Buying or selling a house with or near Japanese Knotweed?

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1 Buying or selling a house with or near Japanese Knotweed? If you are buying, selling, remortgaging, building or just want to control Japanese Knotweed then we can help you. Many lenders/planners are reluctant to consider mortgage/planning applications if there is actual or a history of Japanese Knotweed within the boundary or near to the boundary of a property. Many Lenders may ask for a comprehensive survey Containing details of a treatment program (JKMP) to be carried out by a PCA (Property Care Association) Registered Japanese Knotweed Contractor that will control the Japanese Knotweed and also have guarantee options that cab be backed up by a third party insurance company - known as an IBG or insurance backed guarantee. The good news is treating Knotweed does not have to costs thousands of pounds if you choose the right treatment option. We can provide you with an idea of costs - A basic site visit & treatment program quote is free but a comprehensive survey report including a treatment program etc. known as a JKMP will incur charges which will be refunded if you proceed with the treatment program. PCA Membership. All information is in accordance with the PCA & Environment Agency Code of Practice for Japanese Knotweed. Taylor Total Weed Control Ltd are members and registered with the PCA. which means our reports and treatment programs and guarantees are accepted by most lenders. We can carry out surveys, produce reports and provide various treatment programs with, 5 or 10 year guarantees as required. We can even supply Insurance backed guarantees IBG. MAKE SURE THE COMPANY HAS THE RIGHT QUALICATIONS & IS A PCA MEMBER Be very careful. There are plenty of companies gardeners, landscapers who say they can control Japanese Knotweed but do not have the relevant qualifications, accreditation to guarantee their work to the satisfaction of the various lenders, banks and solicitors. It is pointless paying for a survey, report and treatment program if the work/guarantee is not acceptable to a lender & prevents a mortgage and leads to problems selling a property. Japanese Knotweed on or near your property. How much it is going to cost and how quickly can it be controlled or removed? Step 1 confirm it is JK and find out what survey and guarantee is required by your lender or the purchasers lender Step 2 have a survey carried out the distance from the JK to the property is critical - see the coloured schedule of risk table below. Step 3 which treatment option matches what I want to do with the land/building. (See the attached information pack for more details) 1- The cheapest most cost effective method is a herbicide application program (HAP) which takes a minimum of 5 years. (3 years treating and 2 years monitoring which can be followed by a guarantee period. 2- Excavation & Removal is very expensive due to extra landfill tax levy for Japanese Knotweed and the large amount of surrounding soil that also has to be removed. JK can spread several metres underground in all directions and all roots and surrounding soil have to be removed and taken to a landfill site that will accept Japanese Knotweed. 1

2 3 -Excavation & removal within the site and then treatment with herbicide over several years costs less than option 2 but more than option1 it allows you to build on area of the site where JK has been excavated from. Step 4. Do you require a 5 or 10 year guarantee and do you require an insurance policy with that guarantee (IBG)? Please do not think a treatment program quote is the same thing as a survey report, there is a significant difference. We can provide you with a simple treatment program quote - free of charge. If you or a purchaser are remortgaging some lenders may want a more comprehensive report (JKMP) to support a mortgage application. We will survey and produce a report that contains details of the JK contamination - size and locations site plans treatment program photographs etc... The cost of the survey is vat. Which we will refund if you decide to proceed with the treatment program. Why do we have to treat Knotweed? Japanese knotweed is a very real concern for commercial and residential developers, investors and lenders, as well as occupiers. Lenders commonly refuse to lend on property where there is an actual or historical presence of Japanese knotweed. Their reluctance can also extend to properties where Japanese knotweed is found on adjoining land. Surveyors are expected to actively look for Knotweed when making a mortgage valuation on a property. Surveyors use the following guide. Sellers are expected to declare if there is a history of Japanese Knotweed on or near their property The Royal Institute of Chartered Surveyors (RICS) Schedule (RICS) of risk for Japanese Knotweed. The production of a Japanese knotweed Management plan can establish the level of risk as specified by the RICS table below. Category Descriptors 4 Japanese Knotweed is within 7 metres of a habitable space, conservatory and/or garage, either within the boundaries of this property or in a neighbouring property or space; and/or Japanese Knotweed is causing serious damage to outbuildings, associated structures, drains, paths, boundary walls and fences and so on. Further investigations by an appropriately qualified and/or experienced person are required.- Taylor Total Weed Control Ltd 3 Although Japanese Knotweed is present within the boundaries of the property, it is more than 7 metres from a habitable space, conservatory, and/or garage. If there is damage to outbuildings, associated structures, paths and boundary walls and fences, it is minor. Further investigations by an appropriately qualified and/or experienced person are required. Taylor Total Weed Control Ltd 2 1 Japanese Knotweed was not seen within the boundaries of this property, but it was seen on a neighbouring property or land. Here, it was within 7 metres of the boundary, but more than 7 metres away from habitable spaces, conservatory and/or garage of the subject property. Japanese Knotweed was not seen on this property, but it can be seen on a neighbouring property or land where it was more than 7 metres away from the boundary. Category 4 is the most critical and 1 the least. Different Lenders have different attitudes to Japanese Knotweed. If you are considering selling or buying a property, you will find that the majority of UK residential mortgage lenders will require evidence that there is a commitment by the current or prospective owner of the property to fund, in advance, a long term treatment and guarantee programme effective against Japanese knotweed. The remediation work is often referred to as a Knotweed 2

