Failed EICR and accidental landlord

Neb13

Hi. I am an accidental landlord. Moved out to care for elderly parent. I was planning on selling house last year and then along came Covid! I have recently had an EICR on the property and have been told it needs a rewire. I've been quoted around 4.5k which is money I do not have. I was also made redundant last year. I want to give the tenant notice but I am worried where I stand as if it takes them 6 months to find new home, the property is not covered my EICR and I fear I will not be insured. It is not an option to take a loan or borrow money to pay for rewire so can anyone please offer some advice. Do I phone insurance company and tell them the situation or just give tenant notice and hope there isn't a problem?! This is making me ill with worry as I do not know where to get any advice. Thanks. 

Crashy_Time

Plenty of property around at the moment to rent surely? Just give the tenant normal notice and try to sell it?

user1977

Neb13 said:

I want to give the tenant notice but I am worried where I stand as if it takes them 6 months to find new home, the property is not covered my EICR and I fear I will not be insured. 

What sort of insurance are you concerned about? Buildings insurance isn't normally linked to whether there's a compliant EICR (given that the vast majority of properties would probably fail), and you don't need it to sell.

moneysavinghero

You have 28 days to complete the required works. If you don't then the local council can take action against you. This could include doing the works for you and charging you for them. They could also fine you upto £30,000 for being in breach of your duties.

So there is no real choice. You have to get the work done. Insurance is the least of your problems.

Are you sure it's definitely a fail and not just a recommendation?

fiveacre

The section 21 notice will still be valid without an EICR pass. The local authority could order remedial works for the electrical installation. Insurance is tricky because you now know about a maintenance issue that needs resolving that could cause a problem in the house - insurance isn't meant to insure against known defects.

AdrianC

Yes, the s21 notice you would give them is currently six months. That may return to the normal two months shortly, as pandemic precautions retreat.

However, it's likely that the lack of a current EICR will invalidate the s21 notice. AIUI, the situation is not clear, because it's not been tested by courts yet, but it's very likely they will take the same line as GSCs.

I doubt it would invalidate your buildings insurance, unless the claim was for damage caused by an electrical fire caused by a fault identified on the EICR.

What does the EICR actually say?
C3 points are not a fail - they are merely "not up to current regs" - nor do they have to be.
C2 points are a fail, and potentially dangerous.
C1 points are a fail, and currently dangerous.
If you have C1s and C2s on the EICR, then your priority should be the safety of your tenant, not the paperwork. I'm sorry that you're running a business with inadequate capital for predictable costs, but that is not your tenant's fault.

Neb13

user1977 said:

Neb13 said:

 

What sort of insurance are you concerned about? Buildings insurance isn't normally linked to whether there's a compliant EICR (given that the vast majority of properties would probably fail), and you don't need it to sell.

I am worried if there was an electrical fire, I would lose everything as insurance would be invalid without EICR

user1977

Neb13 said:

user1977 said:

Neb13 said:

 

What sort of insurance are you concerned about? Buildings insurance isn't normally linked to whether there's a compliant EICR (given that the vast majority of properties would probably fail), and you don't need it to sell.

I am worried if there was an electrical fire, I would lose everything as insurance would be invalid without EICR

Does the EICR suggest a fire is likely?

moneysavinghero

Get the work done. Then no need to worry about the insurance. Remember that you now have an obligation to give in writing notification that the works have been completed to the Tenant AND to the local authority. 

Now it could be that your electrics are perfectly ok and it was just an overzealous electrician that was a) covering his back, and b) creating £4.5k work for himself. But that is a whole different avenue to consider

Neb13

AdrianC said:

Yes, the s21 notice you would give them is currently six months. That may return to the normal two months shortly, as pandemic precautions retreat.

However, it's likely that the lack of a current EICR will invalidate the s21 notice. AIUI, the situation is not clear, because it's not been tested by courts yet, but it's very likely they will take the same line as GSCs.

I doubt it would invalidate your buildings insurance, unless the claim was for damage caused by an electrical fire caused by a fault identified on the EICR.

What does the EICR actually say?
C3 points are not a fail - they are merely "not up to current regs" - nor do they have to be.
C2 points are a fail, and potentially dangerous.
C1 points are a fail, and currently dangerous.
If you have C1s and C2s on the EICR, then your priority should be the safety of your tenant, not the paperwork. I'm sorry that you're running a business with inadequate capital for predictable costs, but that is not your tenant's fault.

I have not actually been given report yet by the electrician, despite chasing him for it!  He only sent me a text and said it needs rewiring, no further inofrmation!

moneysavinghero

Neb13 said:

AdrianC said:

Yes, the s21 notice you would give them is currently six months. That may return to the normal two months shortly, as pandemic precautions retreat.

However, it's likely that the lack of a current EICR will invalidate the s21 notice. AIUI, the situation is not clear, because it's not been tested by courts yet, but it's very likely they will take the same line as GSCs.

I doubt it would invalidate your buildings insurance, unless the claim was for damage caused by an electrical fire caused by a fault identified on the EICR.

What does the EICR actually say?
C3 points are not a fail - they are merely "not up to current regs" - nor do they have to be.
C2 points are a fail, and potentially dangerous.
C1 points are a fail, and currently dangerous.
If you have C1s and C2s on the EICR, then your priority should be the safety of your tenant, not the paperwork. I'm sorry that you're running a business with inadequate capital for predictable costs, but that is not your tenant's fault.

I have not actually been given report yet by the electrician, despite chasing him for it!  He only sent me a text and said it needs rewiring, no further inofrmation!

You might be worrying over nothing then. It could just be an advisory.