Remortgage a Thatched Property

Why Thatched Properties Are Different for Mortgage Lenders

Thatched properties are classified as non-standard construction by most mortgage lenders. This does not mean that remortgaging is impossible, but it does mean that lenders approach these properties with additional caution. Understanding why helps you prepare more effectively.

Fire risk

The most significant concern for lenders is fire risk. Thatch is a combustible material, and while the overall incidence of thatch fires is relatively low, when they do occur the damage can be severe and costly. Lenders need to be satisfied that appropriate fire safety measures are in place and that the property is adequately insured.

Maintenance costs

Thatched roofs require regular maintenance and eventually need to be replaced. The lifespan of a thatched roof varies depending on the material used, the quality of the thatching work, and the local climate, but a ridge typically lasts 10 to 15 years and the main coat can last anywhere from 20 to 60 years depending on the material. Re-thatching is a significant expense, and lenders want to know that you can afford the ongoing maintenance.

Insurance costs

Insuring a thatched property is more expensive than insuring a standard home, primarily due to the fire risk and the higher rebuild costs. The cost of re-thatching, combined with the potential for fire damage, means that premiums are typically higher. Lenders require adequate buildings insurance as a condition of the mortgage, so you will need to budget for this.

Property value and marketability

Thatched properties can be highly desirable and often command premium prices, particularly in sought-after rural locations. However, the pool of potential buyers is smaller than for standard properties, which can affect how quickly a property could be sold. Lenders consider the marketability of a property when deciding whether to lend.

Non-standard classification

Because thatch is classified as non-standard construction, some lenders automatically exclude it from their criteria. However, many lenders do accept thatched properties, and there are specialist options available for those who do not meet mainstream criteria.

Specialist Insurance for Thatched Properties

Adequate specialist insurance is not just a lender requirement; it is essential for your own financial protection. Standard home insurance policies are unlikely to provide appropriate cover for a thatched property, so you will need to seek out specialist providers.

What specialist thatch insurance covers

A specialist thatched property insurance policy should cover the full rebuild cost of the property, including the cost of re-thatching the roof using appropriate materials and techniques. It should also cover fire damage, storm damage, water damage, and other standard perils. Some policies also include cover for the thatch itself as a separate item, given its higher replacement cost.

Factors affecting premiums

Several factors influence the cost of insuring a thatched property:

• Location — Properties in areas with good access for fire services may attract lower premiums than those in more remote locations.
• Fire safety measures — Having appropriate fire safety measures in place, such as spark arrestors on chimneys, fire retardant sprays on the thatch, smoke detectors, and lightning conductors, can help reduce premiums.
• Condition of the thatch — A well-maintained thatch in good condition is less of a risk than one that is deteriorating. Regular maintenance can help keep premiums down.
• Type of thatch material — Different materials have different fire risk profiles and lifespans, which can affect the premium.
• Proximity to other thatched properties — If your property is close to other thatched homes, a fire in one could spread to others, which may affect your premium.

Finding the right insurer

Specialist insurance providers and brokers who focus on thatched properties and rural homes are your best source for appropriate cover. They understand the specific risks and can tailor a policy to your property. It is worth obtaining several quotes and comparing both the cover and the cost. Some heritage and conservation organisations also offer recommendations for insurance providers experienced with historic and thatched properties.

Keeping your insurance valid

To keep your insurance valid, you must maintain the property and the thatch in good condition, follow any fire safety recommendations, and inform your insurer of any significant changes, such as the installation of a wood-burning stove or changes to the chimney. Failure to disclose relevant information could invalidate your policy.

Thatch Maintenance and Its Impact on Remortgaging

The condition of your thatched roof is one of the most important factors that lenders and valuers will assess when you apply to remortgage. Understanding what is expected and ensuring your thatch is well maintained can significantly improve your chances of securing a competitive deal.

Regular maintenance requirements

Thatched roofs require regular attention to remain in good condition. Key maintenance tasks include:

• Annual inspection — Having your thatch inspected annually by a qualified thatcher can identify potential issues before they become serious. They will check for signs of wear, damage, moss growth, and bird or rodent activity.
• Ridge maintenance — The ridge (the top of the roof) is the most vulnerable part and typically needs replacing every 10 to 15 years, depending on the material and local conditions.
• Wire netting — Most thatched roofs have wire netting over the surface to protect against bird damage. This should be checked regularly and repaired or replaced as needed.
• Moss and algae removal — Moss and algae can retain moisture and accelerate the deterioration of the thatch. Regular removal helps extend the roof's lifespan.
• Chimney and flue maintenance — If you have working chimneys, regular sweeping and the use of spark arrestors are essential to reduce fire risk.

What valuers look for

When a surveyor visits your property for a remortgage valuation, they will pay particular attention to the condition of the thatch. They will look at the overall appearance and depth of the thatch coating, the condition of the ridge, signs of sagging or deterioration, evidence of water ingress, the state of the wire netting, fire safety measures in place, and the general maintenance of the property. A well-maintained thatch that shows evidence of regular care will be viewed much more favourably than one that appears neglected.

Planning for re-thatching costs

Re-thatching is a significant expense. The cost varies depending on the size of the roof, the material used, and the region, but can range from 20,000 to 40,000 pounds or more for a full re-thatch. Lenders may ask about the expected remaining life of the current thatch and whether you have made provision for the eventual re-thatching cost. Having a savings plan or demonstrating financial preparedness for this expense can reassure lenders.

