15th September 2016
Solar Panels: Will They Have a Positive or Negative Impact on Your Property?
Kerry Carter, Associate at Buss Murton Law LLP, explains the implications of installing Photovoltaic (PV) panels (known as solar panels) in your property.
Question: I want to make my home “greener” and I am considering installing solar panels to my property. Will this affect my ability to sell or re-mortgage in the future?
Answer: Possibly, as this depends upon a number of factors. You can choose to pay outright for the solar panels, or agree to lease the roof and airspace to the solar panel providers and they retain ownership of the panels. In the latter case, the home owner receives free electricity whilst the provider retains the income from the Feed in Tariffs.
Many choose the lease option as it is cheaper, but this comes with drawbacks. If you have a mortgage registered against your property, you must obtain the consent of your lender.
Mortgage companies are very cautious when lending on a property with solar panels and any lease must meet with strict criteria. A lender will want to ensure that they have the right to break the lease and have the solar panels removed in the event that the property is repossessed. They will also want to ensure that the solar panels have been installed by a provider registered with the Microgeneration Certification Scheme (MCS). Furthermore, each lender has its own specific requirements when it comes to the installation of solar panels. When you come to sell your property, this could limit your buyer’s choice of mortgage companies and, therefore, the number of buyers considering purchasing your property.
If you are re-mortgaging, you may be limited with your choice of mortgage lenders who are willing to lend on a property with solar panels leased to PV panel providers.
If you wish to proceed, it is really important that you take legal advice and instruct solicitors to review the lease to ensure that it complies with the Council of Mortgage Lenders’ guidelines.
For help with the conveyancing process, please contact Buss Murton East Grinstead on 01342 328 000 or email Kerry: kcarter@bussmurton.co.uk
Kerry Carter
Partner
Chartered Legal Executive
Residential Property
Office : Hello world!
01892 502 304kcarter@bussmurton.co.uk
Profile
Kerry is a Chartered Legal Executive in the Property and Private Client departments. After obtaining a First Class BA degree in Politics from Southbank University in 1993, Kerry went on to study Law and qualified as a Fellow in 2004 whilst working at a firm in Chancery Lane, London, specialising in property matters. Kerry became a Partner in 2017. Kerry has recently been accredited as a CILEx Conveyancing Practitioner.
Kerry has many years experience advising in all areas of residential property work including: freehold and leasehold property, unregistered land, equity release advice, new-build developments, shared ownership, declarations of trust, powers of attorney, transfers of equity, sales of land, auction properties, leasehold enfranchisement and the Help to Buy scheme. She has extensive experience in dealing with high value transactions and the accompanying complexities of dealing with listed buildings together with associated land.
Kerry also advises on all areas of Private Client work including Wills, Probate and Lasting Powers of Attorney, as well as post death Deeds of Variation in relation to Inheritance and Capital Gains Tax.
Expertise
Residential Property
High value transactions and the accompanying complexities of dealing with listed buildings together with associated land
Sale and Purchase of Freehold and Leasehold properties
Unregistered land
Equity release
Newbuild developments
Shared ownership schemes
Declarations of Trust
Transfers of equity
Sales of land
Auction properties
Leasehold enfranchisement
Help to Buy scheme
Bridging finance
All non-contentious residential property work
Private Client
Wills
Probate
Lasting Powers of Attorney
Post death Deeds of Variation in relation to Inheritance and Capital Gains Tax
Commercial Property
Commercial leases
Lease assignments
Option agreements
Promotion agreements
Commercial mortgages
Bridging finance
Alternative Contact:
Kathy Kell
01892 502 397
kkell@bussmurton.co.uk
LinkedIn Profile
Articles
- Residential Property FAQs
- Solar Panels: Will They Have a Positive or Negative Impact on Your Property?