Maximising income from electricity substations
Sherwill Drake Forbes is the industry leader within the specialist field of negotiating new substation leases. Our aim is to maximise your income from the substation on your property.
Overhead power lines can significantly reduce the value of property. Sherwill Drake Forbes is a specialist firm of Chartered Surveyors which can agree compensation for property owners.
Is your land or property eligible for compensation?
You could be eligible for compensation if:
Part of the power lines and/or pylon towers are on or crossing over your land or property or the ‘swing and sag’ of the lines would affect your property, and;
Compensation has not been agreed previously. Sherwill Drake Forbes will establish this for you if uncertain.
What if?
Often, we are asked whether there is a valid claim in the following circumstances;
The power line was constructed years ago? YES
The property was bought after the power line was constructed? YES
You paid less for your property because of the power line? YES
Your property was built after the power line was constructed? YES
Please note that it also does not matter if you do not have any intention of selling your property now or in the future. The legislation allows a full claim for the loss in value.
The claim process
Sherwill Drake Forbes carries out an assessment of the potential compensation claim. This information forms the basis of a professional submission to the electricity company. A period of negotiation is usual and once the claim is agreed to your satisfaction, solicitors are instructed to complete the formal documentation. It is commonplace for all professional expenses to be paid by the electricity company.
Timescale
Please note that this process takes a minimum of six months and can take up to eighteen months depending on the electricity company’s resources at the time of application.
Why use Sherwill Drake Forbes?
We are a specialist firm regulated by the Royal Institution of Chartered Surveyors (RICS).
Our core business is utilities, telecoms and infrastructure projects.
Our experience and professionalism allows us to advise owners to achieve the maximum levels of compensation.
There is no cost for an assessment of your situation and there will be no fee charged for our time if we find you do not have an eligible claim.
We will set out clearly our terms of business including fees after our initial assessment and never deviate from these.
If you would like to explore this further please contact us on mail@sdforbes.com, or phone +44 (0) 1908 614248
Part 1 forms part of the Land Compensation Act 1973. Compensation can be claimed by people who own and also occupy property that has been reduced in value by physical factors caused by the use of a new or altered road.
The physical factors include:
Noise
Vibration
Smell
Fumes
Smoke
Artificial lighting
The discharge on to the property of any solid or liquid substance.
The cause of the physical factors must be the new or altered road in use. For example, if a road is altered, the noise and other adverse effects must arise from the traffic using the altered stretch of road only. Compensation is not payable where part of the affected property has been taken for the construction of the new or altered road. This is because the effect of the use of the road on the value of the rest of the property will have been taken into account in calculating the compensation for the part of the land taken. Loss of view or privacy, personal inconveniences arising during the construction of the road are also not included under Part 1 compensation.
Residential property – Compensation
To claim, you must have been the owner of the property before the date the road first came into public use and you must also still be the owner on the date you claim.
Agricultural – Compensation
You must be the owner and the occupier both before the new or altered road first came into public use and at the date you claim. You must occupy the whole of the unit and own the freehold or a lease with at least three years left to run in the whole or any part of the unit at the date of claiming.
When can I claim?
The first day for claiming compensation is a year and a day after the new or altered highway first came into public use (known as the ‘first claim day’).
How do I claim?
You can make a claim yourself but it is advisable to instruct a Chartered Surveyor to act on your behalf.
Chartered Surveyor’s Costs
The authority in charge of the scheme will pay your reasonable professional fees if any compensation is due.
How is compensation worked out?
The Authority’s valuer will assess the impact of physical effects arising from the use of the road against the value of your property on the first claim day.
The compensation will be assessed based on the amount of traffic using the new or altered road at the first claim day. Account will also be taken of any future increase in traffic that could reasonably be predicted at the first claim day. Sometimes the value of property can be increased because of the road scheme; for example, noise levels are reduced because heavy traffic has been removed from roads closer to your property. Such benefits will also be taken into account.
The Limitation Act 1980
A person whose property has been reduced in value by physical factors caused by the use of a new or altered road must, within six years of the first claim day:
Either agree an offer of compensation or,
If agreement cannot be reached, ask the Lands Tribunal to decide the amount of compensation.
After that six-year ‘limitation period’, you can no longer submit a claim for compensation.
How can Sherwill Drake Forbes help?
Sherwill Drake Forbes is a firm of Chartered Surveyors who specialise in utility and infrastructure schemes, acting solely on behalf of the affected landowners. Sherwill Drake Forbes would be pleased to offer assistance if you are affected by these issues. Please do not hesitate to contact us on +44 (0) 1908 614248 or mail@sdforbes.com.
As part of the urban expansion of land to the North of Houghton Regis and in partnership with other landowners, a mixed use scheme to include employment land, a school, local centre, significant areas of green space and up to 1850 homes is being brought forward. Consultation with local residents, the wider community and Central Bedfordshire Council is ongoing. It is intended that the planning application will be submitted in early summer 2014.
