The problem with leased Solar Panels

[jmn]

Fortunately not my problem...

I have a friend who had Solar Panels installed under a lease agreement many years ago.

In recent years his health has deteriorated significantly. He therefore needs to move into a sheltered accommodation unit which he would be purchasing.

He has been told by his Solicitors that the Panels make his property probably unmortgageable and therefore unsaleable. Two possible sales have fallen through because of the situation with the Panels.

The Company that owns the Panels has told him that he would have to pay many thousands of pounds to withdraw from the agreement. I believe that the Panels are about 15 years old. I do not know what their predicted lifespan would be.

Has anyone come across a similar situation and if so how was it resolved, if at all?

[NortonES2]

Only one I know of ended up selling to a cash buyer quite a bit cheaper than it would have been without this issue.

[peterperkins]

I have them on my bungalow, installed in 2014 by the then owners on a 25 year lease.
I get the free electricity the company gets the FIT payments.

I did ask if they would transfer the lease to my name but they wouldn't for some reason.
So the long dead lease holder is still on their system.

I can log onto the company website as the deceased and see how much they are generating.

The fact only cash buyers could potentially buy the property until the lease expires doesn't bother me.

[Mandat]

How long is left on the lease?

He might need to bite the bullet and pay the settlement to terminate the lease.

Alternatively, sell the house as cash only, but this will severely limit to pool of purchasers & most likely result in having to sell at a reduced price.

[OutInTheShed]

There may be an arbitration process with Ofgem?

I looked at a house with leased panels ages ago.
IIRC the starting point for buying out the lease was based on remaining FIT payments expected, something like 50p per kWh, x about 3500kWh/yr x number of years left. So tens of £k.

Free stuff comes with strings attached shocker.

[Little Lofty]

A friend has just pulled out of sale as the panels were leased, he was buying as a flip but his solicitor advised against the purchase due to problems re-selling, I won’t touch them for flips, I have bought one with panels but they were owned outright.

[andye30m3]

We had them on our old house, fitted by the previous owners. Was never an issue and didn't cause any problems when selling but that was 5 or 6 years ago so things may have changed since.