A thorough environmental search is conducted to determine if any environmental factors are a threat to the property and its inhabitants. A common misconception is that an environmental survey involves physical inspection of the land. In reality, the report is based upon the current and historic records that are held by the agency.
Do I need to conduct an environmental survey when purchasing a home?
If you are buying with a mortgage, most lenders will insist that an environmental check be done. It is not required for cash buyers. However, it’s still strongly recommended for peace of mind.
Why is it important to consider environmental factors when purchasing a home?
The environment is becoming more important to buyers, lenders and insurance companies. Even a cash buyer may have to think about mortgaging a property in the future. Flooding, land contamination, and subsidence can affect a property’s value and determine whether it is insurable or mortgageable.
Many new developments are constructed on or near land that was previously used for industrial purposes. Ground contamination can pose a serious health risk even decades after the land was no longer used for industrial purposes. When you discover that your house is on contaminated ground, it can make it unsellable so you’ll want to know before you buy. For advice from Conveyancing Solicitors Gloucester, visit Dee and Griffin
Environmental searches are important
Health issues aside, in the event that contaminated land is discovered and the responsible person, company, or organisation cannot be located or does not exist, the local authority may ask the property owner for the costs of cleaning up. These costs will undoubtedly be high. If there is coal tar, or heavy metals present in the soil, then specialist contractors will need to remove the topsoil.
A property’s flood risk is also considered in an environmental search. Flood risk affects the value of a property, its mortgageability, and its insurability. If the property is located in an area with a high risk of flooding, it is important to find out if home insurance is offered and, if yes, what the premium will be.
What if I find a risk in my environmental search?
The nature of the risk, and possible remedial costs, will determine whether or not you should proceed with your purchase. These factors should be discussed with your conveyancing lawyer, who will also need to report them back to your lender if you have a mortgage.
