Property Investors Advised Not to Take Solar Panel Installation Lightly

Landlords looking to benefit from the installation of solar panels on their properties are being advised to ensure they get approval from their mortgage providers and property insurance providers before they go ahead.

Even though the feed-in-tariff for renewable energy has been halved by the Government in the last few months, many landlords still see the leasing out of their roof spaces to companies generating power from photovoltaic panels as a profitable sideline. However, The Council of Mortgage Lenders (CML) which represents many buy-to-let mortgage providers is urging private property owners to ensure they comply with insurance and financial guidelines now, to avoid problems later on when it comes to selling or refinancing their properties.

The CML recommend that landlords ensure the company place no onerous conditions on the property which could affect its value or saleability and that installation is according to planning consent and is completed to an accredited standard. They also say landlords should check the maintenance contracts arranged by the installers and that property owners should get written consent from their insurance providers before they go ahead.

A spokesman for the CML said: “Individual lenders may have their own specific, additional requirements. We advise borrowers to include their lenders in discussions with the panel providers from an early stage. That should enable any security or valuation issues to be addressed before signing a lease agreement. Any changes to a borrowers circumstances over that period, or the need for maintenance and repairs, should not create a burden for the borrower or the lender. The guidance is not intended to deter landlords from installing panels, but seeks to ensure that the lenders security is not affected by the arrangement.”

Leave a Reply