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Agriculture and Land Development specialist Below, I have outlined some key considerations for landowners considering entering into EV charging point leases.
EV charging point leases: An opportunity
The UK aims to reach net-zero carbon emissions by 2050, and the government’s target is 68% by 2030. A key aspect of this strategy is promoting growth in electric vehicle (EV) sales alongside the development of the supporting infrastructure. Understandably, rising EV sales leads to greater demand for both private and public EV charging points.
By the end of May 2025, there were just under 81,000 public charging points across the UK. This falls well short of the government’s target for 300,000 points by 2030. However, research by Savills indicates that even this target significantly underestimates actual demand. Since 40% of UK households lack off-street parking, the actual requirement is expected to exceed 530,000 chargers by 2030. Consequently, there is currently a substantial opportunity for landowners and developers to capitalise on.
What is an EV charging point lease?
An EV charging point lease is a lease between a landowner and a charging point operator (“CPO”), granting the CPO the right to install and operate EV charging points on the land covered by the lease. The CPO is usually responsible for installing, maintaining, and managing the EV charging points throughout the lease term and, afterwards, for reinstating the land.
Key considerations for both landowners and CPOs
Among the main considerations for the parties when negotiating heads of terms for EV charging point leases, as well as the lease terms themselves, are:
EV charging point lease term
The length of the lease is usually linked to the expected lifespan of the EV charging equipment. Advances in technology have led to an increase in the typical lease term to 25 years, up from 10 to 15 years previously.
With this in mind, landlords should evaluate whether the proposed term aligns with any long-term plans for the site, such as development. A potential conflict could be addressed by negotiating a shorter lease, or alternatively, by negotiating a landlord’s redevelopment break clause, or perhaps a “lift and shift” provision.
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The property
The parties must agree exactly on what property will be included in the lease. This depends on the type of development planned and the specific requirements of each party. For example, the let property might be:
- a car park within a larger estate (possibly a service station); or
- a row of parking spaces with charging points, either self-standing or attached to a building.
EV charging point leases: Which rent model?
Among the rent models which may be appropriate for EV charging point leases are:
- Fixed rent where the tenant typically pays a fixed annual rent, either per charging point or for the entire site. This rent is usually subject to index-linked reviews—commonly on an annual basis or at longer intervals, such as every three or five years. In some cases, an open market rent review may also apply, perhaps every five or ten years.
- Rent may be calculated on a net profit basis, where the tenant pays the landlord a percentage of its net profits from operating the site. The lease provisions governing the calculation of net profit are often complex and require careful drafting. Alternatively, the rent could be structured as a percentage of the tenant’s turnover or revenue generated from the site.
- A combination of the above models, for example, a fixed base calculated as a percentage of the open market rent, topped up with a profit rent.
Both parties should consult their surveyors for specialist advice to determine the most suitable rent model for their specific commercial arrangement.
The timing of rent commencement is an important consideration. Rent may begin either on the date of lease completion or when the EV charging points are connected to the grid and become operational—commonly referred to in the lease as the “Energisation Date”. This is subject to negotiation, with landlords typically favouring rent from completion and tenants preferring rent to begin upon energisation. A typical compromise is to set the rent commencement date as the earlier of the Energisation Date or an agreed period following completion, to prevent undue delays by the tenant to postpone their rent obligation.
Security of tenure
A lease for an EV charging point will typically constitute a business tenancy protected by the Landlord and Tenant Act 1954. Unless the lease is expressly excluded from the Act’s security of tenure provisions, the tenant will have the right to remain in occupation at the end of the term and request a new lease, unless the landlord successfully opposes it on one or more of the statutory grounds.
While this protection benefits tenants, it may create challenges for landlords who need to reclaim the site for their own use, sale, or redevelopment. Unlike telecoms leases governed by the Electronic Communications Code, EV charging point leases do not receive any special legal status or protections.
The tenant’s repairing and reinstatement obligations
EV charging point leases generally include a full repairing obligation for the tenant. They must consider the nature of this obligation and ensure they can practically comply with it. This might involve regularly inspecting the site to confirm compliance. A schedule of condition attached to the lease reduces the chance of future disputes.
