Selling a house with spray foam insulation has become one of the most challenging property situations in the UK, with approximately 25% of major mortgage lenders refusing to finance properties containing this type of insulation, making these homes extremely difficult to sell through traditional channels and often requiring costly removal or significant price reductions.
Current UK housing statistics reveal the widespread impact of this crisis affecting hundreds of thousands of homeowners. Research shows that around 250,000 homes across the UK have spray foam insulation, with much of this installed through the previous government’s Green Homes Grant scheme. A recent survey by the Property Care Association found that 35% of homes fitted with spray foam insulation had one or more defects, with a quarter requiring the insulation to be replaced or the property’s roof to be completely replaced. The cost implications are staggering, with removal expenses ranging from £3,200 for a three-bedroom detached house to over £24,000 for complete roof replacement. Major lenders including TSB Bank, Skipton Building Society, Co-operative Bank, Principality, and Aviva all confirmed they refuse mortgages due to spray foam presence.
Table of Contents
What Is Spray Foam Insulation?
Spray foam insulation is an effective way to keep the heat inside your home. It is applied using a spray gun and expands to fit the area. It is mostly used in roofs, lofts and attics. Spray foam insultation causes mortgage problems.
There are two types of spray foam insulation: open-cell and closed-cell.
- Open cell spray foam remains soft after setting. Although it is not as dense as a closed cell, it is less prone to condensation.
- Closed-cell spray foam is rigid after setting and is a better insulator than open-cell. However, it also acts as a vapour barrier, which can reduce ventilation.
The UK Government’s Green Homes Grant scheme, which closed in March 2022, covered a portion of the cost of improving homes’ energy efficiency, including spray foam insulation. The topic of spray foam insulation has been discussed in Parliament, with the recommendation being removal or complaining to the installer.
Why Is Spray Foam Insulation Causing Mortgage Problems?
Spray foam insulation creates significant challenges for mortgage lenders due to concerns about structural integrity and inspection difficulties. When spray foam is applied to roof spaces, it covers rafters and structural timbers, preventing surveyors from conducting proper inspections to assess the property’s condition. Improperly installed spray foam can trap moisture, leading to timber rot, mould growth, and metal corrosion that may not be visible until serious damage has occurred.
Mortgage lenders view these properties as high-risk investments because they cannot accurately assess potential structural problems hidden beneath the foam. The Royal Institution of Chartered Surveyors (RICS) has stated that spray foam presence may affect property valuations, particularly when applied incorrectly. This uncertainty makes lenders reluctant to approve financing, effectively creating a category of properties that many consider “unmortgageable”.
Is There a Downside To Spray Foam Insulation?
Spray foam insulation has been a common feature in homes for many years, though recent issues have emerged with its use in timber-framed roofs. When improperly installed or misused, spray foam insulation can:
- Reduce the ventilation and air circulation in a roof space.
- Cause dampness and condensation on the roof’s underside, as it forms an air barrier that prevents moisture escape.
- Pose a risk of decay to timber-framed roofs.
The removal of spray foam insulation can be challenging and expensive.
The Royal Institution of Chartered Surveyors (RICS) has stated that the presence of spray foam might impact a surveyor’s property valuation if it has been applied incorrectly.
As spray foam conceals the structure of a roof, surveyors working on behalf of mortgage lenders might struggle to inspect the condition of individual roofs and recognise potential risks.
So, how much would removing this problematic spray foam insulation cost?
Does foam insulation devalue your house?
Yes, spray foam insulation can devalue your house. Key points:
- Many mortgage lenders refuse to lend on properties with spray foam insulation, making them difficult to sell or remortgage.
- The Royal Institution of Chartered Surveyors (RICS) states that spray foam may affect a property’s valuation, particularly if applied incorrectly.
- Spray foam can reduce airflow in the roof, potentially leading to issues like mould, wood rot, and reduced structural stability.
- Some surveyors may value a house with spray foam insulation at £0 or deduct £40k-£100k from its value due to potential risks.
- Removal of spray foam is expensive, costing around £3,200 for a three-bedroom detached house.
