LiveMore has launched a lifetime mortgage designed to help homeowners whose properties have become difficult to sell or remortgage because of spray foam insulation.
The Spray Foam Restoration product combines lending with professional removal of the insulation, allowing the property to be valued on the basis that the remedial work has been completed.
LiveMore has partnered with Verified Building Services, which will arrange removal through its nationwide network of vetted and insured contractors. Customers do not need to pay the cost upfront, although it will be met from the mortgage advance rather than the work being provided free.
The proposition could give estate agents another option when a transaction stalls because a surveyor or mortgage lender identifies spray foam within the roof.
SUBSTANTIAL ISSUE
The English Housing Survey found spray foam loft insulation in approximately 231,000 English homes, including 214,000 owner-occupied properties.
Spray foam does not automatically make every property unmortgageable. Some lenders will consider applications individually, depending on the type of material, its condition, installation records and the findings of a specialist survey.
However, the material can cover roof timbers and make it difficult for surveyors to identify moisture, decay or structural defects. Poor installation can also restrict ventilation and increase the risk of condensation.
The Royal Institution of Chartered Surveyors advises homeowners to obtain independent professional guidance before making alterations and warns that removing spray foam can itself damage the underlying structure.
LEFT IN LIMBO
Leon Diamond, Chief Executive Officer of LiveMore, says: “There are thousands of homeowners who, through no fault of their own, have been left in limbo because they tried to improve their homes. Many will have been turned down by multiple lenders and are feeling desperate, but we’re here to help homeowners who would otherwise be stuck.
“Our mission is to champion underserved borrowers, and we saw an opportunity to help people not just with the lending but also get to the root of the problem and remove the spray foam.
“For many homeowners, it offers something that has been missing until now—a realistic way to move from no back to yes and move forward with their lives.”
LiveMore’s proposition is aimed at later-life borrowers and is available through qualified advisers. The lender recently lowered its minimum borrowing age to 40.
For agents, the launch may help widen the pool of potential solutions where spray foam has delayed a sale, although eligibility will remain subject to advice, underwriting, valuation and the condition of the property.
