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Commercial EPC's

It is now a requirement that commercial premises need a Energy Performance Certificate (EPC) if they are sold, or if a lease is granted or assigned.

WHAT IS A COMMERCIAL EPC?

A Commercial EPC is a document that;

a) Expresses the energy rating of the building (A [highest] - G [lowest]

b) Contains the total useful floor area, address of property, name and address of the Energy Assessor and the date it was issued with a registered reference number.

c) Is accompanied by a recommendation report with suggestions of how the energy rating could be improved in the short, medium and long term.

WHEN DO YOU REQUIRE AN EPC?

A commercial EPC must be provided by 'the relevant person' at the earliest opportunity and in any event before entering into any contract to sell or rent a building.

The regulations state that an EPC for all commercial property that is to let or for sale should be provided with the sales particulars or upon the first viewing whichever is the earlier.

WHO IS RESPONSIBLE FOR OBTAINING AN EPC?

The regulations refer to a 'relevant person' as the person who is responsible for obtaining an EPC. The relevant person is referred to as either 'the seller' when a building is being sold or 'the prospective landlord' when a building is being rented out.

PENALTIES FOR FAILING TO OBTAIN EPC

If the relevant person or his/her agent does not provide a commercial EPC upon inspection or with sales particulars then he/she is liable to a fine from the local weights and measures authority (trading standards officer). The officer can 'require a person who appears to him to be subject to any duties under the regulations to produce a copy of a valid EPC at any time up until 6 months after the marketing took place'.

The fine is based on a number of criteria but is mainly calculated on 12.5% of rateable value between a minimum of £500 and a maximum of £5,000.



 
HOW LONG IS AN EPC VALID FOR?

The EPC is valid for 10 years unless major modifications have been carried out to the property in that time period.

WHO PROVIDES EPC’S?

An EPC can only be prepared by a qualified Energy Assessor.

BUILDINGS EXEMPT FROM EPC’S

The following are exempt: places of worship, buildings that are intended to exist for less than two years, agricultural buildings and some basic workshops with low energy demands. Also detached buildings of less than 50 sq m (550 sq ft) are exempt.

Finally where it can be demonstrated that a building is suitable for demolition or redevelopment it could be exempt. In this instance the property should have appropriate planning consents etc or the seller has reasonable grounds to believe that a prospective buyer intends to demolish the building.

A commercial EPC will not be required for a lease renewal or a lease extension or surrender or under a compulsory purchase order. 'i.e. transactions that do not involve a new owner or tenant may not require an EPC'.
 
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