90% Mortgages on new build with Solar PV Lease. Who?

nunoamorim

90% Mortgages on new build with Solar PV Lease. Which banks or BS are friendlly?

Please do not say Skipton, as they have been messing me about for 3 months.

amnblog

Are you are probably already aware - this is two questions in one.

Solar PV leases are an arrangement whereby a company installs solar panels on a property with the objective of feeding energy back into the National Grid.

Clearly, in mortagaging a property a Lender will need to consider the implications of this quite carefully. In fact the Council of Mortgage Lenders issued guidence on this in March 2013.

Among the Lenders requirements will be:

Evidence of accreditation which shows that the panels will be installed to a suitable standard.

Evidence that the provider and installer are members of the REAL Assurance Scheme.

Evidence that there has been a valid contracting out of the security of tenure provisions under the Landlord and Tenant Act 1954, where the lease applies to a property in England and Wales. In order to validly contract out, the landlord (borrower) must serve notice on the tenant (provider) in the prescribed form and the tenant must sign a declaration that he has received

the notice and that they accept the consequences of contracting out. The lease must also contain reference to the exclusion agreement, notice and declaration. In practice, this will mean that the lender will need to see the signed contracting out notice and sworn declaration.

Signed confirmation by a suitably authorised representative that the provider satisfies the lender minimum requirements, and any specific requirements of the individual lender. The template lettercontains the minimum requirements. The letter was developed to provide a way of certifying to lenders that providers, and their lease agreements, meet those minimum requirements.

Clearly this is a lot of work for the Lender and it takes time. Particularly for a lender like Skipton.

The other angle, and one which gives you little option is that you are only putting down a 10% deposit.

10% deposit on a new build is a rare animal in todays market.

Changing lenders won't make the Solar lease go away.

kingstreet

I agree.

I suspect, you'll just start the clock ticking again with another lender which asks for exactly the same things as Skipton.

This time the process may be shortened by the fact that you've already obtained stuff because Skipton requested it.

nunoamorim

kingstreet wrote: »

I agree.

I suspect, you'll just start the clock ticking again with another lender which asks for exactly the same things as Skipton.

This time the process may be shortened by the fact that you've already obtained stuff because Skipton requested it.

Yep, Abbey are fine with the solar panel lease, so going with them.
15% deposit though.

nunoamorim

amnblog wrote: »

Are you are probably already aware - this is two questions in one.

Solar PV leases are an arrangement whereby a company installs solar panels on a property with the objective of feeding energy back into the National Grid.

Clearly, in mortagaging a property a Lender will need to consider the implications of this quite carefully. In fact the Council of Mortgage Lenders issued guidence on this in March 2013.

Among the Lenders requirements will be:

Evidence of accreditation which shows that the panels will be installed to a suitable standard.

Evidence that the provider and installer are members of the REAL Assurance Scheme.

Evidence that there has been a valid contracting out of the security of tenure provisions under the Landlord and Tenant Act 1954, where the lease applies to a property in England and Wales. In order to validly contract out, the landlord (borrower) must serve notice on the tenant (provider) in the prescribed form and the tenant must sign a declaration that he has received

the notice and that they accept the consequences of contracting out. The lease must also contain reference to the exclusion agreement, notice and declaration. In practice, this will mean that the lender will need to see the signed contracting out notice and sworn declaration.

Signed confirmation by a suitably authorised representative that the provider satisfies the lender minimum requirements, and any specific requirements of the individual lender. The template lettercontains the minimum requirements. The letter was developed to provide a way of certifying to lenders that providers, and their lease agreements, meet those minimum requirements.

Clearly this is a lot of work for the Lender and it takes time. Particularly for a lender like Skipton.

The other angle, and one which gives you little option is that you are only putting down a 10% deposit.

10% deposit on a new build is a rare animal in todays market.

Changing lenders won't make the Solar lease go away.

The lease conforms to all of CML guidelines.
Guess its a loss of business for Skipton.
Extremely slow setup they have, even missing details from the survey carried out for them....never again with these cowboys.
Now lets see how much money they will want to extort from us.

amnblog

nunoamorim wrote: »

Yep, Abbey are fine with the solar panel lease, so going with them.
15% deposit though.

Good luck - the extra 5% deposit brings half a dozen or more lenders into the frame.