Selling a house with spray foam loft insulation

Spray foam insulation is nothing new, it’s been around for over 30 years as a method of insulating walls, ceilings and loft spaces to improve the energy efficiency of a property.

Today it is estimated that around 250,000 homes in the UK currently have spray foam loft insulation installed. This number has increased rapidly over the last few years due in part to spray foam loft insulation being included in the government’s “Green Homes Grant” scheme which enabled homeowners to claim up to two thirds of the cost of energy-efficient home improvements.

Bringing down the cost of rapidly increasing energy bills seems like a no-brainer in the current economic climate but when it comes to spray foam loft insulation there is a huge problem, a problem which has caused many houses to be valued by surveyors at £0.

Selling a house with spray foam loft insulation

Can you sell a house with spray foam insulation

The short answer is yes it is technically possible to sell a house with spray foam insulation as long as you declare the presence of spray foam to the buyer, if you don’t and the buyer finds out only after the sale has gone through you could find yourself on the sticky end of a nasty lawsuit.

Unfortunately the sale might not be as straightforward as it would be if you didn’t have spray foam insulation, especially if the spray foam is located in the attic. This is due to mortgage lenders taking a very cautious view on houses with expanding spray foam insulation, there are some lenders that will lend if the installation was correctly installed and there are certificates and documentation to prove it including condition reports of the roof before the work was undertaken but unfortunately the majority of homeowners with spray foam don’t have this documentation and it can’t be done retrospectively. So what does this mean for you house sale if you are in this situation?

It is estimated that mortgage buyers account for around two thirds of the house sales in the UK. This means that the sale of your property is limited to the buyers making up the final third, cash buyers. Cash buyers are generally investors or companies who look at properties as assets that they want to make money from, either by renting them out for or reselling them. As such they are not interested in paying full price for a property, especially for one that has a potentially costly issue such as spray foam insulation.

This means as a seller you have to accept the fact that you will get less for your property than you would have without having spray foam installed. A tough pill to swallow considering that the spray foam installation likely cost thousands of pounds to install and probably won’t pay for itself in energy savings for many years.

can you sell a house with spray foam insulation

How much does spray foam insulation affect the value of a house?

This is a tricky question since there is no definitive answer. The worst case scenario when it comes to incorrectly installed spray foam loft insulation is that the rafters and beams in the roof have been compromised by moisture, leading them to rot. If this is the case the only real solution is to have an entirely new roof put on the property, and yes that’s as expensive as it sounds. This will easily cost upwards of £20,000 depending on the size of the roof, much more for larger houses.

You might be thinking that you can get the foam removed for a lot less than that, which is technically correct although be prepared for quotes on spray foam removal to come in at more than the initial installation. Even a small roof will cost nearly £2500 to get the insulation removed and the trouble is there is no guarantee that the removal will be seen as a positive thing in the eyes of lenders and it could potentially reveal a rotten roof which will need to be replaced anyway at additional expense, so it really could be a lose, lose scenario.

With this in mind the only real answer is the property is worth how much a cash buyer is willing to pay for it, you may find one that doesn’t see it as too much of an issue if they don’t want to remortgage it at any stage but then there will be people that will want to rectify the issue straight away. In any case the reduction in house price that you will have to accept is likely to be far higher than the cost of the installation and any potential cost savings that you’ve had from having the insulation in place.

Spray Foam Insulation Mortgage Problems

So why do lenders have such a problem with spray foam loft insulation in the first place? A financial institution will lend money to someone in order for them to purchase a property, it is essentially a big loan, mortgages are considered fairly low risk loans because they are ‘secured’ against the property by way of a ‘first charge’, this means that if the buyer stops paying back the loan and defaults on the debt the lender takes possession of the property which should be worth the same or more than the initial loan amount.

The trouble with spray foam, especially if it has been installed to a low standard and sufficient inspections weren’t carried out beforehand, is that it introduces an unknown to the lender’s equations, namely “is the roof rotten and about to collapse?” if it is this majorly affects the value of the property increasing the risk to lenders. The fear of the unknown around spray foam has caused lenders to run to the hills. Even though spray foam as a form of insulation has been around for over 30 years it is only recently, due to the help of government grants and other schemes around energy efficiency, that it has become a more widespread practice so the data around how many roofs are actually damaged is still very limited at this time.

