Buying A House With Leased Solar Panels Uk

The homeowner then leased the panels to the power company usually for a 25 year term.

Buying a house with leased solar panels uk.

If the solar panels are leased there will be a standard 25 year term lease in place. 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. Details of any planning and building regulations consents that will have been required. 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. There may be a buy out clause. 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. Others choose to lease their systems to help save on installation costs and this is where the most common mortgage problems occur.

What do i need to know about buying a house with solar panels. 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. Fully owned solar panels. We want to sell but the buyer s preferred lender won t lend on properties with leasehold panels.

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. Homeowners had two options. The buyer s solicitors will require sight of this. Sometimes leases contain buy out clauses meaning the new owner can buy their way out of the lease.

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

In most cases where solar panels were installed the panels were fitted free of charge by a solar power company. We would certainly seek legal advise if this is the case just to see where you stand. We bought a house in 2010 and had solar panels installed on a leasehold basis.