From 1st April 2012, a new Energy Performance Certificate (EPC) will be launched providing significant improvement on the current version.
The main purpose for the new EPC is to identify the key features of the energy efficiency recommendations which qualify for Green Deal interest free finance; this will be identified with a Green tick on the EPC. In addition the new EPC is made easier to read with key information now shown on the first page of the EPC.
The new EPC will be a central part of the Green Deal strategy, it will provide the starting point for the instigation of any new Green Deal financing to cover the cost of the recommendations for energy efficiency improvement. Therefore the new EPC will predominantly serve two main purposes:
1. A legal document for home owner(s) to market their property for sale or rent … no change from the current legislation.
2. A required document for the home owner and/or occupier to apply for Green Deal finance
In order to apply for the Green Deal finance, it will not be based on the normal “credit or traditional” banking credit score system but based primarily on the property. Thus there will be a number of new criteria; however the dominant factors to qualify for Green Deal finance will be based on the following:
1. A Green Deal report has to be produced and authorised by a Green Deal advisor
2. The property does not have any Green Deal charge shown or applied for
The application for the loan will therefore be property and not individual based.
Through the Green Deal initiative the home owner will receive a number of benefits:
1. The ability to tap into funding of up to £10,000 per property to improve the energy efficiency of their property
2. The possibility of improving the value and marketable value of their property
3. No upfront capital outlay will be required
4. The repayments of the finance will be the responsibility of the occupier therefore if you are a landlord, then your tenant is liable for the payments for the loan. The monthly repayment will be added onto the tenant’s Utilities bill.
5. Your property will have a higher energy rating when you implement the improvements shown on the new EPC.
6. The occupier or home owner will benefit from lower energy bills thus making annual financial savings
Whether you are a Landlord or home owner renting or selling your property you will...
still require the new EPC. In addition, if you wish to take advantage of the
Green Deal interest free finance … you will require the new EPC. The old EPC is no longer valid if you wish to take advantage of energy efficiency improvement finance. Each property will be entitled to the maximum finance of £10,000 for the energy efficiency improvement shown on the new EPC. Energy efficiency improvement measures are shown by a green tick.
A Green Deal report can only be commissioned by a Green Deal advisor, a
Domestic Energy Assessor will not be qualified to produce this report unless the
EPC has been undertaken by a GDA. However, there are two separate costs to undertaking the EPC and producing the green deal report.
The Landlord will not have to pay for any capital cost for the recommended energy improvement shown by a Green Tick on the new EPC; in addition the repayment for the loan will be the responsibility of the occupier. There are a number of benefits for the home owner to take advantage of the Green Deal finance to make the energy efficiency improvements; such as lower energy bills which can possible increase your property’s marketable value.
Therefore every property in the UK could possibly be entitled to an interest FREE finance grant to improve the energy efficiency of their property, up to the maximum value of £10,000 – we await developments!
The government regulated body called the Green Deal Finance company has apparently enough funds to cover every property in the UK, which according to the National Office of Statistics is approximately 26 million.
This Information provided to LandlordZONE by enviroestates.co.uk
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