It is worth noting that mortgage lenders are reviewing their criteria constantly and if evidence were to come to light proving that it is not as big an issue as first thought then lenders could change there mind and not look on spray foam loft insulation as a no go area for them but at time of writing this is not the case and there are very few lenders that would even consider giving a mortgage on a property with spray foam insulation and the ones that will require evidence that most homeowners just aren’t in possession of.

These problems don’t just appear if you are looking to sell your house with spray foam loft insulation but also apply to other financing scenarios, for example if you are looking to remortgage your property, perhaps at the end of a fixed rate term or interest only mortgage then you could run in to the same trouble and find banks unwilling to offer you a new mortgage on the same property.

This is also an issue if you want to pull some money out of your property through an equity release loan, there are currently no equity release companies that will even consider paying out on a house that has spray foam loft insulation meaning any equity you have in your home is tied up for the foreseeable future while the spray foam is in place.

How to sell a house with spray foam loft insulation

If you have spray foam insulation installed and are looking to sell your property you still have options without having to stump up the cash to get it removed but with mortgage buyers out of the picture you could have to compromise on the speed of the sale, the price you can achieve or both.

Here are the most common ways to sell a house with spray foam loft insulation.

Selling a house with spray foam on the open market to a cash buyer

You can still sell your property on the open market via an estate agent but it will likely be listed as “cash buyer only” due to the mortgage-ability issues. The issue with this is that the vast majority of people looking to buy a house will be doing so with a mortgage (up to 70%) so selling this way will mean that you are limiting the pool of potential buyers quite substantially which could lead to the sale taking significantly longer than average. Along with an increased timeframe a cash sale will also be at a discount, even without factoring in the spray foam, so you won’t get full market value and factoring in the insulation problem you could be looking at a significant reduction in asking price. With the average length of an open market sale pushing 9 months from listing to completion you could easily be looking at over 12 months for an open market sale. Make sure that you are open and honest about the presence of the spray foam from the start to avoid fall throughs further down the line.

Further Reading: The ultimate guide to selling your house for cash

Selling a house with spray foam insulation at auction

Another option is selling the property at auction. Traditionally auction buyers are property developers or tradesmen looking to find properties that they can buy at a below market rate and add value to. Spray foam loft insulation falls into that category. Again you are looking at achieving a discounted price but this time it is a gamble as to what price it would achieve when the hammer falls. If you don’t set a reserve price you run the risk of getting around 70% of the property’s value or lower unless there is a bidding war to drive up the price. If you do set a reserve then you run the risk of getting no bidders at all and the time and money invested in listing the property at auction would be wasted. If you are willing to take the risk, an auction sale could take much less time than an open market one providing that you have an auction coming up in the not so distant future. Auction buyers have to follow a strict time scale after the hammer falls, generally around 30 days, meaning that your house could be sold in just a couple of months. Bear in mind that there will be auction fees and some upfront costs if considering selling at auction.

Further Reading: Selling a house at auction

Selling a house with spray foam insulation To a cash house buying company

The third, and fastest, option for selling your property with spray foam loft insulation is to sell it to a house buying company. These companies specialise in buying houses quickly, as fast as 2 weeks if required and you have no fees to pay unlike with an estate agent or auction sale (you will even get your solicitor fees covered if you choose the company wisely).

Of course there is a downside, they will purchase the property at a discounted price, usually around 80% of the market value but depending on your circumstances this could be a viable option. If you are looking at an ongoing purchase and you don’t want to potentially lose your dream house waiting for a lengthy open market sale with the potential of a fall through (1 in 3 open market sales fall through before completion and that’s on homes without issues) or take the leap into the unknown at auction then the assurance and peace of mind that comes with a house buying service would be a good route to explore.

Further Reading: The best cash house buying companies

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Case Study: Overcoming Spray Foam Insulation Hurdles for a Quick Property Sale

Background:

Mr Hogan owned a property which was in need of extensive refurbishment. However, limited funds and time constraints made it impossible for him to undertake the necessary renovations. Needing a quick sale, he initially opted to sell the property on the open market.

