Unmortageable Homes due to Spray Foam

Spray foam insulation has been promoted as an effective solution for enhancing energy efficiency in homes. However, its application—particularly in roof spaces—has led to unforeseen complications, rendering some properties unmortgageable. This article delves into the issues associated with spray foam insulation and examines why numerous mortgage lenders are hesitant to finance homes where it has been installed.

Understanding Spray Foam Insulation

Spray foam insulation is applied as a liquid that expands to form a solid, insulating layer. It comes in two primary types:

Open-cell foam: Remains soft and flexible after curing, offering good thermal insulation and soundproofing properties.
Closed-cell foam: Cures to a rigid, dense structure, providing superior insulation and moisture resistance.

Both types are commonly used to insulate roofs, lofts, and attics.

Problems Arising from Spray Foam Insulation

While spray foam can enhance energy efficiency, several issues have emerged:

Structural Concerns: Improper installation can lead to moisture being trapped against roof timbers, causing decay and compromising structural integrity. Closed-cell foam, in particular, can exacerbate these issues due to its rigidity and impermeability.
Ventilation Issues: Spray foam can seal spaces too tightly, reducing necessary ventilation and leading to condensation and mold growth.
Inspection Challenges: Once applied, spray foam covers roof structures, making it difficult for surveyors to assess the condition of underlying materials. This lack of visibility raises concerns about undetected damage.

Mortgage Lenders' Stance

Due to these concerns, many mortgage lenders are cautious about properties with spray foam insulation:

Valuation Difficulties: Surveyors may be unable to thoroughly inspect roof conditions, leading to uncertainties in property valuations.
Lending Policies: Some lenders outright refuse mortgages on properties with spray foam insulation, while others require comprehensive assessments to ensure structural soundness.
Equity Release Implications: Equity release lenders are particularly stringent, often declining applications for homes with spray foam due to potential risks.

Case in Point

A notable example involves Mandy Hutson, who installed spray foam insulation using funds from the UK government's Green Homes Grant in 2021. Despite reduced heating bills, her attempt to sell the house was thwarted when lenders refused to offer a mortgage due to the presence of the foam. Removing the foam would cost around £8,000, highlighting the financial burden homeowners can face.

Recommendations for Homeowners

If you're considering spray foam insulation or already have it installed:

Consult Professionals: Seek advice from qualified surveyors to assess potential risks and ensure installations meet current standards.
Verify Installer Credentials: Ensure installers are accredited and follow best practices to minimise future complications.
Understand Mortgage Implications: Be aware that spray foam insulation can affect property valuations and mortgage eligibility.

Conclusion

While spray foam insulation offers energy efficiency benefits, its potential to render homes unmortgageable due to structural and inspection challenges cannot be overlooked. Homeowners should weigh these risks carefully and consult with professionals to make informed decisions.