Residential buy to lets

[AJ123]

Just realised I’m not as compliant as I should be, need a new epc and an electrical safety test, How much are they going to cost?
the old epc was a low E, it should pass the electric test ok, just thinking I may be better selling and upgrading to a better house. Looking to do some back of envelope calcs for the cost of changing v cost of testing and any improvements- I read somewhere the minimum epc will likely rise fairly soon.
seen a better, newer house down the road with recent epc of C, it’s quite close so might be able to get the tenants to move with me..
Current house is a 2 bed mid terrace Victorian style, Any experiences of what the certificates cost gratefully received.

 

[Timbo]

£150-200 for the elect cert, but you may well need some work to bring it to current spec Eg metal clad CU, updated earthing etc etc.

EPC £200-250 at a guess, again depends who you get to do it. Shop around.

Don't forget gas cert if you have one, and any fire / wood burner also needs cert also.

Bear in mind that an E grade is now not good enough for letting, so could well be opportunity to invest some to bring it up to spec.

 

[Part timer farmer]

I have House I let out, letting agent arranges EPC abt £150.There are a ton of firms out there who do these, google is your answer for this

 

[Kiss]

I’m not sure what you’d achieve exactly by buying one to sell one and taking the tenants with you unless there willing to pay you more? house prices to me still seem strong at the moment. Sounds like it would be worth spending a few quid on the one you currently own which can all be put against tax! I think landlords can even take advantage of some of the grant schemes going on

 

[Frodo]

It’s your house, don’t be scared to spend a wee bit on it.

if the electrics are dodgy and something goes wrong you have to live with it.

if it’s low Epc the heating cost must be mental. Can’t see it being that easy to sell. Does your existing epc give recommendations such as loft insulation?

 

[Doing it for the kids]

Just be aware you shouldn’t have a tenant living in there currently and face a £5k fine if caugh. I had to evict some because of this. Not sure on electrical fines but I bet it’s bigger.

i had a friendly epc man go around some of mine and check out how badly they failed, we then worked out what was needed to be done to get it by, boiler, windows and more insulation, 12k later and it’s now passed.

be aware that sensible options don’t always work, unless it’s on their software program it means nothing.

 

[A Trebor]

Just be aware you shouldn’t have a tenant living in there currently and face a £5k fine if caugh. I had to evict some because of this. Not sure on electrical fines but I bet it’s bigger.

i had a friendly epc man go around some of mine and check out how badly they failed, we then worked out what was needed to be done to get it by, boiler, windows and more insulation, 12k later and it’s now passed.

be aware that sensible options don’t always work, unless it’s on their software program it means nothing.

Think he is ok until April re EPC and elec test, not compulsory until April if existing tenant stays but is recommended as best practice, however they are compulsory for a new tenant.

 

[Doing it for the kids]

Think he is ok until April re EPC and elec test, not compulsory until April if existing tenant stays but is recommended as best practice, however they are compulsory for a new tenant.

totally correct, but it was April 2020...

 

[A Trebor]

totally correct, but it was April 2020...

No according to Gov uk new regulations came in in 01/06/20 and apply to New tenancies from 01/07/20 and existing tenancies from01/04/21

 

[Doing it for the kids]

Domestic private rented property: minimum energy efficiency standard - landlord guidance

Guidance for landlords of domestic private rented property on how to comply with the 2018 ‘Minimum Level of Energy Efficiency’ standard (EPC band E).

www.gov.uk

this was pre lock down. If Op‘s epc ran out before covid then I’d say he’s on think ice

not certain about apres covid, have you got a link

 

[muppet]

Ring round various EPC agents to get prices. I found a guy who would do them for £60 (no vat) whilst the letting agent would charge £95 (plus vat). Needless to say, I organised them myself! The £60 guy was also happy to do them just as a draft if they were below standard and tell me what work was required to bring them up to standard. Once the work was done, he’d file them.

