As dawn has now broken on a new age of property legislation and energy efficiency in the form of the MEES Regulations (Minimum Energy Efficiency Standards) we have awoken to the issue which is created by the high proportion of commercial properties which are mid-way through a lease term with an energy efficiency rating of F or G, deemed illegal in the eyes of the new legislation.
Whilst the MEES Regulations have only just come in to force for all new lettings of commercial property attention has turned in professional circles as to how the legislation may impact upon the rent review market. Many leases incorporate rent review clauses which assume that the property is available to let on a new lease. However, if the EPC rating contravenes the requirements of MEES there is an argument that this hypothetical letting cannot complete unless works are undertaken to improve the energy efficiency of the building.
It remains to be seen how the Courts of the land will interpret such an argument. It is only a matter of time before a dispute makes its way on to the legal forum.
The above serves as a timely reminder of the intricate nuances of commercial property and in particular the murky world of lease advisory where it is essential to take advice at an early stage in order to avoid the many pitfalls which are there to snag the unsuspecting. Underwoods have a team of Chartered Surveyors equipped to advise both landlords and tenants on the full range of Lease Advisory matters and general commercial property enquiries. Please contact Robert Keeves (rk@underwoods.co.uk) or Stephen Battersby (sb@underwoods.co.uk) 01604 404060 for more information and to discuss your property.
Posted By: Robert Keeves
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MEES – Unintended Consequences
As dawn has now broken on a new age of property legislation and energy efficiency in the form of the MEES Regulations (Minimum Energy Efficiency Standards) we have awoken to the issue which is created by the high proportion of commercial properties which are mid-way through a lease term with an energy efficiency rating of […]
