Hello, everyone my name is Matthew Taylor and I am the Business Development Dircetor here at Equilaw. Today I am joined by our Business Relationship Manager Jade Smith and we are going to discuss the hot topic of private drainage. Todays content has all been provided by our Associate Chartered Legal Executive, Karla Stevens.

Jade, private drainage can be a problematic when clients are releasing equity, as the lender may raise conditions within the lifetime mortgage offer. How will a client know if they have private drainage? 

A client’s water bill will indicate whether mains drainage is included in payments to their water company. Private systems will require maintenance and there is likely to be a maintenance provider who will be able to confirm which type of system is in place if the client is unsure. 

Great thank you, I understand that there are the different types of private drainage. Could you please explain?

• Septic tank: this is an underground chamber which treats water waste, with the treated wastewater draining from the tank via a soakaway. A septic tank will require maintenance by a liquid waste professional but it does not require to be emptied manually. If a client has a septic tank it will need to comply with the most recent 2020 Regulations.  
• Cesspit: this is an underground holding tank for waste. The waste held is not treated and there is no outlet, meaning that it is stored until the cesspit is manually emptied. As a result the tank will need to be regularly maintained and emptied by a licenced liquid waste disposal specialist. 
• Sewage Treatment Plant: this is a system which fully treats waste, producing a cleaner “effluent”, which can be discharged directly into a stream or waterway. The system will require maintenance, but unlike a septic tank does not need to be emptied manually. 

Thank you for confirming that Jade. What documentation will a client need to provide, should Equilaw request it? 

• Cesspit: evidence that the system is properly maintained and emptied such as a recent receipt from the maintenance provider. 
• Sewage Treatment Plan: evidence that the system is properly maintained such as the most recent receipt that the tank has been maintained. 
• Septic tank: Confirmation from a specialist that the tank complies with the 2020 regulations will be required. 

Great, and how early on will Equilaw need this information? 

The information will be required as soon as possible. Written evidence from the specialist/maintenance provider will always be required as the lender will not be able to proceed based on the clients confirmation whether that be verbally or in writing. 

Ok, assuming the client can provide this information, why do you actually need it?

The Government is seeking an end to septic tanks discharging directly into a local watercourse or surface water such as a river, streams or ditches. The Equity Release lender is taking a secured charge over the property and they will therefore need to ensure that the property has a marketable title and that they will encounter no issues in the event that the property is sold. They must also ensure that the private drainage system is in good working order and if applicable, fully compliant with the regulations to ensure that the property is marketable and to avoid any potential sanctions from the Environment Agency. 

What happens if a client’s septic tank is not compliant? 

If the report from the specialist confirms that the tank is not compliant with the regulations, then the work to rectify this and make the system compliant will need to be carried out prior to an equity release mortgage proceeding. Additionally, if the system requires repair or has not been maintained regularly, the client will need to put this in hand and provide evidence to Equilaw once this has been done so that we may forward the same on to the lender’s solicitors. 

Okay, could you please tell me what work might need to be carried out to make the septic tank compliant? 

• Connection to a mains sewer.
• Installing a drainage field, so that the septic tank discharges into the ground.
• Replacing with a small sewage treatment plant.
• Septic tank conversion unit, although a permit is required for this and evidence must be provided that it will treat to the equivalent standard as a sewage treatment plant.
• In exceptional circumstances, a permit can be applied for to allow discharge to surface water.

Okay that sounds really extensive. How much does additional work like this typically cost? 

Clients will need to check this with their maintenance provider/the specialist who carried out the report on their behalf. 

A hot question now, how long will the works take? 

The will be based on the availability of the maintenance provider/specialist and clients’ should enquire about this as soon as possible to gauge whether a new valuation will be required for the property.  

Great thank you Jade, and one last question for you. Do all lenders have this requirement? 

Each lender is different, but as these are the regulations for the whole of the UK, the septic tank should always be compliant. 

Great, thank you. I think the main key points here are to advise that the client checks the type of drainage system that they have in place, ensuring that it is fully maintained and they have proof of this. 

As I said this is a hot topic currently, as a relatively new condition being raised within clients’ lifetime mortgage offers.