An Energy Performance Certificate is a Certificate issued by an Energy Assessor that contains information relating to the energy efficiency of the Property. Our Commercial Property Solicitors set out what an EPC contains and whether you need one if you are selling a commercial property.
Each EPC must contain the following information:-
- The asset rating – a measure of the potential energy performance of the Property based on matters such as insulation, construction and heating services.
- A recommendations report – a list of cost-effective improvements that could be made to the Property to improve its energy efficiency.
- A reference number for the data on the EPC Register.
- Details of the Property – address and estimated total useful floor area.
- The date the EPC was issued.
- Green deal information – if the Property is subject to a Green Deal plan, there will be details of financial commitments and terms.
The EPC Regulations state that it is a requirement for an EPC to be commissioned when selling a commercial property whereby one has not already been carried out. In relation to commercial properties, the requirement for an EPC also extends to the assignment of an existing lease or grant of a new lease. Sellers are required to commission an EPC prior to marketing the Property if there is no existing EPC already in place. Once a valid EPC has been commissioned, the results of the report should be contained within any marketing material for the Property and provided to any prospective buyers.
There are occasions whereby an EPC will not be required when selling a Commercial Property, i.e. properties without roofs or walls; that do not use energy to condition the inside climate; that are not designed or altered to be used separately; listed buildings; temporary properties; that are smaller than 50 metres squared; and non-residential agricultural properties.
Even though an EPC may not seem to be relevant in all sale transactions, there are a number of transactions that will still be liable to provide an up to date Certificate including, sales by insolvency officials; sales whereby there is no estate agent involved; auction sales; short-term lettings of commercial property and sales and leasebacks.
EPCs are valid for a period of 10 years from the date that they were first made available and once published are available on the EPC Register for electronic download.
Should you have any other queries regarding Energy Performance Certificates and your obligations as the seller of a Commercial Property, please contact us on 0116 255 1811 or via email at KAdams@josiahhincks.co.uk.
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