Landowners across the UK are being urged to ‘think twice’ before signing documents that could potentially limit the value of their land if it is to be developed.
National Grid has issued letters to landowners where its infrastructure – such as pylons – is situated on their property, as part of an exercise to update its records.
But the company, which owns the electricity transmission system in England and Wales as well as owning and operating four of the eight regional gas distribution networks in Great Britain, has also attached a standard wayleave document that National Grid is requesting be signed by the landowners.
Signing the document would bind the landowner to an agreement and could provide a limited annual payment compared to the potential losses on opportunities for future development on that land.
National Grid is also offering a one-off sum of 20 times the wayleave payment that, if signed, would bind the landowner in perpetuity to the agreement and would leave no scope for future compensation payments.
Nick Marshall, associate director of specialist property consultancy Hamer Associates, warned: “The letters have been issued to update National Grid’s records but the wayleave documents attached should be read carefully, considered and landowners should seek professional advice before signing.
“They may see the opportunity to have an annual payment or the one-off, 20 times sum and just take it without really thinking it through. In fact, that’s what many have done already.
“In accepting the one off 20 times payment they are potentially signing away the chance to gain compensation for a loss of future development opportunities.
“Landowners of potential development land should, therefore, think twice before signing the document and should seek professional advice on the matter."