3 Management Plan (JKMP). A JKMP is an ongoing and periodically updated plan that records all work and activity undertaken. Risks of not taking action. Japanese Knotweed spreads by means of its underground rhizomes (stems) new stems can emerge under boundaries several metres from the original stem the closer it emerges nearer to your property the less attractive the property may become to a purchasers lender. The above could have an impact on the value of your property. There is also the long term prospect of Knotweed spreading from your land to your neighbours and the neighbour taking legal action against you. You have a legal obligation to declare on the TA6 from your solicitor will ask you to complete that you have Japanese knotweed on or near your property. Doing nothing is not the best option! Treatment program price examples. Based on treating an area up to 25 m2 Prices + VAT (+ traveling costs for remote locations) 1 Applications of herbicide as and when required by the owner of the site. Some customers do not want to choose a formal treatment program and just require straight forward regular applications of appropriate herbicide applied when they want it applied. We can apply herbicide for as little as 75 + vat per application. (Subject to the size of the area of contamination and location 6/ 8 applications over 3/4 years may be enough to control the growth on your property.) Please note there are no formal reports, surveys or guarantees supplied with this level of treatment and they may not be acceptable to lenders. Treating with regular applications of Herbicide HAP as part of a 5 year treatment program. most cost effective option. Treating the plants with a program of regular applications of appropriate herbicide (HAP) This option treats the plant on the site over a period of 3 years plus a 2 year monitoring program. Option A. 3 year treatment program plus a 2 year monitoring period. Prices start 950+ vat Option B. You can add a 5 year guarantee to the above program if required. 3 year treatment program plus a 2 year monitoring period plus a further 5 year guarantee prices start from 1,645 + vat Option C. add a 10 year guarantee - 3 year treatment program 2 year monitoring plus a 10 year guarantee prices start from 1,945 + vat We can supply you with a completion and guarantee certificates once the program has been carried out in full or if the program cost and guarantee has been paid in advance. Based on treating an area up to 25 m2 Prices + VAT Some banks and lenders will ask for an insurance backed guarantee. (IBG) provided from an independent third party Insurance Company. The insurance backed guarantee will provide you with an extra level of protection. In the unlikely event we should cease to 3