- The presence of spray foam may require additional costly inspections or reports when selling or remortgaging.
How Long Does Spray Foam Last in a House?
Spray foam insulation manufacturers typically claim their products can last between 20-25 years under ideal conditions. However, industry experts caution that real-world performance varies dramatically based on installation quality, property conditions, and ventilation factors.
In poorly ventilated spaces or where moisture problems exist, deterioration can begin much earlier. More concerning is that the foam itself may remain intact while concealing serious damage to the supporting timber structure underneath. This hidden damage often only becomes apparent during removal or when structural issues become severe enough to notice.
The longevity question ultimately misses the more immediate concern for homeowners – the significant impact on property marketability and value regardless of the foam’s physical condition.
How can you tell if spray foam insulation is bad?
How do you know if your loft has been properly insulated? You should have all the paperwork and work carried out by an approved installer:
A full pre-survey suitability report that outlines the condition of your roof and timbers before the foam was applied.
An independent test certificate, such as one from the British Board of Agrément or Kiwa, that explains the type of foam used and the correct application method.
- A condensation risk assessment, also known as a hygrothermal evaluation.
- Details about the installation company and its credentials.
- An installation guarantee.
If your home was suitable for foam insulation and it was applied by a professional, you should have all the necessary paperwork to prove it.
Spray foam insulation risks
Spray foam insulation is applied as a liquid and then expands into a foam. This foam fills in all the gaps and cracks in a building’s structure.
Awareness of the potential risks of spray foam insulation is important.
Financial risks
- You won’t be able to get a mortgage on your property, making it difficult to sell.
- You will find it difficult to remove it. Even if it is fully removed, there’s no guarantee that you will be able to sell it to a buyer who needs a mortgage.
Health risks
The primary health concern linked to spray foam insulation is exposure to isocyanates. Isocyanates are chemicals utilised in the production of spray foam insulation. Exposure to isocyanates can lead to various health issues, such as:
- Skin and eye irritation
- Respiratory problems, such as asthma and bronchitis.
- Sensitisation to isocyanates can make future exposures even more dangerous.
In some cases, exposure to isocyanates can even lead to cancer.
What Types of Spray Foam Cause the Most Problems?
Different types of spray foam insulation present varying levels of risk and marketability challenges. The following table outlines the main categories and their impact on property sales:
| Foam Type | Installation Method | Risk Level | Typical Issues | Removal Difficulty |
|---|---|---|---|---|
| Closed-cell foam | Roof rafters/timbers | Very High | Moisture trapping, timber rot | Extremely difficult, often requires roof replacement |
| Open-cell foam | Between joists | High | Ventilation issues, mould growth | Difficult but manageable |
| Professional installation | Certified contractors with guarantees | Medium | Fewer defects but still mortgage challenges | Varies by installation quality |
| DIY/unlicensed | Non-certified installers | Extremely High | Multiple defects, poor application | Often requires complete roof reconstruction |
This comparison demonstrates why closed-cell foam installations present the greatest challenges for homeowners attempting to sell their properties. Professional installations with proper documentation may face fewer technical issues but still encounter significant mortgage lending resistance across the industry.
Real-Life Success Story: Patricia from Gloucester
Patricia faced a devastating situation when she decided to downsize from her family home in Gloucester after her husband’s retirement. Her property had spray foam insulation installed in 2021 through the government’s Green Homes Grant scheme, which seemed like an excellent energy-saving improvement at the time.
When Patricia listed her property, initial interest appeared promising with several viewings arranged. However, every potential buyer encountered the same problem – their mortgage applications were rejected due to the spray foam insulation. After six months on the market with no successful offers, Patricia’s estate agent suggested reducing the asking price by £30,000 to account for removal costs, but even this failed to attract mortgage-approved buyers.
Feeling trapped and increasingly desperate, Patricia contacted Property Saviour for guidance. Our compassionate team understood her frustration with a situation completely beyond her control. We provided a guaranteed cash offer that eliminated all mortgage-related complications whilst giving Patricia the certainty she needed to complete her downsizing plans within weeks rather than continuing to face rejection after rejection.