Sherwill Drake Forbes Director, James Paynter MRICS, commented ‘Our Planning and Development Team have been involved from the commencement of strategic promotion of this site. The success of any long-term planning exercise, requires an excellent client relationship where pragmatic advice is given and to aid key decisions in a timely fashion. We are proud to be associated with one of the UK’s most exciting housing-led sustainable urban extensions’. If you would like to discuss how our Planning and Development Team may be able to assist with your own requirements please do not hesitate to contact us on +44 (0) 1908 614248 or mail@sdforbes.com.
The telecommunications industry has undergone major changes from early fibre optic network investment with significant growth in the 1990’s and the ‘dot com’ and telecoms crash in 2001/2002. Problems in financing and intense competition with network oversupply were evident at this time. However in recent years network consolidation and new investment has been actively increasing.
Fibre Optic communication cables allow transmission over long distances and at higher bandwidths (data rates) than other forms of communication cables. Fibre Optics have revolutionised the telecommunications industry and the networks are extensive. Significant and established parts of the national networks are installed on high voltage electricity pylons.
Fibre Optic cables are installed on these pylons for two purposes: they allow for the efficient monitoring of the electricity network and additional fibres are commonly installed for commercial electronic data networks and it is this latter use that offers landowners the opportunity to reach commercial terms for an agreement directly with the network operators.
Large numbers of agreements for existing fibre optics are now due for review. It is not unusual for the original terms to have expired and the ability to back claim for rents should not be overlooked.
Often, due to multiple assignments of the original leases, mergers of telecom operators and changes in land ownership, individual landowners are unsure whether the pylons on their land carry operational fibre optics. We can make a full and swift assessment to ascertain the current position.
Sherwill Drake Forbes is a leading firm for all fibre optic rental negotiations. We are highly experienced with a large database of commercial transactions and up to date market knowledge.
Our Surveyors are fully conversant with the underlying legislation governing this sector which allows us to achieve the best possible outcome on your behalf.
In the vast majority of cases the Telecom Operators will meet the costs of Sherwill Drake Forbes so you can benefit from our involvement at no cost.
Sherwill Drake Forbes would be pleased to offer assistance if you are affected by these issues. Please contact +44 (0) 1908 614248 or mail@sdforbes.com
Who we are:
Sherwill Drake Forbes is an independent firm of Chartered Surveyors, specialising in Planning, Development, Utilities
and Infrastructure for a wide range of rural based clients.
With continued growth and the recent opening of the Buckinghamshire office we have an opportunity for a
placement Surveyor to join us for 44 – 52 weeks.
The role:
The role primarily offers an opportunity to work as part of the team involved with researching the viability of
strategic projects. This includes but is not limited to Renewable Energy, Flood Relief, Telecoms and Planning
opportunities.
To supplement this role, experience can be provided in a wide range of general practice work including Valuation,
STV, SFP, Land Based Schemes, Lease Negotiations and Property Management.
Main duties:
- Providing highly accurate project assessments with excellent attention to detail
- Use of web-based mapping systems
- Collation of marketing information
- Assisting Surveyors with Valuation reports and other professional duties
- Team administration support where required
Person Specification:
The successful applicant will be;
- Studying on an accredited RICS course
- Self-motivated
- Good with time management
- Organised with a high attention to detail
What you’ll get in return:
An opportunity to work with experienced Chartered Surveyors in a positive office environment focused on client
service and company growth. APC or AssocRICS experience. Competitive Salary.
Where :
Park Farm, Tyringham, Buckinghamshire, MK16 9ES
Please send your CV to chris.jeffery@sherwillforbes.com
If you would like to discuss whether your management team could benefit from our input, please do not hesitate to contact one of the Sherwill Drake Forbes’ Directors in confidence.
For more information please contact +44 (0) 1908 614248 or mail@sdforbes.com
Injurious Affection occurs where land and property is adversely affected by Statutory Schemes causing a decrease in the freehold market value. Commonly, for the electricity sector, Injurious Affection forms part of an easement payment made in relation to overhead power lines. An easement is a permanent right granted by the Landowner for the Electricity Company to install and keep maintained the overhead lines.
Whilst most new agreements for overhead lines take the form of an easement, the vast majority of historic agreements for overhead lines were agreed in the form of a wayleave. A wayleave is an annual right for which a small annual ‘rental’ sum is paid. This means that landowners with a wayleave document have not had the opportunity to claim for Injurious Affection.
Injurious Affection (particularly where it applies to power lines in close proximity to residential properties) can be financially significant. The process for claiming Injurious Affection will usually involve the landowner completing an Easement document after negotiation of the appropriate values.
The various Electricity Companies adopt widely different approaches to settling claims for Injurious Affection. Whilst there are some cases which have been determined at Lands Chamber, of equal importance to the legal position is ensuring that a specialist utilities surveyor represents the landowner from the outset.
