How solar panels can dim mortgage prospects

Aurora · Post by **Aurora** » 24 Mar 2012, 07:08

The Guardian - 23/03/12

One couple signed up for a PV installation in their roof – then found the 25-year lease made it hard to remortgage their home, despite official guidelines

Article continues ...

RenewableCandy · Post by **RenewableCandy** » 25 Mar 2012, 16:35

I wonder what the Co-Op mortgage people would do?

Tarrel · Post by **Tarrel** » 26 Mar 2012, 16:48

Looks like this relates specifically to "rent-a-roof" schemes, where the panels are provided free of charge and the installing company gets the FITs while the home owner benefits from the free electricity.

Obviously, with a large upfront cost, the installer will want to make sure they are able to keep the panels in place for the full 25 years. From a mortgage lender's viewpoint, it must be like having a sitting tenant.

I doubt this would apply to homeowners who have bought outright, or financed, the panels themselves. We did look at a finance scheme for panels and I asked what would happen if we sold the house. The company just said that we'd need to pay off the balance of the finance from the proceeds of the house sale. Thus the new owners would get the panels "free and clear". It would be up to us to negotiate any additional price for the house to reflect the presence of the panels.

biffvernon · Post by **biffvernon** » 26 Mar 2012, 17:46

Ecology Building Society

RenewableCandy · Post by **RenewableCandy** » 26 Mar 2012, 18:40

All good stuff I'm sure but is there a place on that website where they say precisely that leased panels won't torpedo one's mortgage arrangements?