Contaminated land - re-valuation required

Spring85

I am purchasing a flat. My mortgage application with the lender went through very quickly, credit check and valuation all done within a week.

After an environmental search carried out by my solicitors, the property has been flagged up to be within 25m meters of contaminated land. The lender was notified nearly 4 weeks ago however I've still no reply as to what will happen.

Anybody had any experience in this?
What are the potential outcomes?

My solicitor and mortgage broker are continually chasing but it has proved to be quite a frustrating few weeks. To add the seller needs to start looking for rental accomodation pretty soon as they are relocating. Any advice would be appreciated.

Michelle_Louise

Hi Spring

Im in the same position as you, my house purchase has also gone really quickly up to now. Hit the same fail with environmental search due to contaminated land. House is built right next to timber yard and telephone exchange! Not to mention sellers refusing to send building regs certificates! Interested in the replies you get!

My sols have asked sellers sols for more info on it or indemnity policy as a way forward...

vuvuzela

Spring85 wrote: »

I am purchasing a flat. My mortgage application with the lender went through very quickly, credit check and valuation all done within a week.

After an environmental search carried out by my solicitors, the property has been flagged up to be within 25m meters of contaminated land. The lender was notified nearly 4 weeks ago however I've still no reply as to what will happen.

Anybody had any experience in this?
What are the potential outcomes?

My solicitor and mortgage broker are continually chasing but it has proved to be quite a frustrating few weeks. To add the seller needs to start looking for rental accomodation pretty soon as they are relocating. Any advice would be appreciated.

Depends on the 'contamination'. What did the survey actually say ?
Mine was close to a railway, which generally are considered to be 'contaminated land', whereas in reality, there's no actual problem.

JennyW_2

I wasn't aware that mortgage lenders were sent a copy of the search?

Spring85

vuvuzela wrote: »

Depends on the 'contamination'. What did the survey actually say ?
Mine was close to a railway, which generally are considered to be 'contaminated land', whereas in reality, there's no actual problem.

The complex is build on the site of an old arms factory. So the land had traces of arsenic, copper etc. The developers capped the land with clay and the environmental study deemed it suitable however any search would throw this up as an issue and the solicitors had to alert the lender. However the lender is taking a huge amount of time to come back to us which go or no go. The estate agents have had this same issue with all flats in this complex and there's has been no problem with proceedings before. It's just the amount of time for the valuer to get round to re-valuing the property has been nearly 4 weeks which is quite worrying. Any thoughts? I am a first time buyer this stress is all very new to me.

vuvuzela

To be perfectly honest, if this problem is happening to you and all other purchasers, I'd seriously consider looking elsewhere, as it will be the same when you come to sell and it could be even more difficult to shift it then...

JennyW_2

I wouldn't consider a property which is near a timber yard or railway line to be contaminated land.

There is a difference between the environ search flagging up a potential contamination because of what is nearby but it doesn't necessarily mean the land is contaminated.

Plus if there is no report logged with the local authority of any contamination reports associated with the property, I can't see why there would be a problem