Getting a Mortgage with Japanese Knotweed

Getting a mortgage with JApanese Knotweed

Can you get a mortgage with Japanese Knotweed? Having Japanese Knotweed on your property can make selling a house a difficult. This is due to the difficulties presented by Japanese knotweed law, which has led to mortgage lenders taking caution when dealing with homes affected by Japanese Knotweed. However we are here to help, with over 25 years of dealing with this invasive weed we have made it possible for people to get a mortgage with Japanese knotweed.

How to get a mortgage with japanese Knotweed?

Japanese Knotweed Expert are here to help you get a mortgage on a property with Japanese Knotweed. There are several mortgage lenders that are willing to provide a mortgage on a property effected by this invasive weed. However in order to do so you will need to provide all of the relevant paperwork. This usually includes proving that there is a Japanese Knotweed treatment plan is in place by a PCA-accredited company. In some cases the mortgage lender may ask you to put down a higher deposit or charge you more interest in order to balance out the perceived risk of the plant. However this is something that could work in your favour when trying to negotiate a price for the property.

Mortgage Lenders Policies

We have put together a list of the UK mortgage lenders that we have worked with over the years, along with their stance on Japanese Knotweed. However please note these policies may change and are up to the individual company, therefore we recommend that you contact each mortgage lender directly to get the most up to date information.

Nationwide – Nationwide requires any property where Japanese Knotweed is within 7 meters of the properties boundary has a ‘specialist report’ carried out, this will need to include an insurance-backed treatment and management plan with a 5-year warranty against any regrowth of Japanese Knotweed.

HSBC – HSBC also use the ‘RICS’ 7-meter rule as guidance for their lending policy when it comes to getting a mortgage with Japanese Knotweed. However they will only lend if they are provided with a treatment schedule and a completion certificate confirming that the weed has been eradicated. They also require a guarantee of at least 10-year, which we provide as per industry standard.

TSB – TSB will not lend in cases where Japanese Knotweed is present on neighbouring land and poses a threat to the property in question. However they do have guidance related to each category of the RICS’ risk assessment. If the Japanese Knotweed is classed as a Category 1 infestation then no action is required unless the valuer recommends otherwise. Category 2 cases are reviewed on a case by case basis by the valuer. If the Japanese Knotweed is identified as Category 3 or 4, a full report and treatment plan must be put in place by PCA-accredited firm and all works must have a property specific 10-year, transferable guarantee.

Santander – If Japanese Knotweed is spotted during the valuation, a specialist survey must be undertaken by a PCA-accredited specialist. If the plant is within 7 meters of the property then they require the plant to be completely removed by a professional that can offer an insurance backed policy against its return. At Japanese Knotweed Expert we offer a 10-year insurance backed guarantee along with a 10-year company back guarantee as per industry standard.

Lloyds – Lloyds Banking Group (Halifax/Ulster Bank) require treatment report outlining the costs of remediation, these findings will impact the valuers decision on the amount of money that can be lent. If the Japanese Knotweed poses as a structural threat to the property then a mortgage will not be raised on the property.

Royal Bank of Scotland – RBS valuers take a number of factors into account when assessing how Japanese Knotweed will affect a property. Their policies are base on the current RICS guidance.

Metro – You can get a mortgage with Japanese Knotweed growing on the property if it falls within catergory 1 or 2. However if it falls within 3 and 4 Metro Bank requires an insurance backed Japanese Knotweed treatment and management plan to be in place by a firm that is approved by the Property Care Association (PCA). The bank will not release the funds until the plan has been paid for in full and guaranteed for 5 years.

Bath Building Society – This building society operates in line with the RICS’ 7-metre rule. Therefore, if the Japanese knotweed is within 7-metres of the building itself then they require a specialist report. Along with proof that the remedial works are being undertaken by a PCA-accredited company.

Yorkshire Building Society – YBS treat each property on a case by case basis. However, in cases we have dealt with they often ask you to obtain a specialist report to find out more about the infestation. Depending on the result/extent of the infestation they may choose not to lend. They strongly recommend that anyone borrowing on a home with Japanese knotweed to get an insurance-backed treatment plan in place.

Leeds Building Society – Leeds Building Society requires an ‘environmental search’ to be obtained if Japanese knotweed is found on the land. They will refuse to lend if the infestation is considered to a risk to ‘the property or future saleability. They base their policies on recommendations made by environmental specialists and current legal and insurance advice.

First Direct – Use the 7-meter rule as per the guidance from RICS and will only lend if a treatment schedule has been obtained along with a completion certificate to confirm that the Japanese Knotweed has been eradicated. They also require a guarantee of at least 10-year, which we provide as per industry standard.

Coventry Building Society – If the infestation falls between category 1 or 2 on the RICS risk assessment you do not need to inform Coventry Building Society. However if the property falls within Category 3 or 4 then lending will most likely be refused.

Bank of Ireland – Decisions are made based on the RICS guidance. If the Japanese knotweed is deemed to less than a ‘safe distance’ from the property then they will ask for proof of either remedial work having been completed, or that a Japanese knotweed treatment plan is in place. They also take into consideration the valuers’ opinion on the ‘marketability’ of the property, therefore they could still choose to decline mortgages if properties are considered to be unsellable because of the infestation.

Newcastle Building Society – If the property is deemed to be in Category 3 or 4 further investigations need to take place. These must be carried out by a PCA-accredited firm, like ourselves. Following this, any remedial works must have an insurance backed guarantee in place for 10 years, as well as be ‘property specific and transferable to subsequent owners and mortgagees in possession’.

Loughborough Building Society – Use the RICS guidance in reference to their policy-making decisions. In cases where the Japanese knotweed is within the property boundaries (Categories 3 and 4) they require a treatment and management plan from a PCA-accredited firm as well as a guarantee on all remedial works. They may also decline a mortgage even if the property is in Category 1 or 2. If the plant is seen to be a significant threat to the property by the valuer, no money will be lent.

The Cambridge Building Society – Have zero-tolerance on lending to properties with Japanese Knotweed. This includes if Japanese Knotweed is present on the neighbouring land.

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If you are unable to get a mortgage or remortgage your home due to Japanese knotweed then you may need to remove the infestation first. Please note it is always best to consult a PCA-accredited removal firm to deal with your Japanese knotweed, as most mortgage lenders will still not approve your mortgage unless you have an insurance-backed guarantee of at least 5 years.

Japanese knotweed removal can cost thousands of pounds, depending on the severity of the infestation. However this is a price that must be paid in order to deal with mortgage lenders. Despite the guidelines provided by RICS, surveyors have been known to miss Japanese knotweed, in these cases it has led to buyers being refused mortgages or being faced with costly removal fees.

Therefore If you’ve discovered Japanese knotweed on your land, or have found that you have been missold a property that is infested with the plant, then we may be able to help you claim for the cost of removing it. Get in touch using our contact form or call 01782 479 444 where our friendly office team will be happy to assist you.