Mortgage companies attitude to Solar Panels

Roy1234

Wasn't sure whether this belonged in the Mortgage or Selling sections as it's kind of both.  Move if you like.

I may soon be helping an elderly relative sell their home.  In 2015 they had solar roof panels fitted with a 25 year lease of the roof space to that company, deeds were modified to that effect.  I've found a cert for Buildings Regulations Compliance.  A companies house search suggests the solar power company is still trading.

However I have read horror stories about mortgage companies being unwilling to lend against houses with solar panels, as the solar companies have rights regards the property too, and of huge exit feels to get out of those contracts.  One website suggested that cash buyers would be the best option, which would be a shame as the house is well improved relative to it's fairly basic area, and cash offers are often low ones.

Any advice on what I face ahead if selling to what would normally be first time buyers with a mortgage?

QrizB

I understand that some (possibly not all) mortgage lenders are OK with rent-a-roof solar panels.

On the other hand, you should be able to get a quote from the solar power company for your relative to buy out the remaining term of the lease. You can get the price and see how it compares. Then, if you get a buyer who has mortgage problems, you'll be able to decide whether to pay it or not.

kingstreet

TBH it will depend on the lender and on the lease. It's practically impossible to say in general.

Roy1234

Thanks both.  Yes I will approach the solar company with the question.  Strange that mortgage companies differ with respect to such a common home improvement which many buyers see as a plus, free electricity.

MWT

Roy1234 said:

Strange that mortgage companies differ with respect to such a common home improvement which many buyers see as a plus, free electricity.

It is not the solar panels which are indeed common, it is the 'rent a roof' schemes which are less common that cause the differences...

Roy1234

MWT said:

Roy1234 said:

Strange that mortgage companies differ with respect to such a common home improvement which many buyers see as a plus, free electricity.

It is not the solar panels which are indeed common, it is the 'rent a roof' schemes which are less common that cause the differences...

Was renting roof space not so normal, i.e. did most householders pay a greater amount for installation and have no such commitment?  It's not something I have any experience of, and I know the popularity waned after the Gov't reduced feed-in-tariffs which I guess went to my relative's solar company.

Petriix

Roy1234 said:

MWT said:

Roy1234 said:

Strange that mortgage companies differ with respect to such a common home improvement which many buyers see as a plus, free electricity.

It is not the solar panels which are indeed common, it is the 'rent a roof' schemes which are less common that cause the differences...

Was renting roof space not so normal, i.e. did most householders pay a greater amount for installation and have no such commitment?  It's not something I have any experience of, and I know the popularity waned after the Gov't reduced feed-in-tariffs which I guess went to my relative's solar company.

A greater amount than the zero your elderly relative paid. That was the rent-a-roof deal: you got free solar panels to use the surplus power and the installer got the 25 years of FIT payments.