Lenders concerned about the impact of an EPC rating

Taken at Fairfield Waters Townsville Qld.© 2010 I retain Copyright.

The introduction of the Energy Performance Certificate is now 10 years old, therefore it is time for landlords to reassess their portfolios.

Intended to last for a decade and required before homes could be sold or let, EPCs have taken on more significance since they became a guiding factor in whether or not a home could be let.

The recent Minimum Energy Efficiency Standards (MEES, please see article Landlords/ Letting Agents beware of MEES) mean that from April 2018 it will be difficult to let a property with an Energy Efficiency Standard on its EPC below Band E. It is worth bearing in mind it could be beneficial to review the EPC for each property even if you are not yet required to replace the original purchased 10 years ago.

Properties banded F and G or even those with a low score in Band E, having a new EPC assessment could make all the difference between 10 years of worry-free letting and the stress of not knowing whether or not an exemption granted in time for April 2018, will be renewable in 2023. Looking ahead, Lenders may want confirmation of the property’s energy efficiency standards as there is potential for a reduction in asset value as a lettings property.

The Energy Assessment team at PMMServ.™ are authorised to override the SAP scores within the software that generate the certificate if there’s visual or written evidence that standards are higher than the software assumes. Meaning the property may not need any energy efficiency improvements installed.

PMMServ.™ currently have funding for insulation measures such as cavity wall insulation, loft insulation and a replacement boiler scheme which our Landlords are already accessing either free of charge or for a nominal fee.

Please call 0330 311 0118 to find out more

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