£75,000 Barnstaple Conversion Project: Unusual opportunity to acquire a freehold property benefiting from planning permission to convert to a two bedroomed cottage enjoying a convenient location in the centre of Barnstaple, close to all amenities. Sole selling agents Underwood Warmington reported “It is an unusual opportunity to purchase a small, easily manageable development project like this in town. The property is substantial and already has a new slate roof and therefore there is not a substantial and would be suitable for owner occupation, selling or letting for which there would be good demand.” The agents continued “The property is formerly a hairdressers and is suitable for a variety of retail uses for which it has an existing use, or perhaps an office/studio, subject to planning permission. The property is spacious and considerable scope. Price £75,000 freehold. Full details for our website underwoodwarmington.com

We are specialsit commercial estate agents in Barnstaple, convering North Devon. Let us know if you are thinking of selling any commercial property, business or development project. 

Torrington Development Opportunities

New Registrations. Early in January we will commence marketing of two freehold development opportunities located in central Torrington. The first is the former Blue Coat School, a substantial property with undoubted residential development opportunities. Formal planning permission is being sought but an indicative proposal suggests the development of 12 – 14 homes on this landmark site. Freehold offers will be sought.

Also in central Torrington, we have been instructed to offer the Chapel in Whites Lane. This property is set back from the road and is adjacent to the former glove factory. This freehold property will undoubtedly have both commercial and residential potential, subject to obtaining any required planning permission. Offers will be invited.

Serviced Office To Let On The Castle Hill Estate Filliegh

A fabulous opportunity to occupy a serviced office in the Estates Office, Castle Hill Filleigh N Devon. Forming part of this quite exeptional Grade I Lised Building, it is strategically located within easy access of the A361 North Devon LInk Road and the market town`s of Barnstaple and South Molton. Currently available is one room, suitable for occupation for those seeking an office, perhaps as opposed to working from home or a N Devon base, with minimum overheads. The setting is truly magnificent, providing a really great working enviroment. Parking plus all services and overheads are includeded and the use of a Meeting Room is available. This is a most unusual opportunity and must be visited to be fully appreciated. 

Energy Act 2011: The Implications.

Engery Act 2011: Whist 2018 sounds a long way off, the recent passing of the Energy Act 2011 lays down regulations which could have important implications on the letting of commercial property and we are keen that our clients have an awareness of these changes, so that if necessary a strategy can be planned.

Main Points

Landlords will be unable to let commercial properties which fall below a prescribed level of energy efficiency unless they make certain improvements. It has just been announced by the Department of Energy and Climate Change that this will be E energy rating, thus properties with ratings of F & G will not be able to be let.

Access to the register of Energy Performance Certificates may be widened.

The "Green Deal" will enable energy efficiency improvements to be made to properties at no up-front cost to the energy consumer, with repayments made via energy bills.

Background

The Energy Act 2011 is a very extensive piece of new legislation. Known for implementing the government's flagship "Green Deal" policy, the Act also contains a number of other energy-related measures. This is just as an introduction for your awareness  and by no means an in depth analysis.  

Restriction on letting property, which does not meet certain energy performance standards.

This is the key provision in the Act for property owners, investors and indeed tenants. Once the regulations are in force, a property which falls below a prescribed level of energy efficiency will not be able to let that property until the landlord has made certain energy efficiency improvements (again, to be prescribed).

The rule will apply to both residential and commercial properties, although there will be some exclusions. The rule must be brought into force by 1 April 2018, but it is important to understand that this is a long-stop date and it could apply earlier than this.

The level of energy efficiency will be demonstrated by the property's Energy Performance Certificate (EPC) which is already a legal requirement for a landlord to obtain at the commencement of marketing.

The necessary improvements do not necessarily have to be financed by landlords up-front. They may be paid for through the Green Deal (see below), certain other schemes applicable to residential property such as the soon-to-be-introduced Energy Company Obligation, or in some other way to be provided for in the regulations.

The regulations distinguish between domestic and non-domestic properties, although the rules applying to each are generally the same. Non-domestic properties are essentially properties which are not dwellings.

The restriction relates to lettings, not sales. Until regulations are published it is not clear whether it would catch the grant of a long lease which, although technically a letting, is more akin to a sale. From the way the enabling legislation has been framed, it appears `possible` that the rule could also apply to existing leases as at the date it comes into force. However, it is not clear how this would work. It is to be noted that the Act provides that regulations may include exemptions. There is also the potential  situation that, subject to the regulations, for a possible exemption where there will be a likely negative impact on the value of a property of making the improvements.

This restriction on letting properties which do not come up to the right energy standard will be enforced by local authorities (probably through Trading Standards officers). Civil penalties may be imposed. These must not exceed £5,000 in respect of residential property but the Act does not stipulate a limit in relation to commercial properties (this is presumably left to regulations).