When you’re struggling with property challenges caused by circumstances beyond your control, Property Saviour understands the emotional and financial stress these situations create. Our guaranteed purchase service eliminates the complications that make traditional sales impossible, providing the swift resolution you need during difficult times.
How Much Does Spray Foam Removal Cost?
Spray foam removal costs vary dramatically based on installation type, property size, and extent of structural damage. Basic removal services start around £3,200 for a three-bedroom detached house, calculated at approximately £40 per square metre. However, comprehensive solutions addressing underlying damage can reach £24,000 or more, particularly when roof replacement becomes necessary.
The removal process often reveals hidden problems that increase costs significantly. Many homeowners discover timber rot, moisture damage, or structural issues that require additional repairs beyond simple foam extraction. Professional removal companies typically provide detailed statements of work outlining all necessary remediation steps, helping property owners understand the full scope of required investment.
Work Description
Property Type
Estimated Cost
Roof foam insulation removal
Per meter
£40 per VAT
Did You Know?
Removing spray foam insulation is likely to be more expensive than the initial installation cost. Even if the insulation is removed, lenders may still refuse to offer a mortgage due to potential damage that may have already occurred.
Can You Remove Foam Insulation From Roof?
The estimated roof foam insulation removal cost is around £3,200 for a three-bedroom detached home. This estimate assumes that two to three tradespeople work for a week to complete the task, costing £175 per person per day.
This estimate also includes a £100 fee for specialist disposal due to the potentially toxic nature of some spray foam types. You will need to consider the cost of skip-hire.
The expense of removing roof foam insulation is significantly higher than removing other types of roof insulation. For most types of insulation, which can usually be rolled up or pulled away easily, the cost for safe removal and disposal is closer to £300.
Property Saviour’s Market Insights: What Reddit Users Really Experience
Our analysis of property forums reveals heartbreaking stories about homeowners trapped by spray foam insulation decisions. One Reddit user shared their experience with a mortgage broker, stating they had “never seen a lender agree a mortgage on a house that has spray foam loft insulation” and had “never seen anything other than a straight rejection”. This reality contradicts reassurances from some industry sources about lender flexibility.
Multiple forum contributors describe feeling “exploited” and “deceived” by government schemes that promoted spray foam installation without adequate warnings about future selling difficulties. One homeowner discovered their property value dropped from £550,000 to zero in the surveyor’s assessment due to spray foam presence. These real experiences highlight the gap between industry promises and market reality.
Experienced property professionals consistently warn that attempting to secure mortgages whilst hoping surveyors miss the spray foam represents dangerous wishful thinking. As one user advised: “Do not buy the house until it’s been removed or you’re taking on a £20-30k problem”. The consensus suggests that removal before sale attempts offers the only reliable path to successful transactions.
What Documentation Do You Need When Selling?
Properties with spray foam insulation require extensive documentation to satisfy any potential buyers or lenders. Essential paperwork includes original installation certificates, guarantee documentation, and proof of professional installation by certified contractors. Many homeowners discover they lack adequate documentation, particularly for installations completed through government schemes or by unlicensed contractors.
Professional surveys by qualified building inspectors become essential for demonstrating installation quality and structural integrity. These surveys typically cost £1,500 or more but provide the detailed assessments that buyers and lenders require. Without proper documentation, even well-installed spray foam faces automatic rejection from mortgage providers.
How Is Spray Foam Insulation Removed?
Removing spray foam insulation can be a messy and labour-intensive task. It requires carefully cutting the roof foam without causing any damage to the surrounding materials.
After that, the remaining foam needs to be scraped off by hand.
Can I Remove Roof Foam Insulation Myself?
We do not recommend attempting to remove roof foam yourself. Inexperienced individuals run the risk of damaging tiles and electrical systems.
Certain types of spray foam can be toxic if touched or inhaled. Spray foam tends to seep into hard-to-reach areas, making complete removal challenging. Hiring a professional is your best option for achieving successful results.
Can You Sell a Property With Spray Foam Without Removing It?
