The Problems with JAPANESE KNOTWEED & Mortgages
ARTICLE WRITTEN BY MICHAEL ALDERWICK
June 2017 Newsletter
Mortgage applications have been refused by numerous lenders due to Japanese Knotweed infestations within the boundaries of the property.
Invasive Vegetation Management & Treatment Ltd now have access to optional 10 year insurance policies in support of our treatment plans which are an acceptable solution to most mortgage lenders.
We have recently received some great news from one of the leading mortgage lenders. The Woolwich Building Society have announced that they will accept proposals for remedial action plans to eradicate Japanese Knotweed providing the works are covered by an insurance backed guarantee and with a minimum 10 year cover.
History and Background
Why has Japanese Knotweed become an issue with mortgage lenders and banks?
We believe this dates back to September 2007 when the lending crisis became headline news.
At this point mortgage lenders and banks with the restructuring of finance required only absolute clean mortgage loans without risk. Japanese Knotweed was identified as risk.
What has occurred in the period between 2007 and 2012/13?
The RICS decided to consult with invasive weed experts and invited input from companies throughout the UK.
This resulted in the first published information paper in early 2012 which suggested the need for insured guarantees.
Concurrent with this the Property Care Association formed an Invasive Weed Control Group and Invasive Vegetation Management & Treatment Ltd are an accredited member.
And Now the Good News!
Detailed discussion between the PCA, the RICS and the mortgage lenders resulted in a 10 year insured guarantee option being available but only to accredited PCA members. It removes one of the obstacles to obtain funding as well as assisting in future sales.
The insured guarantees became available in November 2012.
It removes an obstacle in obtaining a mortgage.
Assists future sales.
In simple terms it insures the contractor guarantee for 10 years.
Mortgage lenders will take into consideration a range of factors as you know when offering mortgage approval. It should definitely assist if Japanese Knotweed is the only issue.
IVM offer tailor made eradication programs for Japanese knotweed, Giant Knotweed, Hybrid Knotweed and Giant Hogweed. All treatments undertaken by IVM are guaranteed.
Invasive Vegetation Management & Treatment Ltd (IVM) offer guaranteed eradication of Japanese Knotweed (JK) using the advanced IVM 'FAST' System, this system uses the latest application techniques and scientific research to ensure complete eradication of Japanese Knotweed, Giant Knotweed and Hybrid Knotweed.
The company directors have 31 years combined experience in Japanese Knotweed Treatment & Invasive Vegetation Management between them.
The company has a wealth of experience in the scientific treatment of invasive plants, and can tailor a treatment program to suit any construction program. We pride ourselves on their Health and Safety and Environmental awareness, with all operatives trained to high standards and being members of NRoSO, BASIS, Amenity Assured and the PCA.