Methodologies & Limitations: Screening risk assessment

Reports produced prior to 18th October 2024:

The contaminated land section of the Screening report is designed for property professionals to satisfy their requirements under the Law Society Practice Note on Contaminated Land while also evaluating other areas of environmental risk factors.

The report is a preliminary desktop assessment that uses a wide range of sources and data to identify potential contamination risks. For a comprehensive list of the data considered, please refer to the Contaminated Land section on the ‘Datasets Searched’ page within the report.

The primary purpose of the contaminated land section is to identify the risk of the property being designated as 'Contaminated Land' which is defined by Part 2A of the Environmental Protection Act 1990. Additionally, it considers;

Potential material impact on value in relation to Environmental Permitting Regulations 2010, the Environmental Damage (Prevention and Remediation) Regulations 2015 (as regionally specific); and
Possible significant abnormal costs resulting from ground contamination should the site have been identified by the client as a (re)development plot;
Operation of an environmental licence or permit.

The report does not include a Conceptual Site Model typically required in a planning application for the development of land. If this report is to support a planning application we recommend that a Phase 1 report is commissioned. Please contact us at projects@groundsure.com to request a quotation.

Banking security

This aspect considers the suitability of the property as robust financial security for secured lending facilities. It operates on the assumption that the property is considered independently, applying normal commercial lending loan-to-value ratios.

Statutory or 3rd party action

Assesses the potential impact on the site's value due to regulatory or third-party intervention, particularly relevant to sites where operations may attract fines, improvement notices, or permit revocations.

Environmental liability

Evaluates whether findings may significantly impact a standard Royal Institution of Chartered Surveyors’ property valuation, therefore potentially requiring further action. Redevelopment considerations are only included if notified when Groundsure is commissioned.

Assessment methodology

Groundsure reviews potential sources of current and historic land contamination, assessing their potential impact on identified receptors at or near the site. This follows the principles of a source-pathway-receptor model. Further information is available here.

Our methodology does change from time to time to reflect market risk understanding and legislative changes.

Risk levels

The level of risk associated with the property is divided into five categories:

Low: There are unlikely to be significant environmental liabilities associated with the property.
Low to Moderate: There are unlikely to be significant environmental liabilities associated with the property with regard to the proposed use. However, minor issues may require further consideration and assessment under certain circumstances e.g. redevelopment.
Moderate: Some potential environmental liabilities are likely to reside with the property as a result of historical and / or current use. Whilst unlikely to represent an immediate significant issue, if left unchecked this position may change with time. A prudent purchaser may wish to make further enquiries of the vendor / undertake limited further due diligence / seek environmental improvements. Redevelopment of the site will likely require further, more detailed assessment.
Moderate to High: Some potential significant environmental liability issues have been identified at the property requiring further assessment. Should further information be available it may be possible to re-assess the risk. In the absence of sufficient further information, further assessment might comprise consultation with the environmental regulators / review of existing environmental reports / commissioning new environmental reports / consideration of environmental insurance.
High: Significant potential environmental liabilities have been identified at the property. Further detailed environmental due diligence will likely be required and may include review of existing environmental reports / commissioning new environmental reports including site investigations / consideration of environmental insurance / transaction restructuring.

Limitations of the study

The report is intended for use by experienced professional advisers familiar with environmental data interpretation. It is based on client-provided information or, if not provided, assumes general commercial use without significant redevelopment plans.

The Client should be aware that the report uses aggregated Third Party Data as well as Groundsure’s proprietary data. However, Groundsure does not warrant the accuracy or completeness of Third Party Data or its own independently produced data.

Screening reports do not include on-site inspections or consultations with regulators or other parties, and certain site features may only be apparent through physical inspection. It is recommended to update screening reports every six months.

For full details please refer to our terms and conditions under which the report was supplied.

Reports produced from 18th October 2024:

The report is a screening desktop assessment that uses a wide range of sources and data to identify potential contamination risks. For a comprehensive list of the data considered, please refer to the Contaminated Land section on the ‘Datasets Searched’ page within the report.

Banking security

Statutory or 3rd party action

Environmental liability

Evaluates whether findings may significantly impact a standard Royal Institution of Chartered Surveyors’ property valuation, therefore potentially requiring further action.

Assessment methodology

Our methodology does change from time to time to reflect market risk understanding and legislative changes.

Risk assessment outcomes

The level of risk associated with the property is divided into three categories:

Acceptable risk: There are unlikely to be significant environmental liabilities associated with the property with regard to its continued current use. However, minor issues may require further consideration and assessment under certain circumstances e.g. redevelopment.
Acceptable risk with guidance: Some potential environmental liabilities are likely to reside with the property as a result of historical and / or current use. Whilst unlikely to represent an immediate significant issue, if left unchecked this position may change with time. A prudent purchaser may wish to make further enquiries of the vendor / undertake limited further due diligence / seek environmental improvements. Redevelopment of the site will likely require further, more detailed assessment.
Action required: Potential significant environmental liability issues have been identified at the property requiring further assessment. Should further information be available it may be possible to re-assess the risk. In the absence of sufficient further information, further assessment might comprise consultation with the environmental regulators / review of existing environmental reports / commissioning new environmental reports / consideration of environmental insurance.

Limitations of the study

The report is intended for use by experienced professional advisers familiar with environmental data interpretation. For the purposes of the assessment in the report we assume a general commercial use without significant redevelopment plans.

For full details please refer to our terms and conditions under which the report was supplied.