Covenants in the leasehold agreement/ lease to require the occupier to operate a new-build flat to its maximum energy efficiency and abide by rules concerning recycling/ composting/ maintenance.Skip to clause
Why use this?
To date, buyers and sellers and landlords and tenants, may have not been aware of the potential, or have not been encouraged to include, wording in leasehold agreements to impose obligations on buyers and tenants to use the building in an environmentally conscious way.
How it promotes a net zero future
Adding covenants (and other terms) to leasehold agreements and leases requiring leaseholders and tenants to use their flats in a more environmentally conscious way (or even to meet targets to reduce their energy consumption) will focus people’s minds and reinforce the educational approach taken by government policy to date.
The covenants will make flat owners and tenants aware of what is required to use a building efficiently and make such behaviour mainstream.
Disclaimer - please read
The clauses on this website (and published in our Climate Contract Playbook) have been prepared in good faith on a pro bono basis and are free to download and use. The clauses have been drafted and edited by a variety of lawyers and, as such, the approaches to drafting may not conform to any particular drafting norms. We acknowledge this as a consequence of the collaborative drafting process.
The clauses on this website (and published in our Climate Contract Playbook) are provided on an ‘as is’ basis and without any representation or warranty as to accuracy or that the clauses will achieve the relevant climate goal or any other outcome.
This website (and the Climate Contract Playbook) does not comprise, constitute or provide personal, specific or individual recommendations or advice of any kind, and does not contain legal or financial advice. The clauses are precedents for legal professionals to use, amend and negotiate using their professional skill and judgement and at their own risk.
While care has been taken in the drafting of these clauses, neither The Chancery Lane Project nor any of its contributors owe a duty of care to any party in relation to their preparation and do not accept any liability for any errors or omissions, nor for any loss incurred by any person relying on or using these clauses or any other person. Users should use their own professional judgement in the application of these clauses to any particular circumstance or jurisdiction or seek independent legal advice.
At present, all the clauses are based on the laws of England and Wales. We encourage the conversion of these precedent clauses for use in other jurisdictions.
Rights excepted and reserved
[The right to receive and use Data in relation to the Environmental Performance of the Building in accordance with the provisions of Schedule [X] .]
The Tenant covenants with the Landlord and the Manco and the Other Lessees as follows:
1.1 The Landlord and/or the Manco reserve the right to collect Data (as defined in Schedule [ ] ) to monitor the consumption of [energy and/or Heat Supplies] to the Premises and to use such Data in accordance with the provisions of Schedule [ ] and, where in the reasonable opinion of the Landlord and/or the Manco the consumption of [energy and/or Heat Supplies] at the Premises is excessive (by way of comparison with Other Lessees or otherwise) then the Tenant shall pay to the Landlord on demand such reasonable and proper charges in respect of the excessive [energy and/or Heat Supplies] to the Premises as the Landlord and/or the Manco shall deem reasonable in the circumstances (which said charges may be demanded with Service Charge demands by the Landlord for administrative purposes).
2.1 To keep the Premises in good and substantial repair and condition and when necessary to replace and renew any landlord’s fixtures and fittings with new ones of equivalent quality and value and with equivalent [or better] sustainability and environmental performance credentials to the reasonable satisfaction of the Landlord
2.2 Where the Tenant is required to replace or renew any relevant Landlord’s fixtures or fittings or other appliances at the Premises then it shall do so (where applicable) with A+++ rating models and/or LED light bulbs [or other designation].
- Decoration Maintenance and Cleaning
3.1 To carry out all works of repair, decoration and maintenance and other treatment of the Premises in a proper and workmanlike manner in accordance with good practice current at the time and using good quality sustainable, environmentally friendly and sufficient materials.
4.1 The Tenant shall not carry out any alterations to the Premises which may adversely affect the Environmental Performance (as defined in Schedule [ ]) of the Premises of the Building or the EPC rating of the Premises (without the prior written consent of the Landlord or Manco).
The Tenant covenants with the Landlord and the Manco and the Other Lessees as follows:
1. To ensure that the electricity consumed at the Premises is purchased on a 100% renewable energy tariff.
2. To minimise the use of energy [and/ or heat supplies] at the Premises to help meet the Greenhouse Gas emissions targets set by the Landlord and the Manco in respect of the [the Estate/ the Building].
3. Not to park or accommodate any vehicle on any parking space or any other part of the Estate that runs on diesel fuel.
4. Not to store or use any patio heater or any other exterior high energy heating facility on any external patio terrace or other external areas forming part of the Premises.
