Navigating the Challenges of Selling or Remortgaging Homes with Spray Foam Insulation

In recent years, spray foam insulation has become a popular choice for homeowners looking to improve energy efficiency and reduce heating costs. 

However, as many homeowners are discovering, this choice can complicate selling or remortgaging their homes. 

Recent findings indicate that a quarter of the UK's largest mortgage providers are unwilling to lend against properties with spray foam insulation, creating significant hurdles for homeowners.

The Rise and Risks of Spray Foam Insulation

Spray foam insulation has been lauded for its ability to prevent heat loss from roofs, lofts, and attics. It comes in two main forms: closed cell and open cell. Closed cell spray foam is known for its rigidity and superior thermal insulation capabilities, but it can also put stress on roof timbers if installed poorly. Open cell spray foam, on the other hand, remains soft and breathable, but its effectiveness can be compromised when installed inappropriately.

Despite its benefits, the potential for improper installation has raised concerns. Poor fitting can lead to moisture being trapped, resulting in timber decay and other structural issues. This has made some mortgage providers wary, leading to their refusal to finance properties with spray foam insulation.

The Case of Wendy Rowe: A Cautionary Tale

Wendy Rowe’s experience highlights the unexpected challenges homeowners may face. When her father, Alan Chawner, installed spray foam insulation in his loft through the Green Homes Grant scheme, he believed it would enhance his property's warmth and reduce energy bills. Unfortunately, when the family attempted to sell the house, they encountered significant resistance from buyers and lenders due to the presence of spray foam insulation in the roof.

The installation was deemed substandard, and after numerous stalled sales and difficult negotiations, Wendy opted to replace the roof entirely, splitting the nearly £10,000 cost with the new buyers. This was in addition to thousands spent on surveyors, administration fees, and increased utility bills, despite a small compensation from the installer.

Understanding the Green Homes Grant Scheme

The Green Homes Grant scheme, designed to encourage energy-efficient home improvements, covered the full cost of spray foam installations for many households. While well-intentioned, the scheme inadvertently led to widespread use of spray foam insulation, sometimes without proper oversight or installation standards.

What Homeowners Should Consider

For those considering spray foam insulation or dealing with existing installations, here are some key points to consider:

1. Proper Installation is Crucial: Ensure that any spray foam insulation is installed by reputable professionals who adhere to industry standards. Improper installation can lead to significant structural issues and financial burdens.

2. Understand the Material: Know the differences between closed cell and open cell spray foam. Closed cell offers better insulation but can stress roof timbers, whereas open cell is more breathable but less insulating.

3. Consult with Experts: Before installation, consult with a qualified surveyor or insulation expert to assess your specific needs and potential risks.

4. Consider Future Implications: Be aware that spray foam insulation could impact your ability to sell or remortgage your home. Discuss potential concerns with your mortgage provider and prospective buyers early in the process.

5. Explore Alternatives: If spray foam insulation presents too many challenges, consider alternative insulation methods that may be more easily accepted by lenders.

The key takeaway for homeowners is to be diligent and informed when considering spray foam insulation. Proper installation and understanding the implications can help mitigate risks and ensure your home's value and integrity are preserved for the future.