| A HIP must be commissioned before any marketing of your property can commence.
There is a small handful of property types, which fall outside the legislation. These include mixed-use property and property sold subject to existing tenancies.
HIPs will bring benefits in giving buyers greater confidence when submitting offers and once a sale is agreed they should speed the time to exchange of contracts.
What does a HIP contain?
Mandatory documents:
• Index of documents
• Energy Performance Certificate (EPC)
• Sale Statement, this identifies the property, its tenure and ownership.
• Evidence of Title and Title Plan
• Local Authority searches + drainage / water searches
• Leaseholds - copy of the lease, details of service charges / insurance
Optional documents:
• Home Condition Report (HCR). Rates “condition” of many parts of the property on a scale of 1 to 3 with recommendations
• Home Use Form covering further legal items
• Home Contents Form listing fixtures and fittings included
When may I officially put my property on the market?
Your property may be marketed as soon as the HIP and EPC have been ordered. Our preferred HIP provider takes typically 5 working days. Many take longer.
In parallel to this, your brochure, including photographs and floor plan, will be prepared by us, and as Crisp Cowley has always strived to have this ready within 3 working days the delay will, in reality, be negligible.
What is an Energy Performance Certificate? (EPC)
An EPC is similar to the energy rating on a washing machine or dishwasher etc., but for a property. In order to provide an EPC a specially trained inspector will arrange to visit the property, usually within 48 hours, work out the floor area, number of windows and amount of insulation present and give the property a rating (A to G)
How long does a HIP last for?
Packs are valid for the whole period of marketing. If a seller withdraws the property from the market and subsequently puts it back on the market (within 28 days) the seller will not have to revise the HIP where the re-marketing is within one year of the original date of marketing. The EPC is valid for 10 years.
Four bedroom homes, continuously on the market since before 1st August 2007 or three bed homes continuously on the market since before 10th September, do not require a HIP. The Government is due to set a “cut off” date (to be advised) when a HIP will be needed for such properties, if they remain unsold.
What can I expect to pay for a HIP?
Generally, the cost for a basic HIP, to include an EPC, is around £350.00 to £395.00, including VAT. This may be higher if the Title to the property is Leasehold or not registered. Options are available to defer payment.
If a Home Condition Report (mini survey) is commissioned, the cost will increase.
Advice to Sellers.
We are finding that many clients prefer to organise their own HIP via the Legal Conveyancer they instruct to handle their sale. We will liaise with them, to ensure continuity. Equally, we are equipped to provide an efficient and trouble free service in providing all our clients with a HIP, (typically within 5 working days).
There can be delays in obtaining a HIP, so early warning of your intention to sell will help to get the process under way.
If your Title is unregistered, it is necessary to speak to your solicitor well in advance, so that there are no unnecessary delays.
We are always happy to advise on all aspects of HIPs
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