Environmental due diligence—leases
Produced in partnership with ELM Law
Environmental due diligence—leases

The following Environment guidance note Produced in partnership with ELM Law provides comprehensive and up to date legal information covering:

  • Environmental due diligence—leases
  • Land contamination liabilities
  • Existing reports
  • Baseline audit
  • Asbestos in buildings
  • CRC energy efficiency scheme
  • Energy Performance Certificiates (EPCs) and Minimum energy efficiency standards (MEES)
  • Clauses in leases

A number of environmental liability issues can arise in property transactions. See Practice Notes: Environmental issues in property transactions—acting for a seller and Environmental issues in property transactions—acting for a buyer.

This Practice Note focuses on the key environmental issues that practitioners should look out for when undertaking due diligence of leases, including:

  1. land contamination liabilities

  2. asbestos in buildings

  3. CRC energy efficiency scheme

Land contamination liabilities

There are numerous potential liabilities associated with land contamination that are summarised in Table A.

Table A: Summary of the main land contamination liabilities
Regulatory action Third-party liabilities Contractual liabilities Other liabilities
Planning obligations and conditions in respect of development Private nuisance claims Lease disputes Clean up, investigation and monitoring costs
Contaminated land regime, Part IIA of the Environmental Protection Act 1990 (EPA 1990) Public nuisance claims Agreement for lease disputes Loss of property value
Environmental damage regulations, EDR (England), SI 2015/810; EDR (Wales), SI 2009/995 Negligent professional