Are reports of remortgaging problems for home-owners with rented solar panels true?
There is currently a remortgaging rumour circulating that mortgage holders who have rented their roof out to solar power companies, may experience a problem when trying to remortgage.
So how true is this?
With renewable energy becoming increasingly important some enterprising businesses are leasing home-owners roofs and installing solar panels in a effort to generate alternative power.
Most lenders advise that they are happy to accept solar panel installation on existing customers roofs. However they need to see and approve the terms of the roof lease and any installation and maintenance must meet certain standards.
However according to a recent press report, when trying to remortgage and switch to a new lender some home-owners who have leased out their roof have experienced difficulty.
Santander when questioned on this point said it was prepared to consider such a remortgage providing the lease meets CML standards. The Nationwide has said that in these cases a conveyancer writes the solar panel provider to confirm whether or not the lease is acceptable. If it is then the mortgage may proceed in the normal manner.
In the case of HSBC and First Direct, remortgaging can be agreed as long as the panel provider sends all requested documentation and the home-owner agrees to follow the terms of the policy. Barclays and Woolwich simply say they offer such remortgages to new mortgage customers with solar panel leases.
A Lloyds Banking Group spokesperson has said that for all its brands a remortgage decision depends on the solar panel provider. Currently Lloyds have a list of 75 approved providers.
The Council of Mortgage Lenders has responded to the recent press coverage saying problems may arise if a solar panel lease does not comply with CML's standards or lenders conditions.
It is likely that providing you stick with remortgaging through a major provider you should have no problem switching deals.
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