Refurbishment Buy to Let – A solution to EPC requirements

Refurbishment Buy to Let – A solution to EPC requirements

9:43 AM, 15th June 2022, About 2 months ago

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The proposed new Energy Performance Certificate (EPC) regulations will mean that from 2025, landlords cannot rent their property on a new tenancy without an EPC rating of C or above. It is proposed that the penalty for not having a valid EPC, will be increased from £5,000 to £30,000.

In order to achieve this, many properties will require: Double Glazing, Loft Insulation, Wall Insulation, Boiler Replacement

Many of our clients are now using the Refurbishment Buy to Let product as a solution. This product gives the flexibility of bridging finance, with the surety of an exit onto a Buy to Let Mortgage. This has the following benefits:

  • One valuation fee
  • One conveyancer and discounted legal fees
  • No mortgage payments whilst the refurbishment is taking place
  • Bridging rates from 0.47% per month and Buy to Let rates from 3.14% pa.

Rightmove conducted a survey at the end of last year and showed that owners who upgraded their EPC to C from D, E or F rating have gained as much as 16% in the value of their property. On the average asking price of £344,445, this means that this could increase the value by £55,111.

With recent energy price increases of 54% and a further predicted rise of 40%, tenants are becoming more and more demanding with regard to the energy efficiency of their rental properties.

Many of our clients are also using this product to:

  • Purchase properties at auction that require refurbishment
  • Refurbishing to increase capital value and rental income
  • Change of use from residential to, or from, a small HMO

Contact us today to see how we can help you.

Contact Brooklands Commercial Finance

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