Japanese knotweed and Natwest

laidbacklou

Hi hopefully i'm posting this in the right forum...

We got the results back from our survey and it turns out there is a small patch of jk in the garden. I was expecting the bank to at least need it investigating further but they have just said no to our application! Feeling really stressed right now as we had our hearts set on this house.

The vendor has already arranged a specialist survey and is willing to put a insurance backed treatment plan in place, but will this make any difference to the bank's decision for our mortgage?

According to the surveyor it is a small, isolated patch that looks treatable and hasn't caused any damage to the property so it hasn't put me off buying the place.

Does anyone know Natwest's policy on jk? and do you think we can get the decision changed?

Many thanks.

lessonlearned

We recently walked away from a house because the survey found JK. In our particular case Nationwide were prepared to lend. They said it was far away enough from the house.

However, we weren't prepared to buy because the JK was also in neighbouring gardens and on some waste-ground owned by the Council.

Yes we could treat it but there was no guarantee that the neighbours or the Council would be as diligent so we just weren't prepared to take the risk. The problem could have gone on for years.

HeadAboveWater

http://www.dailymail.co.uk/news/article-2354563/Family-devastated-house-sale-falls-minute-20-000-wiped-value--Japanese-knotweed-growing-council-land-garden.html

Furts

Sorry, but I would not entertain a house with knotweed present.

To suggest an insurance backed guarantee regarding the treatment is IMHO totally useless.

If the treatment fails, and there is every chance it will, Nat West are saddled with a potential insurance dispute.

If it is treated and the test of time shows nothing has re-occured that is a different matter.

anyonefortennis

Hi laidbacklou,

Surveyors carrying out homebuyers surveys are not generally knotweed experts, therefore it is good practice to await the results of the specialist assessment to ensure that the suspected knotweed has been correctly identified.

JK appears to be the latest item to worry homebuyers; previously it was Radon, before that it was asbestos. All of these items, including knotweed, can be resolved or managed with relative ease – especially if there is only a small isolated patch.

If the specialist survey does indicate the presence of JK, then a specialist surveyor (such as Japanese Knotweed Solutions, Japanese Knotweed Ltd, etc.) will produce a comprehensive report and treatment solution package that enables mortgage providers to make an informed decision.

I’m surprised that the NatWest has responded with an automatic no, as generally a mortgage decision would be made on a case-by-case basis following the results of a specialist survey. Have you actually received a detailed response from the mortgage advisor/ underwriter?

Major UK mortgage lenders do accept that a knotweed management plan, backed by a third party bonded guarantee, can provide a reliable remediation solution for residential properties.

So, I would await the results of the specialist survey and then, if JK is confirmed, present the report to the NatWest for an informed decision to be made.

It sounds like the matter is being dealt with properly by the vendor; so hopefully you’ll receive an informed and positive decision shortly - and soon be in your new home!

Delara

laidbacklou wrote: »

Hi hopefully i'm posting this in the right forum...

We got the results back from our survey and it turns out there is a small patch of jk in the garden. I was expecting the bank to at least need it investigating further but they have just said no to our application! Feeling really stressed right now as we had our hearts set on this house.

The vendor has already arranged a specialist survey and is willing to put a insurance backed treatment plan in place, but will this make any difference to the bank's decision for our mortgage?

According to the surveyor it is a small, isolated patch that looks treatable and hasn't caused any damage to the property so it hasn't put me off buying the place.

Does anyone know Natwest's policy on jk? and do you think we can get the decision changed?

Many thanks.

Does that mean the property is unmortgagable? Its the seller I feel sorry for, now his valuation is gone down a long way. He has to find a cash buyer.

The seller should sort out the problem, maybe in 6months try again to get a mortgage with a different bank?

cattie

I'd never consider a house with jk. There are plenty of houses out there as it's still very much a buyer's market, so walk away & find something without such a major problem as this.

It is in the sellers own interest to try to get the jk problem sorted before they can sell the house.

Furts

cattie wrote: »

I'd never consider a house with jk. There are plenty of houses out there as it's still very much a buyer's market, so walk away & find something without such a major problem as this.

It is in the sellers own interest to try to get the jk problem sorted before they can sell the house.

There is a counter point here. It is the sellers interest to make the problem go away. The house is then sold. Twelve months on and the issue could re-appear but the seller has no responsibility for it.

Most sellers will be looking for the cheapest solution and cheapest insurance guarantee, then not check, supervise and oversee the treatment. The subsequent risk element and potential hassle of claiming on an insurance policy becomes a problem of the new purchaser.

It is a similar argument to buying a secondhand car. You are offered one with a perfect service history and it is well maintained. You are also offered one which has just had the engine re-built. The re-built engine has not been run in and no one knows the quality of the rebuild. Which one would you buy?

The reasoning behind my earlier post was time will tell if the treatment has been successful.

I have seen many JK problems on sites and I question some of the treatment and control.

Paddock_JAG

As a chartered surveyor with over 15 years experience, Japanese Knotweed need not be the death sentence some in the media are keen to portray.

It is true that its a very nasty plant and it can have a real impact to the structure of the building, but usually if treated by a reputable contractor the risk can be nullified.

The main thing to look out for is that the vendor of the property uses a reputable experienced contractor to dispose of the knotweed, they should get a clearance certificate and a guarantee which can then be passed on to future purchasers, should the knotweed ever come back then action can be taken against the contractor, it works in much the same way as a certificate for the treatment of damp in older properties.

The media have latched on to this species the same way they did about High Alumina Cement (HAC) in the 70's and Asbestos in the subsequent years however all these things can be removed by specialist contractors who know what they are doing.

My advice would be to obtain the report and guarantee and don't worry too much. If you take a railway journey anywhere look out of the window and you will see acres of knotweed. Its important not to make rash decisions just focus on the treatment and all should be fine.

pimento

Now my wink has been tipped, if I were selling my house and I had JK in my garden, I might be minded to scythe it down so the surveyor wouldn't notice it.

What's to stop a vendor doing just this?

wannahouse

anyonefortennis wrote: »

Hi laidbacklou,

Surveyors carrying out homebuyers surveys are not generally knotweed experts, therefore it is good practice to await the results of the specialist assessment to ensure that the suspected knotweed has been correctly identified.

THIS!

We had some idiot Valuer claim there was japanese knotweed on the property we are buying, and i KNEW there was not, as i would have noticed it!
We also had the bank come bank and say they wouldn't lend on the property as a result, but as i KNEW there was no Jap kweed on the property, we paid for a specialist to do a survey of the full property and its boundaries, who found not only was there any past or present knotweed, but no other noxious or invasive weeds of any kind on the property (which is a few acres) . On top of that, there wasn't even any thing that RESEMBLED knotweed that you could confuse it with...
We sent this to the underwriters and much to the valuers disdain, have got the process back on track...(although he's trying other things on now!)

this is not to say the property you are looking at doesn't have it..it very possibly does...have you noticed anything whilst looking around that could resemble it in any of its growth stages??? If not, go back, look for the supposed knotweed, and if you believe the valuer is mistaken, get proof!