land contamination when buying

dembow

My family has recently expanded from three to four, and we wanted to move to a bigger house on a largish estate in a country area. We made an offer back in November, which was accepted, and we are most of the way through the purchase. However, the environmental search revealed potential contaminated land from a quarry or pit that used to be on the site. The house is partly on top of what used to be this quarry/pit. The council doesn't have any records about what's underneath - the house was built in about 1975.

The couple selling the house don't seem to know anything about this.

As the report highlights this issue, my solicitor sent the report to my lender. Lender's requirement is for insurance company to read the report and confirm it is willing to insure the building as part of the offer to extend funds. The problem is that most insurance companies don't want to read the report. The one that has won't insure and the others have said they don't really take any notice of potential contamination issues provided that there are no subsidence or flooding issues. But, they won't confirm this in writing!

So, at the moment I cannot get any house insurance. I am of course worried that there might be contamination too and being stuck with a house I may not be able to sell. It has however sold a few times in the past 10 years - probably because no one had an environment report as part of their purchase. I assume some other houses in the area may be affected too but houses are selling in the area.

A builder friend seems to think it is probably filled with concrete or something and may not be an issue.

Not sure what to do really. It seems to me either we prove one way or another there is or is not an issue, or pull out. The latter is an expensive option given the fees we have paid but so could the former. It's a popular place so it will probably sell the next time around if the next buyers don't get an environment report done as that is the only reason why the purchase is being held up.

Does anyone have any words of wisdom?

CloudCuckooLand

Have you checked old planning records, to see what was there before? They would have had to seek planning for commerical uses...or a "change of use" may have mentioned the old purpose, when they switched it to housing...

Even a name of the person seeking the planning permission to build, together with names of previous owners on the Land Registry records, might help you narrow down which names to concentrate on, and its sometimes surprising what "google" can come up with...

i.e. have you tried, googling "quarry" and the location name...the local library for old maps, which might have "Coopers Quarry" or whatever...

Have you tried the local parish council ? - they may know an old codger who has been around for decades who can give you chapter and verse on "Smiths Smithy" and the garage they built when horses became obsolete, for example.

The local photographic club or historical society may have some clues, for example. Some "silver surfers" are recording their life history online, and you may find a passing reference somewhere...

If you could be more certain of the previous usage, you might allay some of the fears of the insurer/lender.

Knock on neighbouring doors and see if they had any similar trouble? The vendors should be pulling out the stops to dig around for you too, if they want to sell...

dembow

thanks. yes some good ideas. A couple of problems is that, having spoken to the council, I have been told that the rules 40 or so years ago were a bit more lax in those days around planning permission and that kind of thing. Also one other problem is around what was used to fill the land in and whether this itself can be classed as contamination.

Ideally I'd find something concrete to say what's there so that this is available if I come to sell the house.

Doozergirl

You can test the earth around the house. I spoke directly to someone at my local council who dealt with potentially contaminated land. The house wasn't built directly over it but he told me that whilst they had thousands of plots marked as potentially contaminated, they were confident that they knew where any real issues were.

I'd be surprised if the house was built directly over the actual site unless it was built with special foundations - you'd usually have to pile to solid ground.

But I'd give this issue to a local insurance broker to find whether there is relevant insurance for you. This is where speaking to call centre staff at random insurers is never going to work - you need someone who knows where to look.

Poosmate

Doozergirl wrote: »

You can test the earth around the house. I spoke directly to someone at my local council who dealt with potentially contaminated land.

I suspect the problem isn't with the earth at the surface of the land but what's below it. As it was previously a quarry, it was most likely used as a landfill site after it's quarry life. The problem with landfill sites "in the olden days" was that they wern't properly vented for methane gas build up. I'm guessing that's what the insurance companies are worried about.

Otherwise, excellent other advice.

Poo

dembow

the house itself is not directly over it but some of the garden is.

Good idea about the insurance brokers. None of the mainstream ones are interested, although I suspect the house insurance quotes will be much higher.

timmyt

have your lender insure. don't do anything mentioned in the above posts. if your Council know of no present contamintation (write to environmental section), the local search is clear by your lawyer, and your Lender insures, all sorted.