Solar Panels on a Leasehold Property: What Sellers Need to Know

Solar panels on a leasehold property introduce a layer of complexity that does not exist with freehold homes. In a freehold sale, the seller owns the building and the land, so solar panel documentation is relatively straightforward. In a leasehold sale, the freeholder owns the building structure — including the roof — which means any installation of solar panels almost certainly required the freeholder's prior consent. If that consent was not obtained, or if the panels are subject to a separate lease or rental agreement, the conveyancing process becomes significantly more involved.

This guide covers every aspect of selling a leasehold property with solar panels, from the different types of solar panel arrangements to freeholder consent, tariff transfers, and the specific enquiries the buyer's solicitor will raise. If you are selling a freehold property with solar panels, see our separate guide on selling a house with solar panels.

Types of solar panel arrangements

Before you can prepare for the sale, you need to understand what type of solar panel arrangement you have. There are four common scenarios, and each has different implications for the conveyancing process.

If you are unsure which arrangement you have, check your paperwork from the time of installation. If you cannot find it, check your property title at HM Land Registry for any charges or restrictions related to solar panels — a registered charge indicates a third-party interest. You can also contact the installing company if you remember who they were.

Freeholder consent: the critical issue

The single most important question when selling a leasehold property with solar panels is whether the freeholder gave consent for the installation. Most leases contain clauses that restrict or prohibit alterations to the exterior of the building without the freeholder's prior written consent. Installing solar panels on a roof is an exterior alteration, and in a block of flats, the roof is typically a common part owned by the freeholder.

What the lease usually says

A typical lease will contain one of the following positions on alterations:

• Absolute prohibition. The lease says you must not make any alterations to the exterior without consent, and the freeholder has complete discretion to refuse. This is common in larger blocks.
• Qualified prohibition. The lease says you must not make alterations without consent, but adds that consent must not be unreasonably withheld. This gives you more scope to challenge a refusal.
• No restriction. Rare, but some older leases do not specifically address exterior alterations. Even in this case, the freeholder may argue that the installation affects the common parts.

If consent was obtained, you should have a licence to alter — a formal document from the freeholder granting permission for the installation, usually subject to conditions such as maintaining insurance, keeping the panels in good repair, and removing them at the end of the lease term if required. This document is essential for the conveyancing process.

What happens if consent was not obtained

If the panels were installed without the freeholder's consent, you have a breach of lease. This will be discovered during the buyer's solicitor's enquiries and can cause significant delays or even collapse the sale. Your options are:

1. Apply for retrospective consent. Contact the freeholder and explain the situation. Many freeholders will grant retrospective consent for a fee, typically £250 to £750 plus their legal costs. This is the cleanest solution.
2. Obtain a deed of variation. If the freeholder agrees, a deed of variation can be used to formally amend the lease to regularise the installation. This is more expensive and time-consuming than a simple licence to alter.
3. Purchase indemnity insurance. If the freeholder cannot be contacted or refuses to engage, an indemnity insurance policy can cover the risk of the freeholder taking enforcement action. The buyer's solicitor may accept this as a pragmatic solution, but some mortgage lenders are cautious about relying on indemnity insurance for lease breaches.
4. Remove the panels. As a last resort, you could remove the panels before sale. This eliminates the issue entirely but involves the cost of removal, potential roof repair, and the loss of any tariff payments.

Feed-in Tariff and Smart Export Guarantee transfers

If your solar panels generate income through the Feed-in Tariff (FiT) or the Smart Export Guarantee (SEG), you need to deal with the transfer as part of the sale. The process is the same whether the property is leasehold or freehold, but on a leasehold property the buyer's solicitor will want to confirm that the tariff registration is consistent with the freeholder's consent and the panel ownership arrangements.

Feed-in Tariff transfers

The FiT scheme closed to new applicants on 31 March 2019, but existing registrations continue to receive payments for their full 20-year or 25-year term. FiT payments transfer with the property to the new owner. You need to:

• Notify your FiT licensee (the energy company making the payments) of the change of ownership
• Provide the buyer with details of the licensee, the installation date, and the current tariff rates
• Confirm whether the FiT registration is in your name or in the name of a leasing company (if the panels are leased, the FiT may be registered to the leasing company, not you)

For leased panels where the installing company retained the FiT generation tariff under a “free installation” scheme, there is nothing to transfer to the buyer — the company continues to receive the generation payments. However, this arrangement must be fully disclosed.

