'Green Deal' loan on the property we are buying?

GentleGiant_2

Hi,

We believe that work was carried out on the property we are buying under the green deal scheme, however the sellers are being evasive and we have no idea if there is a loan against the property.

Nothing is showing up in the local search though.

The property is probate, so obviously we can't ask the person who had it done!!

When did loans against the property start? Does anyone know?

Anyway to find out for sure, if there is a loan against the property?

We called the energy advice line, but all they can do it to look at the EPC, which makes no mention of it. But they said this does not guarantee that there is no loan.

We do not want to have a loan to worry about on top of the purchase.

Someone will have paid for the new boiler and central heating, although again we do not know when it was installed. The chap has been dead for at least 18 months, so it was before then.

Can anyone help?

GentleGiant_2

Also were there any other loans before the green deal type schemes that could be held against the property, or was green deal the first?

Mojisola

GentleGiant wrote: »

We believe that work was carried out on the property we are buying under the green deal scheme, however the sellers are being evasive and we have no idea if there is a loan against the property.

Nothing is showing up in the local search though.

The property is probate, so obviously we can't ask the person who had it done!!

When did loans against the property start? Does anyone know?

Anyway to find out for sure, if there is a loan against the property?

We called the energy advice line, but all they can do it to look at the EPC, which makes no mention of it. But they said this does not guarantee that there is no loan.

We do not want to have a loan to worry about on top of the purchase.

Someone will have paid for the new boiler and central heating, although again we do not know when it was installed. The chap has been dead for at least 18 months, so it was before then.

The executor should know.

smifffy1989

Ask your solicitor to specifically check for any finance against the property including green deal finance. Ensure it is in writing and that they confirm prior to exchange.

That way if it subsequently transpires that there is you can be financially recompensed through your solicitors insurance.

GentleGiant_2

smifffy1989 wrote: »

Ask your solicitor to specifically check for any finance against the property including green deal finance. Ensure it is in writing and that they confirm prior to exchange.

That way if it subsequently transpires that there is you can be financially recompensed through your solicitors insurance.

Thanks!

He has undertaken a local search and nothing has shown up, but he is not sure that this has ruled out any loan.

The problem is the seller (sons) are being a bit evasive with the information. They are not saying for example that there is no loan!

All we know is that work was done on a scheme of some description and someone will have had to pay for this.

Just do not want to be liable for a loan that we know nothing about

Davesnave

Aren't Green Deal financed works repaid through the leccy bill?

If they are, the new home owner will have to pay it, as they are the ones benefiting. However, the amount paid should not exceed the calculated savings from having the measures in place.

Mojisola

https://www.which.co.uk/energy/creating-an-energy-saving-home/guides/the-green-deal-explained/green-deal-faqs/
The Green Deal is attached to your property's electricity supply and not to you as an individual, so if you sell your home then your Green Deal arrangement will transfer over to the new owner.

The existence of the Green Deal must be disclosed to the buyer. If the buyer of your home does not feel comfortable taking over the Green Deal loan, they might want to renegotiate the terms of sale or you could consider repaying the Green Deal off early as part of your conveyance. However, we haven't yet come across any cases of buyers being put off - if this does happen to you, contact us at which@which.co.uk.

GentleGiant_2

That is the issue, no deal is being informed of.

The sellers just say, we have no idea!

They also can't produce a gas safety certificate as although one has been lodged with the authorities there is no date on it, so we can't tell when it was done.

We will probably rip out half the central heating anyway, but we can't agree to taking on a loan that we no nothing about! Could be for any amount on any terms.

AdrianC

GentleGiant wrote: »

The problem is the seller (sons) are being a bit evasive with the information. They are not saying for example that there is no loan!

Have you considered that they might genuinely not know? It's impossible to prove a negative. All you can ever do is demonstrate that there's no evidence or trace that there is.

All we know is that work was done on a scheme of some description and someone will have had to pay for this.

Yes, but it might not have been the householder. There are/have been various schemes which are totally free of charge to the householder, paid for by the energy companies totally.

captainhindsight_2

I think this may be confusion over what the green deal is, the green deal is not a loan attached to a property.

The green deal is a number of different options to incentivise or enable energy efficient improvements including grants, cashback and finance.

So there may have been a new boiler fitted under the green deal but it may have been a green deal ECO Grant which you do not have to pay back. It may have been partially paid for by green deal cashback which you do not have to pay back or what you are conserned about is has it been paid for by green deal finance which does need to be paid back and is attached to the property. Or it may have just been fitted by a green deal company and paid for in full by the occupier.

So to find out if there is green deal finance on a property there will be an additional page on the epc outlining that there is green deal finance on the property and the details of that loan.

Green deal finance is also mentioned on the electricity bill so if you check recent electricity bills and or ring the electricity supplier and ask them.

Also you can call the green deal oversight and registration body (Gdorb) who can tell you if there is any finance or you can ring the green deal finance company who are the bank that offer the loans