Lenders in the UK, property buyers, and sellers all have one common fear. The Japanese knotweed is a major disaster that is rendering properties valueless and undesirable to many investors. It is creating a havoc and sending chills down the spine, making it a threat to mortgage companies. The major problem with this weed is the Japanese knotweed removal costs.
Recently, though, there is a new bogeyman in the real estate industry, and now the mortgage lenders are afraid of a wide range of weeds that cause harm to properties. It looks like all the non-native plants are an enemy to the homeowners. If you thought that the knotweed was expensive enough to drain your account and harm your real estate investments, then you are yet to see the real problem. This calls for more expensive management and treatment programmes as well as guarantees.
No Mortgage Despite the Location of the Weeds:
As if the pain of any non-native plants causing trouble with mortgage companies was not enough, some companies have declared that they cannot offer loans if any of the plants are seen in any part of the property, regardless of whether it is close to the main house or far. And that is not even all. If the plants are found in a neighbour’s field, then you simply forget it. Your guarantee for a mortgage is nulled and voided.
In the recent research, mortgage lenders are demanding a management plan with a guarantee before they can offer you the mortgage you need. They also need an insurance warranty regarding the eradication plan you draw. This will be too costly to the homeowners who have the non-native plants that are deemed dangerous, and the mortgage will not be worth it in regard to the terms.
In a breakdown, the initial report will cost you up to £500. You will then need a detailed and clear management plan, which should be backed up with regular checks on the condition for a period of up to 20 years. The insurance will also be mandatory, and you have to pay more than £5,000. These costs are quite huge for many homeowners to manage.
No Typical Cost for Knotweed and Non-native Plants Removal:
The Japanese Knotweed Removal makes it clear that the cost of the removal of knotweed depends on the lenders of the property purchaser. The company’s manager, Ross Clarke, pointed out that the “typical removal cost” does not exist. In his statement, Ross said the cost depends mostly on the guarantees that the lenders demand before they can approve the mortgage.
Various companies have different terms. You may be asked to give a guarantee of two years, or as many as 10, or even up to 20 years. The more the number of years you have to guarantee, the higher the cost you are to pay for the removal. Ross also says that the cost could be between £750 and £2,000. He, however, said that the cost also depends on the mode of removal used for the eradication of the weed. For instance, digging out is costlier than spraying.
What is the Problem with Other Plants?
Many people who are travellers brought many exotic plants home. They distributed these plants to gardeners because they looked beautiful and harmless. However, of late, many of these plants have become undesirable because they are considered invasive.