The Property+ product aims to serve borrowers who have been turned away by lenders due to certain features on their home.
Livemore will also consider other property features such as proximity to commercial property, flood zones, service charge and ground rents, and construction types.
Affordability is based on the age of the youngest applicant and the property value, and borrowers must evidence that the spray foam will be removed within 90 days of the mortgage completing.
Borrowers can use the loan to pay for the removal.
Mark Gregory, founder and CEO of Equity Release Supermarket, said spray foam sounded like a “great way” to protect homes from the cold in theory but it presented a barrier when it came to releasing equity from a home.
This is because the spray foam can cause structural issues if not installed correctly, making it a risky asset to lenders.
Around 250,000 homes in the UK are estimated to have spray foam insulation.
Gregory said: “This has greatly affected thousands of property owners in the UK, especially due to current household energy prices, whereby many homeowners have utilised spray foam to help with insulation in an attempt to reduce their fuel bills, only to result in wider financial support issues.”
He said: “We’re delighted to work alongside Livemore in bringing to market, and to our clients, the new Livemore Property+ plan, offering a far more flexible underwriting approach than the standard lifetime mortgages currently available.
“For those who may have previously been turned down for equity release due to features such as spray foam on their property, it is worth reengaging with an independent equity release adviser to explore options now available with this new solution.”
The product was released with a limited roll-out and is also available through UK Moneyman.
