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What are Green Leases?
Green Leases are leases where the landlord and tenant co-operate to reduce the carbon footprint of the premises and seek to promote other sustainable initiatives. This may involve, for example, obliging a landlord/tenant to implement energy efficiency measures. However, the term Green Lease can be used to describe an agreement of a non-binding nature too.
Generally, Green Leases concern commercial premises and have been used for some time in other jurisdictions, such as Australia, but remain relatively new in the UK. In the UK, the CRC Energy Efficiency Scheme was introduced in 2010 which gave rise to the use of Green Leases by larger organisations.
The use of Green Leases is set to become a common theme against the backdrop of green policies, and sustainable initiatives aimed at reducing carbon output and increasing energy efficiency. As the focus on carbon output intensifies, and energy prices head only one way, the approach by landlords and tenants in the maintenance and management of properties becomes ever more important, particularly, in the commercial lettings sector.
For further information see our article: Green Leases: What they mean for landlords and tenants.
How can Devonshires help?
We can help with all aspects of Green Leases and wider property related energy efficiency matters: whether you’re looking at future proofing your letting arrangements; addressing energy efficiency matters; and documenting an agreed approach to energy efficiency - we can assist.
Devonshires can assist on a range of matters involved in a Green Lease including:
The obligations in a Green Lease may extend to the use of environmental contractors, maintaining Energy Performance Certificates and even to joint strategies/liaison protocols and tenant handbooks, all of which we can assist you with.
We can also advise you in respect of your statutory requirements and help you to provide flexibility for future developments in the energy and climate change sector, which may affect your portfolio or the obligations on you as owner, landlord, tenant, lender or investor. Devonshires Property and Housing Management Teams are well equipped to advise on all property and landlord and tenant matters.
For further information please contact Caroline Mostowfi or Susan Hall.
