Solar panels on Council house properties - General frequently asked questions
Contents
- My property has solar panels installed on its roof and I have exercised my Right to Buy (RTB). Will the solar panels belong to me once I buy the property?
- Why do I need to enter into a Lease with the Council for the airspace above my roof?
- Who is responsible for providing the Lease?
- How long will the term of the Lease be?
- Will the presence of solar panels on my roof affect my ability to obtain a mortgage?
- Will it cost me anything to enter into the Lease with the Council?
- What happens if I want to sell on during the term of the Lease?
- What happens when the Lease comes to an end?
- What are the Council's responsibilities in relation to the solar panels?
- What if I need to carry out some repairs to my roof once I have bought the property?
- What about other works I want to carry out to my property that may affect the solar panels?
- What is the benefit to me in entering into the Lease?
- Disclaimer
My property has solar panels installed on its roof and I have exercised my Right to Buy (RTB). Will the solar panels belong to me once I buy the property?
No. The usual procedure where properties are sold under the RTB is that you will enter into a Solar Panel Lease ('Lease') with the Council of the airspace above your roof.
Why do I need to enter into a Lease with the Council for the airspace above my roof?
Generally when you buy a property, it is presumed that you will own the airspace above, therefore in order for the Council's solar panels to remain on the roof after you have bought your property, a Lease of that airspace will need to be granted to the Council.
Who is responsible for providing the Lease?
The Council. They have a standard form of Lease and this will be provided directly to your chosen firm of solicitors as part of the conveyancing transaction when you buy your property.
How long will the term of the Lease be?
The Lease will commence on the date you complete the purchase of your property. A period of 25 years will then be taken from this date and inserted into the Lease to reflect the expiry date of the feed in tariff for the solar panels.
For example, if the feed in tariff was due to expire on 06 December 2036 and completion of your property took place on 01 February 2019 the Lease would be for a term of around 17 years but in any event, would expire on 06 December 2036. The expiry date would be set out in the Lease and your solicitor should inform you of this.
Will the presence of solar panels on my roof affect my ability to obtain a mortgage?
Most lenders' mortgage conditions will require the lender's consent to be obtained to any Lease. Lender requirements are set out in the Council for Mortgage Lenders' Handbook for England and Wales and this is something that your solicitor will deal with on your behalf during the conveyancing transaction.
Will it cost me anything to enter into the Lease with the Council?
No. However your solicitor may charge you an additional fee for reviewing the terms of the Lease as part of the conveyancing work they will be carrying out on your behalf. Please speak to your solicitor about this.
What happens if I want to sell on during the term of the Lease?
You are free to sell your property at any time and the new owners would be buying your property subject to the terms of the Lease. If however the presence of the solar panels affects your right to sell, or your prospective buyer(s) from obtaining a mortgage, then the Council may have to revisit the position.
What happens when the Lease comes to an end?
When the Lease comes to an end, the Council has the discretion to remove the solar panels and will negotiate this with you at the time.
What are the Council's responsibilities in relation to the solar panels?
The Council will be responsible for:-
- Repairs and maintenance
- Carrying out inspections
- Insuring the panels including public liability cover
- Alteration / replacement of damaged panels / parts of the solar panel system
What if I need to carry out some repairs to my roof once I have bought the property?
Where in order to carry out roof repairs and the removal of the solar equipment is necessary, and then the Council would undertake the removal and reinstatement of the equipment. You would however be responsible for the costs associated with the removal and reinstatement of the equipment and potentially the loss of income from the energy created by the solar panels to the Council.
Any damage caused to your roof as a result of the solar panel installation would be covered by the Council's insurance.
What about other works I want to carry out to my property that may affect the solar panels?
Where works to the property you wish to carry out are near the solar panels and their associated equipment, then you may carry out such works with the Council's written permission. The Council will not unreasonably withhold this permission if you show that these works will not result in any interference with the solar panels and its equipment.
What is the benefit to me in entering into the Lease?
You will be entitled to use, free of charge, the energy generated by the solar panel system. This will help to reduce your reliance on electricity supplied through the National Grid and hopefully reduce your bill.
Disclaimer
The Council is not acting as an advisor or assuming any responsibility to you in providing this information and you should always seek your own independent legal advice.