Each claim for land and property will involve consideration of the individual factors influencing the market valuation and Injurious Affection. In addition the successful negotiation of appropriate easement terms requires a detailed understanding of the underlying compulsory acquisition rights of the Electricity Company.
Sherwill Drake Forbes would be pleased to offer assistance if you are affected by these issues and do not hesitate to contact us on +44 (0) 1908 614248 or mail@sdforbes.com
Utility Assets held on commercial leases come in all shapes and sizes but commonly small areas of land are leased for the siting of electricity substations, gas governors or sometimes water apparatus.
It is not at all unusual for the original lease terms to include rental terms of a peppercorn or a small annual payment. Over time, landowners become used to receiving this small sum and the siting of the utility apparatus may cause little effect on day to day management operations. There is a perceived view that even if the leased area is in an inconvenient location there is little that can be done to relocate or agree uplifts in rents to compensate. Particularly in instances where landownership has remained unchanged over time we are often asked by the landowner if there is any merit in bothering to implement a rent review provision.
Each case should be taken on its individual merits and there is never a ‘one rule fits all’ answer. However the common benefits of implementing a rent review include:
Rents can be increased significantly. Often the original lease terms included low rents as there may have been wider benefits to the landowner of the original scheme. Rents for leased sites vary according to the specific use terms and the adjoining land use but it is not uncommon for the smallest sites to generate annual rentals of several hundred pounds and in some cases considerably more.
It is often perceived that if an historic rent review has not been implemented the landowner will not be able to claim the ‘back-rent’ for increased rentals. However the courts have ruled in 2008 and reinforced the decision in 2009 that, if time is not of the essence within the lease terms, then the right to review the rent continues indefinitely unless specifically waived. In many instances this can achieve a considerable one-off payment.
The utility company often takes the opportunity to assess whether the current operational site is fit for purpose. Often, where a site adjoins the highway, there may be a modern day requirement for the engineers to be able to park off the highway in safety. It may be that the wider network is due for refurbishment/reinforcement in the near future. Both of these situations may result in a request for additional land or rights to be leased and an opportunity for the lease payments to be increased accordingly.
Sherwill Drake Forbes has considerable experience with the above rent review issues and also wider lease negotiations. Our lease negotiation services include all aspects of utility and telecom leases governed by the Landlord & Tenant Act 1954 and the Telecommunications Act 1984. This includes negotiations for new leases, termination on expiry, assignments, site sharing and sales.
We would be pleased to discuss your requirements in more detail. Our fee structure is designed to be fair and transparent. We will always undertake an initial assessment of your lease without charge or obligation before setting out clearly the costs of our involvement.
For more information please contact +44 (0) 1908 614248or mail@sdforbes.com
Network Rail is well advanced with plans to electrify the Great Western Railway between London and Bristol, including Newbury and Oxford, by 2016 and to Cardiff by 2017.
The electrification project is supported by Government as electric trains are cheaper to operate, have more seats, require less maintenance and have lower energy costs than diesels. They are also lighter and do less damage to the track helping to create a more reliable railway.
Landowners adjoining the railway are being approached by National Grid and the regional electricity licence holders, (Scottish & Southern Energy (SSE) and Western Power Distribution (WPD)), regarding ‘undergrounding’ existing overhead power distribution cables. This is required so that the new railway electricity lines can be installed and operated safely.
In most instances this will involve the erection of ‘terminal’ poles or towers with associated apparatus and the underground drilling and installation of cables. Drilling operations of this magnitude can be extremely intrusive and require large compound areas for site offices and parking, material lay-down areas and access for pumping of drilling fluids. The sensitivities of drilling under railways requires constant supervision and minor alterations to track alignments can result in safety shut-downs which can mean that contractors are on the adjoining land for months.
Sherwill Drake Forbes is highly experienced in representing landowners affected by these proposals. We have direct involvement in a large number of cable installations and understand the requirements of the drilling companies and the effect this has to landowners’ holdings.
In recent discussions, Network Rail has confirmed that the undergrounding of these lines is imperative to the electrification project. We anticipate that landowners will be asked to enter into permanent agreements, where presently annual wayleaves exist, and to allow short-term access routes and associated land for drilling contractors.
Many landowners may wish to take this opportunity to aim to underground a wider section of the line so as to improve the ease of agricultural operations or to facilitate other planned or existing commercial land uses.
Sherwill Drake Forbes advises all landowners to take advice as soon as an initial approach has been made by the electricity company. Not only will professional representation be essential to ensure that appropriate financial and other terms are reached for a permanent agreement, but also to safeguard land uses and to receive disturbance compensation and appropriate agreements for site compounds.
Sherwill Drake Forbes would be pleased to offer assistance if you are affected by these issues and in the vast majority of cases our fees will be reimbursed by the acquiring authority. Please do not hesitate to contact us on +44 (0) 1908 614248 or mail@sdforbes.com.