18 Oct Mortgages & solar Panels
How to Avoid Mortgage Stress
Hello everybody, today I want to talk about solar panels
We’ve had a couple of cases where solar panels have caused us, and our clients, issues so I want to share some information with you.
Your Options for Solar Panels
We have one client who owns their solar panels outright, they earn money from them and this hasn’t been a problem when seeking a mortgage agreement.
We have another client, however, who leases their solar panels. The problem with this is that there are only about 7 lenders – in the whole of the market – who will accept leased solar panels.
When you lease panels on your home you often don’t have to pay for them, or maybe just a peppercorn rent. In return you get free electricity, and any excess is sold back to the grid. When you own the solar panels, however, you earn the money from whatever power your panels create once you’ve paid for your own electricity.
The reason lenders don’t like leased panels is that the lease companies tend to put a charge on your title, giving them a right to the airspace and place on your roof, there are therefore legalities.
Lenders don’t like anybody sitting behind them with a charge, or claim, on the property – it mainly comes down to the saleability of a property if it ever had to be repossessed. The lender always looks at the risk factors involved in selling the property if they ever had to, and how much money they are going to get back on it. So, having leased solar panels causes the mortgage company potential issues which is why they don’t like them.
What Can You Do?
If you’ve got leased panels and you want to remortgage, there is a chance we can help but you have to make sure you fit all the other criteria your lender puts in place. Otherwise you can look at buying the panels outright or having them removed, possibly to have them put back on afterwards with the consent of your lender.
I hope that’s helped you understand the impact of having solar panels on your property in remortgage terms. If you’d like to talk it through with someone, We’d be happy to help.