Buying A House With Leased Solar Panels Uk

We want to sell but the buyer s preferred lender won t lend on properties with leasehold panels.

Buying a house with leased solar panels uk.

The homeowner enjoys low energy bills plus the prospect of the feed in tariff after 25 years. We bought a house in 2010 and had solar panels installed on a leasehold basis. Confirmation that any requirements of the seller s mortgage lender were complied with. If the solar panels are leased there will be a standard 25 year term lease in place.

The terms of the lease will also need to be carefully reviewed to ensure that installation of solar panels is permitted under the lease. The lender will need to be satisfied with the lease agreement because the terms of the lease will continue to apply to a new buyer and will affect any new lender who subsequently grants a mortgage on the property. If you re considering buying a leasehold property with solar panels the freeholder will need to be contacted to ensure that the necessary permission has been obtained. In the uk there are subsidies and schemes such as rent a roof available yet many people still opt to fund the purchase of solar panels with a loan.

The buyer s solicitors will require sight of this. The homeowner will have leased the panels from the solar power company usually for a 25 year term who then has the right to the feed in tariff payments. Many homes fitted with solar panels will have had them installed free of charge by a solar power company. In most cases where solar panels were installed the panels were fitted free of charge by a solar power company.

Fully owned solar panels. There may be a buy out clause. Details of any planning and building regulations consents that will have been required. Most lenders will agree a loan on a property with leased solar panels provided the contract meets certain conditions one of them being that the installing company be accredited the installation.

We would certainly seek legal advise if this is the case just to see where you stand. Others choose to lease their systems to help save on installation costs and this is where the most common mortgage problems occur. Homeowners had two options. Potential mortgage lenders are likely to apply increased scrutiny when an applicant wishes to buy a home with solar panels for which a solar panel company has leased the roof space.

The buy out premium is usually the cost of the installation typically 10 15k plus a premium. The homeowner then leased the panels to the power company usually for a 25 year term. Sometimes leases contain buy out clauses meaning the new owner can buy their way out of the lease.