HIPs (Home Information Packs) and EPCs (Energy Performance Certificates)
HIPs are now required on all properties and Kaye & Carey will therefore, when asked to do so by the vendor, instruct HIP London LLP to prepare the report. The HIP will also include an EPC (Energy Performance Certificate). This has now become a key part of a HIP and has to be included in any agent's sales particulars. An EPC is now required on all new rentals but unlike a HIP it is valid for 10 years.
HIP
First day marketing of a property is now no longer allowed. A property can now not be marketed until a HIP has been commissioned and a property information questionnaire completed and submitted to the HIP provider. We would therefore recommend that, if you are considering selling your property, you begin to collate all relevant information prior to instructing your selling agent. This becomes especially important in the sale of any leasehold property where service charge accounts and a copy of the lease will be required. This can take some time to be provided by the relevant parties.
The cost of a HIP will vary from property to property, although the main difference will be between leasehold flats and houses and those that are freehold. This is largely due to the costs incurred when requesting information from the managing agents of leasehold properties. Costs can also vary for searches from one local authority to another.
Kaye & Carey will initially cover the cost of a HIP at the point of instruction and, where our net fee after marketing costs is in excess of £10,000 plus VAT, we shall absorb the cost of the HIP within that fee. Marketing includes all advertising, photography, floor plans and the production of a printed brochure; a full breakdown of marketing expenses will be made available to all vendors at the point of instruction. These costs are generally included in the fees that become payable to Kaye & Carey on completion of a successful sale. For a copy of our terms and conditions of business, please feel free to contact us.
HIPs are not currently required for rental property.
If you require further information concerning the implications of HIPs and your property then please do not hesitate to get in touch.
EPC
Unlike a HIP, the commissioning of an EPC is the responsibility of the landlord (not the agent) and non compliance can result in a fine. An EPC has to be available at the commencement of marketing. In this instance Kaye & Carey will be happy to introduce a EPC provider to a landlord or arrange for an EPC to be carried out on the landlords behalf. This will be undertaken upon receipt of monies to cover the cost of the EPC from the landlord.