Lease extension

[Doing it for the kids]

I was offered a lump sum of 14x todays rent, they would take the next 21 years rent including indexation (to the end of the lease). I have had similar offers where they were buying the freehold as well, so they were told to FO.

oh, so paying you up front for 14 of 21 yrs rent, so offsetting 1/3rd of total income for having it now? In thick mode tonight, sorry!

if so that’s iffy too, recall soon after we signed people offering us up front cost of about 20% less Than total income.

 

[snarling bee]

oh, so paying you up front for 14 of 21 yrs rent, so offsetting 1/3rd of total income for having it now? In thick mode tonight, sorry!

if so that’s iffy too, recall soon after we signed people offering us up front cost of about 20% less Than total income.

Well that is almost a no brainer to accept if it was only the rent. Many of them want the land as well in the price.
What is in it for them offering such a high price?

 

[Doing it for the kids]

Well that is almost a no brainer to accept if it was only the rent. Many of them want the land as well in the price.
What is in it for them offering such a high price?

it’s very bankable, Pensions pay a lot for the certainty, the 20% cut was for the broker I bet!

if you loose that 20% now the opportunity cost of that cash has to work harder to make up the shortfall. as you no doubt also feel, it’s rather nice invoicing them for not doing very much each quarter!

 

[kill]

The firm that rents my solar farm want to extend the lease after the 25 year term,its 5MW what would you expect to get?

While their keen maybe get a clause drawn into to the contract to tidy the site and reinstate the site back to field at the end of the contract if required as could save you or your family an absolute fortune in years to come.

 

[steveR]

While their keen maybe get a clause drawn into to the contract to tidy the site and reinstate the site back to field at the end of the contract if required as could save you or your family an absolute fortune in years to come.

Should have been written into the Contract at the start, with a sum ring fenced for the reccovery job...??

 

[Fedupfarmer]

Should have been written into the Contract at the start, with a sum ring fenced for the reccovery job...??

As above

 

[kill]

Should have been written into the Contract at the start, with a sum ring fenced for the reccovery job...??

How many times has the original company and lease been sold as I know a few that leased ground for panels through a large farming cooperative and now haven’t a clue who actually is collecting the money or has title to them as they have been sold on so many times.
So many renewable companies have gone or changed hands and some of these reinstate clauses will be avoided during that process so I’d definitely check it’s still valid.

 

[snarling bee]

Are solar parks really going to return to agriculture?? I can't see it myself.
I would not sign any lease extension atm, I would see what the situation is in 15 years time.

 

[steveR]

Are solar parks really going to return to agriculture?? I can't see it myself.
I would not sign any lease extension atm, I would see what the situation is in 15 years time.

Will local councils allow Planning extensions, that will be the decider I reckon.

 

[Spuddler]

Will local councils allow Planning extensions, that will be the decider I reckon.

Quite a lot of the solar farms I visit have got the planning notice pinned up on the gate post currently going through the system

 

[steveR]

Quite a lot of the solar farms I visit have got the planning notice pinned up on the gate post currently going through the system

Not seen one yet on the two in the Parish...

 

[Tucker]

Is there any update to this thread ?? Just had a meeting today with the owners of our solar farm, not met them before (its been sold twice since construction), they wanted to know how I felt about a 15 year lease extension, also interested in a battery setup but grid connection is an issue in our area at the moment (Somerset/Devon border), ours is 7 years old. I don't know anyone who has been through the extension process and can't find much online so no idea what figures are fair ?? (5mw)

 

[Doing it for the kids]

Is there any update to this thread ?? Just had a meeting today with the owners of our solar farm, not met them before (its been sold twice since construction), they wanted to know how I felt about a 15 year lease extension, also interested in a battery setup but grid connection is an issue in our area at the moment (Somerset/Devon border), ours is 7 years old. I don't know anyone who has been through the extension process and can't find much online so no idea what figures are fair ?? (5mw)

About to go into extend our planning from 25-40 yrs like every other recent permission round here. At the moment I’d refrain from extending your lease, 15 yrs a long time, who knows what will happen. Can you buy the site back off them? Obv keep on good terms and don’t suggest you want it back else they may adapt their maintenance accordingly

 

[Tucker]

I'm not sure I could afford to buy it back !!!! To be fair they wouldn't sell, they have 19 in the uk, some owned, some on a lease, they are looking to buy more. I can't find anything re figures, there was an article in the farmers weekly 2/3 years ago, fella was saying they should pay between 100 and 200k/ MW for the extension, given all the kit will be paid for and what it would be making .....(could be a tad optimistic !!!)

 

[Doing it for the kids]

I'm not sure I could afford to buy it back !!!! To be fair they wouldn't sell, they have 19 in the uk, some owned, some on a lease, they are looking to buy more. I can't find anything re figures, there was an article in the farmers weekly 2/3 years ago, fella was saying they should pay between 100 and 200k/ MW for the extension, given all the kit will be paid for and what it would be making .....(could be a tad optimistic !!!)

What does it say in your lease?

Many managed to get the £1 purchase and forgo the decom bond nugget in there. If you have that You may not want them to extend at all? Also depends how much you need the cash too. It’s a tremendous pension

 

[Exfarmer]

I'm not sure I could afford to buy it back !!!! To be fair they wouldn't sell, they have 19 in the uk, some owned, some on a lease, they are looking to buy more. I can't find anything re figures, there was an article in the farmers weekly 2/3 years ago, fella was saying they should pay between 100 and 200k/ MW for the extension, given all the kit will be paid for and what it would be making .....(could be a tad optimistic !!!)

Get some serious advice, not all of us clowns on TFF. This decision could be worth hundreds of thousands of pounds down the line. Ask both accountants and solicitors!

 

[warksfarmer]

I'm not sure I could afford to buy it back !!!! To be fair they wouldn't sell, they have 19 in the uk, some owned, some on a lease, they are looking to buy more. I can't find anything re figures, there was an article in the farmers weekly 2/3 years ago, fella was saying they should pay between 100 and 200k/ MW for the extension, given all the kit will be paid for and what it would be making .....(could be a tad optimistic !!!)

If you didn’t get it written into the agreement to buy it back off them in the final year for a nominal fee (£1) then you had some bad advice I’m afraid.

 

[steveR]

Get some serious advice, not all of us clowns on TFF. This decision could be worth hundreds of thousands of pounds down the line. Ask both accountants and solicitors!

Yep, way more important than faffing around with cereal varieties or choosing your make of Tup ....

 

[steveR]

OOI, what is a well positioned PV site making /MW at the moment??

Just re-negotiating the decommisioning bond on the site here and it would be nice to have lates figures to chuck in the mix...

 

[warksfarmer]

OOI, what is a well positioned PV site making /MW at the moment??

Just re-negotiating the decommisioning bond on the site here and it would be nice to have lates figures to chuck in the mix...

£150k per MW before the recent ppa price hikes. Could easily be another £100k now but it’s a bit to early to say. Probably be next spring before the muddy waters clear.