Problems continue for owners of properties with spray foam insulation as lenders are still declining to provide mortgages.
The BBC reported in November 2024 that a quarter of the UK’s major mortgage lenders will not now lend if a property has spray foam insulation in the roof space. This means that when a homeowner comes to sell, the buyer may pull out. This can be for three main reasons:
- Their chosen lender will not provide them with a mortgage
- They are concerned about the condition of the roof space and potential damage from the spray foam, as well as the cost of removing it and remedying any problems
- They do not want to take on a property that they may struggle to sell in the future
What is spray foam insulation?
Spray foam insulation is a type of insulation that expands between 30 and 60 times when applied, pushing into every crack and corner of the roof or other space. It then sets, sticking to every surface it touches. Closed cell spray foam insulation is hard when set, so it is exceptionally difficult to remove and removal also usually causes damage.
It was originally considered to be a cheap and easy option for insulating properties before the problems became more widely known.
Why is spray foam insulation a problem?
Spray foam insulation can trap moisture, stop air circulating and cause problems with mould and the rotting of roof timbers. It can also place stress on roof timbers. If the foam covers cables, it can be dangerous as they may overheat.
Surveyors are unable to inspect the roof space and timbers because of the solid nature of the spray foam, so they cannot see the extent of any damage or rot.
Lenders are not prepared to take on properties that could be in a poor condition.
There are no equity release lenders who will lend against a property with the foam in place.
The type of spray foam insulation known as closed cell insulation is particularly problematic, although both types can trap moisture.
What are the options if you have this type of insulation?
Removal of spray foam insulation is very difficult as it sticks to everything it touches. It is important not to use a cowboy firm to try and have it removed, as there is a risk that substantial damage could be caused. There is some evidence that rogue spray foam removal firms may be on the increase to try and take advantage of an already difficult situation.
Reputable businesses exist who will be able to deal with the problem effectively, but the cost will be thousands of pounds. Even then, there is usually damage to the roof and repairs will be needed. In some cases, the roof may need to be replaced.
The alternative may be to try to find a buyer who is able to get a mortgage or to sell to a cash buyer. You may need to drop the price to do this.
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