Smart Export Guarantee

The SEG, which replaced the FiT export element from 1 January 2020, is simpler to handle. Unlike the FiT, the SEG is not a long-term contract tied to the property. The buyer simply signs up with their chosen energy supplier after completion. You should provide the MCS certificate (required for SEG eligibility) and details of any smart meter, as a smart meter or export meter is needed to receive SEG payments. For a full explanation of how solar panel tariffs work during a property sale, see our guide on selling a house with solar panels.

What the buyer's solicitor will ask

Expect the buyer's solicitor to raise detailed enquiries about the solar panels in addition to the standard leasehold enquiries. Being prepared with answers and documentation upfront prevents delays. Typical enquiries include:

Being ready with these documents from the outset can save two to four weeks of back-and-forth enquiries. Gather everything before you list the property if possible.

The management pack and solar panels

When selling a leasehold property, you must order a leasehold management pack from your freeholder or managing agent. This pack covers service charges, ground rent, building insurance, and other leasehold matters. Solar panels add a further dimension to this process.

Specifically, the management pack may need to address:

• Whether the freeholder or managing agent is aware of the solar panel installation
• Whether the building's insurance policy covers the solar panels (or whether the leaseholder or a third-party company insures them separately)
• Any conditions attached to the freeholder's consent, such as a requirement to remove the panels at the end of the lease or upon the freeholder's request
• Any service charge contributions related to the maintenance of the roof area where the panels are installed

The cost of the management pack is typically £200 to £500 plus VAT, and it takes two to four weeks to arrive. Ordering it early — before you list the property — is the single most effective step you can take to avoid leasehold-related delays.

The TA6 and TA7 forms: disclosing solar panels

When selling a leasehold property, you complete both the TA6 Property Information Form and the TA7 Leasehold Information Form. Solar panels should be disclosed across both forms.

TA6 disclosure

The TA6 form covers alterations and improvements in Section 5. You should declare the solar panel installation here, noting:

• The date the panels were installed
• Whether freeholder consent was obtained (and attach the licence to alter)
• Whether planning permission was required or permitted development applied
• Whether building regulations approval was obtained (the MCS certificate typically serves as evidence under a competent person scheme)
• Details of any guarantees or warranties

If the panels are leased or rented, you should also disclose the existence of the solar panel lease or PPA in the section covering rights and informal arrangements, and provide a copy of the agreement as part of your draft contract pack.

TA7 disclosure

The TA7 does not have a dedicated solar panel section, but the information it requires about the building's insurance, alterations consented to by the freeholder, and any third-party interests in the property should all reflect the solar panel installation. Ensure the TA7 answers are consistent with the TA6 and with the information in the management pack.

Leased solar panels on a leasehold property: double complexity

Having leased solar panels on a leasehold property creates what conveyancers sometimes describe as a “double leasehold” situation. You have your property lease with the freeholder, and a separate solar panel lease with the panel company. Both must be dealt with during the conveyancing process.

Solar panel lease assignment

The solar panel lease or PPA must be assigned to the buyer, just as it would be on a freehold property. The process typically involves:

1. Contacting the solar panel company to notify them of the sale and request assignment paperwork
2. The company reviewing the buyer's details and agreeing to the assignment
3. Both parties (or their solicitors) signing the deed of assignment
4. The company confirming the transfer is complete

This process can take two to four weeks, running in parallel with the property conveyancing. Contact the solar panel company as soon as you accept an offer to avoid the assignment sitting on the critical path.

Title charges from the solar panel lease

Many solar panel leases include a charge or restriction registered against the property title at HM Land Registry. On a leasehold property, this charge sits alongside the existing leasehold interest, which can cause complications with the buyer's mortgage lender. Some lenders are reluctant to lend on a leasehold property that also has a third-party charge from a solar panel company.

If there is a title charge, the buyer's solicitor will need to confirm that the charge will be released or transferred as part of the sale. Work with the solar panel company and your solicitor to ensure this is addressed early in the process.

