Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Energy performance certificates EPCs for commercial property a very by FoxxyBrwn

VIEWS: 6 PAGES: 11

									Energy performance
certificates (EPCs) for
commercial property – a very
brief overview
Nick Darby
nick.darby@dentonwildesapte.com
17 April 2008


                                  1
EPCs - introduction
• ‘Fridge rating’ – grades A-G plus recommendations
• Already in force for residential properties which need a
  HIP
• Initial lack of inspectors for residential EPCs
• Now some face bankruptcy
• Different inspection regime/qualifications for
  commercial EPCs
• Inadequate number of assessors for commercial
  EPCs
• Accreditation scheme for commercial EPCs still not
  fully launched
                                                         2   2
EPCs - introduction
• Energy Performance of Buildings Directive
  (EPBD) (2002)
• EPB Regulations (March 2007)
• Guidance (24.01.08) (but may change) – see
  http://www.communities.gov.uk/documents/pla
  nningandbuilding/pdf/guidancenondwellings
• To be enforced by trading standards officers
  • Consistency?

                                             3   3
Commercial EPCs – timescale
• Was to have been 6 April 2008
• Now a staged introduction:
  • 6 April 2008 – over 10,000m2 useful floor area
  • 1 July 2008 – over 2,500m2 useful floor area
  • 1 October 2008 – rest (v few exceptions)
• Unit in a shopping centre – UNIT size is key
• EU’s patience is running out

                                                     4   4
Commercial EPCs – when required?
• Sale e.g. assignment? surrender?
• Let e.g. underletting? lease renewals?
• Construction/some refurbs
• 10 year lifespan
NB
• Display energy certificates (DECs) – over 1000m2
  useful floor area - public buildings
• DECs include “asset” & “operational” ratings
• Annual
• Advisory report – 7 year lifespan
                                                     5   5
Preparing the EPC
• Computer program
• Assessor types in measurements etc
• ‘Worst case’ assumptions
• Computer churns out the EPC
• Recommendations – may be tailored to suit (or
  assessor may not bother)
• Assessor registers the EPC (using the UPRN?)
• Updating the EPC (needs the computer file)


                                                  6   6
Outstanding issues
• Shopping centre units – EPC for unit or centre?
• Delay whilst EPC obtained – deals may fall through
• Access to rest of centre?
• Availability of EPC to other Ts in the centre?
• Due diligence – non-searchable register
• EPCs cancelling each other out?
• Modern DEC vs 9 yr old EPC
• EPC may be triggered by T ‘selling’ – so L may not be
  obliged to co-operate
• Mixed use – may require 2 types of EPC
• Draft guidance inconsistent/incorrect/needs amending
• Can L recover the cost?
                                                          7   7
Service Charge – some thoughts
• Existing wording/sweeper – likely scenario
• Landlord charge whole – fair or not? Who benefits?
  (voluntary/statutory/recommendations)
• Landlord charge (part) where tenant requests
  (assignment or underletting)
• Landlord charges % of whole and say not more than
  once every 3 years
• BUT not directly for prospective tenant (not covered
  where landlord gives to tenant for prospective
  assignment)
                                                         8   8
The future?
•   Amendments to guidance?
•   Tightening of requirements?
•   Levy on business rates?
•   Requirement to carry out recommendations?




                                                9   9
Green Leases
• No plastic bags
• Park and ride schemes




                          10 10
Energy performance
certificates (EPCs) for
commercial property – a very
brief overview
Nick Darby
nick.darby@dentonwildesapte.com
17 April 2008


                                  11

								
To top