With the advent of today’s eco-friendly consumer lifestyles, solar panels have been selling more than ever and are now finding their way into millions of homes all across the United Kingdom.
Thanks to their ability to reduce electricity billing costs while drastically cutting down a home’s carbon footprint, these energy-efficient fixtures have come a long way from being a mere privilege to an absolute necessity. Solar panel leases, in particular, are now a more popular option because homeowners get to experience the key benefits of such technology without any installation cost by effectively leasing their roofs as payment.
As beneficial as it is to save the Earth and cut down monthly costs, many consumers have been struggling with this option because of one hurdle: a difficulty in selling.
Why solar panel leases make it harder to sell a home
Stemming from an introduction by the British government back in 2010, solar panel leases were born out of government feed-in tariffs (FITs) which guaranteed an income to any homeowner who would turn to sustainability. Aside from the cost of the appliance itself, solar panels also bear a high installation cost that can set anyone back a small fortune, which is where the leases came in.
Although it may not seem like much at first, the binding agreement set by solar panel leases mainly preoccupies the fact that the very elements of the contract affect the status of the property title itself. They may not be reduced in terms of cost but the value of a home can take quite a hit because the agreement in question will be eventually binding on any future buyer. Seeing that the average roof lease applies for at least 25 years, many potential homeowners are deterred from buying because they’ll end up paying for something they didn’t choose.
How the difficulty occurs
When it comes to dealing with solar panel leases, it is important to note that the difficulty set by such issues stems from the fact that they end up affecting the entire home’s lease itself.
In most cases, homeowners end up having a difficult time offloading their properties because of several problems, such as non-compliance with building regulations during installation, a lack of a required survey, and insufficient reinforcement. Beyond the paperwork involved, the roof itself poses a difficulty for the sale because of a lack of proper reinforcement which often leads to degradation in the long run. This is essentially a key component that deters buyers from such a home.
What to do if you’re experiencing this situation
Generally, the first step any British homeowner should take when experiencing a solar panel lease-related difficulty is to check the paperwork of the job in question itself. Checking your related paperwork will make it easier to pinpoint whether or not the loaning company had the necessary documents and permits at the time to deem your house cleared to sell.
If you’ve managed to collect the right paperwork determined that the installation company was Microgeneration Certification Scheme accredited, then a lender will agree to provide a buyer with the needed funds. On the other hand, checking if your installer was a member of the Renewable Energy Consumer Code will make it easier to tell whether or not you’ll need to have your system re-dressed to meet compliance.
Conclusion
When overlooked and not worked on properly, a solar panel lease can undoubtedly make it much more difficult to sell your home if the paperwork isn’t in order. If you’ve managed to avail a solar panel lease in the past and are currently trying to sell off with your home, then it’s essential that you have your paperwork ready to speed up the selling process!
Having a bit of difficulty with reclaiming the full cost on any mis-sold goods, mis-sold solar, or services that you’ve purchased within the last six years in the UK? Particularly mis-sold solar panels? Discuss your claim with one of our claim advisors today!