EPC challenge with a flat within a social housing block?

EPC challenge with a flat within a social housing block?

0:08 AM, 18th May 2023, About 10 months ago 5

Text Size

Hello, I own a flat on the top floor of a social housing block of 60 flats owned by Wandsworth Council. I’ve just had the EPC renewed in order to replace my mortgage as it is coming off its cheap deal and it has come in as a poor D on account of the flat roof (the same rating as all the top floor flats in the block).

I contacted the EPC assessor and was told that the only way I can bring the rating up to C is by insulating the roof but this belongs to the council and, under the terms of my lease, I only own the plaster.

I’ve spoken to Wandsworth and, presumably as the new regulations do not currently apply to them until 2030, have been told that they have no plans to do anything about the roof. They suggest I improve my rating by replacing my boiler (it’s 2 years old), make sure all lights are LEDs (they are) or install a false insulated ceiling throughout my flat when the ceiling height is very low anyway.

So, I’m posting this for suggestions, please, of what other landlords would do in this position?

Should I install the ceiling at great expense then it will reduce the headroom to around the height of the internal doors? Remortgage to one of the few lenders now who will mortgage a property not meeting a C rating, and subsidise the flat because the rent after tax will not cover the new level of payments?

Or evict my tenant of 11 years and sell up?

Thank you,

Barbara


Share This Article


Comments

Reluctant Landlord

7:50 AM, 18th May 2023, About 10 months ago

do nothing. If you are going to struggle to meet the new mortgage cost and you are unable to increase the rent to meet this then consider yes consider selling as ultimately this wont be a short wait as there is no decision on the EPC issue yet.

If you hang on, you could then apply for exemption nearer the time (IF the EPC rating is to be upped to a C and whenever that is) on the basis the roof does not belong to you and that the council has no plans to do this until 2030. Remember the council give the exemptions!

Once that work is carried out then you could have a new EPC done which (should in theory - caveat here the EPC algorithym may have changed) show that the rating now be above the D as the works highlighted to the ceiling have now been carried out. If it comes out as a C all is well. At this point your boiler may have packed up or if the EPC makes it look favourable, switch to an electric one. This MAY give you more points on the EPC but you need to also try to get this done in the period where you can claim this as a direct cost of upgrading within the landlord threshold (currently £1.5k but PROPOSED £10k)

No totally clear answer until the government makes a firm decision about what they want exactly!

GlanACC

8:02 AM, 18th May 2023, About 10 months ago

I agree with DSR, don't spend anything until the bill has royal assent. Even then apart from replacing the boiler you would easily be abe to get an exemption certificate. Do not lower the ceiling height of the room.

RoseD

11:48 AM, 18th May 2023, About 10 months ago

DSR explained your options perfectly. Sounds a liability to me so I'd give serious thought to selling.

Jireh Homes

14:33 PM, 18th May 2023, About 10 months ago

Concur with advice to take no immediate action, and if and when the Minimum Band C is effective then follow the exemption route. The SAP software will by then have changed so the computed rating likely to be different.

Martin Hicks

23:46 PM, 18th May 2023, About 10 months ago

The eventual aim is to get all rented properties to be EPC B or better. This was to be by 2030, but seems to be deferred to a later date. Maybe 2035? So it won't get easier. Probably best to sell and buy a property already EPC B, if you want a long term income source. Maybe easier to put the money in a REIT or similar.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now