Buy to Let warning over leased solar panelsMake Text Bigger
Landlords looking to install or purchase properties with solar panels using a 25 year lease agreement need to think twice if they require buy to let finance.
We have had feedback from 3 of the major buy to let lenders asking if solar panels installed on a 25 year lease plan are considered suitable security for lending purposes
The Mortgage Works and Paragon both confirm that these leases would fall outside their current criteria and they would not lend on properties where the solar panel installer has taken a long term lease
BM Solutions have confirmed that they will consider lending, but only if the solar panel installer is on their pre-approved list
The current view of these lenders is that the lease could affect their security with the complication of another legal charge, and that the quality of the installations may reduce resale values if not of a sufficient standard.
The concern of an investor should be that even if they can find finance now will it be available in the future and how will this effect their long term finance strategy and resale values.
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