Buying house with Solar Panels

[byeo]

I'm a first time buyer and viewed a property on Saturday which has Solar Panels, from what they vendor told us, they're leased. We like the property and are looking to book a second viewing but looking online it seems buying and selling a house with them can be a minefield. The house is freehold which I think makes things slightly less complicated but still not straight forward

Does anyone have experience buying a home with Solar Panels not owned by the vendor? I'm assuming my Solicitor and mortgage lender will do their checks and advise me if anything looks off or not right in regards to the T&C's to the lease.

Thanks.

 

[BigBoy]

Don't buy a house with a rent a roof scheme! Friends of mine did and it was no end of trouble!

If you want the property ask the current owner to g
Have them removed then you will buy the property as they offer you no value!

 

[The_Arbiter]

Don't presume anything. Make sure solicitor is good, and has experience with this type of thing. Check lease-advice.org (or similar addrrss) for help, they have a number also. Solicitor will need to find out things such as rent costs and maintenance on them, if that exists. Good luck, but be wary.

 

[Skillmister]

Walk away. Before you get emotionally attached to the house.

 

[The_Arbiter]

Walk away. Before you get emotionally attached to the house.

That a million times.

The horror stories i have read because of that, (i'm on the housing hunt too). People being completely blind to massive flaws in properties, areas, and neighbours with the rose tinted glasses. Houses aren't a good investment if they give you 25yrs of depression and anxiety.

 

[Deleted member 77746]

Just to let you know that I sold a house with solar panels on not long ago. I had to transfer the contract to the buyer for a hidden sum of £361 for an admin fee. All that happens is that the solar panel contract gets transferred over that's all.

They don't do any checks what so ever in regards to the lease except that there is a contract in place and it can be signed over.

From a buyers point of view it's a matter of just signing over the lease agreement and there is not a thing you can do if you disagree with the T&Cs.

You literally continue the time left on the renting of the roof space.

 

[Haze]

I would get them removed, if they are not fully paid for, unless you are planning on living there the rest of your life, you will never see the savings

 

[Deleted member 77746]

I would get them removed, if they are not fully paid for, unless you are planning on living there the rest of your life, you will never see the savings

You can't get them removed unless you are doing renovations to the house (depends on what company leased them). It's a lease. When I had them there was no clause anyone to get them removed removed.

You can, however remove them yourself. But if any solar panels are damaged you have to pay for them to be replaced/fixed. You also have to get your own scaffolding put up, at the cost of to the home owner. All electric work also has to be done, at the cost of to the home owner.

 

[Semple]

I'd say you probably need to find out more details first.

I believe some lenders won't even offer a mortgage if a house has a rent-a-roof scheme active, so buying it might even be out of your hands.

One of my best friends bought a house a few years back that the owner had a leased solar agreement. Luckily for him it's actually not caused any issues, and he likes to make sure he's using as much generated electricity as possible.

Ultimately seeing as you don't own the panels, if you're not consuming much electricity during the day, then the panels aren't working 'for you' and instead are generating an income for the owner. If you do use a fair bit of electricity during the day (someone always at home, or you WFH etc), then it's a bit of a no brainer that you don't pay anything for the panels, and get a load of free leccy in the process.

 

[MikeTheNative]

Even owned solar panels can end up a bit of a pain, leased ones are potential nightmare. For me it would depend on how much you wanted the house/ what other choices there are in the area. If it's marginal with another house just walk away.

 

[peter]

Do not know about leased ones, but owned ones have a income of £1800 per year plus free daytime electric. Tariff is transferable to new owner for the remaining 18 years.

 

[Psycho Sonny]

I'm a first time buyer and viewed a property on Saturday which has Solar Panels, from what they vendor told us, they're leased. We like the property and are looking to book a second viewing but looking online it seems buying and selling a house with them can be a minefield. The house is freehold which I think makes things slightly less complicated but still not straight forward

Does anyone have experience buying a home with Solar Panels not owned by the vendor? I'm assuming my Solicitor and mortgage lender will do their checks and advise me if anything looks off or not right in regards to the T&C's to the lease.

Thanks.

A lot of scaremongering from people above. First step is. Current owner of the house has to buy the panels outright. If they don't do step 1 then forget the house. As a lot of people won't do step 1 due to costs. It is vital they own the panels when they sell the house.

I own my panels and have no issues with buying or selling a house with panels owned by the seller.

So if you want the house. Get the current owner to buy the panels. At the end of the day it is their fault not yours. They should have either bought them outright in the first place and if they couldn't afford to do so then not had them installed. That should be your stance. If they end up paying say £20K to buy the contract out. That doesn't then mean they can add £20K onto the house either.

 

[byeo]

A lot of scaremongering from people above. First step is. Current owner of the house has to buy the panels outright. If they don't do step 1 then forget the house. As a lot of people won't do step 1 due to costs. It is vital they own the panels when they sell the house.

