What usually happens however is the solar panel provider takes a lease of your roof (usually for a 25 year period), installs the panels free of charge, you receive free electricity but the profit from the surplus goes to the solar panel company.

This is a more economical method of installation and of course the incentive is free electricity.

Sounds like a win win situation – but a lease of your roof does have legal implications.

What you may not realise is that where you have a mortgage, you must seek consent from your mortgage provider for the solar panel company to register a lease of your roof space and the air space above the roof.

Thought should be given to maintenance of the installation and indeed, whether on initial installation, any strengthening works are necessary to be compliant with Building Regulations.

You are required to obtain Building Regulation approval unless the work is carried out by an installer registered with a ‘Competent Person’ self-certification scheme. The adequacy of the existing roof to take the increased loads will need to be assessed, and some strengthening may be required.

Planning Permission also needs to be considered in certain circumstances but in the majority of cases installing solar panels on is likely to be considered ‘permitted development’ with no need to apply to the Council for Planning Permission. There are, however, important limits and conditions which must be met to benefit from the permitted development rights and it is advisable to discuss your installation with the local planning authority prior to signing any contract or lease.

Consideration should also be given to damage which may be caused both on installation and subsequent removal of the solar panels as the installation does involve the internal roof support structure and so tile damage and water penetration can sometimes be an issue.

When you come to sell your property, consideration should be given to whether the existence of solar panels is going to reduce the market available to you.

Some mortgage providers are still unwilling to lend against properties where solar panels have been installed under lease schemes. This in itself does therefore impact on the market available to you when you wish to sell. The majority however will lend, but there is still certain criteria which needs to be met before most will agree to proceed.

Most importantly lenders need to have a right to break the lease and have the solar panels removed in circumstances where they adversely affect the sale of a property where it has been repossessed.

The Council of Mortgage Lenders provides very clear guidance on all aspects of solar panels to its members and Solicitors as to what needs to be in place before a property can be deemed as acceptable security for lending purposes and in almost all cases, documentation has to be referred to the lender before a transaction can proceed.

The same provisions apply when you decide to re-mortgage your property where solar panels are already installed.

In view of the additional consideration which must be given to the existence of solar panels, the timing of a conveyancing transaction can take several weeks longer than usual to reach completion.

If you have any queries regarding purchase or sale of a property with solar panels, then please get in touch.

Angela Mulgrew

Legal Exec

Conveyancing

September 2014

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Answer: The starting point is to check whether your tenancy was authorised by the Bank? I.e. did your Landlord obtain written authorisation from the Bank to let out the property or in the alternative does he or she have a buy to let mortgage which may imply that the tenancy was authorised.

If the tenancy was authorised then it is likely to be binding on the Bank. The Bank may still take possession of the property but they may have to do so subject to your occupation. The practical effect of this is that you would be allowed to remain living in the property subject to the terms of your tenancy agreement but you would see a change in the identity of the Landlord. It is possible for the tenancy to be brought to an end but in accordance with the terms of the tenancy agreement.

If the tenancy was not authorised then tenants have much fewer rights. The Landlord may be able to come to an acceptable arrangement with the Bank to avoid repossession however if this is not possible then it is likely that the Bank will take possession of the property.

Under the Mortgage Repossession (Protection of Tenants Act etc) 2010 (the “Act”) an unauthorised residential tenant is however entitled to request that possession be delayed for up to two months during which time they should try to find alternative accommodation.

The unauthorised tenant should approach the Bank’s legal representatives with a copy of their tenancy agreement and should request that the Bank provides them with an undertaking pursuant to the Act that they will not take possession of the property for a period of up to two months.

In the vast majority of cases the Bank will grant this undertaking because if it does not then the tenant may apply to the Court for an Order that possession is delayed for up to two months. The Court must consider the circumstances of the tenant and whether there is an outstanding breach by the tenant of a term in the unauthorised tenancy agreement. The Court is likely to make this Order provided that this relief has not been granted previously in the same proceedings.

The tenant may also have a claim against the Landlord for breach of the covenants in the tenancy agreement.

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