FAQs
What's in a Home Information Pack?
There are two levels of information which can be provided in a HIP; compulsory information and optional information:
Compulsory information:
An Energy Performance Certificate (EPC)
Property Information Questionnaire (PIQ)
A sale statement: This summarises the terms of the property sale.
Evidence of title: Proof of ownership of the property.
Standard searches: These will include local authority enquiries and a search identifying the location of drainage and water services.
Information on the freehold, commonhold or leasehold status of the property, as appropriate.
Optional information:
A Home Condition Report (HCR): see info on HCRs further down this page.
A legal summary
Additional searches relevant to the area (ie mining subsidence etc)
A home use form
A home contents form
How long are Home Information Packs valid for?
The EPC is valid for 12 months. This still applies even if the property has been sold and put back on the market within those 12 months.
Local searches are valid for 6 months, so it is possible that new ones will need to be included if the property is on the market beyond this time.
If a property has a break in marketing then a new HIP is required. However even if the seller changes estate agents then a new HIP will not be required providing there has been no break in marketing.
What's in a Home Condition Survey?
The survey uses a simple 1/2/3 condition rating of the main elements of the property. A 3-4 hour survey is conducted, which investigates the condition of the building; structural movement; services; evidence of damp, rot, woodworm, subsidence; environmental and health & safety issues, and other important details of the property's condition.
A 20-25 page report is produced with photograph, providing a clear assessment of the condition of the property. It is backed by indemnity insurance and produced & monitored under a nationally recognised accreditation scheme.
The report is divided in to 8 sections:
A: Introduction and definitions
B: General information about the property; summary of the condition ratings; insurance reinstatement cost assessment.
C: Conveyancing issues; health and safety risks; other risks such as flooding etc.
D: Exterior aspects: An assessment and rating of chimneys, roof, gutters, walls, windows, claddings and external decoration
E: Internal aspects: As assessment and rating of the roof structure, ceilings, internal walls, floors, built-in fittings and internal woodwork.
F: Visual inspection of services such as gas, electricity, heating, water and drainage. A recommendation for a safety inspection or service by a registered engineer may be given if relevant.
G: Grounds and outbuildings: an assessment of permanent sheds, garages, patio areas and garden walls.
H: An Energy Performance Certificate.
What is the difference between a Home Condition Report and a structural survey?
The HCR, which can form part of the HIP, is not a substitute for a full structural survey. An HCR is based on a visual inspection of a property at floor level. No floorboards are lifted and measuring devices such as damp meters are used only on external walls. However, it is a meticulous inspection of every aspect of the property by a trained eye. A comprehensive written report is produced following an inspection and detailed notes are made during the visit.
What is an Energy Performance Certificate (EPC)?
If you are buying, selling or renting a property you now need an EPC by law. The certificate records how energy efficient a property is and provides A-G ratings, with 'A' being the most energy efficient and 'G' being the least, with the current average being 'D'. These ratings are similar to the labeling on electrical appliances such as refrigerators and washing machines.
EPCs are produced using standard methods and assumptions about energy usage so that the energy efficiency of similar buildings can be easily compared. This allows prospective buyers, tenants, owners, occupiers and purchasers to see the energy efficiency and carbon emissions from a building and then to consider energy efficiency measures as part of their investment.
For homes, two ratings are shown. The energy efficiency rating is a measure of a home's overall efficiency. The higher the rating, the greater it's energy-efficiency, with likely lower fuel bills. The environmental impact rating is a measure of a home's COČ emissions; the higher the rating, the lower the environmental impact.
Each rating is based on the performance of the building itself and its services (such as heating and lighting), rather than its individual domestic appliances. This is known as an asset rating.
The certificate also includes a recommendation report, providing information about ways to improve the energy performance of the property. The certificate then shows the potential rating of the building if all the suggested energy saving measures were installed. The ratings take into account the age, location, size and condition of the building and the suggested measures also takes this all into account. For each suggested improvement the level of cost, typical cost savings per year are listed.
The EPC and recommendation report must be made available free of charge by the seller to a prospective buyer. An EPC for rented property is valid for ten years.
Here is the first page of a typical EPC:
What are the penalties for not obtaining a Commercial EPC?
Penalties are likely to be based on 12.5% of the rateable value of the property, minimum £500 and maximum £5000. An additional cost will need to be accommodated for a compliant EPC. A commercial EPC is valid for 10 years unless the property is let or sold.
Who is responsible for obtaining a Commercial EPC?
If the building is newly constructed, the responsibility lies with the contractor. For buildings that are to be sold, the property owner will be responsible, and in the case of buildings to be let, it will be down to the landlord to ensure there is a valid EPC.
Who pays for the EPC?
A Commercial EPC and recommendation report must be made available free of charge to prospective buyers or tenants so contractors, owners or landlords have to pay for it.
What happens if there is a change of tenant?
If there is a change of tenants but an existing and valid EPC exists, a new certificate will not be required. However, although guidelines currently state that lease renewals or extensions do not require an EPC, if one tenant in a multi-let building decides to assign or sublet its premises the whole of the building will need to be assessed.
In cases where part of a building is being sold or let, the resulting assessment will depend on whether or not there is a common heating system for the building. For buildings with separate units and heating systems, an EPC must be prepared for each individual part. However, if a common heating system is shared then the seller or landlord has a choice of obtaining an EPC for the whole building or one for each separate part.
For more information, contact Midland HIPs today on 0800 612 6208.
