Category: Buyer, First Time Buyer, Sale & Purchase
When buying a property in the UK, your conveyancing solicitor will recommend that you take out an environmental search as part of the conveyancing searches, especially in areas where industry is known to have existed previously.
Your mortgage lender may also insist that the buyer take out an environmental search.
Many homes are built on or near land that was previously used for industrial purposes or where manufacturing processes were carried on. In the past, factories and industrial plants were often located in the middle of residential areas.
What Is an Environmental Search?
An environmental search is a conveyancing search that examines a property's potential exposure to a variety of environmental risks that could implicate a prospective buyer.
Its purpose is to highlight any issues that could affect the property now or in the future, particularly those that might impact the property's value, insurance, or development opportunities.
The search report is usually conducted by the conveyancer or solicitor acting on behalf of the buyer.
It involves gathering data from environmental agencies, local authorities, and other relevant sources to produce a detailed assessment of any risks.
Is an environmental search mandatory?
An environmental search is not always mandatory, but it is often strongly recommended. Whether it is required and in what detail depend on factors such as the property's location and the mortgage lender's requirements.
Many mortgage lenders will insist on an environmental search before approving a loan, particularly if the property is in an area with known environmental risks, such as flood-prone zones, contaminated land, or regions affected by previous industrial activities such as coal mining.
In such cases, the search becomes mandatory as part of the conveyancing process.
Why is an environmental search important?
As many of these old industries no longer exist or have been relocated, there may be little evidence to show where they once were.
But the by-products caused by old industries may still be a health hazard for property owners from contamination of the ground on which a home has been built.
For example, toxic chemicals such as lead, arsenic, mercury and other heavy metals will remain in the ground and be a potential danger to occupiers, especially children.
Another potential danger to property is the existence of an old landfill site. Who knows what toxic waste may have been dumped in such a site?
Even when a home has not been built directly on an old industrial site, contamination from nearby land and pollution from rivers and watercourses can spread into nearby ground, affecting properties. Contaminated water flowing from abandoned mine workings is a continuing problem.
An environmental search helps to identify risks and problems that might not be obvious when inspecting a property. These risks can have financial, safety, legal, or even health implications.
What does an environmental search cover?
An environmental search report will look for the following:
- Flood Risks: Properties in flood-prone areas can suffer from extensive damage, leading to costly repairs and reduced property value.
- Contaminated Land: If a property is built on or near contaminated land, there could be legal obligations for clean-up costs, which can be very expensive. This could occur if the site was previously used for industrial or waste management purposes.
- Subsidence: Ground instability, often caused by old mining activities, could lead to property damage or devaluation.
- Radon Gas: Some areas have high levels of radon gas, which can pose health risks to occupants.
How long does an environmental search take?
An environmental search typically takes between 1 to 10 days, depending on the location and the complexity of the search area.
Your solicitor will order the search as part of the overall conveyancing process, and once the report is complete, they will review the findings with you.
How much does an environmental search cost?
The cost of an environmental search varies depending on the provider and the property's location, but it generally ranges from £50 to £150.
This is a relatively small investment considering the potential risks it can uncover and the financial protection it offers.
What does a failed environmental search means?
If an environmental search reveals any risks, your solicitor will review the findings with you and explain their potential impact.
Based on the seriousness of the issues identified, several approaches may be considered.
In some cases, further investigations may be necessary to gain a more comprehensive understanding of the risks involved.
If significant hazards are uncovered, you might renegotiate the purchase price or request that the seller address the problems before moving forward.
Additionally, for certain risks like flooding or contamination, obtaining specialist insurance could provide protection against future liabilities.
However, if the risks are too severe or expensive to mitigate, you may choose to reconsider the purchase altogether.
The conveyancing process and environmental searches
An environmental search forms part of the broader conveyancing searches that your solicitor will carry out when buying a property. Alongside the environmental search, other key conveyancing searches include:
- Local authority search: To identify any planning issues, nearby developments, or building regulations affecting the property.
- Water and drainage search: To check if the property is connected to mains water and drainage, and if there are any public sewers or drains nearby that could affect future building plans.
- Chancel liability search: To determine whether a property owner is liable to contribute towards the repair of a local church's chancel.
Homeward Legal include the environmental search as part of our fixed price bundle of conveyancing searches, which are included in your conveyancing fees quote.
Talk to our friendly team on to find out why an environmental search is essential, and we'll be happy to help you!