Challenge:

Whilst owning the property Mr Hogan had been persuaded to have spray foam loft insulation installed funded in part by a government grant, the presence of the foam soon became a significant hurdle for his house sale. After several months on the market a sale was agreed with a mortgage buyer who was keen to proceed. However, during the conveyancing process, a RICS (Royal Institution of Chartered Surveyors) inspection was carried out on behalf of the prospective mortgage lender. The presence of the spray foam insulation led to an unexpected outcome: the property was valued at £0. This drastic valuation stemmed from the insulation’s perceived risks and difficulties in the eyes of the mortgage lender. Consequently, the buyer’s mortgage application was refused and the sale fell through, leaving Mr Hogan in a difficult position. Without the financial means to remove the foam insulation or get the roof replaced, his options seemed limited.

Solution:

In this challenging scenario, Mr Hogan decided to explore an alternative option: a cash house buying company. These companies are known for their flexibility in purchasing properties in various conditions, including those with features that might deter traditional buyers or mortgage lenders. After reaching out, Mr Hogan received an offer from the company to buy the house with the spray foam insulation in place. This offer provided a viable solution to his predicament.

Outcome:

Once Mr Hogan had accepted the house buying companies offer the process moved swiftly. The nature of the cash house buying company allowed for a quick transaction, unencumbered by the usual mortgage lending complications. The sale was completed in just two weeks from offer acceptance to completion, providing Mr Hogan with a quick resolution so that he could walk away from the burdensome property with cash in his pocket.

Conclusion:

This case study highlights the challenges that ill advised and poorly installed spray foam loft insulation can pose to homeowners. It also underscores the value of alternative selling options, such as cash house buying companies, which can offer viable solutions for homeowners in complex situations. Mr Hogans’s experience serves as an insightful example for others facing similar property selling challenges.

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What is spray foam loft insulation

The foam used for insulation is a combination of two chemicals, isocyanate and polyol resin. These two chemicals react when mixed creating a foam that can expand more than my string belt at an all you can eat buffet (between 30 to 60 times its liquid volume). It’s this expanding quality that enables it to get into every nook and cranny which is one of the reasons that it is so difficult to remove.

The 2 types of spray foam loft insulation

There are 2 types of types of the foam commonly used in loft insulation;

Closed cell foam

This foam sets hard. It is the best insulator of the two types but can cause a vapour barrier that can reduce ventilation and lead to condensation issues. It can also cause structural damage warping wood as it sets. It is also very difficult and time consuming to remove.

Open cell foam

This type of foam doesn’t provide the same level of insulation as closed cell foam because it is less dense due to it remaining soft after setting. However it is less prone to causing condensation issues and is easier to remove than the hard setting closed cell foam.

Spray foam loft insulation problems

Straight off the bat there are issues with the concept itself, such as;

Cost: if you didn’t benefit from the government green homes grant (which ceased taking applications in March 2021) then spray foam loft insulation is a fairly expensive method of insulating your attic space compared to alternative such as fibreglass, cellulose insulation and mineral wool insulation.
Potential health concerns: Some of the materials used in the spray may cause respiratory irritation and other health issues in some people with sensitivities to those materials.
Hard to remove: depending on the type of spray foam used and due to the expansive nature of the foam (i.e. it gets everywhere) it can be very difficult to get rid of. Also due to the sheer amount of labour involved the cost of removal can come to more than the cost of the installation.
Can hide structural issues: Once the foam has been applied and set it is basically impossible to see if there is damage to any area covered by the foam, this is a major problem when it comes to mortgageability.
Can cause structural issues: depending on the type of foam used the expansion can cause damage. Like distortion or warping to the structural beams of the roof.
Environmental concerns: Spray foam isn’t made from renewable resources and you can’t recycle it once it has been removed. It also has a larger carbon footprint than most of the other insulation methods.
Requires Professional Installation: You need to have a skilled professional with the right equipment and knowledge to install the foam correctly and minimise the potential risks.

This last point is important as things go from not good to much worse if it has been installed by a cowboy firm, these firms have become increasingly prevalent due to the increased demand and lack of regulation in the industry.

These unscrupulous operators will cut as many corners as they can get away with which causes the biggest problem that homeowners with spray foam loft insulation face, most mortgage lenders won’t consider lending on the property, a big problem when it comes to time to sell up.