I’m pretty sure I paid around £120 for electrical safety checks on a 2 bed cottage. Any remedial work was quoted and carried out separately.

This was in Dorset in 2017/18 but my point is, it shouldn’t break the bank and is worth doing to cover your backside! Just make sure you get and keep all of the certificates

 

[Doing it for the kids]

Worth doing!?

its illegal not to with hefty fines if you don’t.

whilst I understand the reasons it does pile on the pressure for landlords. Lots more running Costs

 

[muppet]

Worth doing!?

its illegal not to with hefty fines if you don’t.

whilst I understand the reasons it does pile on the pressure for landlords. Lots more running Costs

Fair enough, didn’t read it back before posting...

I don’t deal with property anymore, but when I was managing them, the electrical safety checks weren’t a requirement but I was getting them done anyway. EPCs obviously were and I was trying to get them all compliant before the deadline (existing long term tenants)

 

[ewald]

If you are selling a house you have owned for some time, there may be a capital gain - this is taxable, even if you are buying another buy-to-let. There is no rollover relief on residential property

As previoously mentioned, the cost of the epc cert is only the beginning - remedial work to get it to standard can be costly. It is likely that the requirements will increase as we go forwards - old houses may become difficult to let because of this

 

[steveR]

If you are selling a house you have owned for some time, there may be a capital gain - this is taxable, even if you are buying another buy-to-let. There is no rollover relief on residential property

As previoously mentioned, the cost of the epc cert is only the beginning - remedial work to get it to standard can be costly. It is likely that the requirements will increase as we go forwards - old houses may become difficult to let because of this

Yep, had a major expenditure on an old farm cottage earlier this year to bring it if to spec for the EPC. All external walls in the house were relined with celotex and the same with ceilings as not enough room for more insulation in the roof.

TBH, I would have sold it, but it's on the farm and I was reluctant to lose control of neighbours....

 

[Timbo]

@AJ123 - what are your thoughts on the replies you've had?

 

[Timbo]

If you are selling a house you have owned for some time, there may be a capital gain - this is taxable, even if you are buying another buy-to-let. There is no rollover relief on residential property

As previoously mentioned, the cost of the epc cert is only the beginning - remedial work to get it to standard can be costly. It is likely that the requirements will increase as we go forwards - old houses may become difficult to let because of this

Agreed - if no work has been done lately , things do tend to snowball. A little and often planned approach is often the answer. Put aside say 20% of the annual rent and get it upto scratch. A nicer property means more rent (upto a point ) as well as its value rocketing.

 

[steveR]

Agreed - if no work has been done lately , things do tend to snowball. A little and often planned approach is often the answer. Put aside say 20% of the annual rent and get it upto scratch. A nicer property means more rent (upto a point ) as well as its value rocketing.

Interesting maintenance budget, it is just what I said to my family members who have a couple of letting properties.

I was pooh-poohed, in spite of rather more experience than they had... Letting Agents fed them a line in my view, but long term, a gutter here, a drain there, a rewire job.... 20% is not far out at all.

Happily, I am able to do a lot of the work, but draw the line at decorating!!

 

[farmerm]

Yep, had a major expenditure on an old farm cottage earlier this year to bring it if to spec for the EPC. All external walls in the house were relined with celotex and the same with ceilings as not enough room for more insulation in the roof.

TBH, I would have sold it, but it's on the farm and I was reluctant to lose control of neighbours....

I read in the FW Government are consultation on raising the EPC minimum for let property from E to C by 2025....

That will be a very big challenge for some properties and potentially dump some out of the letting market! Like yours to improve our sufficiently to get to C we would be looking at an expensive total gut and refurb with new insulated floors and walls... with the loss of internal space for the wall insulation we probably have to loose the downstairs loo in the process. Did you have to continue to pay council tax during your refurb?

 

[Doing it for the kids]

They gave us 3 months grace on CT.

vacant on 1st April right in lockdown, emailed them Straight away asking for help, chased twice, response in October saying no!

Not done with them yet though!