Boodle Hatfield Property Insights, June 2023 - Flipbook - Page 3
Boodle Hatfield
Property Insights
Green Lease Clauses
Green lease clauses and green leases have
been included in commercial leases, albeit not
necessarily commonplace, for some considerable
time following the initiatives of organisations
such as the Better Building Partnership and more
recently the Chancery Lane Project. Most recently
the City of London Law Society Certificate of Title
has also tentatively acknowledged the concept
of the green lease clauses as part of its recently
revised Certificate of Title. But what exactly is a
“green lease” and do the clauses that make a green
lease merit separate billing or are the clauses now
common place accepted lease terms with both
landlord and tenant wanting to invest in and occupy
a sustainable property?
Green lease clauses may vary and, as yet, there is
no prescribed form or regulation of such clauses.
In so far as there is a standard, green lease clauses
will commonly include obligations on both landlord
and tenant to undertake specific responsibilities
regarding the sustainable operation and occupation
of a property including (for example) energy
efficiency, disposal of waste, alterations to the
property and the monitoring and sharing of
environmental data such as energy consumption.
We are now beginning to see the emergence of
“next generation” green lease provisions such as the
promotion of environmental social and governance
agendas (ESG) which may require changes in
behaviour and the way in which buildings are used
and occupied rather than relating directly to the
structure of the building. Such provisions arguably
sit less comfortably in the established landlord and
tenant covenants and need to be drafted carefully
to protect value and allow appropriate flexibility.
The Better Building Partnership Green Lease Toolkit
is expected to be updated later this year and it will
be interesting to see to what extent it reflects these
points when setting out guidance for landlords and
tenants going forward.
Kate Symons, Property Senior Associate
Mandatory Registration of
High Rise Buildings
With effect from 30 September 2023 all residential
high rise buildings, in this context buildings that are
at least 18 meters high or have at least seven floors
containing at least two residential units, must be
registered with the newly created Building Safety
Regulator. The Health and Safety Executive have
confirmed that, as at the end of May this year, over
750 properties have been registered, this leaves
registration some way short of the total number of
12,500 or so buildings thought to be within scope
for registration. Failure to register will be a criminal
offence, punishable with a fine or imprisonment.
New buildings completed after 1 October 2023
must have a relevant completion certificate or final
notice and must be registered before residents can
occupy them.
The registration process should be completed by
the Principal Accountable Person (PAP) for each
building, or someone authorised by them. A fee of
£251 is payable and the applicant will be required
to provide information relating to the building’s
structure and fire safety measures. For further
guidance
see:
https://www.gov.uk/guidance/
applying-to-register-a-high-rise-residential-building
“Registration is a crucial part of the new
regime and our efforts to ensure residents of
high-rise buildings feel protected and safe in
their homes.”
Sarah Rock, Construction Partner
