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    Hi Boletus

    Long time no communication.

    Even if the Opt Out is exercised the lender will indeed seek a copy of the current EPC if it is being asked to either do a product transfer or a new remortgage application: furthermore the surveyor on carrying out the property inspection will request the same if not already provided in the submission.

    A lender has a right to ensure that its financial interests are protected and as BtL's are unregulated like all commercial lending and if it is found that the property is being let without the appropriate EPC being in place it could as a last resort appoint a Receiver of Rent to manage out the asset just as they did in 2007 when concerns were raised regarding the conduct of mortgages and which in some instances showed further abuses being undertaken by the landlord. Yes it is as a last resort but one does not risks in ignoring whatever legislation is in place.

    One call today from a lender confirmed that serious consideration is being made in being able to provide additional funding to assist landlords in meeting the intended EPC changes , on what basis is unknown but it is clear that lenders are increasing their focus on lending to EPC's with A,B,C. The start in 2025 is not that far off.

    As I concluded in my OP I am making forum readers aware of what is going to happen and more publicity will be given as the time nears for the initial changes.

    Comment


      I was making two separate points, I should have posted them separately.

      The first being landlords will opt out of the register if it is (increasingly) used against them -and not just by mortgage lenders.

      The second was, which exact t&c will they use to call in the loan? After the disgusting way they behaved post 2007, I don't doubt they will use it as a first resort if it suits them.

      Comment


        On a more positive note, there is currently a 'high cost' exemption for F&G properties needing over £3500 improvements. Something similar would very likely apply for D&E's;

        https://www.gov.uk/government/public...e-requirements

        Also worth pointing out that many lenders are offering green further advance loans to cover such improvements.

        Comment


          The proposed legislation changing the requirement to be C raises the high cost exemption to £10,000.

          A change of that nature would cause me to exit the business.
          I'd either have to sell a property or mortgage one to be able to afford the exemption (or to get some of the properties to a C) and it just stops the business being worthwhile against other investments.
          I'd have to get out early to make the most of the increase in property prices, which sucks for my tenants who I feel a little bit sick about, but I'm prepared to hold my nose and do it.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            Originally posted by jpkeates View Post
            The proposed legislation changing the requirement to be C raises the high cost exemption to £10,000.
            Do you think that cap level is likely? The consequences are quite obvious.

            (On a personal note, this would be a win for me as all my rentals would quite easily get to C and it would drive out the competition. Plus I'd upgrade my F ppr to a bigger F ppr.)

            Comment


              Originally posted by boletus View Post
              Do you think that cap level is likely?

              (On a personal note, all mine would quite easily get to C)
              The Minimum Energy Performance of Buildings Bill which is only a start point set the limit at £20,000.
              In discussions, there was a view that that figure might have to be reduced to £10,000.

              That was a private members bill.
              But it was the work of the MP who was murdered and the government has "indicated" that they won't let David Amess' good work go to waste.

              I am not an expert on energy efficiency (and don't really know how to even start serious consideration of increasing the EPC of a building), so I'm pretty much stuck looking at the recommendations on the EPC documents of the properties.
              There's nothing obvious I can realistically do for just over half of them.

              And there is a degree of "you know what, it's not worth it" about it.
              Faced with the idea of lots of builders, lots of expense, lots of delay, lots of jobsworth admin, I'm happy to sell up, stick the money into my other investments which are 100% passive and just forget the very small amount of work I do for a living.

              I'd have a slightly less profitable portfolio, but the income would be slightly up and the growth slightly less - which, as I am approaching pensionable age, probably isn't too bad an idea.
              A lot of it is tax efficient too, so it'll be a minor act of revenge on the government!
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                Thank you both for your constructive responses, it is evident from your views particularly as you are seasoned professionals that a significant number of less well informed investors will possibly take fright at the ramifications of the proposed changes. Although I am an investor as well as a specialist BtL broker I am taking time out to examine all of my clients properties to determine their respective vulnerabilities on this topic and to help them understand the implications with or without obtaining further funding on current loans.

                Comment


                  I suspect the reverse will be true, to be honest.
                  I suspect that many (most?) landlords don't have any idea of most of the recent changes in regulations for landlords - the people who contribute to this forum are not representative of landlords in general.

                  The awareness of landlords I encounter generally of the EPC and EIRC requirements is frighteningly close to zero.
                  I still meet people "protecting" deposits in building society accounts and think a Gas Safety Certificate is a one off thing.
                  I've never met a landlord or agent who knows the smoke alarm regulations, full stop.

                  So I suspect any EPC change will go unnoticed for some time, hidden by the furore about section 21 notices - which is something that isn't an issue for almost all landlords, but about which people seem incensed.
                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                  Comment

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