Local Government Act 1993

A provision of a lease may require a lessee to pay to the lessor a contribution towards an environmental upgrade charge payable under an environmental upgrade agreement that relates to premises that are the subject of the lease.

The amount recoverable by the lessor as a contribution must not exceed a reasonable estimate of the cost savings to be made by the lessee, as a consequence of the environmental upgrade works provided for by the environmental upgrade agreement, during the period to which the contribution relates.

An environmental upgrade agreement may make provision for the recovery of contributions by a lessor (including by providing for the methodology by which the cost savings to be made by a lessee are to be estimated), in which case a contribution is recoverable only in accordance with that agreement.

The methodology may permit both savings made directly by the lessee and a proportion of savings made by all occupants of the relevant building to be counted towards the cost savings made by the lessee.

The parties to a lease may agree that subsections (2)–(4) do not apply in respect of the lease. In such a case, the lease may make alternative provision for the payment by the lessee of a contribution towards an environmental upgrade charge payable under an environmental upgrade agreement.

A lessor is not entitled to recover a contribution from a lessee towards the payment of an environmental upgrade charge unless the lessor provides to the lessee, on request by the lessee, a copy of the environmental upgrade agreement to which the contribution relates.

This section applies despite section 23 of the Retail Leases Act 1994 and section 40 of the Residential Tenancies Act 2010.

To avoid doubt, a contribution referred to in this section is an outgoing for the purposes of the Retail Leases Act 1994.

The regulations may make further provision for or with respect to the making of contributions towards environmental upgrade charges by lessees.

In particular, the regulations may disapply or modify the operation of any provision of the Retail Leases Act 1994 or the Residential Tenancies Act 2010 in relation to any such contribution.

In this section—