Leases generally impose an obligation on the tenant to reinstate the property to its original condition at the end of the lease term. The default position is that the tenant must remove all equipment; however, this requirement can vary depending on what the parties agree upon in the lease. Since the lease term will likely correspond to the equipment’s expected lifespan, landlords are unlikely to want it when the term ends. It is also quite common for any equipment or apparatus adopted by statutory undertakers to be excluded from the reinstatement obligation, as the tenant may not be in a position to remove such equipment legally.
EV charging point leases: Service charge
The landlord may wish to impose a service charge on the tenant, especially when the property is part of a larger estate, with the tenant benefiting from services supplied by the landlord. For example, the landlord might request a contribution from the tenant when they and their customers benefit from car park lighting or the maintenance of estate roads.
Assignment and underletting of EV charging point leases
Assignment and subletting are generally prohibited, with limited exceptions. For example, where a electricity substation is required – depending on local electricity capacity – the tenant may be permitted to sublet part of the site to a Distribution Network Operator (“DNO”) on the DNO’s standard terms (see below).
If, as is usually the case, the tenant is financing the project, the landlord will likely be required to enter a “direct agreement” with both the tenant and the funder, typically on the funder’s standard terms. This agreement allows the lender to take a charge over the lease and grants the funder the right to step into or take an assignment of the lease under specific circumstances.
Equipment “lift and shift”
EV charging point leases often include a provision allowing the landlord to require relocation of the charging infrastructure to another part of its property. In practice, this typically involves surrendering the existing lease and granting a new lease for the alternative location – usually for the remainder of the original term – though the precise terms are subject to negotiation. This flexibility is especially useful for landlords wanting to preserve future redevelopment or sale opportunities. However, relocating EV charging infrastructure can be costly, and any “lift and shift” clause will almost certainly require the landlord to cover the tenant’s full relocation costs, including professional fees such as legal and surveyor’s costs.
Other practical considerations
Will planning permission be required?
The installation of EV charging points is considered “development” under the current planning regime. This means that planning permission is required unless the installation falls within permitted development rights. Where planning permission is needed, the parties must agree on who will be responsible for preparing and submitting the application. If the tenant is to apply, they may seek an agreement for lease that is conditional on obtaining satisfactory planning permission, providing assurance that the lease will be granted if the application succeeds.
Substations
Depending on the scale of the development and the available electricity capacity, a new substation may be needed to support the EV charging infrastructure. If so, the location of the substation must be agreed upon in consultation with the relevant DNO. It may be situated either within the area leased to the tenant or elsewhere on the landlord’s property. Where the substation is to be located within the tenant’s demised premises, it will usually require a separate lease directly between the landlord and the DNO. This might involve a partial surrender of the existing EV charging point lease if already granted.
Substation leases are generally granted for a minimum term of 99 years at a nominal or peppercorn rent and usually benefit from security of tenure under the Landlord and Tenant Act 1954. In some cases, the DNO may require a transfer of the freehold interest. This long-term commitment can influence a landlord’s willingness to proceed with an EV charging lease, particularly where the substation lease will continue well beyond the charging lease term. However, a “lift and shift” clause (as discussed above) may offer some flexibility. Conversely, the landlord may view the enhanced electricity capacity provided by the substation as a long-term asset to the property.
Wayleaves
Wayleave agreements may be necessary with the DNO, particularly where cables for the charging points need to be installed beneath the landlord’s or a third party’s property. These agreements are usually made between the DNO and the landowner (whether the landlord or a third party), although tenants are sometimes party to them.
Electricity grid connection
Clearly, EV charging points must be connected to the electricity grid, raising several key questions early on:
- Is a grid connection available?
- Who will bear the cost of the connection?
- Has the connection been arranged?
For smaller connections, the electricity supplier will typically handle the necessary documentation. However, larger connections will usually require a formal grid application – commonly referred to as a G99 – which is personal to the applicant and cannot be transferred.
Works compound
Tenants may want the right to build and use a temporary storage compound for materials, plant, and equipment during the construction phase. Typically, such rights are time-limited on the anticipated build period. A similar right is also likely to be required at the end of the lease term to facilitate the tenant’s reinstatement works. Whether this facility should trigger additional rent is a matter for negotiation.
Internet connection
A reliable internet connection is essential as most EV charging points operate via mobile phone apps.