Council of Mortage lenders
This guidance provides information for photovoltaic (PV) panel
providers and the public about lendersí minimum requirements with
respect to consenting to a lease of roof space for the installation of
PV panels (Ďthe panelsí) on the roof of a residential property.
The lease of roof space for panel installation is a relatively new
development, triggered by government policies designed to encourage the
generation of low-carbon energy.
Anyone considering agreeing
to a lease of their roof space for fitting PV panels should be aware
that most lendersí mortgage conditions will require the lenderís consent
to be obtained to any lease. Some lenders may also have in place
protections (in the form of restrictions entered on the title at Land
Registry) which prevent the registration of a lease without the lenderís
written consent. Borrowers may wish to consider contacting their lender
at the earliest opportunity (prior to entering into any arrangements
regarding panels) to check their requirements. Itís important to be
aware that proceeding without a lenderís consent, where required, may be
a breach of the mortgage terms and conditions, and even if the lease can
be registered, the lender may not be bound by it in the absence of their
The requirements relate to the installation of panels on properties
in England and Wales. Separate guidance is available for Northern
Ireland. We will consider developing guidance for Scotland.
The guidance includes:
- Background and information on the general process of seeking consent; and
- A template letter which contains the minimum requirements of lenders, in order to consent to a lease of roof space. PV panel providers can use this template letter to assist in the process of seeking consent from lenders to registering the lease.
Note: The minimum requirements contained in the letter are intended as general guidance only. Individual lenders may have different or additional specific requirements based, for example, on the circumstances of the borrower and/or the properties subject to their security. PV panel providers should always check with the lender to establish if their requirements for consent differ from the template letter before signing and submitting it.
Re-mortgages or applications for mortgages on properties with existing leases
Where a borrower seeks to
re-mortgage, or purchase a property with an existing PV panel lease, it
is likely the lender will review the lease with reference to the minimum
requirements set out here and with reference to any specific
requirements they have. If the lender feels that the lease does not meet
their requirements, they may request that the lease is varied, or may
choose not to lend on the property.
In addition, a list of lender point of contacts for panel lease consents is available as a quick reference for PV panel providers. The contact list is intended to give providers an initial contact point; however, depending on the nature of the provider enquiry, the lender may require verification of the providerís identity before releasing information.
The complete guide may be downloaded here for the different parts of the UK CLICK TO DOWNLOAD