Spray foam mortgage problems and property valuations have become contentious topics in the UK property market.
This issue has caught a lot of attention and has started affecting homeowners, potential buyers, plus the broader real estate industry.
Spray Foam or SPF Insulation
SPF insulation saw quite the rise in the UK as an energy-efficient solution for homes.
The government even promoted its use through initiatives like the Green Homes Grant scheme – subsidies for energy-saving home improvements.
The initial popularity aside, SPF insulation has recently caused some problems for homeowners and potential buyers.
Reports have shown that some mortgage lenders are refusing to give loans for properties that went for SPF insulation, while others are greatly devaluing such homes.
Why Are Lenders Concerned?
Mortgage lenders’ concerns are rooted in:
Structural Issues: Improperly installed SPF can be responsible for condensation and moisture problems, likely damaging roof structures.
Fire Risk: Some lenders think of SPF as a potential fire hazard.
Difficulty in Roof Inspection: SPF can make it very hard to visually inspect roof timbers for damage or decay.
Expensive Removal: If issues do come up, removing this insulation can be costly and complex, usually needing a roof replacement.
The Scale of the Problem
The issue shouldn’t be taken lightly.
The Sun reported that up to 250,000 UK households could be affected by this mortgage problem.
This has left many homeowners in a difficult position as they are unable to remortgage or sell their properties.
Options for Affected Homeowners
Homeowners with SPF insulation have the following options:
- Keep Documentation: Keep all the paperwork which is related to the installation, for example, any independent test certificates from recognized organizations such as KIWA and the British Board of Agrément (BBA), SPF warranties, and pre-installation assessments, all of which can help in assessing the quality of the installation.
- Find Alternative Lenders: Some lenders may still provide mortgages for properties with SPF, but this depends on specified criteria.
- Consider Removal: Professional removal of SPF insulation is also an option, but it can get very expensive.
- Raise Complaints: Homeowners who think they were misled during the installation process can look for compensation under the Consumer Protection from Unfair Trading Regulations 2008. If your SPF was installed via the Green Homes Grant, there’s a particular procedure to address disputes.
It is always recommended to be in touch with a legal expert to find out specific guidance on how to go about this. You can always reach out to Citizens Advice for additional assistance with trader-related disputes.
Industry Response
- The Home Owners Alliance (HOA) advises that SPF can dim the roof’s internal structure, so all surveyors should take extra care to checkout the roof’s exterior thoroughly to spot any potential risks.
- To support this process, the Property Care Association (PCA) came out with an SPF inspection protocol in March 2023. This guideline helps surveyors evaluate roofs with this form of insulation. The PCA has also introduced broader training to help surveyors assess SPF applications in properties. This helps in identifying issues and recommending necessary actions.
- The National Insulation Association (NIA) stresses that SPF insulation should stick to current building codes and standards. They recommend homeowners use certified contractors trained and licensed in SPF application to be sure of proper installation and avoid potential risks.
- Isothane is in sync with these suggestions. The industry leader asks customers to only go for accredited and experienced SPF insulation installers. They emphasize the importance of following best practices to be certain that SPF installation benefits the property’s value.
Removing a poorly done job of SPF insulation can be very costly. That is why it is recommended to only go for reliable installers.
Isothane specializes in polyurethane foam products, providing the latest solutions for insulation, waterproofing, and structural applications. They provide efficient and high-quality products for various industries.
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Samuel 
ChUmar