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Commercial Leases And Climate Change Regulations



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By : Richard Godden    zero times read
Submitted 2012-01-07 23:44:07

Over the past decade, Scotland has implemented several pieces of legislation which together intend to improve the affect we, as a nation, have on the environment. These climate change regulations cover a wide-range of policies, many of which have a direct impact on those entering into a commercial lease. Whether you are a landlord or a tenant, you need to know what these regulations are, and what legal responsibilities they entail.

Climate Change Regulations.

While there is now a whole host of environmental legislation, some of the most important climate change regulations with regards to commercial leases include the following:-

1. Climate Change (Scotland) Act 2009.

Targets have been set in Scotland which state harmful emissions must be cut by 42% by 2020. Although this may seem ambitious, it is hoped the policies introduced in the Climate Change (Scotland) Act 2009 will help achieve this aim.

One such policy relates to the energy performance certificate. Since January 2009, landlords wishing to lease their commercial property are required to carry out an energy performance assessment. Any improvements that are suggested should be subsequently performed, thereby improving the building's overall efficiency.

Tenants should remain aware of this obligation before signing a commercial lease, as it will be financially beneficial to occupy a premises which is energy efficient. Furthermore, if you sign the contract before improvements have been made, your landlord may make you responsible for carrying out the necessary repairs and alterations.

2. Building Regulations.

New building regulations introduced in 2010 will, the government hopes, reduce carbon emissions from new buildings by 30%. This will be particularly relevant to any landlord intending to build a new premises, or extend an existing building.

3. CRC Energy Efficiency.

Since April 2010, the Carbon Reduction Commitment Energy Efficiency scheme has been in force throughout the UK. The trading scheme requires commercial and public sector organisations to purchase allowances based on their carbon emissions. It does, however, only apply to certain qualifying businesses (such as supermarkets, banks, and hotel chains).

Therefore it is ordinarily the tenants who are liable to buy these allowances. This must be made clear in the terms of the lease, or a landlord could end up paying on behalf of his tenant. It is therefore vital that your lease is drafted by a commercial lease solicitor who has a detailed understanding of these regulations to ensure that the lease protects the landlord from any expenses involved in complying with them.

Author Resource:- Need specialist Edinburgh Property Solicitors? McKay Norwell are Edinburgh Solicitors serving individual and business clients across Scotland
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