Solar panels can risk saleability of homes
12 April 2012
Many homes have agreed to rent out their roofs to solar panel companies for a typical term of 25 years in return for free electricity. However, many lenders have now decided that homes which are subject to these leases will not be lent mortgage funds. This decision effectively means that these homes have a limited market for sale of cash purchasers.
Skipton Building Society stated: “The Society will not lend where the panel provider is supplying and fitting panels free of charge, is taking income from the grid tariff scheme and is creating a long lease against the roof and roof air space.”
This could lead to increased litigation arising from sellers whose marketplace for the sale of their homes has suddenly been impacted by lenders taking this decision.
If you are a buyer purchasing a property that is subject to a solar panel then make sure you check out with your lender at an early stage whether or not they are prepared to lend as you may need otherwise to shop around for a lender who is prepared to lend.