Minimum Energy Efficiency Standards and Why You Need To Care

 

It's not just about saving energy

It might sound innocuous, but from 1st April 2018 it will be unlawful to grant new leases or renew existing ones of residential or commercial property with an EPC rating of less than E unless it is registered as an exemption.

From April 2023 it will apply to all existing commercial leases.

If the property is not brought up to a sufficient rating by the landlord carrying out works, they will face a minimum penalty of £5,000, and a maximum of £150,000.

Bear in mind this will also apply to any tenants wanting to sublet their lease when their circumstances change.

This could have a significant impact on rent negotiations, not only for new leases, but also tenants coming up to break clauses or lease renewal.  They may be occupying a property that is an F or G rating, and use that to their advantage in negotiations.
 

OF ALL REGISTERED EPC'S, APPROXIMATELY 30% ARE AN F OR G RATING 

If you are not up to speed with the regulations, whether as a landlord or tenant, and need some help to work out your strategy, please contact us.

 

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Driving a Hard Bargain
Think back to your first driving lesson – you didn’t have a clue what you were doing, making lots of mistakes and needing guidance from your Driving Instructor.  (Well, I certainly did!)  20 years later, and driving comes naturally now. You’re not fazed by difficult junctions, and can adapt your driving depending on whether you are on a motorway or a country lane.  We all need help when we don’t have experience, and that applies just as much to negotiating a lease as it does to learning to drive.  In those early driving lessons, did you get the best out of the car, or was it a bit stop/start, judder, stall? To get the best out of your lease, you need experience.  Someone who has been negotiating leases on behalf of landlords and tenants for over 20 years, who can get you the best deal.  Whether you want an “old banger” of a cheap industrial unit, or a “luxury model” of a shop in a city centre, I can drive a hard bargain on your behalf.

If you value professional advice and would like someone to help you on your property journey, give me a call on 01462 820092 or email info@ktdsurveying.co.uk
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Business Premises and Surveyors
Taking on business premises is an exciting time, but can also be daunting.  The right advice at the outset can save you costly mistakes in the future.  Most people wouldn’t think twice about using a solicitor to negotiate their lease for them, but what about a Chartered Surveyor?  Have you used one?  But why would you need someone in a hard hat using a theodolite, or the person that values your house for the mortgage?  What have they got to do with business premises?
 
  • Surveyors cover many areas, including those above, but one specialising in Landlord and Tenant work, such as rent reviews, lease renewals and property management can be invaluable to those leasing business premises.  A solicitor is essential whilst dealing with a lease renewal, but a surveyor should ideally also be appointed to work in conjunction with them.
  • Did you know that it may be possible to change the terms of the lease, or reduce the rent?
  • Has your solicitor advised you about the Lease Code and Service Charge Code, and the benefits these have for you?
  • Were you aware that if the landlord serves notice on you requesting you vacate the property (a "Section 25 notice") that you may not have to?
  • Do you understand all your obligations regarding repairing liabilities in the lease?  If you have a full repairing clause then you are responsible for carrying out all repairs necessary to the property – this could include significant items such as the roof.  Being aware of this at the outset allows you to budget accordingly, or negotiate to mitigate your liability.  You don’t want to sign up, move in and then find that two years later the roof needs replacing and it is now your responsibility.
 A surveyor is the appropriate professional to deal with a rent review, as they are experienced in valuing business premises and obtaining evidence to justify their claims, ensuring you end up with the right level of rent.

Of course the above applies if you are a tenant, but equally a surveyor can act for a landlord to ensure that the landlord’s investment is protected. 
People may wonder why they should appoint a surveyor when they can agree a deal themselves.  You use a solicitor, architect and accountant as they are specialists, so too is a surveyor.  Each has their own place.  Appointing the right professional frees up your time to allow you to concentrate on your business, and ensures you get the best possible agreement.  Don't just take our word for it, read some of our testimonials.
 
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