Contaminated land includes any property or land parcel where there are pollution factors, such as chemicals, asbestos, gases, oils, solvents or heavy metals.
Your likelihood of mortgage approval will depend on how severe the contamination issue is and what health risks it poses to people and animals, as well as environmental pollution risks.
Land can become contaminated for many reasons, often due to commercial activities, mines, factories or mills nearby releasing by-products and harmful waste materials. Contaminations can also occur when old buildings have been demolished and may remain present for many years.
For most mortgage applicants, the first thing to do is run an Environmental Search to clarify precisely what the risks are, covering factors such as:
- Flooding
- Stability
- Radon
- Contaminants
If the Search returns a low-risk result or identifies that there are no dangerous contaminants, you should be able to apply for a mortgage as usual.
Where properties are considered contaminated, a risk status will be assigned, from low to high.
Should you already own the property, you might be required to cover the costs of remediation or cleaning and removing the contamination, as set out by the Environmental Protection Act.
You can also request a Warranty Certificate for the property from the seller. This cover note will provide insurance for the cost of managing or cleaning contaminated land provided it is dated after 1st April 1999.
