Reliable broadband is a necessity for modern business operations. When moving into new commercial premises, tenants must determine if the existing IT cabling is adequate or if new connections are required. If a new installation is needed, a Wayleave Agreement may be necessary.
What is a Wayleave Agreement?
A Wayleave Agreement grants an IT or broadband service provider the legal right to install their equipment over or through a third party’s property. Since a tenant’s lease often doesn’t cover all parts of the building, the landlord will typically need to be a party to the agreement, especially if the cables will traverse communal or other parts of their property.
This agreement not only gives the service provider the necessary rights to install the equipment but also safeguards the landlord, ensuring, for example, that the installation work complies with all statutory requirements and that any damage is fully repaired.
Why Tenants Must Act Proactively
Landlords are under no obligation to enter into these agreements, so tenants must specifically request one. While many office landlords are familiar with standard Wayleave forms and are usually willing to cooperate to ensure their tenants can operate smoothly, it is critical for tenants to initiate this process as early as possible. Early action is essential to prevent delays in getting the necessary cabling installed.
Financial Consideration
Tenants should factor the associated costs into their budget, as landlords will typically expect to be reimbursed for any expenses they incur in connection with the Wayleave Agreement process.
Key Steps for Tenants
We strongly advise that tenants consider their IT requirements right at the start of negotiating a new lease. Our recommended steps are:
- Investigate Existing Provision: Check the current IT infrastructure when you view potential new premises.
- Engage Providers Early: Begin discussions with Baltic Broadband or internal IT department immediately. A site visit may be required.
- Prioritise Negotiations: If a Wayleave Agreement is anticipated, aim to address it during the Heads of Terms negotiation for the new lease. If this isn’t possible, inform your solicitor, agent, and landlord as soon as possible to begin negotiations.
- Align with Lease Timeline: Ensure the Wayleave Agreement progresses concurrently with the lease negotiations so that the installation can commence as soon as the lease is officially granted.
Baltic Broadband has a dedicated wayleave legal department who are able to help negotiate wayleaves with a proposed landlord, before you sign your lease.
Contact us today, to see how we can help you.
