54NRecovery of contributions from lessees

#### 54N Recovery of contributions from lessees 54N Recovery of contributions from lessees > > (1) 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. > > > (2) 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. > > > (3) 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. > > > (4) 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. > > > (5) 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. > > > (6) 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. > > > (7) This section applies despite section 23 of the [Retail Leases Act 1994](/view/html/inforce/current/act-1994-046) and section 40 of the [Residential Tenancies Act 2010](/view/html/inforce/current/act-2010-042). > > > (8) To avoid doubt, a contribution referred to in this section is an outgoing for the purposes of the [Retail Leases Act 1994](/view/html/inforce/current/act-1994-046). > > > > Note. > > > > See, in particular, section 27 of the [Retail Leases Act 1994](/view/html/inforce/current/act-1994-046). > > > (9) The regulations may make further provision for or with respect to the making of contributions towards environmental upgrade charges by lessees. > > > (10) In particular, the regulations may disapply or modify the operation of any provision of the [Retail Leases Act 1994](/view/html/inforce/current/act-1994-046) or the [Residential Tenancies Act 2010](/view/html/inforce/current/act-2010-042) in relation to any such contribution. > > > (11) In this section— > > > > lease means an agreement under which a person grants to another person for value a right of occupation of premises. > > **ss 54M–54O:** Ins 2010 No 110, Sch 1 \[1\].