Property with Solar Panels - Borrowing with Barclays

peteyh

A colleague has had an offer accepted on a property and has now got a mortgage offer pending going through. One thing that she has questioned now is that the property has solar panels and has heard some lenders do not lend on properties with leased Solar Panels. Does anyone know if Barclays who she is pending with are one of those. She ls not very internet savvy , so I've been looking but cant see any conclusive details as to what their criteria is for lending in this situ? Even a yes or no?!

Any help?

thanks

MWT

Are the panels on this property definitely not fully owned by the vendor?

She is going to want to flag this up to her solicitor anyway as there are a lot of details she will need either way, but much more so if the panels are not fully owned, regardless of lender issues or not.

peteyh

She's awaiting to find out still? seems they have taken two days to come back. Concern is lack of promptness is leased as that would be known to be more of an issue all round. But why not be totally transparent from the off- As a seller you know there could be trouble ahead. Just she wants reassurance barclays will lend at least...

Its on FIT she said - so from reviewing that seems to be an older scheme when panels were pricey and more often insentivised to be leased off energy companies...?

MWT

peteyh said:

Its on FIT she said - so from reviewing that seems to be an older scheme when panels were pricey and more often insentivised to be leased off energy companies...?

Not really an indication, FiT was still available even a few years ago, but if the FiT is not in the name of the vendor that would be a red flag...

peteyh

The only info she has thus far is that the vendor has stated the following FIT payments 
Jan 2023 £900
Jun 2023 £1400
Jan 2024 £200

Assuming they have gone to the vendor, but not directly stipulated, hence she has now sent follow up questions but still awaiting I don't know if these values for 15 panel set up indicate ownership or leasing?

Or simply more likely the older the panels are as they would have been on the higher FIT tariff back in 2010/11 from what I see. They seem like quite big numbers given I ve read owners could save approx £500 a year getting a set of panels? 

Keep_pedalling

If the vendor was not getting the FIT payments, they would not know how much was being paid. She should be able to give you copies of the payment statements which will prove this.

We had a small system installed back in 2011 which on current feed in rates earns us around £900pa. That is for only 6 panels so for 15 I would expect around £2,250pa. This is on top of any saving you get from your electricity bill.

MWT

peteyh said:

The only info she has thus far is that the vendor has stated the following FIT payments 
Jan 2023 £900
Jun 2023 £1400
Jan 2024 £200

Tell her to make sure that the solar panel system is listed on the TA10 to prove they are included in the sale, she can then use that to transfer the FiT after she completes.

Also make sure she knows to take a photo of the generation meter reading on the day of completion. To that end ask the vendor where the generation meter is located as it is not usually next to the normal gas/electric meters and can be in some strange location like the loft space.

peteyh

Great information re amounts. Colleague will be pleased with those numbers re credits and payments. So whether they have been bought or leased those payments are of the same amount. . It's simply that those payments will continue beyond 20/25 years if you own. But cease on a leased set up.? 

This still doesn't unfortunately answer if Barclays will lend if they are leased if anyone knows, or had issues getting a mortgage or not when purchasing a property with solar panels do comment. 

Will pass all the abive on tho, great Info re meter also. Thanks again 

MWT

peteyh said:

So whether they have been bought or leased those payments are of the same amount. . It's simply that those payments will continue beyond 20/25 years if you own. But cease on a leased set up.?

It is not the panels that are leased, it is the roof of the property...

If the panels are owned by the vendor there should not be any problems with the mortgage as long as they have been properly installed, and that is unlikely to be an issue given the installation qualified for FiT in the first place.

The problem schemes are where a 3rd party leased the roof to install solar panels and they claimed the FiT as part of the deal.

Given the vendor in this case is receiving the FiT payments, it is highly unlikely that there is any 'rent-a-roof' scheme involved.

 

peteyh

Fantastic, it's that element she wanted to hear. So Fit payments coming to household = ownership of panels and roof

So if a 3rd party leased the roof the owner of the house only gains cheaper electric and no FIT payments. Makes total sense. 

Much appreciated. Really useful insight from all.

Thankyou 

MWT

As per my earlier comment though, do make sure the TA10 form clearly includes the solar panels etc. as part of the 'fixtures & fittings' included in the sale.