Lender consent and SNDAs for property improvement & solar energy financing Key point: As a property owner, once you've decided to seek approval (informal or formal/written) from your bank, its critical to engage with your relationship manager to make the case for the project. Present to the bank the same evaluation that you went through in your decision to pursue a project to add significant value to your property. Property owners need to convey their enthusiasm and due diligence, to highlight the reasons they are implementing improvements.
Your lender will benefit from significant increase in the value of the property - the bank's collateral - with limited encumbrances.
There is no automatic process within banks to review these requests. In our experience:
1. Banks prefer to preserve good relationships with existing lending customers.
2. Banks have taken favorable positions on efficiency and renewable energy projects.
3. Banks understand the improvements result in increased property (collateral) value, as well as cost savings (cash flow).
The property owner should convey the importance of the project to improvement value, revenue, occupancy, cost savings, or general marketability of the property - as well as its importance to the continued banking relationship.
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