If your commercial property has a registered MEES exemption, it’s not permanent.

A common and risky misunderstanding in 2026 is assuming that once exempt, always exempt. That’s not how the law works.

Here’s exactly what happens when a Commercial MEES exemption expires — and what you must do next.

Quick Refresher: What Is MEES?

MEES stands for Minimum Energy Efficiency Standards.

Under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, landlords cannot legally let commercial property with an EPC rating below Band E, unless a valid exemption is registered.

Common exemption types include:

• All cost-effective improvements completed

• Property devaluation over 5%

• Third-party consent refused

• Wall insulation exemption

Most exemptions are valid for 5 years.

What Happens When the Exemption Ends?

Once your exemption expires:

❌ You can no longer rely on it

❌ The property becomes non-compliant if still rated F or G

❌ You cannot legally grant a new lease or renew an existing one

If the building remains below Band E and no valid exemption is in place, you are in breach of MEES.

Can You Continue Letting the Property?

If a lease is already in place when the exemption expires:

• You may be allowed to continue the existing tenancy

• But you cannot renew or extend it

• You cannot grant a new lease

Compliance must be resolved before further transactions.

What Must You Do Before Expiry?

You have three options:

1️⃣ Improve the Property to Band E or Above

This is the safest and most future-proof option.

Typical commercial upgrades include:

• LED lighting upgrades

• HVAC improvements

• Insulation works

• Controls and zoning improvements

After improvements, a new EPC must be obtained.

Book reassessment here:
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2️⃣ Register a New Exemption (If Still Valid)

You may reapply only if the exemption still qualifies under current evidence.

For example:

• If devaluation still exceeds 5%

• If third-party consent is still refused

You must provide updated documentation.

Professional assessment is strongly recommended:
👉 https://epcrate.co.uk/services-epc-assessors-london/

3️⃣ Sell the Property

There is no minimum EPC rating required for sale under the Energy Performance of Buildings (England and Wales) Regulations 2012.

However, buyers are increasingly cautious about substandard commercial energy ratings.

What If You Do Nothing?

If your exemption expires and the property remains below Band E:

Local authorities can impose:

• Financial penalties

• Publication of non-compliance

• Restrictions on leasing

Penalties vary but can be significant, particularly for large commercial premises.

Important 2026 Risk: Lease Renewals

Many landlords are caught out during:

• Lease renewals

• Rent reviews

• New tenancy agreements

If your exemption expires before renewal, you cannot legally proceed until compliance is resolved.

This can:

• Delay deals

• Create tenant disputes

• Impact property value

How Early Should You Act?

Best practice:

✔ Review exemption expiry date at least 6–12 months in advance
✔ Assess whether improvements are needed
✔ Budget for works
✔ Arrange reassessment early

Waiting until expiry can severely limit your options.

Quick Summary

Final Takeaway

When a Commercial MEES exemption expires:

✔ The property must meet Band E
✔ Or a new valid exemption must be registered
✔ Otherwise, you cannot legally grant or renew leases
✔ Early planning avoids penalties and lease disruption

Need Help Reviewing Your Commercial EPC Status?

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