London conveyancers Quittance report 2019 increase in Japanese knotweed cases

2019’s warm spring weather has encouraged many green-fingered homeowners to get into their gardens earlier than usual but, unfortunately, the uncharacteristically warm and wet weather has also caused Japanese knotweed to thrive.

In previous years, knotweed infestations would generally be unearthed later in summer, but 2019 has seen an increase in early discoveries of the invasive plant.

As a result, Quittance Conveyancing, the London-based panel of conveyancing solicitors, have reported an increase in property sales and purchase enquiries where knotweed is a factor.

What is Japanese knotweed?

Japanese knotweed is an invasive and potentially destructive plant whose mere presence near a property can significantly impact the property’s value. It could even affect the mortgageability of the property.

Knotweed can grow up to 10 cm per day in the summer months. The plant has a subterranean rhizome system that spreads rapidly and can cause structural damage to buildings.

Why is knotweed a problem?

When you decide to sell your property, you are legally obliged to disclose the existence of Japanese knotweed at or near your property.

The conveyancing process requires sellers to complete a formal ‘TA6’ seller’s property information form.

The form contains a specific question about Japanese knotweed:

“Is the property affected by Japanese knotweed? Yes, No or Don’t know.

If Yes, please state whether there is a Japanese knotweed management plan in place and supply a copy.”

Failing to disclose the presence of knotweed, if known, could have very serious consequences. Buyers would have potential grounds to sue the previous owner if the presence of knotweed was not disclosed. As the potential diminution of value of the property could be as much as 15%, failing to disclose could be a very expensive mistake for the seller.

London particularly at risk

According to Chris Salmon, Commercial Director at Quittance Legal Services:

“London is the epicentre of Japanese knotweed-related property issues in the UK, and this year’s weather has created the best possible growing conditions for the plant.

“By May, one would only expect to see green shoots emerging. However, 2019 has seen reports of up to 1m of growth already. Infestation has also been reported in some parts of outer London and the South West for the first time.

“Knotweed issues have the potential to seriously delay or even kill a property sale. Sellers should make their solicitor aware of any concerns they have as soon as possible, to give their sale the best chance of completing.”

Are Japanese knotweed fears just hysteria?

There are very few real-world examples of knotweed seriously affecting a property’s structure.

Research carried out by the University of Leeds and AECOM found no cases where knotweed was responsible for major structural damage. The findings showed that there were other considerably more damaging plants including climbers and trees.

Surveyors also downplay the impact of knotweed, although they are aware of the implications the plants can have on a property’s value. Surveyors are therefore increasingly vigilant when carrying out a property survey.

The position adopted by the majority of UK lenders is more serious. Whatever the real-world dangers of knotweed, the risk-averse attitude of most mortgage lenders is having a dramatic impact on the value of infested property.

If lenders refuse to lend on a knotweed-affected property and potential buyers therefore cannot get a mortgage, the property’s value can fall by anything up to 15%.

What should you do if you plan to sell a property with Japanese knotweed?

You must not attempt to treat or remove the plant yourself. The law states that you must not cause the plant to grow in the wild or spread to a neighbouring property.

If you allow knotweed to spread into a neighbour’s garden, you could be prosecuted and required to pay a fine. Solicitors are also seeing increasing numbers of knotweed encroachment litigation cases, as angry neighbours sue the owners of knotweed-infested property who fail to act.

From a property seller point of view, it is the lender and buyer’s interests that are paramount.

If you intend to sell your property and are aware of the presence of Japanese knotweed on or near the property you should seek professional advice.

Lenders are increasingly happy to lend if the property is covered by an indemnity insurance-backed management plan. Individual lender requirements can be checked online in the CML handbook.

In many cases, the seller will simply need to have signed up to an approved plan to satisfy a lender, although prepayment of the plan is usually a condition. Treatment plans start at around £1,000 but may be significantly higher depending on the circumstances.

Compared to the financial implications of potentially unsaleable property, the cost of a treatment plan is usually a price well worth paying.

Kindly shared by Quittance Conveyancing