Equity Release and Spray Foam Loft Insulation

oilpaint

My husband and I recently looked into equity release.  We have spray foam insulation in our loft, done 4 years ago, and during our conversation with an independent adviser, it came to light that some lenders won't entertain houses with it.  Our adviser tried three lenders, all of which would only except houses that had spray foam insulation applied when being built.  Even worse, the adviser warned us that they may not except us even if we had it removed because damage may have already been done.
What I don't understand is the government is offering a grant of £1500 (for those who qualify) to have spray foam insulation installed.
Our adviser further informed us that there are two types of foam, one that is hard and has no give and one which is soft and pliable.  We have the latter which up until recently some lenders would except but not anymore.
Things might change but until then think carefully before having your loft Spray foam insulated.

MWT

This concern applies equally to any mortgage, not just equity release...

Robara

I had the soft cell loft foam installed in 2018.  I am in the process of applying for equity release & the only way I can get this is to remove the foam from the loft.  I was told by the surveyor that mortgage companies, including equity release, will not take on a property with spray foam insulation. I am looking for quotes to get this done.

aoleks

why is this, btw? it must be a stupid reason to exclude all properties with foam insulation.

yessuz

i cannot remember if there was such question regarding loft insulation... was there one?

MWT

aoleks said:

why is this, btw? it must be a stupid reason to exclude all properties with foam insulation.

Not stupid at all, and to be precise, not all properties excluded...

The problem is that the spray foam hides the state of the roof structure making it impossible to verify that it is sound and generally in good condition.

If the roof condition is fully and properly documented and any problems rectified before it is applied then there are lenders that will consider it. This is why new-build property with it can be considered.

The problem is that a lot of the companies selling door-to-door just turn up, spray and move on... no preparation, no remediation, documentation...