Share

Why you Need an EPC to Sell a Business

October 10, 2018

An Energy Performance Certificate is a certificate which displays the energy efficiency rating for a building. However, you might not have realised that there are many practical reasons why trying to sell a firm without this kind of certificate is unthinkable.

What is an Energy Performance Certificate?

An EPC, as it can otherwise be called, includes an energy efficiency grade from A to G.  A is the most efficient grade. The sole way of obtaining an EPC is doing so from a commercial energy assessor. Though the right assessor for you will depend on your building’s features and complexity.

However, once you have bought an EPC, it will remain valid for the next ten years. If your commercial building’s total useful floor area is larger than 500 square metres or the building frequently has public visitors, you might need to display this EPC by fixing it to the building.

You would definitely need to do so if you have already produced an Energy Performance Certificate in preparation to sell the building. So, why must you produce the EPC like this in the first place?

You have particular legal obligations

Let’s imagine that you are preparing to sell the business, including its premises. At Hilton Smythe, we can dedicate a Sales Negotiator and support team. However, before putting that building on sale, commission an EPC for it.

This is because, if you fail to let any prospective buyer access an EPC for this building, you could be hit with a heavy fine. The exact amount of the fine would depend on the building’s rateable value. It could be in the region of £500 to £5,000.

The person responsible for ensuring the obtaining of a valid EPC could be the seller; so, in your case, you. If there isn’t a valid EPC for this property, you would need to at least confirm that, for this property, an EPC has been commissioned.

Furthermore, it would need to be commissioned before the property is put on the market. Another necessity would be for you to make all reasonable efforts to ensure that this certificate is obtained within seven days of the property first being marketed.

You don’t just have the EPC to think about

You could soon find that, as you get further underway, you have to adhere to other particular necessities. These could be legal or merely practical.

However, with our help, you can navigate the potentially tricky waters of selling a business. We can even provide a free valuation of your company as it currently stands.