Burning a house with leased solar panels
RachelMumof1 · 08/09/2020 19:33
Hello, we are in the early stages of buying a house that has leased solar panels. 9 years in to a 25 year lease. We already know the seller has to complete a deed of variation so the lease will comply to the CML. My solicitor has done this before recently with the same lease company so knows what needs to be done fortunately. Did anyone go ahead and buy a house like this and has there been any problems remortgaging or extending the house??!
RandomMess · 08/09/2020 19:34
Bluntness100 · 08/09/2020 19:37
Theee are so so many issues with these, many mortgage lenders won’t lend on them, because part of the house is leased out, also often the original company can’t be found, who installed them as so many went bust, I’d tread very carefully here, it’s a known issue and one which could significantly impact your ability to sell in the future,
Bluntness100 · 08/09/2020 19:39
So many articles, just google
Roselilly36 · 08/09/2020 19:40
Run a mile OP.
SophieTurnersEyebrows · 08/09/2020 19:45
I bought a house with leased solar panels. I made sure my IFA was able to advise on a lender that would accept it and that my solicitor knew what they were doing. There was also an option to purchase so had it been a real problem I would have purchased.
We have owned the house for 3 years and have had an annual inspection and otherwise all fine.
Bluntness100 · 08/09/2020 19:50
I’d also run, because if you need to find a lender who lends on them then you’re looking for another buyer willing to go that extra mile when you come to sell and not just go with the mortgage provider of their choice.
Plus you need to make sure the roof was structurally sound enough to take them, what happens if they are damaged, what repair requirements and timelines are in the contracts, is there penalties if they need to be removed for damage repair or extensions, will you need to get their permission to extend as they have leased the roof so you don’t effectively own it out right.
Also look at all Tariff statements, utility bills before and since, Any penalties previously endured.
Personally I’d not touch a house with leased panels. I’d want them purchased and the contract terminated.
Notemyname · 08/09/2020 21:38
Our estate agent told us about a bungalow they're struggling to sell with leased panels (we asked how come it hadn't sold as on adjacent street to us). The weight and shoddy installation has damaged the roof, and two mortgage surveyors have refused to lend on the property because of them. so the sale has fallen through twice. It's £25k fee for the vendor to buy out the contract and the old lady who owns it can't afford it until she sells so they're stuck. I'd never heard of it before but it's completely put me off properties with leased panels now. It could affect your mortgage options, and may affect your resale in future
FurierTransform · 08/09/2020 22:02
I'd echo the above & avoid.
The seller of my house had leased panels - they had to purchase them outright in order to sell the house.
GrumpyHoonMain · 09/09/2020 00:22
It could take a long time if they are leased.
RachelMumof1 · 10/09/2020 00:57
Thanks for all the responses! My solicitors have a copy of the lease contract which I have tried to read and from what I can understand seems like they have you over a barrel. I have asked how much it would cost for the seller to buy out the contract, I would be willing to up my offer slightly if it meant the lease was terminated and we could still get the house but I feel the sum will most likely be astronomical! Not giving me good vibes at all..
Japanesejazz · 10/09/2020 01:29
Solar panels are my specialty
It won’t be astronomical to buy them
Quite often the solar panel company will have provided a buy out cost list
Price to purchase against each year of lease remaining
If they haven’t request one
if a deed of variation has been entered into the company who installed them is still trading
And don’t forget you’re saving the world!
catnoir1 · 10/09/2020 01:30
Why would you put your offer up on the house? The house isn't worth more with the solar panels off.
I know someone who looked and offered on a house with leased solar panels. The bank didn't want to loan because they were leased. Their solicitor said the seller should purchase them and terminate the contract but they couldn't afford to do that.
They walked away because it was so much hassle and would have been a nightmare to sell on, couldn't extend, couldn't repair, the list went on and on.
Bluntness100 · 10/09/2020 08:21
I think average Price is about twenty grand at this stage, but the sellers need to ask. I’d not be willing to up the price to help them out.
RachelMumof1 · 10/09/2020 11:38
Sorry I forgot to mention the house is quite a bargain for what it is and where it is. They accepted a lower than asking price offer, I would be willing to pay an extra £5k for the house as king as the panels were gone, as the house is definitely and will be worth more than the price we offered. But if the price to buy out the lease is £20k even if we upped by £5k I doubt they will do it. Pretty sure we are going to pull out, just so disappointing when other than that it’s a fantastic house! Bloody solar panel stupidness!
FingersXrossed · 10/09/2020 11:49
We recently viewed a house with solar panels and didn't put an offer in because I read up on the various issues that can happen. The house was otherwise very nice. Are you in Scotland OP?
Viviennemary · 10/09/2020 12:01
No don't. Too many problems. I saw a house on right move near me quite expensive 950k and roof covered in solar panels. Total eyesore. Not a stealth boast. My house isn't worth that. Read up on the issues.
RachelMumof1 · 10/09/2020 12:27
I’ve been doing loads of research, and all I can find are the horror stories about what could happen. I did wonder if there were any positive experiences..
The estate agent is desperately trying to keep us in the sale but I feel like the anxiety of all of this has pretty much ruined the house for me now..
No I am in Kent, south east.
Bluntness100 · 10/09/2020 12:34
Potentially this is priced to reflect the solar panel issue then op.
I’d stay with it and see if they are willing to pay to have them removed, what the cost is and the timescale, and then see if you wish to compromise on price
But if you’re paying less than it’s value it could well be that’s because the roof is leased out
Confusedmadwoman · 04/02/2022 15:55
Hi what was the outcome of this. My ex has passed away his bungalow is falling down a non building structure but he has least solar panels 13 years left. The sale will be for the land only. Have no idea why the panels got put up in the first place ... Kent...
Katkincake · 04/02/2022 19:14
We had this on our house bought in 2017 (now in a different one). No mortgage companies would lend on the house. In the end the vendor had to accept the cost of buying themselves out of the contract. We didn’t pay anything towards it and stuck with agreed price. They had to accept (after two previous sales fell through due to it) the cost, as the odds of them finding a cash buyer on the house value were low. Had them removed before we exchanged, roof was fine after removal.
Shame really as the roof was perfect south facing for solar panels. If we’d have stayed we’d had probably bought some outright.
Confusedmadwoman · 04/02/2022 19:41
Do u know how many years was left on the lease and how much they paid to buy it out ? Thanks
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