WATCH VIDEO >>> https://youtu.be/5xHyM69HmbY
When you’ve found your dream home or investment property, discovering invasive plants like Japanese knotweed on the property can feel like a deal-breaker. These aggressive species can cause structural damage and significantly complicate the mortgage process. However, with the right knowledge and approach, it’s still possible to secure financing and proceed with your purchase.
Understanding the Problem
Japanese knotweed is particularly notorious among lenders due to its ability to grow through concrete, tarmac, and even building foundations. Its root system can extend up to seven meters horizontally and three meters deep, potentially causing subsidence and structural damage. Bamboo, while generally less destructive, can also spread rapidly and cause issues with boundaries and foundations if not properly contained.
The mere presence of these plants can make lenders nervous, as they’re concerned about the property’s long-term value and structural integrity. Many mortgage providers have specific policies regarding invasive species, and some may refuse to lend altogether on affected properties.
Mortgage Challenges You’ll Face
Most high street lenders will require a specialist survey if Japanese knotweed is present within seven meters of the property. The Royal Institution of Chartered Surveyors (RICS) has established a risk categorisation system that lenders typically follow. Properties are classified into categories ranging from minimal risk to those requiring immediate professional treatment.
Getting Professional Assessments
Before approaching lenders, commission a specialist survey from a qualified surveyor experienced with invasive species. This survey should identify the exact species present, assess the risk level, and provide recommendations for treatment. For Japanese knotweed, you’ll likely need a Japanese Knotweed Management Plan from a Property Care Association (PCA) certified contractor.
The management plan should include a treatment schedule, typically spanning 2-5 years, along with an insurance-backed guarantee. This guarantee is crucial for mortgage approval, as it provides lenders with assurance that the treatment will be effective and protects against future claims.
Specialist Lenders and Options
While many mainstream lenders are cautious about invasive plant species, specialist lenders and some building societies may be more flexible. These lenders often have more experience dealing with non-standard properties and may accept applications with appropriate management plans in place.
Consider approaching lenders who specialise in unique or challenging properties. Some may require higher deposits or charge slightly higher interest rates to offset the perceived risk, but they’re often willing to lend where others won’t.
Negotiating the Purchase
Use the presence of invasive plants as a negotiating tool. The cost of professional treatment can range from £1,500 to £10,000 or more for Japanese knotweed, depending on the severity of the infestation. Request that the seller either arranges treatment before completion or reduces the purchase price to cover these costs.
If the seller agrees to arrange treatment, ensure this is properly documented in the contract, with completion of the treatment programme guaranteed. Alternatively, if you’re accepting a price reduction, make sure it’s sufficient to cover both the immediate treatment costs and any potential ongoing maintenance.
Legal Considerations
Your solicitor should conduct thorough searches to check if the local authority has any records of Japanese knotweed on the property. They should also review any previous treatment history and ensure proper indemnity insurance is in place.
Be aware that failing to disclose the presence of Japanese knotweed when selling a property in the future could result in legal action. Proper documentation of the problem and its treatment from the outset protects you from future claims.
Long-term Management
Remember that dealing with invasive plants is often an ongoing commitment rather than a one-time fix. Japanese knotweed treatment typically requires annual monitoring for several years after the initial treatment programme. Factor these ongoing costs into your budget and ensure you understand your responsibilities as the property owner.
Making an Informed Decision
While invasive plants add complexity to the mortgage process, they don’t necessarily make a property unbuyable. The key is thorough preparation, realistic budgeting, and working with professionals who understand both the botanical and financial aspects of the problem.
Get multiple quotes for treatment, shop around for sympathetic lenders, and factor all costs into your decision. With proper management, many properties with invasive plant issues can still make sound investments, particularly if you’ve negotiated an appropriate purchase price that reflects the additional responsibilities involved.
The mortgage market is becoming increasingly aware of invasive plant issues, and more solutions are becoming available. While the process may take longer and require more documentation than a standard purchase, securing financing for an affected property is certainly achievable with the right approach and professional support.
At 3mc, we have a team of expert advisers who can discuss all your mortgage requirements. If you would like to discuss your options, give the 3mc team a call on 0161 962 7800.
All calls are recorded for training and monitoring purposes. 3mc for intermediaries only.
*Your home may be repossessed if you do not keep up repayments on your mortgage. 3mc (UK) Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register https://register.fca.org.uk/s/ under reference 302992. Please note: The FCA do not regulate Business Buy to Let Mortgages.
