Spray foam insulation mortgage

Beckymac86 · 2023-05-18T12:25:53+00:00

Hi all we are in the process of buying a property and unfortunately the bank valuer found open cell spray foam in the loft (installed in 2021). Vendors have all the paperwork and gaurantees but bank won’t touch it. The vendor has offered to remove it and have it all documented correctly, and if the bank agrees to mortgage it we are keen to buy. Just wondering if anyone has bought a property where spray foam was removed and if you had issues reselling. Thanks!

BunchOfBobs · 18/05/2023 14:02

Sorry OP but I say run.

We had our heart set on a house from October. After lots of messing about with our buyers pulling out and the vendors waiting we finally got to the mortgage valuation. They rejected for the same reason. They requested an invasive structural survey on the roof with outlined remedial works and costings that need to take place.
We had lots of issues trying to track a surveyor willing to do it. Cost £1k and we had to pay, not the vendors.
In the end the vendors would have needed to replace the entire roof structure all joists etc and were quoted £50k+. We ended up looking elsewhere and finding an even nicer property.

As I type I'm having the roof of my house replaced (waiting on exchange date for the the move) for the same reason. Timbers all fine, just batons gone. Thankfully buyers lenders never came in the property so it was just our honesty flagging it.

It's horrible stuff, ruins roofs and will just cause more hassle when you try sell.

Run, and don't look back.

MothershipG · 18/05/2023 14:41

I work at an estate agents & we've just had a sale fall through for this reason.
Apparently some specialised mortgage firms will lend but rates are high.
Check with your lender what evidence they will require, probably specialist surveys as @BunchOfBobs said.
So unless this is a unique, once in a lifetime buy, for which you are prepared to endure costs & time, you will probably need to let this one go.

MRSB1980 · 18/05/2023 15:11

Hi. We had this issue when we bought our current house 2 years ago. Mortgage lender refused to lend at first. In the end we had to prove we had the funds to replace the entire roof and they then approved the mortgage less the cost of the roof.

luckily the house we have bought is a forever home so no plans to move but we do plan to replace the roof at some point so when it is sold one day there won’t be a problem.
good luck with whatever happens, and it’s good your vendors are willing to pay for the costs ours wouldn’t have done x

KievLoverTwo · 18/05/2023 15:24

What on earth does this stuff do that means mortgage lenders won't lend on it?

And why do people get it instead of normal insulation?

sillyonehetpes · 18/05/2023 15:25

I thought open cell was ok?

Not that I would get it done

MRSB1980 · 18/05/2023 17:30

It’s something that mortgage lenders didn’t used to have a problem with, but building regs changed and now they do! It’s basically like a big honeycomb, and the problem is if any of the roof needs repairing it all has to come off at once as you can’t spot repair so I think that’s the problem

BunchOfBobs · 18/05/2023 17:42

It can cause timber rot. Condensation can build up and has nowhere to go. Moisture in the timbers and therefore rot.

The house we were trying to buy has wet joists when we got the roof survey. Ours thankfully dry but the batons had rot in them.

Additionally as @MRSB1980 says, you can't spot where an issue is, so if you have a leak it's all got to come off.

Our roofers have vowed to never do another roof that has foam on again. It's taken them more than double their usual time to do it.

Original poster

Beckymac86 · 18/05/2023 21:29

Thanks everyone for your comments! The vendors have changed their mind and decided they want to try and market the property again and see if a new buyer is able to find a lender who will approve the mortgage with the foam issue. So the decision has been taken out of our hands. Based on all the research I have done it would seem lenders have only got more strict about this insulation over the past few years and I don’t want to inherit someone else’s problem. So sadly we won’t be proceeding further with this purchase.

OP posts:

sillyonehetpes · 18/05/2023 21:43

Beckymac86 · 18/05/2023 21:29

Thanks everyone for your comments! The vendors have changed their mind and decided they want to try and market the property again and see if a new buyer is able to find a lender who will approve the mortgage with the foam issue. So the decision has been taken out of our hands. Based on all the research I have done it would seem lenders have only got more strict about this insulation over the past few years and I don’t want to inherit someone else’s problem. So sadly we won’t be proceeding further with this purchase.

You would need a whole new roof, all wood replaced etc

MothershipG · 19/05/2023 11:57

Beckymac86 · 18/05/2023 21:29

Thanks everyone for your comments! The vendors have changed their mind and decided they want to try and market the property again and see if a new buyer is able to find a lender who will approve the mortgage with the foam issue. So the decision has been taken out of our hands. Based on all the research I have done it would seem lenders have only got more strict about this insulation over the past few years and I don’t want to inherit someone else’s problem. So sadly we won’t be proceeding further with this purchase.

They are probably hoping that a different buyer will get a mortgage offer with a desktop valuation so the bank won't know. However if the new buyer has a survey, it will once again become an issue.

@Beckymac86 Hope you find some where you like even more!

Original poster

Beckymac86 · 19/05/2023 12:54

That’s right but as I told the EA they have a duty of care to inform the buyer and any mortgage holder is legally obliged to inform their lender if they have spray foam but then if everyone keeps quiet how would they find out! I hope we find something … London housing market with current interest rates is just horrendous 😭

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