Alternative solutions to Spray foam loft insulation

Despite what the spray foam installation companies might tell you there are other more favourable options to spray foam, which are generally less permanent, less costly and just as effective at insulating your loft space . Here are some of the common alternatives:

Fibreglass Insulation: One of the most widely used types of insulation, fibreglass as the name would suggest is made from fine glass fibres. It’s affordable and effective for insulating lofts, though it requires careful handling due to its irritant fibres.
Mineral Wool Insulation: Also known as rock wool insulation, this material is made from rock and / or recycled slag from steel mills. It offers excellent fire resistance and sound insulation, and is easier to handle compared to fibreglass.
Cellulose Insulation: Made from recycled paper products, cellulose insulation is environmentally friendly and effective. It’s often treated with fire retardants and is known for its superior air-sealing capabilities.
Sheep’s Wool Insulation: A natural and sustainable option, sheep’s wool insulation is biodegradable and renewable. It’s efficient for thermal and acoustic insulation, and it’s naturally moisture-resistant.
Cotton or Denim Insulation: This eco-friendly option is made from recycled denim or cotton. It’s safe to handle, provides good thermal performance, and is ideal for those looking for a sustainable insulation solution.
Polystyrene Insulation: Available in forms such as EPS (expanded polystyrene) and XPS (extruded polystyrene), this foam board insulation offers high R-values (measure of thermal resistance) and is moisture resistant.
Loose-Fill Insulation: Made from materials like fibreglass, rock wool, or cellulose, this type of insulation is blown into place, making it a good choice for difficult-to-reach areas.
Structural Insulated Panels (SIPs): While more commonly used in walls and loft conversions, SIPs can also be used to insulate in roofs. These panels can be cut to size to provide a high level of insulation and are relatively simple to install.

Each alternative has its own set of pros and cons, including cost, installation complexity, environmental impact, and effectiveness. The best choice for you will depend on your specific requirements such as budget, desired energy efficiency levels, and the existing structure of the property. It is advisable to speak to a company that specialises in insulation that can recommend the best solution for your needs.

What can you do if you have been mis-sold spray foam loft insulation?

Many people have fallen victim to strong arm sales tactics and being told misleading information when it comes to spray foam loft insulation, especially during the time when the government was dishing out hefty grants to homeowners for improving the energy efficiency of their home. Unfortunately on the back of this many rogue operators sprung up and any man with a spray gun became an installation ‘expert’ despite not having any specific training or knowledge.

If you think that you may have been mis sold spray foam loft insulation there are now solicitor firms taking on such cases and suing the installers on behalf of their clients. Although you may find that the company that carried out the installation has now gone into liquidation, and ironically the very same people that carried out the dodgy installations are now plying their trade as spray foam removal experts.

The cost of spray foam loft insulation removal

So it’s time to sell your property with spray foam loft insulation, the problem is presence of the foam means that lenders won’t lend against the property so you can kiss goodbye to mortgage buyers. This is going to severely limit the number of potential buyers, which in turn could add months to the sale time. You might be thinking “not a problem I’ll just get it removed” well that might not be as easy or as effective as you might think.

One of the biggest problems with foam insulation is if you have to remove it you are going to have to fork out a lot of cash to do so. In many cases removing spray foam insulation can cost more than it did to install it in the first place! Also removing the foam from the roof space may not necessarily make the mortgageability problems go away. On removal you could find that there is damage to the roof and timbers, either warped beams or damage caused by moisture getting into the wood if this is the case you now have costly roof repairs to deal with.

It can cost around £40 per square metre to remove spray loft insulation and will likely take about 1 week of noisy intense labour to completely remove.

The cost to removal foam loft insulation per square foot
Roof Size (Square Metres)	Example Cost
60 m2	£2,400
80 m2	£3,200
100 m2	£4,000
120 m2	£4,800

There is also the cost of disposal to consider as there is a surprising amount of waste material that will likely require a good sized skip which could set you back a further £120 – £200 on top of that you will likely be finding pesky bits of foam around the house for weeks.

DIY Removal – Can you remove spray foam loft insulation yourself?

With the thought of that high price tag ringing in your ears you might be tempted to think that you can carry out the job of removing your spray foam loft insulation but such an activity would be generally discouraged due to several significant risks and challenges.

Firstly, the removal process actually requires specialist knowledge and equipment. I’m sure you’re thinking that it’s just a case of going at it hammer and tong with a scraper but it’s actually more nuanced than that. If you are not careful you can end up not only damaging your roof, which defeats the point of removing it in the first place, but also pose a significant risk to your own health.

