Purchasing A Property Which Benefits From The Green Deal
What is the Green Deal? The Green Deal is a scheme that is aimed at mature properties in which homeowners can install energy saving measures with or without finance in order to improve the costs of the property’s energy bills.
Green Deal finance is not like a typical property loan or mortgage. This loan does not require redeeming when the property is sold to a new buyer, instead, the loan stays on the property and is transferred to the new owner. As the loan is not a legal charge, Conveyancers are solely dependent upon the Sellers confirming any such Green Deal Finance within the Law Society Protocol forms, in particular, the Property Information Form which forms part of the Draft Contract Package supplied at the beginning of a purchase transaction.
Such energy-saving improvements include loft insulation, new double glazing, energy efficient light bulbs and energy efficient boilers/central heating system.
When purchasing a property that has a Green Deal package, Buyers need to carefully check the terms of the original finance agreement made by the Green Deal provider as the repayment terms vary. For example, the original deal may have been for a family of 4 and therefore would be beneficial to them having the agreement but may not work for you if you will be occupying the property solely as there could be an increase in the energy bills payable.
In theory, the repayments should be covered by the savings made on the energy bills from having the energy saving improvements made and an owner should not pay back more in the loan repayments than they are saving on their energy bills.
If you are buying a property that has had works to improve energy efficiency, tell your Conveyancer. For more information about purchasing a property which benefits from the Green Deal Talk to Tollers