Equity Release and Spray Foam: What Every Homeowner Must Know
Why spray foam blocks equity release and what you can do about it
The Hard Truth
If you have spray foam insulation in your loft, you will almost certainly be unable to secure equity release. Most equity release providers refuse applications outright when spray foam is present.
What Is Equity Release?
Equity release allows homeowners aged 55+ to access the value locked in their property without selling or moving. It's commonly used for:
- Funding retirement
- Home improvements
- Helping family members financially
- Paying off debts
- Covering care costs
Why Spray Foam Blocks Equity Release
Property Valuation Risk
Equity release providers can't accurately value properties with spray foam due to unknown timber condition and future removal costs.
Resale Concerns
If they need to repossess and sell, spray foam severely limits buyer pool and sale price.
Structural Uncertainty
Impossible to inspect timber for rot, damage, or deterioration without removal.
Your Options
Option 1: Remove Spray Foam
Professional removal makes your property eligible for equity release again.
Cost: £3,000-£20,000 depending on property size
Benefit: Access to full equity release market
Timeline: 2-4 weeks for removal, then immediate eligibility
Option 2: Alternative Funding
Explore other options if removal isn't viable:
- Downsizing and selling
- Personal loans (if affordable)
- Family assistance
- Selling assets other than property
Case Study: The £80,000 Decision
Margaret, 67, wanted to release £80,000 from her £300,000 home to help her daughter buy her first property.
Problem: Every equity release provider declined due to spray foam
Solution: Paid £8,000 for professional spray foam removal
Outcome: Approved for £80,000 equity release two weeks after completion
Net gain: £72,000 (£80,000 - £8,000 removal cost)
Without removal, Margaret would have accessed £0 from her property equity.