No EPC – No Mortgage

by Howard Reuben CeMap CeRER

10:26 AM, 21st September 2017
About A year ago

No EPC – No Mortgage

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No EPC – No Mortgage

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.

Contact Howard Reuben

Mortgages, Commercial and Bridging Finance, Life Insurance, Wills, Trusts and LPA's
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Comments

Graham Bowcock

12:05 PM, 23rd September 2017
About A year ago

Howard

What you say is quite correct. Part of my business is undertaking property valuations and we seem to have become specialists in portfolio/investment valuations. However, whether or not an owner has one property or one hundred properties the EPC rules are the same.

For some years now we have had to report the EPC details in our valuation reports. Whether or not a bank chooses to lend or impose conditions has largely been a matter for that bank but we are increasingly having to make strong recommendations to lenders where EPCs have not been obtained or where they do not meet the minimum standards. This may vary from property to property; for example if a house is about to be refurbished then not meeting EPC standards may be less of an issue.

We also report on other details such as smoke and carbon monoxide alarms, deposit protection, HMO licences and other issues such as RentSmartWales. All of these matters affect the value of the property and, crucially, the ability of the owner (i.e. a mortgagee is possession) to sell the property to best advantage.

Graham

rob david

15:14 PM, 28th November 2017
About A year ago

We used to run a 1k capacity disco' which was only viable when 'packed', the problem then was keeping the place cool (as in temperature haha). Does anyone know if these useful tickets are needed under those circumstances ?

Jireh Homes

4:43 AM, 18th December 2017
About A year ago

EPCs for domestic rental properties in England & Wales became mandatory from Oct 2008 and thus over next few years many will require renewal. However an EPC produced to the current RdSAP will typically produce a lower SAP Rating. So properties with low E rating may fall into the F band and thus require remedial work to bring within the allowable range.


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