What Happens When I Sell My Phone Mast? Understanding the Process and Your Rights as a Landlord

by | 28 May 2024 | Advice, Informative

Selling your phone mast can be a significant decision, and understanding the process and its implications is crucial. In this article, we’ll delve into the details to answer common questions landlords may have about selling their phone mast in the UK, including what happens to the land and the mast itself, your rights post-sale, and the difference between selling the leasehold and the freehold.

Phone mast sale process

The Sale Process:

When you decide to sell your phone mast, the first step is typically to engage with a reputable agent or advisor specialising in telecoms transactions, such as The Phone Mast Advice Company. They will help you navigate the complexities of the sale process, including valuing your asset, finding potential buyers, and negotiating terms.

Due to the current uncertainty in the telecoms market, many landlords are choosing to swap their annual rent for a lump sum, providing security regardless of future fluctuations in rent or the fate of the mast itself. 

Once you’ve agreed on a sale price and terms with a buyer, legal documentation will be drafted to formalise the transaction. This documentation will outline the transfer of either the leasehold or the freehold interest in the land and any associated rights to the buyer.

Ownership of the Land and the Phone Mast:

Whether you sell the leasehold or the freehold of the land will determine your ownership rights post-sale. If you sell the leasehold, you retain ownership of the land but transfer the rights to use the land to the buyer for the duration of the lease term.

Most credible third-party investors will have a well-organised estates management department that will deal with access requests, upgrades, and ongoing estate management issues, reducing the burden on the property owner. 

On the other hand, selling the freehold means transferring ownership of both the land and the phone mast to the buyer outright. In this case, you no longer have any rights or responsibilities associated with the mast or the land.

Your Say Post-Sale:

After the sale is completed, your level of involvement and influence over the phone mast will depend on the terms negotiated during the sale process and the type of interest sold. If you retain ownership of the land (in the case of selling the leasehold), you may still have some degree of control over certain aspects of the mast, such as access rights and site maintenance, as outlined in the lease agreement. 

However, if you sell the freehold, you typically relinquish any say or control over the mast, as ownership is transferred entirely to the buyer. The investor or operator purchasing the mast will handle ongoing lease renewals or negotiations, avoiding the risk of litigation for the landlord.

Pros and Cons of Selling Leasehold vs. Freehold:

Selling either the leasehold or freehold interest in your phone mast typically involves receiving a lump sum payment from the investor. Selling the leasehold interest offers the advantage of retaining ownership of the land while generating income from lease payments. You also maintain some level of control over the mast and the site. On the other hand, selling the freehold provides immediate financial gain, but you relinquish ownership and control over the land and the mast. However, you may no longer be responsible for ongoing maintenance and management.

In conclusion, selling your phone mast involves understanding the implications of selling either the leasehold or the freehold interest in the land. It’s essential to weigh the pros and cons carefully and seek professional advice to ensure that the terms of the sale align with your objectives and rights as a landlord. By being informed and proactive, you can navigate the sale process with confidence and maximise the value of your asset.

Matthew Restall

Matthew Restall

Matt Restall, the visionary founder of The Phone Mast Advice Company, is an unrivalled authority in providing expert advice on phone mast rents and contractual terms. With an impressive track record spanning over two decades, Matt has become a revered figure in the industry.