Monday, 18 March 2013

Revised CML minimum requirements on leases of roof space for solar PV panels

Back June 2011, the CML published guidance and a template letter setting out lenders’ minimum requirements regarding leases of roof space for the purpose of installing solar PV panels.

As of today the guidance and template letter and agreed a number of minor changes reflecting the practical experience of the lenders.

The guidance has been amended to provide extra information regarding the need for obtaining a mortgage lender’s consent for leases of roof space, and this is directed to members of the public considering lease agreements. There are also a number of minor amendments, designed to improve clarity on what the minimum requirements are and where they can be found.  The guidance also refers to re-mortgaging of properties with these types of leases.  Some of the content has been re-ordered for a better flow.

The changes to the template letter are designed mostly to help clarify existing requirements and improve the flow of the letter.  However, as a result of lender experience, there are a couple of amendments to note:

  • An amendment has been inserted to strengthen the confirmations regarding building insurance; and
  • A requirement has been inserted to require appropriate approvals/certification for the installation.

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