Quick answer
Yes, but it can take longer. Leased or "rent-a-roof" solar panels usually involve a long lease of your roof space to a solar company. Your buyer's lender must be happy with the lease terms, which often means checking it against lender requirements and sometimes agreeing a variation or buying out the lease.
On this page
In the early 2010s, many homeowners had solar panels fitted free of charge by companies that leased their roof space. These "rent-a-roof" schemes cut electricity bills, but when the owner comes to sell they can cause delays. The good news is that most of these sales do complete with the right preparation.
Owned panels vs leased panels
It is important to know which type you have:
| Type | Who owns the panels? | Typical impact on a sale |
|---|---|---|
| Bought outright | You | Usually straightforward; provide installation and electrical certificates. |
| Bought with a finance agreement | You, subject to the loan | Settle or transfer the finance; provide paperwork. |
| Leased roof space ("rent-a-roof") | The solar company | Lease must satisfy the buyer's lender; can delay the sale. |
With a roof lease, you granted a lease of the airspace or roof to the solar provider, often for 20 to 25 years. The provider owns the panels and takes the feed-in tariff payments. You get the free electricity generated.
Why do lenders care about solar panel leases?
A roof lease is a legal interest in your property. It gives a third party rights to access the roof, maintain the panels and keep them in place. Lenders want to be sure that the lease will not stop them selling the property if they ever need to repossess, and that it will not damage the building.
The UK Finance Lenders' Handbook guidance on solar panels sets out the points conveyancers check. Individual lenders add their own requirements. Typical concerns include:
- Whether the lender can terminate the lease, or have the panels removed, if it repossesses.
- Whether the lease allows the homeowner to carry out roof repairs.
- Responsibility for any damage caused by the panels or their installation.
- Whether the lease was registered at HM Land Registry, if it needed to be.
- Whether the original mortgage lender consented to the lease when it was granted.
- Whether the installation had planning permission (if needed) and building regulations compliance.
What usually happens during the sale?
Your buyer's conveyancer will raise enquiries about the panels as soon as the draft contract pack arrives. They will check the lease against their lender's requirements. Common outcomes are:
The lease is acceptable
Many solar providers updated their leases after lenders raised concerns, and newer lease terms often meet lender requirements. The sale can then proceed, with the buyer taking the property subject to the lease.
A deed of variation is needed
If the lease falls short, the solar company may agree a deed of variation to bring it in line. Some providers have a standard process for this, but it can take several weeks and there may be a fee.
The lease is bought out
Some providers allow homeowners to buy out the lease, so the panels become owned outright. The price varies depending on the time left and the provider's terms. This can be the quickest route if variations are not available.
The panels are removed
Occasionally removal is the only practical solution. It may involve a cost and you would need to make sure the roof is properly made good.
How can sellers avoid delays?
- Tell your estate agent and conveyancer early that the panels are leased.
- Contact the solar company before you list the property. Ask whether the lease meets current lender requirements and whether a variation or buyout is available.
- Find your documents: the lease, the MCS certificate, electrical certificates and any lender consent.
- Disclose the panels accurately on your property information forms. Misdescribing them can lead to disputes.
- Allow extra time in your chain for the solar company to respond.
Our selling conveyancing guide explains what else goes into the contract pack.
What if you are the buyer?
If you are buying a house with leased panels, ask your conveyancer to check the lease early and confirm your lender is happy. Consider whether you want the panels at all. Some buyers negotiate on price to reflect the cost of buying out or removing them. If your lender declines, our guide on lenders rejecting properties sets out your options.
Does this affect remortgaging?
Yes. Your new lender will look at the roof lease in the same way a buyer's lender would. If you plan to switch lenders, starting the conversation with the solar company early can avoid problems. See our remortgage conveyancing page for more on the process.
What documents will the buyer's conveyancer ask for?
Having these ready from the start can save weeks:
- A copy of the roof lease and any deeds of variation.
- Confirmation of whether the lease is registered at HM Land Registry.
- The Microgeneration Certification Scheme (MCS) certificate for the installation.
- An electrical installation certificate, and any building regulations compliance certificate.
- Your original mortgage lender's consent to the lease, if you had a mortgage at the time.
- Contact details for the solar company and the reference number for your installation.
If anything is missing, the solar company or installer may be able to provide copies. Ask them early, because response times vary between providers.
Will leased panels affect the price?
Some buyers see free electricity as a benefit, while others are wary of the lease and the restrictions it imposes on the roof. The effect on price varies. If the lease has only a few years left, or the provider offers a reasonable buyout, buyers may be more relaxed. Your estate agent can advise on local demand.
How we can help
An experienced conveyancer can review your roof lease and keep the sale moving. Request a free, fixed-fee conveyancing quote today.
Frequently asked questions
Do leased solar panels make a house unmortgageable?
No. Most houses with roof leases can be mortgaged, but the lease must meet the lender's requirements. Where it does not, a deed of variation or a buyout of the lease usually solves the problem. A small number of lenders are more cautious, so a broker can help.
How do I know if my solar panels are leased?
If you did not pay for the panels and the solar company receives the feed-in tariff payments, they are very likely leased. Your title register may also show a lease of the roof space. Check your paperwork or ask the provider directly.
Who pays to buy out a solar panel lease?
Usually the seller, because the lease was their arrangement and buying it out can unlock the sale. However, it is negotiable. Some buyers agree to share the cost or accept a price reduction instead. Your conveyancer can help you reach a fair agreement.
This guide is general information about the law in England and Wales as at the date shown above. It is not legal advice. Every property is different, so ask your conveyancer about your own situation. More in Conveyancing problems and how they're solved.
