Minimum energy efficiency standards (MEES)—non-domestic property—transactional issues
Minimum energy efficiency standards (MEES)—non-domestic property—transactional issues

The following Property practice note provides comprehensive and up to date legal information covering:

  • Minimum energy efficiency standards (MEES)—non-domestic property—transactional issues
  • Interaction with Landlord and Tenant Act 1954
  • Due diligence
  • Issues for tenants on subletting and assignment
  • Issues for landlord on assignment where a tenant consent exemption is held
  • Landlord's position where third party consent exemption is held and circumstances change
  • Exemptions not transferable—purchase of substandard tenanted property and intergroup transfers
  • Impact on real estate finance and funders’ requirements
  • Agreements for lease

Coronavirus (COVID-19): The requirements to obtain an EPC before a property is sold or let can be difficult to satisfy when social distancing measures apply. EPC assessments should only be conducted in accordance with government advice on home moving during the coronavirus outbreak and where the EPC assessment can be conducted safely—see Practice Note: Coronavirus (COVID-19)—implications for property — EPCs and social distancing.

This Practice Note covers the impact on both landlords and tenants of non-domestic private rented (NDPR) property of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (MEES Regs 2015), SI 2015/962 and discusses the interaction of MEES Regs 2015, SI 2015/962 with the Landlord and Tenant Act 1954 (LTA 1954), issues arising for the landlord and tenant on subletting substandard NDPR property, issues for the landlord where they hold a consent exemption and the property is assigned, due diligence issues, and issues in real estate finance transactions relating to substandard property (ie with an energy performance certificate (EPC) rating of ‘F’ or ‘G’). It is part of our series of Practical Notes on minimum energy efficiency standards (MEES).

MEES Regs 2015, SI 2015/962, reg 27 provides that a landlord must not let substandard NDPR property unless:

  1. 'relevant energy efficiency improvements' are undertaken (MEES Regs 2015, SI 2015/962, reg 29), or

  2. one of the exemptions (consent, devaluation or temporary exemptions) applies

Interaction with Landlord

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