Signal Strength & Security of Tenure: EE v Clock Tower Investments

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Unpacking the Case - Real Estate Law Podcast 9 min 1 speaker 7 chapters transcribed 1 month ago
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Can a telecom operator claim 1954 Act protection without physically occupying the leased land?

Unknown 0:00
Hello and welcome to a newsflash episode of Unpacking the Case, the podcast by David Jones Bold, the real estate law specialist. As always, I'm joined by our head of legal training, Richard Snape. Welcome back to the Unpacking the Case podcast. Today we are looking at a really interesting Upper Tribunal decision involving EE and Clock Tower Investments Limited, and it's one of those cases that sounds niche at first but actually has some very significant implications for telecom leases and the Landlord and Tenant Act nineteen fifty four. The issue was surprisingly simple can a telecoms operator benefit from the protection of the nineteen fifty four Act if they're not physically occupying the actual demise premises?
Unknown 0:44
In this case, the operator's equipment was effectively being used through rights over adjacent roof space and access rights, rather than traditional occupation of the land itself. The tribunal said yes, the nineteen fifty four Act could still apply, which means there is a very different renewal process. Today we're going to unpack why the concept of occupation for business purposes is becoming increasingly blurred.
Unknown 1:12
Good morning, Richard.
Richard Snape 1:14
Good morning and what a pleasant one, Lizzie.
Unknown 1:16
I know, we're just bemoaning the rain in nearly the end of May and it's rainy and miserable today. But we're going to cheer ourselves up with a podcast. Mm-hmm. So we're here to talk about case from the Upper Tribunal judgment on the thirtieth of April. And the case is called EE and Clock Tower Investments Limited and it's all about easements.

What facts and lease terms led EE to rely on ancillary roof‑space rights?

Unknown 1:37
So do you want to kick us off with some background facts and some background law on
Richard Snape 1:41
the It's about communications equipment as well, and it's about uh the fifty four landlord and turn tax. So it brings in lots of areas. Yeah, I mean It's I'll I'll sort of steer clear as best I can of the communications equipment side of things 'cause it's highly specialist and getting more and more difficult w every day with another case or two being decided. But the Basically EE and H V G to go to lease of uh this land uh on June june the eleventh, two thousand and four. next to a clock tower in Grayson, Essex. The tunnel at the fr entrance of the tunnels estate. Don't know Grays, never been there. But um They took out a lease for their communications equipment, but never actually occupied the premises, this this piece of land.
Richard Snape 2:37
But they did have ancillary rights, which they'd exercised to put uh communications equipment on the clock tower, anywhere on the clock tower and they had actually done so. And at a later stage, well, the contractual term expired on May the thirty first, uh, twenty twenty two. And they wanted to claim a renewal under the electronic communications code. and c claim sort of new code rights under the code.

How did the Upper Tribunal interpret “occupation for business purposes” in this case?

Richard Snape 3:08
The code came into force on December twenty eighth, twenty seventeen. And it's been a bit of an issue for some time. There'd been a the a a case, a Supreme Court case in twenty twenty two, Cornerstone Telecommunications W and Compton Beachum, which it basically said if you come within the fifty-four Landlord and Tenant Act, you can't exercise the code rights. And equipment prior to the Digital Economy Act coming into force on December the twenty eighth, twenty and seventeen, would come within the Fifty Four Landlord and Tenant Act. So the question was basically does the fifty four Act apply in this particular situation. Because for the fifty four Act to apply, you have to occupy the premises, at least partly for business purposes under a lease.
Richard Snape 3:59
And they obviously weren't occupying the demised land, but can they occupy under the ancillary rights basically easements over the clock tower? And that's what it was all about, Lizzie. It's a complex one.
Unknown 4:11
So what happened in the upper tribunal?
Richard Snape 4:14
Well, they more or less confirmed the the first tier tribunal. Decision. There's a series of cases basically going back some time.

Which earlier easement cases shape the tribunal’s reasoning on occupation?

Richard Snape 4:25
about whether you can occupy or not and by by virtue of an easement. There was a case called Land Reclamation, the Court of Appeal case, Land Reclamation and Basildon District Council.

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