Buying A House With Leased Solar Panels Uk

Get your solicitor to look at the solar panel lease before you make an offer.

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. What do i need to know about buying a house with solar panels. In most cases where solar panels were installed the panels were fitted free of charge by a solar power company. 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.

Many homes fitted with solar panels will have had them installed free of charge by a solar power company. 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. Sometimes leases contain buy out clauses meaning the new owner can buy their way out of the lease. The homeowner then leased the panels to the power company usually for a 25 year term.

We want to sell but the buyer s preferred lender won t lend on properties with leasehold panels. We bought a house in 2010 and had solar panels installed on a leasehold basis. 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. The buyer s solicitors will require sight of this. 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.

There may be a buy out clause. 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 terms of the lease will also need to be carefully reviewed to ensure that installation of solar panels is permitted under the lease. 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.

The buy out premium is usually the cost of the installation typically 10 15k plus a premium. 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. If the solar panels are leased there will be a standard 25 year term lease in place.