5. To comply with all requirements and recommendations from time to time of the Manco in relation to the energy efficient use of the Premises and apparatus within it.
6. Not to sub-let or rent the Premises other than on an assured shorthold tenancy basis that obligates the sub-tenant to occupy the Premises in accordance with the Environmental Performance and energy efficiency requirements of this lease [See Toryn’s clause for AST wording].
7. Not to carry out any works to the Premises which could affect the heat insulation or the rate of transfer of heat through the Premises structure, windows and doors (“U Value”).
8. Not to damage or tamper with or make any alterations or additions to the heat interface unit or Heat Infrastructure within the Premises or any other meter installed in the Premises and to pay to the Landlord or Manco on demand the reasonable cost of repairing or reinstating or replacing any such heat interface unit, Heat Infrastructure or meter so damaged or tampered with or altered.
9. At all times to observe and perform all such variations or modifications of the foregoing regulations and all such further or other regulations as the Landlord or Manco may from time to time in its reasonable discretion think fit to make (and notify to the Tenant) for the energy efficient use of the Building and the Estate and the comfort, safety and convenience of the tenants and occupiers.
Schedule [ ] – Environmental performance provisions
In this Schedule [ ] the following definitions shall apply:
|‘Data’||means data all and any data held in respect of the Environmental Performance of the Premises, the Building and/or the Estate (as the context requires);
|‘Environmental Performance’||means all or any of the following in relation to the Premises, the Building and/or the Estate:-
(a) energy consumption;
(b) water consumption and discharge;
(c) waste generation and management;
(d) generation and/or emission of Greenhouse Gases; and/or
(e) other adverse environmental impacts.
|‘Greenhouse Gas’||means gases that contribute to or accelerate the greenhouse effect by absorbing infrared radiation and that as specified in Annex A to the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) or otherwise specified by the UNFCCC at the date of this Lease.|
1 Co-Operation Obligations
The Landlord and Manco may:
1.1 take such reasonable steps as are required to promote and improve the Environmental Performance of the Premises, Building and the Estate; and
1.2 Identify and pursue appropriate strategies for improvement of the Environmental Performance of the Premises, Building and the Estate.
2 Environmental Management Plan
2.1 The Landlord and/or Manco may (or procure via its managing agent) put in place an appropriate environmental management plan (‘EMP’) for the Building and the Estate.
2.2 The Tenant agrees that the Landlord and/or Manco may use the Data for the purposes of creating an EMP and ensuring that the Building and Estate is run in a sustainable way that improves Environmental Performance.
2.3 The Tenant shall comply with any Estate Regulations relating to the Environmental Performance of the Premises, the Building and/or the Estate.
3 Data Sharing and Metering
3.1 The Landlord and the Manco may collect Data and share this with any other third party that the Landlord and/or Manco considers needs to receive the Data.
3.2 The Landlord and the Manco may disclose the Data collected pursuant to this Schedule [ ] to third parties in order to promote the sustainability credentials of the Building and/or the Estate and to encourage and promote sustainability to third parties with the housebuilding and construction sector provided that sensitive personal data shall not be disclosed.
3.3 The Landlord and/or Manco shall only use the Data for the purposes of procuring promoting or encouraging Environmental Performance.
3.4 The Landlord shall ensure that similar restrictions on the publication and use of the Data are placed on its managing agent.
3.5 The Landlord and Manco shall have the right (at the Landlord’s cost) to install inspect maintain and receive Data from meters relating to energy supplies and Heat Supplies used in the Premises. The Tenant shall give the Landlord the necessary access in order to allow for such metering to be inspected and maintained (the Landlord or Manco complying with any entry requirements).
4 Tenant’s General Obligation on Energy Efficiency and Information
4.1 The Tenant shall:
4.1.1 not do or omit to do anything which adversely affects; and
4.1.2 provide to the Landlord and/or Manco (and all persons authorised by the Landlord and/or Manco) all information, assistance, access to the Property and other facilities reasonably requested by the Landlord or Manco (or such person), and co-operate with the Landlord in relation to any initiatives, in connection with the Environmental Performance or sustainability characteristics of the Building or the Estate (including the Energy Performance Certificate and related recommendations report).
4.2 The Tenant shall use all reasonable endeavours to minimise energy consumption and waste and to recycle waste generated at the Property.
The reasonable and proper costs incurred by the Landlord and/or the Manco of implementing and operating the provisions of this Schedule [ ] may be included within the Service Charge.