A Shade Greener Leased Solar Panels

FritzJack

Hello all,  Just wanting some advice please. Currently buying a house with solar panels which were installed by A Shade Greener. The seller states she doesn't pay anything for them and she's had them 10 years and has 15 years left of the lease. She says her bills are dramatically reduced, and what ever energy is left is sent to the grid - she doesn't get any payment from this. We are first time buyers and have good credit scores. We are hoping to secure the house. Are we likely to get a mortgage on the house accepted? Sorry if that's confusing, we're all new to this. Thank you.

grumpy_codger

I'm no expert, but in this recent thread someone said "It's very difficult now to get a mortgage with leased panels"

Re: Purchase a property with Solar Panels

FritzJack

grumpy_codger said:

I'm no expert, but in this recent thread someone said "It's very difficult now to get a mortgage with leased panels"

Re: Purchase a property with Solar Panels

I saw something along the lines of that. Was hoping somebody had recently been through something similar as we are extremely interested in the house and feel the price we are getting it at is a steel. 

pramsay13

I don't have any experience but I can't see why it will be a big deal. 
Do you have a current mortgage? Why not phone them and ask if you can port the mortgage to a house with leased panels and see what they say. 

No19v87

FritzJack said:

grumpy_codger said:

I'm no expert, but in this recent thread someone said "It's very difficult now to get a mortgage with leased panels"

Re: Purchase a property with Solar Panels

I saw something along the lines of that. Was hoping somebody had recently been through something similar as we are extremely interested in the house and feel the price we are getting it at is a steel. 

That’ll be because prospective buyers cannot mortgage the property, as you are finding out now.

FYI there is an ongoing Ofgem investigation into A Shade Greener. Likely the terms of whatever lease has been agreed are pretty horrific.

Although if you wanted the specifics, this is what Natwest would be keen to know:

Solar Panels 

We can consider a property with solar panels subject to confirmation that installation has been completed by a Microgeneration Certification Scheme accredited contractor.

The below link provides a list of acceptable installation contractors:

MCS- Find a contractor

Where the solar panels are leased the solicitor will review the UK lenders Handbook.

Solar panels need to be installed by an MCS contractor where they are bought outright or leased.

FritzJack

pramsay13 said:

I don't have any experience but I can't see why it will be a big deal. 
Do you have a current mortgage? Why not phone them and ask if you can port the mortgage to a house with leased panels and see what they say. 

No current mortgage! Currently first time buyers so abit skeptical to whether we would get accepted anywhere to lend 

eddddy

FritzJack said:

Are we likely to get a mortgage on the house accepted?

The main mortgage lenders were asked this question...

Does the lender have additional requirements relating to leases of roof space for solar PV panels, and if so, what are they?

You can see their replies here... 
https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/question-list/2115/


As you'll see, many mortgage lenders refer to UK Finance Minimum Requirements for the leases. Those minimum requirements are here:
https://www.ukfinance.org.uk/system/files/2023-06/UK Finance-BSA guidance and minimum requirements.pdf


In simple terms, the lease might already be acceptable to mortgage lenders, or you might need A Shade Greener to modify the lease to make it acceptable.

You cannot force A Shade Greener to modify the lease - but in the past, some posters have said that ASG have agreed to modify the lease, but other posters have said ASG refused.

FritzJack

eddddy said:

FritzJack said:

Are we likely to get a mortgage on the house accepted?

The main mortgage lenders were asked this question...

Does the lender have additional requirements relating to leases of roof space for solar PV panels, and if so, what are they?

You can see their replies here... 
https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/question-list/2115/


As you'll see, many mortgage lenders refer to UK Finance Minimum Requirements for the leases. Those minimum requirements are here:
https://www.ukfinance.org.uk/system/files/2023-06/UK Finance-BSA guidance and minimum requirements.pdf


In simple terms, the lease might already be acceptable to mortgage lenders, or you might need A Shade Greener to modify the lease to make it acceptable.

You cannot force A Shade Greener to modify the lease - but in the past, some posters have said that ASG have agreed to modify the lease, but other posters have said ASG refused.

That’s great. I appreciate the reply and informative response. Can I ask, do you think we will struggle to remortgage when the time comes? I apologise if this sounds stupid - being a first time buyer I am struggling to get my head round all this 🤯

Best regards 

MWT

FritzJack said:

eddddy said:

FritzJack said:

Are we likely to get a mortgage on the house accepted?

The main mortgage lenders were asked this question...

Does the lender have additional requirements relating to leases of roof space for solar PV panels, and if so, what are they?

You can see their replies here... 
https://lendershandbook.ukfinance.org.uk/lenders-handbook/englandandwales/question-list/2115/


As you'll see, many mortgage lenders refer to UK Finance Minimum Requirements for the leases. Those minimum requirements are here:
https://www.ukfinance.org.uk/system/files/2023-06/UK Finance-BSA guidance and minimum requirements.pdf


In simple terms, the lease might already be acceptable to mortgage lenders, or you might need A Shade Greener to modify the lease to make it acceptable.

You cannot force A Shade Greener to modify the lease - but in the past, some posters have said that ASG have agreed to modify the lease, but other posters have said ASG refused.

That’s great. I appreciate the reply and informative response. Can I ask, do you think we will struggle to remortgage when the time comes? I apologise if this sounds stupid - being a first time buyer I am struggling to get my head round all this 🤯

If you get a mortgage and you are just asking about what happens at the end of your first fixed period, then no, you will not have a problem if you are just taking another fixed period with the same lender.

If you are asking about a remortgage to a different lender then yes, there will most likely be the same concerns and problems as you have right now.

QrizB

This comes up from time to time on the Green and Ethical subforum (where solar panels usually get discussed).

A Shade Greener will usually let the homeowner buy out the remaining term of the lease. You can ask the current homeowner to buy out the lease, or you can buy it out yourself when you want to sell up in the future.

For a ten year old system, you might expect the lease to be worth around £800 a year. So with 15 years to run, that's £12k. It does vary, though, so check before making any rash commitments.

FritzJack

Thank you all for the reply’s. My mind is put at ease. Just be a case of waiting till my advisor is able to get back to me. 🤞