Buying A House With Leased Solar Panels Uk

There may be a buy out clause.

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. Many homes fitted with solar panels will have had them installed free of charge by a solar power company. We want to sell but the buyer s preferred lender won t lend on properties with leasehold panels. Others choose to lease their systems to help save on installation costs and this is where the most common mortgage problems occur.

We bought a house in 2010 and had solar panels installed on a leasehold basis. Details of any planning and building regulations consents that will have been required. As a buyer certainly shouldn t be put off buying a property with solar panels however if the panels lack the mcs accreditation or were installed as part of a rent a roof scheme we would be very cautious. Fully owned solar panels.

Confirmation that any requirements of the seller s mortgage lender were complied with. Get your solicitor to look at the solar panel lease before you make an offer. The buyer s solicitors will require sight of this. 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.

The buy out premium is usually the cost of the installation typically 10 15k plus a premium. Homeowners had two options. 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 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.

What do i need to know about buying a house with solar panels. The homeowner then leased the panels to the power company usually for a 25 year term. In most cases where solar panels were installed the panels were fitted free of charge by a solar power company. If the solar panels are leased there will be a standard 25 year term lease in place.

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 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. The terms of the lease will also need to be carefully reviewed to ensure that installation of solar panels is permitted under the lease.