When speaking with both landlords and their agents it has not been difficult to find more than three opinions as to when an EPC is required for a commercial property.
So here’s the response taken from the Direct.Gov’s own website that, unless there are changes to their own requirements, should be applied to all commercial property transactions.
‘Prospective buyers or tenants must receive an EPC before they buy, let or sublet premises.
For the sale or rent of an existing property, it is the owner or landlord who is responsible for providing an EPC to any prospective buyer or tenant. This should be done no later than the day on which a viewing is carried out, or written information is provided about the premises. At the very latest, an EPC must be provided when a contract to sell or let premises is arranged.’
Bearing in the mind the advice from Direct.Gov, when providing advice to our clients, RPS Ltd recommends that an EPC is prepared and made available as part of the initial marketing proposals and that it is included both within the marketing pack and as preparation of the sales pack and CPSE responses. As in most property transactions early preparation of documentation keeps the period between offer and sale completion to a minimum and reduces the ability for the purchaser to either chip the price or stretch out the sales process with the aim of frustrating and lowering the price.
EPCs are needed for buildings with multiple tenancies and let for different uses, with a mixture of retail, office and/or residential accommodation. EPCs are not needed for:
- lease renewals or extensions
- compulsory purchase orders
- sales of shares in a company where buildings remain in company ownership
- lease surrenders
- temporary buildings with a planned time of use less than two years
- standalone buildings with a total useful floor area of less than 50 metres squared that are not dwellings
Existing occupiers and tenants will not require an EPC unless they sell, assign or sublet their interest.
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