House price and solar panels

wprost1986

Hi there,
Is solar panels increase house value in case of remortgaging? And if is, how much?

Martyn1981

Hiya, are you specifically interested in re-mortgaging? Is that perhaps to raise the property value and thus lower the ratio of lending to get a better rate?

I suppose the effect on property value, would be the replacement cost if something went wrong. Perhaps total cost £5k.

If buying or selling the property, then that's a different issue, depends on the annual generation, and the rate of FiTs that it's locked into. If 4kWp and installed before Mch 2012, then perhaps an income of £1k to £2k pa, for another 20 years - and the figure that the buyer/seller considers equal to that, today.

Highly subjective, unfortunately.

Mart.

wprost1986

No, is specifically about remortgage. Installed 11 months ago...so should I increase my valuation by £5000? Or if lender do valuation, should I let them know?

matty2767

When I recently remortgaged. I told the bank about the panels but they were only interested in if I had paid for them or if they were rent a roof type. The rent option would have complicated my application for the mortgage apparently. They did not add anything to the house valuation.

Martyn1981

wprost1986 wrote: »

No, is specifically about remortgage. Installed 11 months ago...so should I increase my valuation by £5000? Or if lender do valuation, should I let them know?

I think you may need to tell them as you've made some changes to the building. As Matty says, it might not change the valuation at all, but if it does, and that helps you get a better rate due to a slightly lower mortgage to value ratio, then all the better.

In reality, you probably just need to tell them, and they'll scribble it down somewhere.

Mart.