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Natalie Cass

Solicitor - Sevenoaks

25th April 2022

What is a ‘Green Lease’?

What is a ‘Green Lease’?

Sustainability of our economy is becoming more of a consideration to society as a whole. There is more information available now than ever before on how to reduce our environmental footprint to ensure that we are all contributing to managing the environment more effectively. Considering the environment is also becoming increasing prevalent when granting leases. Which leads us to the question at hand, what is a green lease?

The term ‘green lease’ is generally used to refer to a lease which includes a series of provisions that require or encourage landlord’s and tenant’s to reduce their environmental impact of the premises that is being leased and improve the sustainability of the building. However, these provisions are optional and there is currently no legal requirements for green leases to be used.

An example of such provisions for green leases are:

  • Waste management by use of recycling receptacles/facilities
  • Sustainable and/or recycled materials to be used for any repairs and alterations
  • Water management for water use efficiency.

What can a ‘Green Lease’ achieve?

Over recent years there has been a general movement towards greater energy efficiency in buildings due to concerns over environmental impacts of climate change and contribution to greenhouse gas emissions by buildings. Therefore, bringing in small changes within a green lease could contribute towards reducing the carbon footprint of the building.

Introducing green lease clauses may have an impact on other areas of the lease including consent for alterations, reinstatement and service charge provisions but where a landlord and tenant want to add green leases provisions to their lease they will have a joint objective to minimize the environmental impact of the building and this will require a collaborative approach.

Contact Us

If you are considering this option or require further information or assistance regarding a wide range of landlord and tenant law, please contact Natalie Cass in Rix & Kay’s Commercial Property Team or call 01732 440852.

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