Selling a property with spray foam insulation without removal remains extremely challenging, though not entirely impossible. Your primary buyers will be cash house buyer investors who don’t require mortgage financing, significantly reducing your potential market. These buyers understand the risks and factor removal costs into their offers, often resulting in substantially lower purchase prices.
Limited buyer options include:
Property investors seeking renovation projects
Developers planning major refurbishments
Cash buyers willing to handle removal themselves
Buyers planning to live in the property permanently without future sale concerns
However, even cash buyers often demand significant price reductions to account for removal costs and future marketability issues, with discounts ranging from £20,000 to £50,000 depending on property size and foam extent.
What Can Homeowners Affected By Spray Foam Insulation Do?
These are practical steps you can consider:
Request & Keep All The Paperwork
According to the RICS, it is advisable for homeowners to keep all the paperwork related to their installation. This is important in case you decide to sell or remortgage the property.
The paperwork should include independent test certificates awarded to the spray foam products by organisations like the British Board of Agrement. Having these documents can be helpful for a surveyor to assess the work that has been done.
Raise a Complaint
If you are a homeowner facing issues with their insulation, you should first review the terms of your purchase and then contact your installer or accredited body. It is important to note that a TrustMark-registered installer will have carried out all work under the Green Homes Grant scheme.
TrustMark has a specific process in place to handle disputes. If you feel misled or your installer has withheld important information in a way that is likely to deceive, you may want to consider seeking redress under the Consumer Protection from Unfair Trading Regulations 2008.
If you paid for your installation on a credit card, you may be able to make a full claim under Section 75.
If you encounter any problems with traders, Citizens Advice is available to provide guidance and support. It is important to remember that seeking resolution may be a lengthy process, and homeowners may decide to sell their property and move on.
Encourage Your Buyer To Look For Another Mortgage Lender
Not all lenders will offer mortgages to homeowners with spray foam insulation. It depends on whether they conduct a thorough survey and inspect your loft.
Your buyer may not be interested in going through another mortgage application, especially after having already paid for a survey. However, a different lender may have less strict criteria for lending.
You have a legal obligation to disclose any issues before selling a home. Most lenders would request a surveyor to evaluate the insulation and base their mortgage decisions on that assessment.
Your buyer could demand that you remove the insulation or threaten to withdraw from the sale. You could consider a proceedable buyer instead.
Will Insurance Companies Cover Properties With Spray Foam?
Insurance challenges compound the difficulties facing homeowners with spray foam insulation. Some building insurance providers now refuse coverage for properties with spray foam in loft spaces, citing concerns about hidden damage and inspection difficulties. This insurance resistance creates additional barriers for potential buyers, even those with cash purchasing capacity.
The insurance industry’s growing reluctance mirrors mortgage lender concerns about structural risks and assessment challenges. As one surveyor noted, “What starts with one insurer is unlikely to stay with one,” suggesting this problem may expand across the insurance sector.
We Buy Any House: Property Saviour’s Solution for Spray Foam Properties
When spray foam insulation makes traditional sales impossible, Property Saviour offers a comprehensive solution that eliminates all mortgage-related complications and lengthy removal processes. Our guaranteed purchase service specialises in properties that other buyers cannot finance, providing fair cash offers based on current market conditions without requiring removal or extensive documentation.
Unlike traditional buyers who face mortgage rejections, we purchase properties directly using our own funds, completing transactions within weeks rather than enduring months of uncertainty. Our team understands that spray foam installation often resulted from well-intentioned energy efficiency efforts, and we approach each situation with empathy whilst providing practical solutions that allow you to move forward with confidence.
Selling a house with spray foam insulation requires understanding the serious challenges this creates whilst exploring all available options. Whether pursuing removal, targeting cash buyers, or choosing guaranteed purchase services, success depends on realistic expectations and professional guidance to achieve the best possible outcome for your specific circumstances.
Our process is straightforward: we assess your property’s value considering all factors, make a fair cash offer without the typical spray foam deductions that mortgage-dependent buyers require, and can complete the purchase on your timeline – often in as little as 2-3 weeks.
Don’t let spray foam insulation trap you in a property you need to sell. Contact Property Saviour today to discuss your situation and discover how we can provide a solution when traditional selling routes have failed.
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