Free solar power system. Is it a scam?

joolsleeds

Further to the potential mortgage issues flagged within this thread.

I have read with interest (and a degree of trepidation!) the various comments regarding mortgages and ASG systems.

A few details before I start, my home is currently owned by me and the Mrs, and has no mortgage or other finance secured upon it. I applied for a mortgage with Woolwich/Barclays. I have had an ASG system since summer 2010.

The mortgage application was processed and offer made without event and was passed for processing by Woolwich to their legal agents (Enact) in Leeds.

This is where the LSG agreement caused an alert, as Enact had never seen (or maybe the legal person dealing with our property) an ASG agreement before. Enact then passed the query back to Woolwich for comment and review.

Now, having seen the messages on this thread, regarding the apparent inability to get a mortgage with an ASG system, I started to get concerned, and contacted Anne (the ASG lawyer) for comment and evidence that all was good with mortgage lenders.

Two key points:
1 - Anne responded within 12 hours of my email - giving me assurance that Woolwich had seen the ASG agreement, and that they were satisfied with it. Anne also supplied the contact name within Woolwich/Barclays legal department in the event of escalation.
2 - I needn't have worried - Woolwich approved the mortgage without any need for further clarification.

In all, it added 24 hours to the whole process.

My experience was that ASG continue to provide a really good service, and that their website assurance (in Woolwich's case at least) that lenders are fine with their agreement was completely correct.

I hope that my experience puts those (like me) that were concerned about unfounded statements on this thread that ASG systems make your property non-viable for a mortgage. Its just simply not the case.

Cardew

joolsleeds wrote: »

I hope that my experience puts those (like me) that were concerned about unfounded statements on this thread that ASG systems make your property non-viable for a mortgage. Its just simply not the case.

I don't believe anyone has stated that 'ASG systems make your property non-viable for a mortgage'

This summed up my thoughts:

Of course I read the quote in your post.(incidentally I agree that ASG are an open and straightforward company from what I have seen and far better than some of the Rent a roof companies that have come into the market)

Firstly, prior to your most welcome return and intervention, we were not talking exclusively about ASG but the whole Rent a Roof industry. Other companies appear to have leases with far more restrictive conditions on insurance, penalties etc. etc.

Secondly, whilst the current mortgage companies ASG have approached appear to be happy with the legality of ASG lease, that is not the point.

It is the desirability of the 'Rent a Roof' panels to other mortgage lenders that is the issue. Opinions are divided on if the panels will enhance or detract from the value of the property.

Which ever way you look at the situation, the panels do place restrictions on any future buyer; and that alone may be sufficient reason in future for mortgage companies to be reluctant to offer a loan. The term ASG use "there should be no problems" in getting a mortgage sums it up.

Mortgage companies are not forced to offer loans, even if the lease is legal. You have only to read the financial press to see that it is not easy to get loans these days and if funds are limited

---

!

You have left this thread, vowing not to return, on a couple of occasions. It seems that because you are going ahead with an ASG installation, there should be no discussion of possible drawbacks of the Rent a Roof' schemes - even with systems other than ASG

zeupater

joolsleeds wrote: »

Further to the potential mortgage issues flagged within this thread. .....

.... I hope that my experience puts those (like me) that were concerned about unfounded statements on this thread that ASG systems make your property non-viable for a mortgage. Its just simply not the case.

Hi joolsleeds

Any issue regarding mortgages would probably be based around the equity to finance ratio. If the mortgage company believed that the inclusion of a 'rent-a-roof' system could possibly reduce the value of a property if sold, they would reflect this in the percentage of the full value that they would require as equity, effectively shifting any capital risk to the customer.

The situation you describe seems to be moving from 100% equity to something below 100% equity, therefore as long as you maintain enough equity in the property to mitigate lender exposure to any potential 'rent-a-roof' value reduction they will consider the loan as low risk.

It would be interesting to see what the equity value requirements for three similar properties, one with no pv, one with owned pv & one with 'rent-a-roof' pv would be in order to obtain a mortgage, along with what each would actually sell for ..... :cool:

HTH
Z

babyblooz

We sent in the details of our house and the company looked at it and told us that it wasnt suitable for their standard installation. I dont understand as our roof faces south and it is a large roof (1930's semi with a large roof area)

There has been a rush of solar panels fitted on rooftops near us, in the same alignment as ours but they are council and ex council properties with a smaller roof area. Could it be that the pitch of our roof is too steep? Thing is my mum has been refused for the same reason as us and yet she lives in one of the ex council properties near us. There are about half a dozen within spitting distance of her and they all have the same design of roof, pointing in exactly the same direction so that doesnt seem to add up to me.

