Millions of homes insulated with spray foam are now facing difficulties due to its potential issues and rejection by mortgage lenders. This article addresses homeowner concerns about its impact on property value and potential removal costs.
We live in a small detached house. When we bought it many years ago, we had spray foam loft insulation installed.
There are estimated to be around 250,000 homes that have had spray foam insulation installed - much of this taking place under the previous government's Green Homes Grant scheme. RELATED ARTICLES Share this article Share HOW THIS IS MONEY CAN HELP Every lender will require a valuation before they lend, but this will vary from an in- person valuation to an online assessment, known as an automated valuation model . If it is the latter, you might get away with it on the mortgage side of things.
Why is spray foam insulation a problem?James Perris replies: Unfortunately, whilst this insulation was in part encouraged by the previous government, it is now rejected completely by many lenders, whilst other lenders will consider it on a case by case basis. Should you remove spray foam insulation?Paul Dunne replies: Until the type of spray foam that has been used has been identified, and you have established whether it was used correctly, it's difficult to say.
It may be worth looking at the paperwork. The last several years have seen a rise in 'cowboy' builders using the wrong type of spray foam insulation on the back of the well-intentioned but poorly practiced Green Home Grants, so how the installation was purchased and completed is important. So perhaps one solution would be to get the estimates now to show any prospective buyer and their mortgage lender what the worst-case scenario will cost.
It depends on the lender and the type of spray foam. For example, if you take Accord mortgages or the Skipton Building Society then they will be an automatic decline for the property, and that cannot be overturned unless the foam is removed and the timbers are deemed fine. Paul Dunne adds: Some lenders may be reluctant to offer a mortgage as it stands because they don't know what type of foam it is.Even if there is a British Board of Agrément Product Certificate - a document proving construction materials are fit for purpose - many lenders will ask for a 10 year insurance-backed guarantee.
Paul Dunne adds: Given the reputation and media coverage of this type of insulation, buyers may be put off and a valuation is, after all, only accurate if someone will pay that price. Spray foam is normally a red flag when undertaking a survey. But it can be a real problem, and it does need sorting so find out what you need to know first and foremost.
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