Finding a Lender for Your Thatched Property Remortgage

While not all lenders accept thatched properties, there are still plenty of options available if you know where to look. Here is how to find the most suitable and competitive lender for your remortgage:

Building societies

Building societies, particularly those based in rural areas where thatched properties are common, are often the most accommodating lenders for thatched homes. They tend to assess applications individually rather than applying blanket exclusions, and their underwriters are often experienced in evaluating non-standard properties. Building societies in counties such as Devon, Dorset, Suffolk, Norfolk, Hampshire, and Wiltshire may be particularly familiar with thatched properties.

Some high street lenders

While many high street banks exclude thatched properties from their standard criteria, some do accept them, particularly if the property is in good condition, adequately insured, and the loan-to-value ratio is conservative. It is always worth checking directly or through a broker.

Specialist lenders

There are specialist mortgage lenders who focus on non-standard and unusual properties, including thatched homes. These lenders are available through mortgage brokers and may offer competitive rates for borrowers who might otherwise struggle to find a willing lender.

Whole-of-market brokers

A whole-of-market mortgage broker with experience in thatched and non-standard properties is perhaps your most valuable ally when remortgaging a thatched home. They will have up-to-date knowledge of which lenders currently accept thatched properties, what criteria they apply, and how to present your application in the most favourable way. Many thatched property owners find that a good broker can access deals they would never have discovered on their own.

What lenders want to see

When applying to remortgage a thatched property, lenders will typically want to see evidence of specialist buildings insurance, confirmation that the thatch is in good condition (ideally supported by a recent inspection report from a qualified thatcher), details of any fire safety measures in place, and your standard financial documents including proof of income and existing mortgage details.

Fire Safety Measures That Can Help Your Remortgage

Fire safety is the primary concern for lenders when it comes to thatched properties. Demonstrating that you have taken appropriate precautions can significantly improve your remortgage prospects and may also help reduce your insurance premiums.

Spark arrestors

If your property has working chimneys or flues, fitting spark arrestors is one of the most effective fire prevention measures. A spark arrestor is a mesh device fitted to the top of the chimney that prevents sparks and embers from escaping and landing on the thatch. Most insurers and lenders consider this a basic requirement for thatched properties with working fireplaces.

Chimney sweeping

Regular chimney sweeping is essential to prevent the build-up of soot and creosote, which can cause chimney fires. It is generally recommended that chimneys in thatched properties are swept at least twice a year if used regularly, and always before the start of the heating season. Keeping records of chimney sweeping can provide evidence of responsible maintenance to both lenders and insurers.

Smoke and heat detectors

Installing smoke detectors and, where appropriate, heat detectors throughout the property is a fundamental fire safety measure. For thatched properties, it may also be worth considering detectors in the roof space above the thatch to provide early warning of any problems.

Electrical safety

Faulty electrics are a common cause of house fires. Ensuring that the property's electrical installation is in good condition and has been recently tested (an Electrical Installation Condition Report, or EICR) can reassure lenders and insurers. For thatched properties, it is particularly important that any wiring in or near the thatch is properly installed and maintained.

Lightning conductors

Lightning strikes can cause devastating fires in thatched properties. Installing a lightning conductor is a relatively straightforward precaution that can significantly reduce this risk. Many insurers offer reduced premiums for thatched properties with lightning protection in place.

Fire retardant treatments

Fire retardant sprays can be applied to the surface of the thatch to reduce its flammability. While they do not make the thatch fireproof, they can slow the spread of fire and provide additional time for the fire service to respond. Some insurers look favourably on properties where fire retardant treatments have been applied.

Practical Tips for a Successful Thatched Property Remortgage

Here are actionable steps to help you achieve the best possible outcome when remortgaging your thatched property:

Get your thatch inspected

Before applying to remortgage, have your thatch inspected by a qualified thatcher or a member of a recognised thatching association. An inspection report confirming that the thatch is in good condition can be shared with the lender and valuer, providing reassurance and potentially speeding up the process.

Review your insurance

Ensure your buildings insurance is up to date, provides adequate cover for the rebuild cost including re-thatching, and is with a specialist provider. If your current policy is due for renewal, shop around for competitive quotes before your remortgage application.

Address any maintenance issues

If there are any visible maintenance issues with the thatch or the property as a whole, address them before the valuer visits. This includes repairing any damaged wire netting, removing excessive moss, ensuring the ridge is in good condition, and dealing with any damp or timber issues inside the property.

Document your fire safety measures

Compile a list of the fire safety measures you have in place, including spark arrestors, chimney sweeping records, smoke detectors, lightning conductors, and any fire retardant treatments. Being able to present this information to the lender demonstrates responsible ownership and can help your application.

Start the process early

Thatched property remortgages can take longer than standard ones, partly because of the need for specialist valuations and the smaller pool of suitable lenders. Start the process at least six months before your current deal expires to give yourself plenty of time.

Work with the right professionals

Engage a mortgage broker who has experience with thatched and non-standard properties. They will save you time, help you avoid unsuitable lenders, and can often secure better deals than you would find by approaching lenders directly. A good broker will also coordinate with your insurer, solicitor, and the lender's valuer to ensure a smooth process from start to finish.