Mortgage refused due to Japanese knotweed?
Mortgage lenders including the building societies and high street banks refuse to lend money in the form of a mortgage where their surveyor identifies the presence of Japanese knotweed on the property. Refusal has also resulted where no Japanese knotweed is present on the site, but is on adjoining land. Surveyors employed by the banks are instructed to look out for Japanese knotweed, and whilst they may on occasion miss it, our experience shows they usually do identify knotweed correctly.
Banks refuse mortgages because the plant can cause significant property damage, and can devalue the property. This affects the loan to value ratio and reduces the value of the security held by the bank.
The good news is that we do have several residential solutions with an insurance backed guarantee (IBG) underwritten by Syndicate 4444 (Canopius) at Lloyd's that satisfies most lenders. The methods range from herbicide treatment programmes using foliar spray, or in some cases stem injection, to physical removal methods such as Resi-Dig-Out™. For much larger areas our commercial XtractTM or Dig and Dump solutions may be appropriate.
If you are a buyer or seller with hugely different perceptions of the scale of the knotweed problem (and can't agree on apportionment of costs) you may find our Survey and Japanese Knotweed Management Plans of use. These can be commissioned by buyer, seller or jointly, to ensure a completely impartial view is given by a professional firm, able to undertake the eradication work at a fixed cost, and provide a guarantee that can be assigned to the new owner upon completion of the sale.
More information for vendors trying to sell property infested with knotweed ......
More information for prospective buyers of property infested with knotweed .......