selling a house with solar panels fitted under rent a roof scheme

sevenhills

Glover1862 wrote: »

Yes, but are they rent a roof?

I believe it is based on those principles, never really had much information about it. I am now finding out that the council own the panels, and the ownership of the panels will transfer to me, upon sale, which did surprise me.
Most streets you look at, someone has solar panels, so they are popular, in a small way.

sevenhills

eddddy wrote: »

It's more of a mortgage related issue than a conveyancing issue.

I have been offered a mortgage, not a problem. Its just a matter of future owners being happy with panels that could limit a loft bedroom and roof repairs, or more commonly, people just dont like the look of them.

eddddy

sevenhills wrote: »

I am now finding out that the council own the panels, and the ownership of the panels will transfer to me, upon sale, which did surprise me.

So that's completely different - and no problem. You will own the roof and your will own the solar panels. You can do whatever you like with them.


The problem arises when you lease your roof to a company (in legal terms, they are then your commercial tenant) and that company puts their solar panels on your roof.

You then have to sell your house with a commercial tenant on your roof - because you cannot end the lease.

Mortgage lenders can be very fussy about lending on a property with a commercial tenant.

(Conceptually, the concerns might be similar if you were selling a house with a commercial tenant in the dining room - who you could not get rid of. They would be staying even after the property is sold.)

sevenhills

eddddy wrote: »

You then have to sell your house with a commercial tenant on your roof - because you cannot end the lease.

I dont think they have even asked about the panels, why would they, so long as the purchaser is ok with it.

eddddy

sevenhills wrote: »

I dont think they have even asked about the panels, why would they, so long as the purchaser is ok with it.

Hmmm - you're beginning to sound a lot like you're messing about.

Anyway, the OP has a challenge because they have leased out their roof.

You appear to have no challenge with the property you're buying, because nobody has leased out the roof.

iscamaid

sevenhills wrote: »

I have been offered a mortgage, not a problem. Its just a matter of future owners being happy with panels that could limit a loft bedroom and roof repairs, or more commonly, people just dont like the look of them.

Luckily ours is a pent roof and the panels are on the side of the property- you cannot see them from front or back only if you walk down the road and crane your neck. There are about 6 houses along our road with panels so mine does not stand out at all. There were problems initially when Homesun fitted them as they broke a number of tiles, we stuck to our guns and after a number of complaints they replaced the entire side of the roof with new tiles and felt so I know structurally it is sound. As the house is a 1960s house I don't think there is an aesthetic problem - though I certainly understand they don't always suit period properties. As it is 5 years since fit and heating costs have increased dramatically since then its hard to tell just how much we are saving. We have a detached 5 bed and pay about £35 a month for our electric - so I think we must save just over £200 a year through the panels.

iscamaid

eddddy wrote: »

It's more of a mortgage related issue than a conveyancing issue.

A strategy I've used when selling a property that may be difficult to mortgage (for other reasons) is to contact one or two mortgage brokers, and say something like...

"I've going to be selling a property with solar panels. Do you have experience in getting mortgages for such properties? If so, can I pass your name on to prospective buyers?"

And ask them general questions about how easy/difficult it is to get a mortgage. (But they're all likely to say they can arrange a mortgage - try to find one who's actually done it.)

I have contacted my mortgage broker and he said that there are a number who will mortgage houses with rent a roof, he said there were problems with brokers a few years ago but as solar is slowly increasing this is decreasing. I also spoke to an estate agent who says that he has sold a few with rent a roof scheme and it does make the process longer but is not a significant problem. I wonder why my colleague hit such a response from her solicitor? I am still determined to try and get an information pack ready on it myself and research rather than trusting to luck when we do decide to sell. Perhaps I should ask the broker for names of firms which have no problems with this scheme?

iscamaid

Ok, I contacted Anesco who are now managing the Homesun contracts. they appeared to be very clued up on house sales and I asked a number of questions around the terms and buying out the PV array:

Good Morning,

Many thanks for your below email.

We can confirm the lease for the PV system transfers automatically upon completion of the sale. The only requirement Homesun have when a property subject to their solar lease is sold, is that the new homeowner completes a new homeowner pro-forma form (attached) and returns this along with the updated Land Registry title deeds showing proof of ownership.

Please send these documents for my attention to the below address:

Homesun Limited
C/O Unit 9
The Green
Easter Park
Benyon Road
Reading
RG7 2PQ

Once in receipt of these documents, we shall update our records accordingly.

In order to terminate the lease agreement and become the legal owner of the system the PV System Purchase Price must be paid.

The PV System Purchase Price is calculated in accordance with clause 2.7 of the lease agreement, the calculation is broken down below:

PV System The price to be paid to purchase the PV System from the Tenant calculated in accordance with the following formula: Purchase Price

303-x x y = p
303

Where
x = number of months which will have passed since the Term Commencement Date at the Break Date
y =£17,200.00 (seventeen thousand two hundred pounds only) Plus VAT
p = PV System Purchase Price

Therefore:

X = 77
Y = £17,200.00
P = £12,829.04

Total (Inc. VAT) = £15,394.85

This is subject to serving the correct written notice in accordance with clause 2.7 of not less than 3 months and not more than 6 months. Please note that notice and payment must be served on the same day.

Once payment has been received we shall instruct Homesun’s external solicitors to close the leasehold title at the Land Registry.

If you wish to proceed with the PV system buyback, please notify me and I shall provide you with an invoice and the relevant documentation.

If you would like to have the panels removed, the PV system purchase price must be paid. Once paid for, Anesco can remove the solar panels for approximately £1,800.00.



Interestingly when I asked how much the array generated in income per annum Anesco refused to answer saying they did not have to disclose that as tenants. I am now faced with a bit of a dilemma - huge amount to buy them out but if we stayed put for 6-7 years until the kids left school how much would it generate in come during that time? would that be taxable?

sevenhills

eddddy wrote: »

Hmmm - you're beginning to sound a lot like you're messing about.
Anyway, the OP has a challenge because they have leased out their roof.
You appear to have no challenge with the property you're buying, because nobody has leased out the roof.

I am hoping to be the owner of my council house, with solar panels, with 2 weeks; I will post on here how easy/hard it was.

eddddy

iscamaid wrote: »

Ok, I contacted Anesco who are now managing the Homesun contracts. they appeared to be very clued up on house sales and I asked a number of questions around the terms and buying out the PV array:

If you want to sell with the panels, important questions to ask are...

1. Does the lease conform to CML (Council of Mortgage Lenders) Handbook minimum requirements?
See https://www.cml.org.uk/lenders-handbook/solar-panels-and-the-lenders-handbook/

2. Does the lease contain a valid mortgagee break right which is exercisable on repossession?
See: https://www.cml.org.uk/lenders-handbook/englandandwales/question-list/2115/

3. Do you have a list of mortgage lenders who have accepted your leases in the past?


If they answer "yes" to 1 and 2 (and they're not fibbing), a 'keen' buyer might be able to get a mortgage. But it would be extra work for the buyer, and they might expect you to accept a lower offer.