Although most of the detail is left to regulations, property investors should be aware of these regulations and should, start preparing now. A first step would be to review an investment portfolio to assess which properties currently have EPCs (the requirement will only apply where an EPC exists, although the provision of an EPC is of course a requirement on most new lettings in any event). Energy performance ratings should then be examined, and properties with low ratings identified.

An EPC is accompanied by a recommendation report which sets out measures which would improve the energy performance of the building, and the impact that such measures would have on the building's rating. These could be a useful indicator of how buildings which may fall below the prescribed threshold could be brought up to standard. However, landlords may prefer to wait for the detail of the regulations to see what sorts of improvements will be prescribed before carrying out work.

Where new properties are acquired between now and the implementation date, investors should ensure that they receive a copy of the EPC and carefully review it. Where it shows that the property may not come up to the required standard without works being carried out, purchasers should consider the effects on any  acquisition.

Green Deal

The green deal is a key policy of the coalition government. In essence, it will enable energy efficiency improvements to be made to properties using finance from accredited providers, thus removing the up-front cost to energy consumers of investing in such measures. It is capable of being taken up in relation to commercial, as well as residential, properties.

Under a green deal energy plan, energy efficiency improvements will be paid for in instalments. The types of improvements which are eligible for the green deal will be set out in secondary legislation, but may include measures for increasing the amount of energy generated at a property, as well as measures for reducing energy consumed at that property.

The payments in instalments will be made through the energy bills for the property, by the person who is for the time being liable to pay those bills. This is so that the burden of making the payments can therefore be passed from one owner to another when the property is transferred.

Indeed, a green deal plan must not include any provision by which a person is liable to make payments otherwise than in respect of the period for which they are the bill payer for that property. Payments under a plan are recoverable as a debt, and it will not be permissible for a charge to be taken over the property to secure them.

The green deal provider must prepare an estimate, in accordance with a method yet to be prescribed, of the savings which are likely to be made on the energy bills for the property if the improvements are carried out. The estimate must also show the period over which those savings are likely to be made. Regulations will lay down the required relationship between the cost of the improvements (including any finance costs) and the likely savings.

A similar requirement will need to be met as to the relationship between the period over which the payment instalments are proposed to be paid, and the period over which savings are likely to be made. The "golden rule" is always the same - that the expected savings must be equal to or greater than the cost of the work being done.

Green deal plans can be entered into by occupiers of properties, as well as property owners. However, where the person entering into the plan is not the bill payer (as may be the case for example in a multi-let office building), regulations are likely to provide that the bill payer's consent to the payments must be obtained. In addition, the person entering into the plan will have to confirm, as a condition of the plan, that any necessary permissions or consents (e.g. landlord's consent) have been obtained in respect of the improvements.

The making of the improvements themselves will be heavily regulated. An assessment will be carried out on a property to establish whether it is suitable for a green deal. Recommendations will then be made. The assessor, installer of the improvement and the green deal provider will all need to be authorised in accordance with a government scheme set up for the purpose. There will be a mechanism for ensuring the quality of any work carried out and for appropriate guarantees to be provided. The government's intention is that the property's EPC will be updated following completion of the works.

When a property which is the subject of a green deal is to be sold, prescribed information about the plan must be provided to prospective buyers. A similar requirement applies where a property is to be let, or a licence granted, and the prospective tenant or licensee is to be responsible for paying the energy bills for the property. The method of disclosure may be through the updated EPC (see above).

The extension to licences as well as leases is notable as it is in contrast with the energy performance regulations governing the provision of EPCs on lettings, which are commonly interpreted not to apply to licences. In addition, the sale contract (or, where it exists in writing, the lease or licence agreement) must include an acknowledgment by the buyer, tenant or licensee that the bill payer at the property is liable to make payments under the green deal plan, and that certain terms of that plan are binding on the bill payer. Similar requirements may be extended to other transactions affecting green deal properties, pursuant to regulations.

It will be apparent from the outline above that much of the detail of the green deal is to be set out in regulations. According to timings on the Department for Energy and Climate Change's website, a consultation on these regulations should be issued imminently. Industry guidance will be prepared in Spring 2012, with the first green deals appearing in Autumn 2012.

Register of EPCs, DECs and air-conditioning inspection reports

The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 provide for a register to be kept of all Energy Performance Certificates (EPCs)  This is to be extended to air-conditioning inspection reports from April 2012.

The 2007 regulations provide that the keeper of the register may disclose any document or data from the register if authorised by the regulations. Documents may be disclosed where the person requesting the document has a reference number. It is also possible to find out (without a reference number) whether an EPC (or, from 6 April 2012, an air-conditioning inspection report) has been registered for a commercial building, and the date on which it was issued.

The government has for some time been aiming to increase access to the register. To that end, the Energy Act provides (at section 74) that further regulations may be made in relation to the disclosure of information held on the register. It is thought that this is to assist green deal providers in marketing their services to potential customers.