I own my panels and have no issues with buying or selling a house with panels owned by the seller.

So if you want the house. Get the current owner to buy the panels. At the end of the day it is their fault not yours. They should have either bought them outright in the first place and if they couldn't afford to do so then not had them installed. That should be your stance. If they end up paying say £20K to buy the contract out. That doesn't then mean they can add £20K onto the house either.

Thanks, I did read that if the vendors owned them outright it would make things much easier. Not sure what I'll do now, I'm happy to wait and see what else comes up in the area, what I don't want is to jump in and buy it with the hassle of them further down the line.

 

[Psycho Sonny]

Thanks, I did read that if the vendors owned them outright it would make things much easier. Not sure what I'll do now, I'm happy to wait and see what else comes up in the area, what I don't want is to jump in and buy it with the hassle of them further down the line.

Just tell them straight. Bank won't loan anyone money for a house that has a leased roof. Because of the potential consequences should something happen to the roof.

So if they want to sell the house they need to buy the panels from whoever owns them.

I bet you see it then get taken off the market or they buy them. Either way you will know where you stand.

I wouldn't just walk away without enquiring.

 

[Deleted member 77746]

Current owner of the house has to buy the panels outright.

No they don’t. I have literally sold my house last year and I didn’t do this.

The buyer just has to sign the agreement and the contract gets given to the new owner.

 

[Mercenary Keyboard Warrior]

I am not sure why you would need to own panels in order to sell/buy a house.
You should be aware however of the terms and conditions of the contract.

As mentioned above, the house seller will need to transfer the contract to the new owner. (Called novation). This means the contract is now in force between the owner (of the panels), and the new owner of the house.
Typically charges for novation are borderline mental, its free money for the original owner basically.

The new house purchaser should ensure they are happy with the contract, what happens at the end, is the system working, etc
Other than that there is no issue with inheriting solar panels on a roof you don't own

As mentioned, its a scheme where in effect the panel owner gets the FIT, and the house owner gets free electric from whats produced.

Its actually fallen out of fashion due to the FIT falling a lot, but in theory it was a great scheme for eg the elderly, who were getting free electric when they were there.

I believe from most contracts the issue is at the end of the term, when the original panel woner/installer will walk away, leaving the homeowner with some pretty poor performing panels on their roof that they now own.
Up until that point the contract means the installer needs to keep it running.

IF the homeowner was inheriting significant liabilities they should be getting the house seller to reimburse this.

 

[Skillmister]

Just tell them straight. Bank won't loan anyone money for a house that has a leased roof. Because of the potential consequences should something happen to the roof.

So if they want to sell the house they need to buy the panels from whoever owns them.

I bet you see it then get taken off the market or they buy them. Either way you will know where you stand.

I wouldn't just walk away without enquiring.

You claim other people are scaremongering then come and throw total misinformation around..

Banks will lend where there is a leased roof they just have a lot of requirements that need to be met which a lot of the leases don't meet. Go read the UK finance guidance. If you Google "cml/bsa guidance and minimum requirements" the pdf is available to all.

However, it probably isn't worth it for the risk of a future headache if there are any problems or if regulations change and then they do stop lending for or restricting it further.

 

[Psycho Sonny]

No they don’t. I have literally sold my house last year and I didn’t do this.

The buyer just has to sign the agreement and the contract gets given to the new owner.

I would never buy a house like that.

Yeah you could buy the house and you get the leccy but don't get the FIT. But you get all the other headaches (pigeons nesting, etc) you wouldn't be allowed to proof the panels without asking the companies permission.

basically OP is asking for advice. And my advice is either the seller buys the panels or you move on. Don't buy the house with them in their current state.

 

[Deleted member 77746]

I would never buy a house like that.

Yeah you could buy the house and you get the leccy but don't get the FIT. But you get all the other headaches (pigeons nesting, etc) you wouldn't be allowed to proof the panels without asking the companies permission.

basically OP is asking for advice. And my advice is either the seller buys the panels or you move on. Don't buy the house with them in their current state.

Got ya!

 

[SeatIbiza]

I would never buy a house like that.

Yeah you could buy the house and you get the leccy but don't get the FIT. But you get all the other headaches (pigeons nesting, etc) you wouldn't be allowed to proof the panels without asking the companies permission.

basically OP is asking for advice. And my advice is either the seller buys the panels or you move on. Don't buy the house with them in their current state.

How do they buy the panels? If the roof is leased to another party, it is their roof for the purpose of attaching solar panels to it and likely protected under the LL&T Act 1954 i.e. it's a business tenancy. They might be willing to sell, but they're in business so will want requisite remuneration for that. I have 5/600 leases at work from which we make money, they're attached to properties and we never sell. On the whole these are 99-999 year leases at peppercorn rents...I imagine they're similar and don't want to sell as their business is income...