Japanese Knotweed and Mortgages: What Lenders Need to Know

In truth, the very whisper of Japanese knotweed is sometimes enough to send home buyers running for the hills. Why? Well, Japanese knotweed is an evasive plant that is very difficult to uproot, grows quickly, and can eventually cause significant damage to the structural integrity of properties.

All of which begs the question: “Can you get a mortgage on a property with Japanese knotweed?”

While the simple answer is yes, securing a mortgage will likely be much more difficult. Mortgage lenders view knotweed infestation as a very serious risk. This is because its extensive root system can affect foundations, drains, and other structural elements.

Understanding how Japanese knotweed will affect your mortgage options is essential whether you’re buying, selling, or refinancing a property.

In this article, we dig into exactly what Japanese knotweed is, how it will affect your mortgage options, and the guarantees lenders may require before approving your finance loan. Let’s begin.

What is Japanese Knotweed?

Japanese knotweed (Fallopia japonica) is an invasive plant that is native to East Asia and is known for its rapid growth and thick, bamboo-like stems. For homeowners and buyers, its presence can be serious as its dense root system can compromise property structures and affect long-term maintenance costs.

In the context of property surveys and lender assessments, the risk of structural damage and potential future devaluation can significantly affect a property’s mortgage eligibility and the amount a lender is willing to offer.

How Does Japanese Knotweed Affect Mortgage Lending in the UK?

Japanese knotweed greatly increases the risk for lenders as the plant can cause damage to property structures and negatively impact the long-term value. Even small infestations are flagged in property surveys, often leading to stricter lending conditions or delays in mortgage approval.

As a result, untreated infestations often lead to Japanese knotweed affecting mortgages, with lenders either declining an application or requesting additional guarantees before approving finance. In many cases, Japanese knotweed mortgage problems directly affect a property’s valuation and can also lead insurers to raise premiums due to the perceived risk.

Ultimately, how mortgage lenders value property with Japanese knotweed will depend on the severity of the infestation, its proximity to the building, and whether a professional treatment plan is in place.

Some of the most common Japanese knotweed mortgage issues that buyers and sellers face include:

• Mortgage Refusals: Depending on your chosen lender and their criteria, many lenders will decline any mortgage application on property that has a Japanese knotweed infestation that is untreated without a treatment plan in place.
• Decreased Property Value: Surveyors will often downgrade valuations, which will directly affect how much lenders are willing to offer.
• Higher Insurance Costs: Insurers can often increase premiums due to the perceived risk of damage or regrowth that Japanese knotweed can cause.
• Strict Lender Conditions: Many lenders will require professional treatment plans or insurance-backed guarantees before approving a financial loan.

What Is a Mortgage Lenders Policy on Japanese Knotweed?

The exact policy and criteria will differ between lenders, however, most lenders will request for a  professional treatment plan and insurance-backed guarantee before approving a mortgage on a property with Japanese Knotweed. This is simply to offset the perceived risk by lenders.

Knowing a lender’s mortgage lenders policy on Japanese knotweed can help position you in the driver’s seat, helping to plan ahead, avoid delays, and ensure all necessary steps are taken for a smooth mortgage application.

At Boon Brokers, we’re a whole-of-market mortgage broker with access to both specialist lenders and high-street banks. Our dedicated mortgage advisers can guide you through the complexities of buying a property with Japanese knotweed. We’ll help you find a lender that best fits your circumstances, securing the best mortgage deal that matches your needs.

Are Homeowners and Sellers Required to Disclose Japanese Knotweed in the UK?

Yes, homeowners and sellers in the UK are legally required to disclose the presence of Japanese knotweed, no matter the size of the infestation, when selling a property. Failing to provide this information can lead to legal disputes or financial issues after the sale.

In short: this knowledge ensures that buyers and lenders are fully informed about any potential risks that are associated with the property and that can affect a mortgage approval.

The most common method of disclosure is through the TA6 property information form: a standard document that is completed by a seller that includes details on all the crucial information about the property, before the contract exchange.

Understanding what is a TA6 property information form is essential for both buyers and sellers, as it forms part of the legal record during a property transaction. For the most up-to-date details and requirements, it is best practice to check the UK Government guidance on selling a home.