When you disturb the spray foam insulation you risk releasing particles of potentially hazardous chemicals into the air which can cause respiratory issues if you don’t wear the correct personal protective equipment (PPE).

Amateur removal efforts can inadvertently cause damage to the roof, compromising it’s structural integrity leading to at best costly repairs or at worst a whole new roof which is what you are trying to avoid in the first palace.

Alongside the risks there is also the sheer amount of labour involved, the below video gives you a good idea of how much work removing spray foam by hand really is. This was a professional loft foam removal company who estimate that in total the full removal project took 150 man hours spread over 5 days. If you were going to undertake this yourself in evenings and weekends it could take several months to complete!

For these reasons, its advisable to engage professional services with the expertise, equipment, and safety protocols necessary to remove foam loft insulation properly and safely.

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Can I Get A Mortgage With Spray Foam Loft Insulation?

The problem with getting a mortgage with spray foam loft insulation installed is more about the fear of the unknown rather than an issue with the expanding foam per se. The trouble is that the foam expands making it next to impossible to assess the condition of the roof underneath the foam or check the condition of the roof timbers. This means that most mortgage providers would rather categorise the property as “difficult” and simply choose to not lend against it rather than carry out a more intrusive and costlier investigation to determine the true condition of the roof.

There are some lenders that will still provide a mortgage on the property if certain criteria are met, these criteria vary from lender to lender but some of the stipulations are as follows;

You have to have the correct paperwork, documenting that your roof was in good condition before the foam was installed and that the foam has been implemented to a good professional standard.
Some lenders have an additional stipulation that you will need to have a structural engineers report carried out along with having the correct paperwork. These reports can cost several thousands of pounds to get carried out.

Other lenders will assess each decision on an individual basis and some just flat out won’t lend in any circumstances.

Frequently Asked Questions

Is spray foam loft insulation any good?

This depends on what you mean by “good” . It certainly works as an insulator, keeping heat in your home which should reduce the amount of energy that you consume heating your house in winter. Although this should be weighed up against the issues you might face when it comes to selling the property there are alternatives that can provide the insulation benefits that don’t have the downsides when it comes to mortgageability.

How much does spray foam loft insulation cost to remove?

Spray foam insulation can often cost more to remove than it did to install. Especially if you benefited from the government's “Green Homes Grant” scheme. Due to the amount of time it takes to remove and the amount of waste that is produced removal can cost between £3000 to upwards of £15,000 depending on the size of loft space.

Can I sell a house with spray foam loft insulation?

Yes. You can but unfortunately many lenders won’t offer a mortgage on the property so you would have to sell it to a cash buyer.

Should I buy a house with spray foam insulation?

If the spray foam insulation is in the loft / roof space it is not necessarily a deal breaker but you will need to bear in mind that if you are looking to purchase the property with a mortgage you could run in to difficulties when it comes to finding a lender. You also need to approach the sale with caution as there could be damage to the roof that a surveyor won't be able to see due to the foam. If the seller of the property doesn't have the correct documentation proving that the roof was in good condition before the foam was installed and that the expanding foam was installed to a professional standard then you need to thin long and hard if it is worth taking the risk.

Cash House Buyer Guru

Selling a house with spray foam loft insulation

Can you sell a house with spray foam insulation

How much does spray foam insulation affect the value of a house?

Spray Foam Insulation Mortgage Problems

How to sell a house with spray foam loft insulation

Selling a house with spray foam on the open market to a cash buyer

Selling a house with spray foam insulation at auction

Selling a house with spray foam insulation To a cash house buying company

Case Study: Overcoming Spray Foam Insulation Hurdles for a Quick Property Sale

Background:

Challenge:

Solution:

Outcome:

Conclusion:

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What is spray foam loft insulation

The 2 types of spray foam loft insulation

Closed cell foam

Open cell foam

Spray foam loft insulation problems

Alternative solutions to Spray foam loft insulation

What can you do if you have been mis-sold spray foam loft insulation?

The cost of spray foam loft insulation removal

DIY Removal – Can you remove spray foam loft insulation yourself?

Can I Get A Mortgage With Spray Foam Loft Insulation?

Frequently Asked Questions

Is spray foam loft insulation any good?

How much does spray foam loft insulation cost to remove?

Can I sell a house with spray foam loft insulation?

Should I buy a house with spray foam insulation?

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