National Bartender (March) – Commercial Property
Peter Thornley is Managing Partner at Fraser Brown Solicitors in Nottingham and handles commercial property cases within the newly formed Leisure Industry team. This month he explains why licensees must ensure they have a valid EPC in place before selling or letting their premises.
“Although Energy Performance Certificates (EPCs) were first introduced last year, it is clear that a lot of licensees are still unaware that if they are to sell their property, they will need an EPC - and many do not realise the consequences of ignoring this important piece of legislation.
“In addition to this lack of knowledge and confusion about their purpose, licensees are also (understandably) unwilling to invest in the certificates in the current difficult trading period.
“However since January 4 it has been illegal to market a commercial property without one and sellers risk penalties of up to £5,000 for failure to provide one to a prospective buyer. This will also prevent or delay the sale or letting of the property as well as damaging green credentials and making the property less appealing for sale or rent.
“Licensees should be aware that Trading Standards, which is charged with enforcing the legislation, will soon be looking to contact vendors to make sure they have an EPC in place.
“An EPC is required when any commercial building is constructed, sold or let. Failure to observe the new legislation will result in fines, which are calculated based on the property’s rateable value. So it’s clearly important that licensees understand exactly what is needed to comply.
“EPCs cost around £500 each and are obtained through assessment. They are similar to the certificates contained in the domestic Home Information Packs, but must be provided by an approved commercial property assessor. They are supplied with a recommendation report that lists cost effective and other measures to improve the energy rating of the building. The certificate is also accompanied by information about the rating that could be achieved if all the recommendations were implemented.
“The EPC indicates to a prospective buyer or tenant how energy efficient the property is and could also provide information that may help to reduce the running cost of the premises.
“So although it can be difficult to understand the tangible benefits of the EPCs, especially with the other challenges currently facing the industry, in the longer term they should save licensees money and shouldn’t be overlooked.”
For more information about Fraser Brown’s Leisure Industry team, visit www.fraserbrown.co.uk or call 0115 9 888 777.
Fraser Brown is a dynamic law practice working at premises in Nottinghamshire through its branches in Nottingham, Radcliffe on Trent and Bingham.
Its philosophy is to deliver superior legal advice through a personal and highly professional service for both commercial and private clients. Since 1990, Fraser Brown has acquired eight established and respected local firms as part of its major growth strategy for doing business in the 21st Century.
Fraser Brown is one of the region's longest established firms of solicitors. Over the last 12 months, it has experienced significant growth in areas such as property, contract work, construction and general litigation.