EPC impact on a leasehold property

Solar panels improve the Energy Performance Certificate (EPC) rating regardless of tenure. A typical 3 to 4 kW system can lift an EPC by one or two bands, which is a genuine selling point for leasehold properties where buyers are particularly conscious of running costs (service charges and ground rent already add to monthly outgoings).

Make sure your EPC is up to date and reflects the solar installation. If your current EPC was issued before the panels were installed, it will not show the improved rating. A new EPC costs £60 to £120 and is valid for 10 years. The improvement in rating applies whether the panels are owned, leased, or rented — the assessment considers the energy generated, not the ownership structure.

Several UK lenders now offer green mortgage products with preferential rates for properties with an EPC rating of A or B. Solar panels can help a leasehold property reach these thresholds, making it more attractive to a wider pool of buyers.

Planning permission considerations

Most domestic solar panel installations fall under permitted development rights and do not require planning permission, provided the panels do not protrude more than 200mm from the roof surface and do not face a highway in a conservation area. However, there are additional considerations for leasehold properties:

• Flats above a shop or in a mixed-use building. Permitted development rights may not apply in the same way as for a standard residential dwelling. Check with your local planning authority.
• Listed buildings. Listed building consent is required for any external alteration. If the leasehold property is in a listed building and the panels were installed without listed building consent, this is a serious issue that must be resolved before sale.
• Conservation areas. Panels on a roof facing a highway in a conservation area require planning permission rather than relying on permitted development.
• Communal roof areas. In blocks of flats, the roof is typically a common part. Even if permitted development applies from a planning perspective, the freeholder's consent is still needed as a separate matter under the lease.

The buyer's solicitor will ask about planning permission as part of their enquiries. If you cannot provide evidence that the correct permissions were obtained, indemnity insurance may be needed. This is distinct from, and in addition to, any issue around freeholder consent.

Preparing for a smooth sale: practical checklist

The key to selling a leasehold property with solar panels without delays is thorough preparation. Here is what you should do before listing:

1. Confirm the panel arrangement. Establish whether the panels are owned, leased, rented, or installed under a free scheme. Check your paperwork and your property title for any registered charges.
2. Locate the freeholder's consent. Find the licence to alter or written consent from the freeholder. If consent was never obtained, contact the freeholder immediately to apply for retrospective consent.
3. Gather all solar panel documentation. Collect the MCS certificate, electrical installation certificate, warranties, and any planning or building regulations evidence.
4. Order the management pack early. Request the leasehold management pack from your managing agent before you list. Make sure the pack reflects the existence of the solar panels.
5. Contact the FiT licensee or SEG provider. If the panels are registered for the Feed-in Tariff, get your latest statement and confirm the transfer process. For SEG, ensure the MCS certificate is available for the buyer.
6. Contact the solar panel leasing company (if applicable). Request assignment paperwork and ask about the process, timeline, and any fees.
7. Update your EPC. If your EPC predates the solar installation, get a new one that reflects the improved energy performance.
8. Check your insurance. Confirm your buildings insurer (or the freeholder's insurer) is aware of the panels. If the panels are leased, obtain the leasing company's insurance details.
9. Complete the TA6 and TA7 thoroughly. Declare the panels on both forms and provide all supporting documents with your draft contract pack. For guidance on what the leasehold selling process involves, see our detailed guide.
10. Brief your solicitor. Ensure your solicitor knows about the panels from the outset, including the ownership arrangement, the freeholder consent position, and any tariff registrations.

Sources

• Ofgem — Feed-in Tariffs scheme and Central FiT Register (ofgem.gov.uk)
• Ofgem — Smart Export Guarantee guidance (ofgem.gov.uk)
• MCS (Microgeneration Certification Scheme) — mcscertified.com
• GOV.UK — Feed-in Tariffs: get money for generating your own electricity
• GOV.UK — Permitted development rights for householders: technical guidance
• Energy Saving Trust — Solar panels and energy efficiency (energysavingtrust.org.uk)
• LEASE (Leasehold Advisory Service / Leasehold Knowledge Partnership) — lease-advice.org
• UK Finance Lenders' Handbook — ukfinance.org.uk
• HM Land Registry — Practice Guide 62: Charges (gov.uk)
• Town and Country Planning (General Permitted Development) (England) Order 2015 — legislation.gov.uk
• Leasehold and Freehold Reform Act 2024 — legislation.gov.uk

Frequently asked questions