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The list of questions below is not exhaustive but forms some common queries our clients have made to PHH regarding requirements for EPCs.


1. Do you need an EPC for buildings that form company assets when selling a company or business?
 

If the building(s) are freehold (thus effectively a sale of land) or require new leases post sale of the company then yes, if the building(s) require will only require lease renewals or extensions post sale then no.

As the buildings are "assets" it would be presumed that they are freehold or at the very least the new owners would need a new lease of a leasehold building(s) post sale of the company. PHH would advise the client to ire on the side of caution and have EPCs carried out in this situation.  

DCLG guidance states:-

 "It is the action of selling, renting out or construction that triggers the requirement for an EPC. Therefore, existing occupiers and tenants will not require an EPC unless they sell, assign or sublet their interest in a building on or after the dates the regulatory requirements came into force."

DCLG “Improving the energy efficiency of our Buildings” Page 7

 Transactions considered to be a sale or rent

The sale of an interest in the building must be treated as the same as the sale of the building itself and an EPC will be required for the assignment of a lease, where a leasehold interest is being passed on to another person. The sub-letting of a building would also require an EPC to be provided.

DCLG “Improving the energy efficiency of our Buildings” Page 12

 Transactions not considered to be a sale or rent

The purpose of providing an EPC during the sale or renting process is to enable potential buyers or tenants to consider the energy performance of a building as part of their investment. Not all transactions will be considered to be a sale or let to which the duties apply.

These will include:

  •  lease renewals or extensions
  • compulsory purchase orders
  • sales of shares in a company, which does not involve the sale of the building in which a company is located, where buildings remain in company ownership
  • lease surrenders

There may be other types of transaction that it might be argued do not require an EPC, for example, living accommodation at a workplace and tied to a job, or not-for-value transactions, but this will depend on the individual circumstances of any case.

DCLG “Improving the energy efficiency of our Buildings” Page 12

 Please feel free contact us for further information on this and other service we provide which may help your business.

 
Helping build a brighter, greener future.

PHH Energy Limited, Unit R05, Cardiff Bay Business Centre, Lewis Road, Cardiff, CF24 5EL
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07923888 | VAT Registration Number: 155 8232 05
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