Buying/Selling House with Solar Panels

Rock2000

Hi so we are buying a house with solar panels - didn't truly understand the concept at first but the thing I am struggling with is the Feed in Tariff!

I assumed that it was all be transferred to us with the sale (all included in the sale price) but that wasn’t the case.

Our seller has told us that he has a company that is willing to buy the Feed in Tariff (FiT) for 10k but would rather sell to us at 7k. We can’t afford that but another option was he would remove them, make good the roof and take them to his new house. After looking online at a company buying the FiT, I found forums and sites saying that mortgage providers may have an issue with it. So we told him we’d take the option of removing them. We have now been told that he doesn’t want to move them (plus looking into it online I’m pretty sure you can’t anyway)

Our mortgage company has got back to us today to say they have no issues with the FiT being sold to another company as long as it is insured (which apparently it should be anyway) and if a lease is in place, we need to ensure it's acceptable with the Council Mortgage Lenders hand book.

My questions are: Why does the FIT need to be ‘sold’ to someone? Why isn’t it just transferred to the buyer? AND if we decide to sell in a few years, might perspective buyers have trouble with getting a mortgage offer accepted? I know we haven’t but is that just luck??

TIA

TrickyDicky101

Hi

Walk away. Seriously.

The vendor doesn't like the fact he's paid out £xxx and wants to recoup that money from you.

DO NOT purchase with vendor having sold the panels to someone else (as you rightly point out it will cause problems if you come to sell in the future and will restrict what you might otherwise do with YOUR property (as there will be a lease on your roofspace)).

Vendor being unreasonable - but you can't force them to see the error of their ways. Walk.

Rock2000

Thanks Tricky - does it mean something though that our mortgage provider is ok with it??


I did think that the vendor is being greedy here but wasn't sure if I, being the one missing out, was seeing it selfishly?

PField

At the moment it sounds like he own the panels. So it just like and other fixture or fitting. It can be included in the sale or excluded from the sale of the house. Your mortgage company won't care either way.
The only way he can sell to some one else and still have panels on the roof is to lease out the roof with the panels, which is probably best avoided as far as you are concerned.

TrickyDicky101

Rock2000 wrote: »

Thanks Tricky - does it mean something though that our mortgage provider is ok with it??

Yes - it means you will get a mortgage for it (says nothing about anyone else in the future - or even yourself if you want to remortgage to another lender.

I have panels (that I purchased) on my roof and always knew if I came to sell before the 25 yr FiT period was up then I likely wouldn't see the full benefit that I otherwise would if I remained there.

The panels are second hand. The inverter is second hand. You have no assurance that they won't break after you've moved in and then what's happened to your £7k? A good portion will be down the drain.

Or agree to the £7k but only on the basis that your offer for the rest of the house is reduced by £7k.

chappers

He might be able to take them with him, but the feed in tariff would be tied to that property at the time of installation and the rights associated would still be at your property.
If someone else owns the panels on your roof they will be responsible for maintaining them and them not damaging your property and will also have to have in place a lease, probably with a consideration to your self. It is the validity of that lease that your lender is worried about. For example they probably wouldn't let you lease the house to a tenant.
Ask your solicitor in the meantime you can look yourself in your lenders entry into the CML handbook and get an idea of what is acceptable to them with leases and easements. There may even be something specific about solar panels.
Handbooks here

Rock2000

Thanks guys. I don't think he will reduce by 7k... When we said we wanted them removed, apparently his reply was that he wasn't going to walk away from the 10k he was offered if we didn't want them!


Its really tricky as our buyers and their buyers have been holding on for a long time (we had a previous vendor pull out) and they are getting really frustrated that the exchange date keeps getting pushed back! I didn't realise solar panels were so messy! We want to move to a new area ASAP so we can get the kids in schools and settled really feel backed into a corner. If we back out we could loose everything!

pinklady21

I also own Solar Panels and receive a very nice quarterly Feed in Tariff payment that is index linked for 25 years. As the new owner, you would want the ownership of the panels and the right to the Feed in Tariff to be transferred to you as part of the house sale. I would be rather wary of the seller introducing another party at this stage. When I sell this house, the panels will remain, and I will undertake to transfer the FiT to the new owner. The value of this will be factored into any price we agree, not as an optional extra! Seems like your seller wants to have his cake and eat it, and then sell it to you for extra £££s.

Rock2000

I am wondering if there is anyone on here that has actually had a mortgage or remortgage rejected purely because another company has the FiT.


Our solicitor and mortgage adviser both said it wouldn't be an issue as the company has no stake on the house or even roof..

Rock2000

Exactly my thoughts Pinklady!! I would have done the same now I know what it all means!


I didn't realise he wanted extra for it but apparently it was explained to my husband on his viewing (we viewed separately due to work) as and he nodded politely but didn't fully understand, he failed to mention it to me! I am more of a haggler than he is but I feel its all come too late and the contracts has been signed but not yet exchanged!


We struggled to get our buyer as it is so I feel totally blindsided and gutted I would have spoken up much sooner had I known!

spendinglikemad

As another seller of a house with solar panels owned then I will be transferring the FiT to the new owners and they can get the benefits of the high FiT and we see that as a bonus to the buyer. Any other options makes it complicated and it would put me off as a buyer

SLM