Lease terms for a sand and gravel pit in the Midlands

Lease terms for a sand and gravel pit in the Midlands

Wardell Armstrong was approached by the trustees of an organisation that owned the freehold of a gravel pit in the Midlands.  The trustees wanted to know if the royalty payments were being calculated correctly by the tenant company engaged in mineral extraction.  We were able to find out that the annual royalty review process had not been undertaken in accordance with the mechanism prescribed in the lease. 

As a consequence, the tenant had been paying incorrect royalties for a number of years.  We were able to secure a significant payment of royalty arrears and negotiated an extension of the lease and variation of the terms to ensure such an oversight could not recur.