SALE OR LEASE

WHAT IS A SALE OR LEASE?

The terms are not defined by the regulations - which use the language "sold or rented out." Obviously a sublease would be a "renting out."

The guidance suggests that lease renewals and surrenders do not trigger an EPC nor do CPOs or (possibly) not-for-value transactions. What about assignments of rack rent leases? These are not normally "sales" as no monetary, consideration is normally given. However the grant of a lease for no consideration would appear to trigger the need for an EPC.

SALE OR LEASE OF WHOLE BUILDING

An EPC can be obtained for the whole building even if it is subdivided.

SALE OR LEASE OF PART - COMMON HEATING SYSTEM

If the building has a common heating system there is a choice:

• Obtain an EPC for the whole building
• An EPC for the part based either on the energy use per square metre of the whole building or on an assessment or a similar representative unit elsewhere in the same building

 

SALE OR LEASE OF PART - SEPARATE HEATING SYSTEMS

Obtain an EPC for the relevant part. It may be based on an assessment of a similar representative unit in the same building.