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Does this seem legit?

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Does this seem a legitimate way of getting an ASHP? https://www.ebay.co.uk/itm/FREE-LG-Air-Source-Heat-Pump-Supplied-Installed-Pay-Just-25-Per-Month/254052998032?_trkparms=aid%3D555017%26algo%3DPL.CASSINI%26ao%3D1%26asc%3D55149%26meid%3D9d7364fc30d94196a1c922fc8c3a4612%26pid%3D101006%26rk%3D1%26rkt%3D1%26%26itm%3D254052998032&_trksid=p2045573.c101006.m3226

 

It says £25 per month for 7 years... which is £2100 apparently including fitting and 'maitenance'

 

Having no upfront cost would be pretty tempting for us, but seems like a low overall price? 

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I looked at these.  Basically they claim the RHI on your behalf so you won't get that if you were eligible so that is another way it is being paid for.

 

So for 7 years they get £25 per month from you plus whatever RHI payment it would be eligible for.

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--  get sizing checked by independant heating engineer-if not right size it will not be  as cheap to run as you think

and what happens if it dies -who pays to replace it for the rest of the 7 years

Edited by scottishjohn

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3 minutes ago, ProDave said:

I looked at these.  Basically they claim the RHI on your behalf so you won't get that if you were eligible so that is another way it is being paid for.

 

So for 7 years they get £25 per month from you plus whatever RHI payment it would be eligible for.

I think we would never get RHI anyway as wouldnt be able to afford an accredited installation and unit. So that's not too much of an issue for us. 

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2 minutes ago, scottishjohn said:

--  get sizing checked by independant heating engineer-if not right size it will not be  as cheap to run as you think

and what happens if it dies -who pays to replace it for the rest of the 7 years

our place is pretty small so I'd be surprised if it was too small but will check. 

Yes so I need to know if there's a warranty that applied, good point.

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Someone suggested one of these to me but I decided against because if I wanted to sell in the next 7 years while the RHI payments were running (I believe that ownership probably switches to you after that time) it might complicate things. I imagine there is a 'buy out' clause in the contract but that might be expensive if the buyer didn't want to commit to the system until the end of the term. Having read many examples of people who were caught out by the 'free solar panel' schemes and were now having difficulty selling their homes, getting a remortgage or equity release I decided not to progress it. Plus many of those companies went bust to complicate things even further. 

 

If you plan to stay there forever and never remortgage it might be worth considering I guess. They will probably only take your house on if it meets a certain RHI payment level I imagine so if your house is very well insulated they may not be interested as it may not generate enough income for them. 

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15 minutes ago, newhome said:

Someone suggested one of these to me but I decided against because if I wanted to sell in the next 7 years while the RHI payments were running (I believe that ownership probably switches to you after that time) it might complicate things. I imagine there is a 'buy out' clause in the contract but that might be expensive if the buyer didn't want to commit to the system until the end of the term. Having read many examples of people who were caught out by the 'free solar panel' schemes and were now having difficulty selling their homes, getting a remortgage or equity release I decided not to progress it. Plus many of those companies went bust to complicate things even further. 

 

If you plan to stay there forever and never remortgage it might be worth considering I guess. They will probably only take your house on if it meets a certain RHI payment level I imagine so if your house is very well insulated they may not be interested as it may not generate enough income for them. 

that's interesting newhome. 

 

We might sell within 7 years (who knows) and will definitely remortgage once the place is in the right condition. I figured that either this £25 would transfer for a few years (this wouldn't put me off as a buyer) or we would continue to pay it for the remainder of the 7 years (this wouldn't really botherme either, as it saves us from paying up front). What were the problems that solar panels brought on similar schemes? Just these or more complicated?

I figured if they went bust then we'd own the unit as it would be at our house and cant see them wanting to remove it, but I can ask them what would happen in those cases.

 

 

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ah " The only conditions are that you agree not to move or interfere with the system for a duration of 7 years from the date of install."

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The point is that the new buyer is not allowed to remove it whether they want to or not regardless of whether you are paying the £25, plus they have to commit to having an internet connection. Many buyers won’t want to be tied into something like that because they may want to remortgage or sell the house on and such an arrangement will limit what they are able to do. 

 

I believe that you will need to enter into an assignment of rights contract with the company. You should probably take legal advice before signing such a contract. If you sell, the buyer will have to agree to take on that contract unless you buy out of it. 

 

And they don’t own the system, you do, but you will have assigned the rights to the RHI payments to them so you have contractual obligations to meet in return. 

 

No doubt if the company went bust the assignment of rights would be transferred on to another company. 

 

 

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