Services to land & mineral owners

Minerals Estate Management

Mineral Leases are unlike most other property agreements in that the purpose is to destroy or deplete the asset granted. In return for this right, the owner receives royalties and the land back (unless the lease is of minerals only), in a different and often less valuable state. This is recognised in the Law of Property Act 1954, where there is no statutory right of renewal for mineral leases. It was also recognised (until 2014) in the taxation system, where half of an owner's royalties were taxed as income, and the rest as capital. An owner only has one opportunity to maximise the return on a mineral asset. Choose managers and advisers with a lifetime of experience in this specialist area.

Mineral ownership

Mineral rights are legal interests in land which can be bought, sold, or leased with or without the surface title. A Mineral Surveyor's first task is often to establish whether or not a particular mineral substance is included within the client's property title. Answering this question can require input from both a Mineral Surveyor and a specialist legal adviser as the outcome often requires consideration of both legal and commercial issues. For example: is the substance unusual, or the common soil or rock of the district? Does it have commercial value, and would it have been recognised as a mineral when legal title was severed from the surface? Is the origin of title Manorial, and if so, has it been protected by an application to the Land Registry? The answers to these questions will almost certainly have significant impact on the commercial value of the asset.

Mineral sterilisation claims

Since the early Nineteenth Century, statutory powers granted to public and private bodies for major infrastructure projects have included provision for the payment of compensation to owners of minerals and their tenants, if prevented from exercising their rights to extract those minerals. Referred to as ‘mining code’, if you have planning permission for minerals extraction (or would get planning permission), but are prevented by the presence of a pipe, cable, railway, or other infrastructure that cannot be moved, we can quantify and progress your claim with the relevant authority.

Lease negotiations

Minerals are a wasting asset. Once worked, the commercial potential of the original interest has been realised. Whilst further opportunities may be created by mineral extraction, the nature of the original property interest will have been changed forever. The terms of a mineral lease, or the preceding option, should reflect the stages of development from exploration and resource verification, through obtaining planning permissions and permits, to the extraction process, and restoration and aftercare. Our comprehensive Heads of Terms for mineral leases, options, and exploration licences cover each aspect of the development, converting a capital asset into income.

Valuations - Minerals, Waste & Renewable Energy

The value of all property assets vary from year to year in response to market forces. Minerals and other wasting assets also change value as the asset is consumed by extraction. Whether a valuation is required for financial reporting purposes, or in response to a Capital Gain, Inheritance, or other tax event, our RICS Registered Valuers are able to meet your needs. We also offer valuation services covering waste disposal assets, renewable energy, and brownfield development land.

Geological appraisals

Published geological information is available across the UK to carry out desktop geological appraisals of any site. A desktop geological appraisal is the preliminary step in identifying potential commercial value in underlying minerals and strata. MSA member firms are able to identify and interpret available geological data and provide a cost-effective report on the commercial geological potential of minerals beneath your land.

Rent Reviews

Rents and royalties paid for minerals extracted vary over time through changes in supply and demand for quarry products, extraction costs, and inflation. Rent reviews are an opportunity to re-evaluate rents paid to ensure a true reflection of current market rates. Where direct comparable evidence is often unavailable, our Chartered Mineral Surveyors are experienced at assessing what can or cannot reasonably be achieved, minimising time and expense in concluding the review.

Abandoned Mine Entry Audits

Britain has a rich mining heritage, but centuries of past mining has left a liability legacy for current owners. If you own land or a severed minerals estate in a former mining area you maybe held liable for any (none coal) mining related accident. An abandoned mine entry audit is a proportionate and cost effective property management tool to demonstrate statutory responsibilities are being met in the event of a claim against your estate.