Energy Certificate for New Lease with Regard to Old Buildings

There is a requirement for a newly leased commercial building to have an energy certificate of (Minimum Energy Efficiency Standards, or “MEES”).  Of

1.      Post 2023 It has been illegal to grant a lease for a building with a MEES of F or G.  Therefore, a building has had to have a MEES of E and above.

2.  With a minimum of C from 2030. (but this date keeps getting postponed to a time when the Government has not stated. So we are left with some time after 2030.)

So, investors/Landlords have been looking to upgrade their buildings to MEES C.

We have provided advice on achieving a C in conjunction with energy assessors.  This has allowed the client to undertake the refurbishment work themselves.

Or

To enter into an agreement to lease with an incoming tenant for the tenant to undertake the works themselves and be granted a lease once the works are completed. The Investor/Landlord can either make a capital contribution toward the cost of the works or grant an extended rent-free period to the tenants to cover that cost.

This suits some Investors/landlords who may be asset-rich but income-poor, or who would rather retain their working capital for other projects. Therefore, forego some cash flow/income in the meantime.

We have undertaken this type of project for landlords (be they investors or owners) in the past.