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Category: Property Law
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Commercial EPC question. For a commercial EPC with a Full

Customer Question

Commercial EPC question.For a commercial EPC with a Full Repairing Lease of which the Lease still has a few years to run and the original EPC expires within the next 3 months, is it for the Landlord or Tenant to pay for the EPC and any associated works if necessary?Is it true the landlord is responsible for ensuring the property has a valid EPC as its not clear on who has to pay for that and any works needed if necessary.Many thanks.
Submitted: 12 days ago.
Category: Property Law
Expert:  Inderdeep replied 12 days ago.
Thank you for using just answer i will be assisting you today.
Expert:  Inderdeep replied 12 days ago.

Just a few quick points:

  1. I am a solicitor in England and Wales with experience in a wide range of matters.

  2. I will respond to your enquiry as soon as I am able to. If I do not reply right away please bear with me as it may be because I am dealing with another client or I am offline. I will respond as soon as I am able to.

  3. This is a question based/information sharing platform and i cannot legally represent you or act on your behalf.

  4. I may ask you some clarifying questions to help me answer your question as best i can.

I will now deal with your enquiry and assist you as best i can.

Kind regards

Expert:  Inderdeep replied 12 days ago.

It is the landlord's obligation to ensure that the EPC meets the requirements and the obligations cannot be passed to the tenant. However, the cost of carrying out the necessary improvements may be passed on to the tenant under service charge provisions depending on the terms of the lease.

Expert:  Inderdeep replied 12 days ago.

Therefore you need to check the terms of your lease and obtain confirmation from the landlord.

Customer: replied 12 days ago.
Thank you, ***** ***** is a full repairing lease - does that make a difference?
Customer: replied 12 days ago.
What sort of wording or clause should i be looking for please
Expert:  Inderdeep replied 12 days ago.

It will not necessarily make a difference however the terms of the lease need to be looked at. Whilst is may be a FRI lease the landlord cannot pass all the responsibility for repairs and compliance with regulations to the tenant, it is for the tenant to ensure compliance with those regulations and not to undertake anything which may impact those.  Is the landlord service a schedule of dilapidations on you? What is the issue exactly?

Customer: replied 12 days ago.
No issue really, trying to do the ground work on who would be responsible on any works to get the property rating up. It currently sits at a 'C' rating but obviously the EPC was carried out in 2012 so thinking there maybe a few works required to keep it at a C maybe?
Expert:  Inderdeep replied 12 days ago.

If there was any works undertaken by you which impacted the rating then the landlord could seek for you to undertake remedial works, they can also serve a schedule of dilapidation in respect of any repairs required and you could negotiate these. Generally however the landlord is responsible for ensuring the EPC rating of the property is efficient.

Customer: replied 12 days ago.
My worry is that the property was assessed as C - who would be liable for repairs if the property is reassessed as a lower rating when the new EPC is carried out
Expert:  Inderdeep replied 12 days ago.

The issues only arise if the EPC rating is E or below and it cannot be let, i suspect this would not be the case unless you have undertaken any works to cause that as i said.

Customer: replied 12 days ago.
No, not that i am aware of.
Expert:  Inderdeep replied 12 days ago.

If the landlord serves a schedule of dilapidation on you and raises concerns about the EPC rating then you should get legal advice. You should double check the terms of your lease about the EPC if there is anything contained in the lease.

Customer: replied 12 days ago.
thank you.
Customer: replied 12 days ago.
Also if a commercial property was returned back to the landlord at the end of the contracted term, would it have to be returned with the same energy rating as to that when the lease was signed?
Expert:  Inderdeep replied 12 days ago.

Again you need to look at the specific lease terms in relation to that.

Customer: replied 12 days ago.
okay, thank you
Expert:  Inderdeep replied 12 days ago.

I hope this has assisted your enquiry and thank you for using our services.