Andympgs

we applied through a link on here last year around october time.. after a long wait and some confusing paperwork issues they have rang me last week saying that they intend to do te survey on our house to see if it comes under there criteria. he also said that once that is done then they move onto the fitting after a week maybe 2.
i read through the contract and it says that they fully own the pv solar panels, and remain the owners for the 25 year period. you are entitled to buy them in this period for an agreed price.
also at the end of the 25 year period they become yours, isis sign the sole right of them to you.
all that you do is rent out the loft space, hence while they have to have the mortgage providers permission.
it is an exchange of contracts between mortgage provider and supplier. the house owner is mearly renting out the loft space..
in regards to the electric provided.. i believe it is brought by daylight not sunlight, the electric is prioritised to the house and any remaining fuel left is sent to the grid... this power is then paid back by feed in tarrifs by a goverment incentive after an 8 year period for some companies some pay immedietly, however the incentive is always the same and it should be paid by a goverment based fee...
i'll listen out on that part, however i really don't mind if i'm being paid for it or not as the massive saving of free elecric every year mine approximates to around £140.
you do the maths.

grahamc2003

Andympgs wrote: »

i read through the contract and it says that they fully own the pv solar panels, and remain the owners for the 25 year period. you are entitled to buy them in this period for an agreed price.
.

As a matter of ineterest, did the contract detail how the agreed price is calculated?

As to the rest of your post, I'm sure there'll be other comments to come.

Andympgs

well i still have my copy of contract i'm not sure how legal it would be to scan a few pages and put onto here.. maybe someone could find out for me before i did that, however just browsing through i will quote

"any payments or revenue arising from the fiscal incentive introduced by the goverment in april 2010 to encourage small scale low carbon generation or any such similar scheme that may supersede or supplement this incentive, including those arising as a result of the solar system being connected to the grid, or any monetary payments from electricity supplied to you or exported by us to the grid"

there is a mention of a buy out price and termination and buy out process.
all listed in there sections of contract.
i will elaborate
isis claim the right to the whole of the feed in tariff
you may become liable to make payment to isis... under these circumstances... there are clauses. very detailed and i decifer them as meaning if they are being damaged, and isis have been out to repair on more than ample amount of occasions, and they still get damaged. so the bill would go to you.
there are all clear and precise measures taken in the contract, nothing is of a real concern to me.. we are not moving within the time limit to complicate things of selling a house with contracted solar panels and frented out loft... that would put a buyer of i think, but there are far more advatnages than disadvantages.
i hope this clears a few things up

regards

charelluk

sounds a bit dodgy to me :S

grahamc2003

Andympgs wrote: »

there is a mention of a buy out price and termination and buy out process.
all listed in there sections of contract.
i will elaborate
isis claim the right to the whole of the feed in tariff
you may become liable to make payment to isis... under these circumstances... there are clauses. very detailed and i decifer them as meaning if they are being damaged, and isis have been out to repair on more than ample amount of occasions, and they still get damaged. so the bill would go to you.
there are all clear and precise measures taken in the contract, nothing is of a real concern to me.. we are not moving within the time limit to complicate things of selling a house with contracted solar panels and frented out loft... that would put a buyer of i think, but there are far more advatnages than disadvantages.
i hope this clears a few things up

regards

Well, I don't think it answers my quesation. I just wondered of there were a formula or something which detailed a buyout price at various times in the future. For example, if you had a 4kw system installed toady, do you know what it would cost to buy out the contract in 10 years time?

Over the months there have been various explanations of how the buyout price is calculated (some say a straight line depreciation from say £15k to £0 in 25 years), others have said much more than that - I just wondered if your contract details the actual payment you would have to make in your particular case.

Andympgs

apologies. i cannot see anything such as your request in my contract, however sceptesism is rich in this business, i do feel that every time i have spoken with isis that they have been very upfront honest and treat every case personally, i will soon see how it goes once the survey is done as i will be extremely inquisitive.
sorry i can't answer that right now but i will get back to you asap.
for now though its bbq 1 of the year, low cost fuelled food.