13:18 PM, 30th January 2023, About A year ago 9
Hello, Hopefully, most prospective landlords would make checking the EPC one of their first tasks when looking at a property to buy. But say you inherit a property you want to use for a buy-to-let. The property is in a good state of repair, was inhabited up to inheritance, and is fit to rent out straight away.
Only problem is the EPC rating is F – technically making it unfit for use as a BTL.
The wise Landlord at this point might say sell it and walk away, but let’s say for the sake of argument the property has good potential for capital growth and there’s a sentimental attachment.
The only way to increase the EPC rating would involve digging up and insulating cement floors, ripping down ceilings to install insulation, and insulated plasterboard internally – all which would involve building works to some extent, but which would also (in theory anyway!) increase the long term value of the property.
Would the expenses necessary to improve the EPC be classed as a revenue expense as the property was technically habitable/lettable as was, or capital as it otherwise wouldn’t be “fit for use” and involves building works that increase value?
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