solar panel lease contract issues

patrick_bs15

Hi.
Am close to buying a property which has solar panels on roof.

I don't understand some clauses in the lease (which would be between me and Solar Sun 6 Limited, linked with Paul O'Brien Solar Installations). I do understand the basic principle that I'd benefit from reduced electricity bills (in theory...), the company benefits from Feed In Tariff payments.

My solicitor has basically washed her hands of the matter, saying she knows nothing about such things...

Any advice on who I should turn to get the lease contract explained to me in plain English? Or questions I need to get answered before signing it?

(I e-mailed the company with a few questions today, did get a reply, but didn't answer questions).

One clause in particular concerns me: 'The Landlord grants the Tenant the Rights for all purposes connected with the Permitted Use of the Property'..................?????

Thanks in advance for constructive advice.

patrick_bs15

Have e-mailed another solicitor's firm to see if a 'one off' consultation about the solar panel lease is possible.

Don't care if I have to shell out a bit more money in order to get peace of mind!

However, would prefer free advice on here

ValHaller

I think you need to start with the mindset that if you do not get satisfactory answers, you need to walk away from this property. Otherwise you will go around in circles looking for advice which shows that it will be OK.

Having said that, your solicitor's reaction is disappointing. The big issue with these installations as I understand it is that the Solar Panels are often installed without the knowledge of the mortgage lender and include terms which are unacceptable to many lenders.

Your solicitor is acting for your mortgage lender too and should be able to advise at least whether the agreement complies with your lender's policies.

G_M

patrick_bs15 wrote: »

Hi.

One clause in particular concerns me: 'The Landlord grants the Tenant the Rights for all purposes connected with the Permitted Use of the Property'..................?????

.

Sorry but quoting half a sentence in a clause without any context is pointless.

Your solicitor has (presumably) seen the entire document, and "washed her hands ".

What chance do we have....?

There are a few sensible and knowledgable contributers on this forum, but they can only help if you give them the full story!

patrick_bs15

Thanks ValHaller - I agree with you about walking away if I feel it's needed.

Fair point about quote without context too!
It was in the Rights and Reservations section, the rest of which reads "The Reservations are excepted and reserved from the lease for the benefit of the building."
"The Reservations shall be construed as extending to the Landlord and all persons authorised by the Landlord or otherwise entitled to exercise the Reservations."

Previous section is of concern too:
GRANT
The landlord lets with full title guarantee the Property together with the Rights to the Tenant for the Permitted Use for the Term reserving to the Landlord the Reservations"

That sounds ominous!!!!!!!!

P.S. Would also be great to hear from anyone who has had dealings with Paul O'Brien Solar Installations.

Guest101

I think my biggest issue with these things is they are, or were in recent history, burning out on a regular basis, and owners had technicians round for days at a time.

Annisele

I think that if you can't get a straight answer out of your solicitor, you should either walk away or get a new solicitor.

You're not just worried about whether *your* mortgage lender finds the lease acceptable - you're also worried about whether your potential future buyers' lender finds it acceptable.

ValHaller

I am thinking you need to send something like this

Dear <solicitor>

Concerning the purchase of <address> and the implications of the solar panel lease, I note your statement of <date> that you 'know nothing about such things'.

I can accept that the technology is new and I would not expect any advice in that domain. However, the lease creates rights and obligations within the existing framework of property law. You have been retained to advise and conduct a purchase within this framework and I can see no reason for you to wash your hands of the legalities surrounding the solar panel lease.

Would you please consider the matter and within 48 hours advise whether you would be willing to continue to act for me and my mortgage lender in this matter, taking full responsibility for all aspects including the solar panel lease or that in the alternative, you are not willing to conduct this purchase

Yours sincerely

Patrick

Having written the above, I now think that you need to consult with your mortgage lender first and take their views into account - probably best to have a phone conversation and record the outcome of that conversation in a letter to the lender. Keep copies.

theartfullodger

patrick_bs15 wrote: »

Hi.
Am close to buying a property which has solar panels on roof.

I don't understand some clauses in the lease (which would be between me and Solar Sun 6 Limited, linked with Paul O'Brien Solar Installations).

...
????

Solar Sun 6 Limited is a new company that has never filed accounts.. (check with Companies House,.. it's free..). There are more than 10 companies with similar names,... I fear this will end in tears....

Groupon have 94% off vouchers for Paul O'Brien Solar.. now that rings warning bells with me...

Paul O'Brien Solar Installations Limited has been disolved in 2012 (check with Companies House, free...)

PAUL O'BRIEN SOLAR INSTALLATIONS LIMITED
ARCLIGHT HOUSE
3 UNITY STREET
BRISTOL
BRISTOL
BS1 5HH
Company No. 07334082

Status: Dissolved 18/09/2012

never having ever filed accounts: His accountant must be very sick or very lazy....

I'd explain all this to the vendor & then offer a VERY VERY low price: If he argues walk away...

Cheers!

patrick_bs15

Many thanks for your help - have actually had an offer accepted already and am not far from exchanging contracts...
but am now having serious second thoughts!

ValHaller - thanks for your valuable input especially. I would assume though that because the HomeBuyer's Survey (already done) was arranged through First Direct, they wouldn't consider the panels an issue?

ValHaller

patrick_bs15 wrote: »

.... ValHaller - thanks for your valuable input especially. I would assume though that because the HomeBuyer's Survey (already done) was arranged through First Direct, they wouldn't consider the panels an issue?

The fact that the mortgage survey has not raised an issue should be of no comfort to you. The surveyor is basically checking to see that the house does not fall down - that is more or less the beginning and the end of his involvement.

The real problem with solar panels is the rights (for others) and obligations (for you, your lender and any buyer when you sell) created b the lease agreement.

The lender will expect your solicitor to advise on this irrespective of whether it is picked up in the survey.

Being 'not far from exchange' is a bad reason to take short cuts.