Spotlight on : The Green Deal

This is a government  based initiative designed to reduce carbon emissions and save energy. This scheme can assist homeowners to make their homes more energy efficient. Examples of works that can be carried out under this scheme are; insulation, heating, draught proofing, double glazing, solar panels, heat pumps.

Could you benefit from these energy saving improvements?

There are different ways that you can check this; talk to a Green Deal Assessor or provider, use an energy grant calculator or talk to the Energy Savings Advice Scheme. Details of all of these can be found on the government’s website(www.decc.gov.uk/greendeal)

How would I pay for these works?

The Green Deal provider will offer you a finance plan.  There is no set interest rate, it will be determined by the amount of your finance plan. Check with the provider for rates and fees.  The loan is paid back to the provider through a charge added to your electricity bill. The amount you repay, should not be more than the saving you make following the improvements.

How does this affect selling your property?

A property owner must make sure that they have obtained all the consents necessary for the works eg building regulation approval for solar panels, FENSA certificates for new windows. If your property is leasehold you may also need consent from the freeholder or management company to make alterations.

Once you have a buyer for your property you must ensure that any buyer is aware that you have had works carried out under the Green Deal before exchange of contracts. We as solicitors can add additional clauses into your contract for sale and ensure that you have completed any conveyancing forms properly to record this. If it is not disclosed to the buyer, the buyer could challenge the obligation to pay for this. Your estate agent can also make the buyer aware of this by furnishing the buyer with an up to date Energy Performance Certificate showing that you have the benefit of the Green Deal.

If you are buying a property with the benefit of Green Deal are you bound by it?

As we have stated you as a purchaser must be made aware of the Green Deal Loan and agree to be bound by it. If you do not agree to be bound by it, you can request that this is repaid by the seller on completion. We as solicitors can fully check all the details supplied by the seller to ascertain whether a Green Deal has been entered into. Should the seller not disclose the Green Deal on the legal forms then you can challenge the obligation to pay

It is very important whether you are selling or buying that you bring the existence of a Green Deal Loan to the attention of your legal advisor. 

Courtesy of RRF Solicitors.

If you are selling or buying a property and require any further advice on this area, please do not hesitate to contact us on 01253 621432.