No EPC – No MortgageMake Text Bigger
Did you know that from April 2018, BTL landlords might find it far more difficult to get buy to let mortgages if their properties don’t have the right Energy Performance Certificate rating
EPC’s are rated from A (the most energy efficient property) down to G.
Energy Performance Certificates (EPCs) include detailed information about the subject property’s energy output and cost ratings. EPC’s are currently required when a property is rented or sold and they are valid for 10 years.
An EPC must be ordered before the property is rented or sold.
LATEST UPDATE – as from 1st April 2018, BTL landlords will not be allowed to issue a new or renewal tenancy if the property’s EPC rating is F or G.
AND …. as from 1st April 2020, it will be illegal for landlords to continue to let the property if the EPC has a rating of F or G.
The dates may be April 1st, but these are no joke. Breaching these new rules could mean fines of up to £5,000 may be imposed.
AND – these new rules are not only crucial from an energy compliance angle but they are also important when looking for buy to let (purchase or remortgage) mortgage deals.
From April 1st (and maybe sooner if lenders implement the new checks beforehand) BTL borrowers should expect to submit a valid EPC with an agreeable rating. If this is not possible, the mortgage application may be refused.
Maintaining a valid EPC may also be written into your mortgage contract conditions, too. And to add to these issues as well, surveyors may even down-value properties which have unsatisfactory EPC ratings.
So what can you do?
1) Check your EPC for each property right now!
2) If the property is an E or better, then no problem.
3) if there is NO EPC in place, you’ll need to have one, at least in time for April. You can order one via us.
4) if your current EPC rating is F or G …. a new report may be needed anyway, and also remedial works (for the property owner to sort out) too if the updated report is still an F or G.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.