The rapid growth of electric vehicles (EVs) is reshaping the UK commercial property market. Demand for charging points is increasing across retail parks, supermarkets, hotels, business parks and mixed-use developments. For landlords and developers, EV charging point (EVCP) installations can improve amenities, support ESG objectives and create new income streams, but they also raise property, infrastructure and regulatory issues that should be addressed before heads of terms are agreed.
1. Identify the opportunity
Before engaging with operators or committing land, property owners should be clear about the project’s objective. EVCPs may be intended to improve customer experience, serve occupiers, support ESG strategy, generate income, future-proof a development or create a dedicated charging hub.
Projects typically involve either tenant-led installation within existing premises, landlord-led estate provision, or a specialist EV developer taking a lease of land. The third category usually raises the most complex issues because a third-party operator may require long-term rights over part of the site.
2. Choose the right location before agreeing terms
EVCP leases often grant exclusive rights over a defined area for 10 to 25 years, so the location must be assessed against existing leases, parking rights, access, service media routes, estate regulations, title conditions and future development plans. A prominent and accessible site may be commercially attractive, but it must also be deliverable from a title, planning and grid perspective.
In particular, landowners should check whether the proposed location conflicts with any current leases’ parking rights, rights of access, service media routes, estate regulations as well as title conditions or covenants.
For developers, a prominent and accessible location will usually be important; but it must also be deliverable from a title, planning and grid perspective.
Action points: identify the charging area, access routes, cabling routes and any substation location early; check existing occupational rights; and consider whether relocation, redevelopment break or “lift and shift” provisions are needed.
3. Deal with grid capacity early
Grid capacity is often the main practical constraint. Rapid and ultra-fast chargers can require significant electrical capacity and may need a new grid connection, substation or network upgrade.
The developer will usually lead discussions with the distribution network operator (DNO), while the landowner may need to grant rights for cabling, access, substations, meters, wayleaves or easements across retained land. Early confirmation should be obtained on available capacity, connection costs, asset ownership, third-party consents and the consequences of delay, withdrawal or increased cost.
Connection can have a major impact on project viability, development timelines and future asset management. Early engagement with the DNO is therefore essential.
4. Use detailed heads of terms
Standard commercial lease heads of terms rarely cover all EVCP issues. If material points are left unresolved, this can cause delay, additional negotiation and uncertainty during drafting.
Heads of terms should cover the lease term, rent structure, grid connection responsibilities, substation arrangements, planning and statutory consents, cabling and access rights, reinstatement obligations and future equipment upgrades. Grid, substation, access, reinstatement and funding requirements should be treated as commercial points, not left solely for lease drafting.
5. Make conditionality clear
Developers often prefer not to enter into a lease until key project requirements are satisfied. An agreement for lease or option agreement is commonly used and may be conditional on satisfactory grid connection offers, planning permission, ground investigations, title due diligence, appointment of a charge point operator and necessary third-party consents.
Landowners should give developers enough time and flexibility to assess viability without tying up the site indefinitely. Longstop dates, progress obligations and termination rights should be clearly documented. Developers should ensure conditionality is broad enough to cover material project risks, including grid, planning, ground conditions, title, third-party consents, funding and operator appointment.
6. Ensure key lease provisions are considered
EVCP leases share features with standard commercial leases, but several provisions require particular attention.
Rent and turnover arrangements
Many EVCP leases include a base rent with turnover rent linked to charging revenues. Where turnover arrangements are used, drafting should address reporting, audit rights and revenue calculations.
Where turnover arrangements are adopted, careful drafting is needed to address reporting obligations, auditing rights and revenue calculations.
Alterations and technology upgrades
Charging technology is likely to change during the lease term. Developers need flexibility to replace or upgrade equipment, while landowners need controls to prevent expansion beyond the agreed area or adverse effects on the wider estate. Routine replacement should be distinguished from substantial works requiring consent.
Assignment and funding requirements
Institutional funding is increasingly important for EVCP developments. Developers may need rights to assign within their group, grant security to lenders and share occupation with operators. Landowners should ensure these rights support finance ability while preserving appropriate oversight of who operates from the site.
Repair, maintenance, insurance and indemnities
The lease should allocate responsibility for chargers, bays, barriers, signage, cabling, equipment cabinets, substations, access areas and any damage to shared estate infrastructure. Operators commonly maintain EV infrastructure, while landowners may remain responsible for common areas. Insurance and indemnities should reflect public access, electrical equipment, interruption risk and potential impact on the wider estate.
7. Plan for decommissioning at the start
Decommissioning should be considered at the outset. Removing chargers, cabling, foundations, equipment cabinets and substations can be expensive, so parties should agree whether full reinstatement is required, whether any infrastructure should remain, who pays, what reinstatement standard applies and whether security such as a rent deposit, bond or guarantee is needed.
8. Practical checklist before heads of terms are signed
Before committing to an EVCP installation, landowners and developers should clarify:
- the area to be leased or licensed
- the length of term
- conflicts with existing rights or redevelopment plans
- grid capacity and cost responsibility
- substations and cabling routes
- planning and third-party consents
- rent calculation and audit rights
- upgrade rights
- funder and assignment requirements
- maintenance and insurance obligations
- end-of-term reinstatement arrangements
A growing sector requiring specialist advice
EV charging projects sit at the intersection of real estate, infrastructure, planning, utilities and finance. There is no standard form of EVCP lease, so each project needs a tailored approach reflecting the site, equipment, grid connection and commercial objectives.
Early engagement between landowners, developers, operators and utility providers can identify legal, practical and commercial issues before heads of terms are agreed. Clear documentation of responsibilities, risks, timescales and operational requirements will support effective delivery and long-term management.
How we can help
If you would like to discuss EV charge point leases or the property issues arising from charging infrastructure, please contact Dawn MacPherson, Philip Shorney, or a member of our team.