Spray foam insulation

Huiyy

Hi. I viewed a house and took my brother and he noticed there was spray foam insulation in the loft. He’s no expert so we asked a family friend who is a builder and he says people struggle to get mortgages with it. I mentioned this to the EA and they said the seller doesn’t have any certifications for the installation and tbh doesn’t really know anything about it.

Do i just walk away from this house and don’t offer? Do i ask the seller if they are willing to remove it?

Woodstok2000

It might be fine, it might not. It all centres on the installation and if you have no documentation thats a big red flag. Removal is expensive and can be difficult - if you are concerned I would walk away.

MEM62

Mortgage lenders hate it. The reason being that, if not installed correctly, ventilation is non-existent and moisture can build up rotting the roof. You cannot see the issue as the form effectively hides it so a survey cannot tell one way or another whether the installation is OK or not. It should be noted that not all foam installations are problematic but that is issue is that you cannot look at a particular roof and tell one way or the other. Lenders therefore work on basis that they all problematic.

My parents ran into this problem when selling their house. Two potential buyers could not get a mortgage on it and they eventually had the insulation removed. If memory serves the cost was around £6K.

HouseMartin567

My parents couldn’t sell my grandparents home (probate) with spray foam insulation. I think they paid circa £8k to get it removed before agreeing a sale.

FreeBear

Just walk (or run if you prefer). Plenty of other properties on the market without spray foam in the roof.

Also be wary of properties that have shiny silver multifoil "insulation" stapled to the roof timbers. It is another product being used in the wrong place (and is also a pretty poor insulator). Fortunately easy to remove, and putting down 300-400mm of fibreglass/rockwool is relatively inexpensive.

WIAWSNB

https://forums.moneysavingexpert.com/discussion/6675816/spray-foam-insulation

Hi Huiyy.

You need a mortgage to buy, I presume? I suspect a mortgage offer will be contingent on it being removed, either before or immediately after purchase, but it might also depend on the LTV. I guess all you can do is ask?

Should you walk away? I don't see why. To remove the foam almost always requires the roof covering - tiles or slates - to be stripped, all the battens and felt and foam to be removed, and the covering put back on - reused - if it's in good order. Yes, that's £ks, but you'll have a new roof at the end of this, and that will likely add value & desirability to the property.

How old is the property? If it's anywhere approaching, say, 50 years plus, then this would be a good thing in any case, and will effectively be paid for by the seller - you haggle for the cost.

So, I'd get quotes from roofers for this job, and deduct it from your offer.

If the seller does this before sale, then they'd be silly to then not advertise their house with it's 'new roof', which most potential buyers would find very appealing, so personally I'd try and get a discount and arrange to have the work done after purchase - I think you'd get the better deal.

And if the house is ripe for a loft conversion, the recover won't be an 'extra' as you'd likely be doing this anyway, but would instead be a financial contribution towards the conversion.

Personally I would not be concerned about foam, especially if the roof will be improved as a result of the work, but the cost would need to be deducted from the purchase price.

This could be an opportunity, as the majority of folk feel as you (initially?) do - 'walk away'.

eddddy

You need a mortgage to buy, I presume? I suspect a mortgage offer will be contingent on it being removed, either before or immediately after purchase, but it might also depend on the LTV. I guess all you can do is ask?

Based on my discussions with surveyors, no mortgage lender will lend on a property with spray foam insulation.

A mortgage lender will almost certainly want the spray foam removed and the timbers inspected, before they make a mortgage offer.

Mortgage lenders are concerned about their ability to recoup their money, if a borrower fails to pay their mortgage, and they have to repossess and sell.

If they allowed the spray foam to be removed after purchase and it revealed that the roof timbers were rotten - they might end up having to repossess a house with a rotten roof, which can only be sold to a builder at a hugely knocked-down price - which might not be enough to repay the mortgage loan.

WIAWSNB

https://forums.moneysavingexpert.com/discussion/comment/82065784#Comment_82065784

Would the LTV have any bearing, I wonder?

Anyhoo, if the OP needs a mortgage, and the lenders won't entertain this, then the only options open to him would appear to be to insist the roof is sorted before sale, or to walk away. Shame - it could otherwise present quite an opportunity.

sheenas

I would walk away , unless the seller is happy to pay for its removal. It will bite you in the bum at some point. The survivors can’t inspect the roof properly and depending on type of foam, it holds damp.

Huiyy

Thanks for the replies. Yes i need a mortgage. I mentioned the spray foam to the seller and they didn’t even know what i was talking about tbh. They don’t have any installation certificates and won’t get it fixed at all. So i’m looking elsewhere.

Dustyevsky

Huiyy: They don’t have any installation certificates and won’t get it fixed at all

That's a situation which might change, given time.

Unfortunately, you don't have that time, and they don't yet understand their position.

You're right to move on.