MORTGAGES: ZERO VALUATION
QThe semi-detached house we are hoping to buy has recently been surveyed by the mortgage lender but the surveyor has put a zero valuation on it! We managed to get hold of a copy of their report, which says: “There is spray foam insulation to the underside of the pitched roof, which is not acceptable to this lender and the case has been declined.” Is this something we can ask the sellers to get fixed or do we need to find a different property?
AMost leading mortgage lenders have specific policies on properties where spray foam has been applied to the undersides of roof slopes. In most cases lenders will either decline homes with treated roofs outright, or require quotes to be obtained for the complete removal of the foam ‘to make the property readily mortgageable’. Either way, the value of treated properties is likely to be significantly diminished.
Valuers acting for mortgage lenders are contractually obliged to follow their client’s prescribed guidance so in many cases they will decline such properties, hence the zero valuation in this case. Surveyors are very aware that should they fail to spot foam insulation in treated properties they could potentially be at risk of claims from clients for the cost of its removal.
Arguably, the problem with this blanket approach is that it fails to differentiate between inappropriate installations (for example in period properties) and cases where it’s less likely for associated technical issues to arise. It also fails to differentiate between the two types of foam — ‘open cell’ and ‘closed cell’. Closed cell sprays are used to glue old slates and tiles in place, whereas the open cell variety is primarily applied for thermal insulation and has greater vapour permeability, although surveyors do not generally accept that the material is ‘breathable’ as is sometimes claimed. You can tell the difference between the two because the closed cell type feels harder, whereas open cell foam is softer and squidgy to touch and is also thicker (typically 100 to 150mm) and is applied onto the roofing underlay.
It’s not always appreciated by homeowners that it’s important for lofts (particularly in older houses) to be well ventilated to disperse moist air and prevent damp problems. It doesn’t matter if lofts are cold and draughty as long as there’s at least 270mm depth of mineral wool (or similar loft insulation) laid between/over the ceiling joists, so the temperature in the rooms below isn’t compromised. Laying standard mineral wool loft quilt is also considerably cheaper than paying for polyurethane spray treatments.
In properties with roofs that are nearing the end of their life, for example where there are multiple slipped or missing roof tiles, attempting to glue them in place from inside the loft with polyurethane foam is at best a short-term fix, and at worst can lead to serious structural decay. The main concern is that the foam blocks loft ventilation and can trap damp in timbers. Try Googling the words ‘rot’, ‘roof timbers’ and ‘spray foam’ and you’ll see images of rot in the rafters of treated roofs.
Where polyurethane foam is applied for insulation purposes rather than as a temporary way of fixing loose tiles, the depths can be fairly inconsistent in areas where loft access is restricted, so the U values achieved may be questionable. When conventional rigid sheet foam insulation (eg PIR or PUR) is applied between roof rafters, a ventilation air channel of 50mm normally needs to be left on the underside of the tiles; clearly this is not possible with spray foam.
There is currently a working group headed by the Property Care Association (PCA) looking into this issue in order to clarify industry guidance. But at present, spray foam is not acceptable to the majority of high street lenders, and is therefore best avoided.
In this specific case, unless the spray foam is professionally removed there is a danger that the property will continue to be blighted.
It would therefore be reasonable to agree with the vendors that they pay for its complete removal, or alternatively obtain quotes for the work and reduce the purchase price by an equivalent amount plus an allowance for ‘hassle factor’.