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NLA releases Green Deal landlord solution

Julia Rampen
Written By:
Julia Rampen
Posted:
Updated:
07/02/2013

The National Landlords Association has launched a cost-neutral Green Deal solution to landlords seeking to meet energy efficient criteria.

Insulation, double glazing and other improvements can be paid for by a loan attached to the property’s electricity bill. However, due to energy savings, there will be no extra cost in bills, which may even go down.

NLA chief executive Richard Lambert said landlords only had a few years to comply with the government’s Green Deal scheme before their hands were forced: “We encourage all landlords with properties in need of energy efficiency improvements to take advantage of the Green Deal – it’s a win-win situation for both landlords and tenants.”

Launched last month, the Green Deal allows property owners to make energy-saving improvements without having to pay all the costs up front. Landlords must get their tenant’s permission before signing up. Repayments are made through the property’s electricity bill, meaning that tenants in rented property pay back the costs rather than the landlord.

Nationwide Building Society has also responded to the Green Deal with a product launch. Under the Green Additional Borrowing, from 8 February existing customers can borrow £5,000-20,000 up to a maximum LTV of 85% to fund non-structural, energy efficient home improvements. Rates will start at 2.29%.

Head of group mortgages Tracie Pearce said many customers were looking to make energy efficient home improvements to reduce bills in the longer term: “Green Additional Borrowing allows existing Nationwide mortgage customers, who are looking to make their home more energy efficient, the chance to borrow at a competitive rate of interest, with rates 0.50% lower than our standard further advance rates.

“We see this product as complementary to the Green Deal, which we have welcomed.”


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