POSSIBLY contaminated land

BigG10

Hi All

Quick question...had all our searches back for the property we intend to purchase.

The environmental search was referred and then came back as 'possible land contamination' because of an old electricity sub station within 25m of the property and an old (no longer in working order - or even there at all) timber yard also within close proximity. The search also threw up possible contamination from the local hospital which is over 250m away.

Done lots of research into this and it appears that the majority of land in the UK COULD POSSIBLY be contaminated.

So...just a question about the lender:

According to the CML (Council of Mortgage Lenders) handbook for the Coventry Building Society. They only want to know about contaminated land as revealed through a 'local authority' search. Well it was revealed as POSSIBLE contaminated land through an environmental search. According to CML Part 2 Section 5.2.4 The coventry don't wish to receive this report and know about it.

1) Will we still get the mortgage?
2) Am I right in following the advice of getting indemnity insurance to cover us for this (through 'Countrywide' as recommended by solicitor)
3) Who is expected to pay the premium for the indemnity insurance?

Cheers as always.

BigG10

In addition:

I have just checked the local authority searches again and the section on 'contaminated land' has come back as NO or NONE! So this is the local authority search.

Don't know if that helps answer my questions above.

SG27

The house I live in with my parents has a substation at the end of the garden about 40 ft away. Can't see why it would be an issue? Substations are everywhere!

BigG10

SG27 wrote: »

The house I live in with my parents has a substation at the end of the garden about 40 ft away. Can't see why it would be an issue? Substations are everywhere!

Well yes, but I think its more the case that the substation is no longer in action - so presumably not regularly checked.

I think our Solicitor is being brilliant and just protecting our interests - as they should do. :T

More bothered by the mortgage company and still getting the mortgage. Also, the question of who pays for the indemnity insurance?

TheKeymeister

The only contamination you could get from a substation is from any oil that may have leaked out of the transformers/switchgear, some of the older stuff would have contained PCB/PCN, but at 25 metres I wouldn't be worried.

Nowadays I wouldn't be surprised if the 'contamination' from the timber yard is their use of creosote.

BigG10

Great thanks. I really don't believe there will be a problem. Going to purchase the indemnity insurance more than likely. Just need to know the mortgage company are going to be ok with it.

It doesn't show on the local authority searches at all.

TheKeymeister

I was once warned that solicitors will try and flog indemnity insurance at the slightest hint of anything as they get commission on it, how true it is in your case I don't know.

I might be able to look into further details of the substation depending on where abouts you are located, if that's any help, but by the sounds of it you're quite happy it isn't a problem anyway!

Thrugelmir

BigG10 wrote: »

It doesn't show on the local authority searches at all.

When I moved home some years back. Berkshire had a back log of 10,000 sites that required investigation. Was going to take years to work through them.