A recent trend in the real estate market has been the re-purposing of historic buildings for modern use.  Millar McCall Wylie have themselves recently moved into new offices at the refitted Printworks Building on Queen Street, Belfast, and the firm has also acted for a client in relation to the recently refurnished Pearl Assurance House in Belfast city centre.

Undoubtedly such buildings offer a sense of history and gravitas that can be lacking in modern developments.  However, they do also come with their own set of challenges when set against the environmental and energy performance standards expected of commercial properties in the modern world.  It is now not uncommon for tenants and landlords to require new tenancies to be ‘green leases’ designed to promote environmental sustainability and drafted to contain clauses intended to reduce the environmental impact of the property’s use.  The requirement for such leases is likely to increase going forward, with many lenders also incorporating green requirements into their property-based financing.  Such requirements can be difficult to achieve in buildings originally constructed when such concerns were not given any consideration and can require significant expenditure on modernisation works to achieve.

The requirement for such works is often also further complicated as historic buildings are more likely to be listed as being of special architectural interest, and this has the potential to add extra complications and costs to any modernisation project.  Even if the entire building is not listed certain features, such as the windows or the façade may be.  If any works are planned to a building or that impact upon a listed feature it is necessary to apply for consent to the works to the local Council, who will in turn consult the Department of Communities.  Any consent to such works is likely to be subject to stringent requirements designed to protect the overall architectural character of the building.  This can make it difficult to install modern environmentally friendly features such as modern windows, air conditioning and insulation.

Responsibility for the repair of a listed building is also placed upon the owner.  This obligation is above the standard for an unlisted building.  Whilst there is no specific requirement to keep historic buildings in good repair, their maintenance is overseen by the Department for Communities and the local Councils.  In cases of extreme dilapidations where the buildings preservation may be at risk the Councils do have powers under the planning legislation to issue owners with Urgent Works Notices in respect of vacant or the vacant parts of any listed structure that falls into serious disrepair.   Ultimately, the Council could rely upon such notice to attempt to recover the costs of any works from the owner.

Millar McCall Wylie have a wealth of experience in advising on all issues relating to historic and listed buildings and modern green lease requirements.  If you require any assistance in relation to any such matters, please contact a member of our Real Estate team.