4 trade. If a defect covered by the original guarantee develops an insurance policy will pay for another qualified contractor to remedy the works in line with the guarantee. A Guarantee certificate can only be supplied if the whole program has been paid for in advance. The cost of the insurance premium plus a small charge for admin has to be added. It is usually around 150 per policy. If the insurance company will not accept and insure the treatment program on the property then any premium paid will be refunded. 3 year treatment program plus 2 year monitoring plus a 5 year IBG - cost 1,645 + vat plus the cost of the premium and admin ( 180). 3 year Treatment program plus 2 year monitoring program plus a 10 years IBG - cost 1,945 + vat plus the cost of the premium and admin ( 180) Prices subject to change. Includes specialist knotweed surveying policy fee and insurance premium tax (IPT) Initial chemical treatment to the affected area(s) within your property as outlined in the program. Chemical treatment of any re growth or recurrence of Japanese knotweed at no additional cost. Continued periodic site inspections throughout the IBG period. Guarantees and transfer of guarantees to new owners. Guarantees have to be confirmed at the start of the program. Following the completion of the 3 year HAP and 2 year monitoring period if a 5 or10 year guarantee has been added Taylor Total Weed Control Ltd will undertake regular inspections during the guarantee usually to identify and treat any new growth that appears during the period of the guarantee. Should any Japanese Knotweed growth return on the areas we have treated as specified in the original treatment program within the agreed guarantee period - Taylor Total Weed Control Ltd will continue to return and apply the appropriate herbicide until the plants have been eradicated and do not return for a period of 2 years What happens when I sell my property? -- Transferring programs and guarantees. The Japanese Knotweed Survey & Management -Treatment Plan, the treatment program & relevant guarantee can be transferred to the purchaser/ new owner as long as we are informed in writing of the change of ownership and receive all the relevant new contact details and a written commitment from the new owners to take over responsibility for all outstanding and future invoices until the program, warranty and guarantee (if included is completed.) There is an Admin charge of 100 to transfer the program and benefits to the new owner. A Guarantee certificate can only be supplied if the whole program has been paid for in advance.. Other control options. Digging out and disposal or relocation on site. Rhizomes or roots can spread several metres in all directions. 1. Excavation of the plant material and the surrounding soil (which is classed as controlled waste and can only be disposed at certain licensed landfill sites.) is quick and immediate but transportation and disposal costs are high. # 2. Excavation and relocation of plant and soil material to another part of the site and then treat the area with a HAP. Ideal if you have a large site and space to locate and treat the JK with a program of herbicide. 3. Bury the plant and contaminated soil in a hole dug on the site and cover with several meters of soil or enclose it in a specialist weed proof membrane. 4

5 4. # Excavation and disposal at a licensed Landfill site. As landfill space is running out the Government wants to discourage Knotweed being put into Landfill and has levied a tax of approx. 85 per ton for JK waste on top of the cost of haulage and excavation. Excavation and disposal is immediate and allows the property owner to proceed with selling or development plans. Sites vary but as a guide to excavate and dispose an area measuring less than 10 m2 is likely to cost 4,000 + vat Sites over 10 m2 are likely to be 7, Vat Guide price of vat per square metre. If there is knotweed on a neighbouring property we can advise you on the procedure to follow to encourage your neighbour to take effective action or allow you to take effective action that will control the JK problem and will be acceptable to a lender. Once you have confirmed that the plants or roots on or near your property are Japanese Knotweed, it is important to establish the extent of the level of contamination its location and how it affects your property or your neighbours property. Knotweed on adjacent properties can prevent potential purchasers from obtaining a mortgage or owners obtaining permission to develop a site. Most lenders etc. now require a detailed report based on a comprehensive survey and detailed treatment program carried out by a professional Company that has experience of treating and controlling Japanese Knotweed. If you want to know more please contact us and we can send you information on the topics listed below. THE CONTROL OF JAPANESE KNOTWEED List of topics. 1. Surveys plans and costs. 2. Buying and selling properties with Japanese knotweed. 3. RICS Schedule of risk distance of knotweed from buildings. 4 Facts about knotweed and treatment options. 5. Knotweed, the Law and encroachment on and to neighbouring properties. 6. Guarantees and warranties 7. Terms & Conditions JAPANESE KNOTWEED; BASIC QUESTIONS TO ASK ALL ENQUIRIES. Address where we can contact you (including post code) Contact details (Inc. tel number etc.) Address of contaminated property if different from above. Are you buying or selling or just re mortgaging the property. 5

6 If yes at what stage are you at - do you have a buyer? Has a Surveyor/Agent been to inspect the property and have they seen knotweed? - What type and level of survey has the surveyor bank or other lender asked you to supply? Where is the contamination? Can you e mail photographs to us? Is it inside your boundary? If yes it is inside your boundary - How close is the nearest Japanese Knotweed stem to your building? How large is the area of contamination? Is there any JK on any neighbouring properties as well? If the Japanese Knotweed is not inside the boundary of your property is it on adjacent property/land How close is the Japanese Knotweed to the boundary between you and your neighbours land and how large is the area that is contaminated? Drawing a straight line from your property to the area of contamination How far is the boundary from your property and how far from the boundary to the nearest area of contamination? If Japanese Knotweed contamination is on a neighbour s property you may need to discuss the contamination with the neighbour and point out their responsibilities to control Japanese Knotweed on their land. You may need to ask them to treat their contamination and you need to ensure they are using a competent contractor. We cannot treat JK on neighbouring land unless you or your neighbour agrees to pay or allows you to pay to treat the neighbours land and we must also have the neighbour s permission. If you have any problems answering these questions please do not hesitate to call us and we can go through them with you. 6