When a young naïve Mike Clough first set up in business I couldn’t get a mortgage.
I had a business, I employed six people, I had a car, a wife, an overdraft, a baby… but I was supposed to ask my parents to guarantee my borrowings for a mortgage! I sorted it as I usually do, with much talking and aggressive persuasion, and eventually sorted it without having to have mum and dad’s approval.
With rising house prices and lowered funds for lending the younger borrowers of today are faced with ever more difficult hurdles to leap before they can get the house of their dreams.
Now, unfortunately - we can add Japanese Knotweed to their list of problems.
The Council of Mortgage Lenders (CML) and the Building Societies Association (BSA) account for the majority of residential mortgage lending. Both represent the views of their members, but neither can impose policies.
When problems with Japanese Knotweed first became apparent the CML consulted its members, it did not publish a formal policy but it was clear - there was a general reluctance to lend on Japanese Knotweed-affected properties.
However, individual lenders are willing to consider applications on a case by case basis once remediation works have been implemented. Conditions will of course vary in practice but generally lenders will want to see evidence of:
- Detailed survey
- Initial treatment
- A long term (perhaps five years or more) commitment by the owner of the property to fund a treatment programme effective against Japanese Knotweed
Individual lenders will adopt policies that reflect their own commercial priorities. The variation in approach across the sector presents a challenge for valuers and for the poor customer trying to buy the property.
For up to date advice and the best strategies for dealing with Japanese Knotweed - speak to Japanese Knotweed Solutions.