PBL153 - G*********** Riverside REPAID

Valuation has also dropped (1,800,000 > 1,365,000) along with the loan to keep it at 38%

At least SS got an updated VR this time!

I haven't had a look at the new one yet, but the fact that SS didn't rely on the old VR and got a new one is a good sign they are carrying out some basic DD

Edit : That VR has been there a while, so it may be that I just never updated my OP after the initial pipeline appeared

I'm confused. The VR (dated 7th September 2016) says £1,365,000/£1,200,000. (Wayback Machine doesn't have an old copy.)

I'm still waiting for SS to fix the loan description.

There are two aspects to building on a flood plain (I know, I live on one and I designed my own flood defences).

1. there is the policy matter of not allowing building where it would markedly impact on storage volumes and thereby perhaps affect other properties - usually those downstream if local rates of run-off are increased.

2. suitable protection for the dwelling or other new buildings against flood damage.

Item 1. is addressed via the planning system. Sometimes planning is not allowed - and sometimes it should not be allowed but still is........ Where it is allowed, the site design may need to incorporate features to mitigate any negative aspects, for example, areas designed to soak up flood water for a while can be included. Areas can be tree-planted to reduce rate of run-off (etc). This is all very site specific.

item 2. is addressed via building design, typically raising the floor levels off the floor plain by (say) 600mm (so you have steps up to your front door).

It is all quite easily addressed (but costs money) and the developer is said to have experience in riverside developments.

The buildings most at risk from flooding are often those built a long time ago, or as has been seen in recent years, areas with inadequate surface drainage, inadequate to deal with massive amounts of rain in a short period. These areas can be anywhere - even miles away from rivers.

Therefore if the area has planning and if the designs are sound, the proximity to a river is itself not necessarily a problem.

The argument has even been advanced that properties with riverside views may be increasingly rare and therefore more valuable. They can often sell at a premium - just look at the prices of some flats for sale in Exeter for example, over looking the river (one of the other loans on here!). Exeter nearly flooded badly in 2012 but extensive river engineering undertaken over many decades saved it.

Flood risk engineering design is nowadays extensive - for example see this: www.youtube.com/watch?v=0QL0hYIURyk

To see the river Exe in flood near the city centre try this:

www.youtube.com/watch?v=j8IRWfeAbyI

cooling_dude:  I think you're giving SS too much credit. The property inspection was on 7/Sep and the report is dated 27/Sep and, based on the first page of the VR, ISTM that it was sent to Lendy/SS on 27/Sep.

I spoke too soon.

It's back in the pipeline (14:40).