Most importantly, selling a property with Japanese knotweed doesn’t automatically prevent a sale. It does however require transparency and often additional documentation, such as a treatment plan or professional survey. Buyers and lenders rely on accurate disclosure to assess the property’s value and determine whether any special conditions are necessary.

How Does Japanese Knotweed Impact Property Valuation for Mortgages?

The presence of Japanese knotweed can directly affect a property’s valuation. Because of its potential to cause structural damage and reduce long-term value, lenders may adjust their mortgage approval decisions and the amount they are willing to offer.

When buying a property with Japanese knotweed, surveyors consider factors such as the plant’s size, distance from the home, and whether a professional treatment plan has been implemented. It is important to note that even small infestations near a property will impact surveyor assessments, particularly if the plant is close to the building or its root system could compromise structural integrity.

Ultimately, the potential risk to a property’s long-term value means that lenders are often cautious when considering mortgage applications for properties affected by Japanese knotweed.

Some key considerations include:

• Proximity to the Building: Infestations close to a property can lower valuations due to the higher risk of structural damage.
• Severity of the Infestation: Larger or more established growths will generally result in greater devaluation due to the increased perceived risk.
• Treatment Status: Properties with a professional eradication plan or insurance-backed guarantee may retain more of their value.
• Lender Conditions: Lenders may impose specific restrictions or require guarantees to reduce their risk, which can influence the final mortgage offer.

The extent of any devaluation will wholly depend on the infestation and the measures taken to manage it. Properties with treated knotweed and insurance-backed guarantees may experience minimal impact, whereas untreated infestations can result in substantial reductions in market value.

At Boon Brokers, we guide you through every step of the mortgage valuation process. With whole-of-market access, our dedicated advisers can help you understand the valuation reports, explore your options, and gather the right evidence to support your application.

Whether arranging an independent survey or recommending lenders with different valuation approaches, Boon Brokers can help you ensure that you have the insight and support to achieve the best possible mortgage outcome that matches your needs.

What Conditions Do Mortgage Lenders Impose If Japanese Knotweed Is Found?

If Japanese knotweed is detected during a property survey, lenders can apply specific conditions before approving a mortgage. These conditions are designed to minimise risk and ensure the property remains a secure investment. While the exact stipulation and criteria will depend on your chosen lender, generally these conditions will focus on treatment, monitoring, and financial guarantees.

While each of these conditions help reduce the risk to lenders, understanding the lender’s requirements can help you take proactive steps to meet these conditions and avoid delays with your mortgage application.

Is Ongoing Monitoring Necessary After Japanese Knotweed Treatment in the UK?

Yes, ongoing monitoring is essential after Japanese knotweed treatment in the UK. Even with professional eradication, the plant can regrow if not properly managed. Lenders and surveyors often require evidence that monitoring is in place to keep the infestation under control and maintain the property’s value, helping ensure the mortgage remains secure.

Ultimately, choosing the best treatment for Japanese knotweed and adhering to a monitoring schedule will help prevent any future complications. For a complete guide on how to prevent the spread of knotweed and recommended monitoring practices, check out the UK Government guidance on Japanese knotweed.

Get Support from a Mortgage Broker

It’s no secret that Japanese knotweed can complicate the mortgage process, but having an experienced mortgage broker in your corner can make all the difference.

Lenders will often have a strict criteria for any property that is affected by knotweed, including treatment plans, insurance-backed guarantees, and monitoring requirements. At Boon Brokers, we can help guide you through these steps, ensuring your application meets your chosen lender’s expectations and avoids any unnecessary delays.

Our dedicated advisers provide expert, fee-free and personalised mortgage advice. With both a wealth of experience in helping clients secure mortgages on properties with Japanese knotweed, and whole-of-market access, we work with both high-street and specialist lenders alike and can match you with the lender and product that suits your needs.

So, whether you’re buying, remortgaging, or selling a property with knotweed, our fee-free mortgage advice will ensure that you receive the support and guidance you need.

Contact Boon Brokers and speak with a dedicated mortgage adviser to get personalised mortgage advice that is tailored to you today.