Wayleaves and Easements on Commercial Land
Written by Scott Jones, founder of CommercialPropertyKiln · Last updated
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Utilities and neighbours often need rights over your land, and you may need rights over theirs. Wayleaves and easements are how those rights are granted, and they can carry income and obligations.
The difference
- A wayleave is typically a personal agreement, often terminable, allowing apparatus such as cables or pipes to cross land, commonly used by utility and telecoms companies, sometimes for a payment.
- An easement is a property right that runs with the land, such as a right of way or a right to run services, and binds future owners.
Income and value
Utility wayleaves can generate modest income, and one-off payments may be offered for new apparatus. But granting rights can also constrain your land: an easement across a site can limit where you build and affect value, so weigh income against future flexibility.
When you are the one who needs rights
You may need an easement or wayleave over neighbouring land, for access, services or drainage. Making sure these rights exist and are properly documented is part of due diligence on a purchase, because missing rights can be a serious problem.
Get it documented
Whether granting or acquiring, get the right kind of agreement, wayleave or easement, drafted properly, with clear terms on payment, access, maintenance and termination. Take legal advice, since these rights can bind the land for the long term.
What is the difference between a wayleave and an easement?
A wayleave is usually a personal, often terminable agreement for apparatus to cross land; an easement is a property right that runs with the land and binds future owners.
Can granting rights over my land reduce its value?
Yes. An easement can constrain where you build, so weigh any income against future flexibility.
