention to sell the building, it had not yet marketed the site. The wording of the redevelopment break clause was therefore disputed between the parties.
- CIPD sought a rolling redevelopment break clause that could be exercised from day one on 18 months’ notice. CIPD wanted to give potential buyers confidence that they could obtain vacant possession within a maximum of two years.
- CTIL proposed that such notice should not be served before the fifth year of the term, effectively giving the operator a term certain of 6.5 years. Additionally, CTIL’s draft break clause included a contractual obligation to offer the mast operator alternative accommodation for their equipment, if possible.
Tribunal decision
The Tribunal decided that a break not expiring prior to the fifth anniversary of the term struck a fair balance between the operator’s rights and the site provider’s intention to redevelop the site. Since the site provider had not yet marketed the site and did not have a potential buyer lined up, this decision provided a reasonable middle ground.
In relation to the contractual obligation to offer the mast operator alternative accommodation for their equipment, the tribunal made it clear that this wording was not required.
The Birketts view
This case is a win for landowners and is a sensible step forward. Landowners naturally want to know that their property is not going to be tied up for the sake of a phone mast on the roof. This decision ensures that landowners can insist on flexibility. This should provide comfort to landowners affected by phone masts going forward.
If you have been approached by an operator requesting you to agree terms or enter into a code agreement, please do get in touch with a member of the Telecoms Team who will be able to advise you further.
Key Contacts
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at February 2025.