Lenders, Insurers, and Due Diligence: Why a Phase 1 Desktop Study Helps UK Deals
Environmental risk is no longer just a planning issue—it is increasingly a finance and legal issue. Across the UK, lenders, investors, and insurers often expect evidence of environmental due diligence, particularly on brownfield, mixed-use, or conversion schemes. One of the most widely recognised starting points is a Phase 1 Desktop Study.
A Phase 1 Desktop Study provides a structured contaminated land risk assessment based on historical mapping, environmental datasets, and site setting. It identifies plausible contamination risks and sets out whether further investigation is likely to be required. For many funding and transaction processes, that clarity is essential.
Why funders care about contamination risk
Contamination can create cost, delay, and liability. If remediation is needed, it can affect valuation and cashflow. If ground gas protection measures are required, it can impact specification. If controlled waters risk is present, it can introduce additional regulatory oversight. Funders do not like uncertainty, and a Phase 1 Desktop Study is a practical way to reduce it.
Legal due diligence and “reasonable enquiries”
During acquisition or refinancing, solicitors often raise standard environmental enquiries. A Phase 1 Desktop Study helps provide evidence-based answers: what has been assessed, what the likely risks are, and what the recommended actions would be. That can reduce back-and-forth, avoid last-minute report requests, and help keep transactions on schedule.
When a Phase 1 Desktop Study is particularly valuable
- Acquiring land with a long or unclear industrial history
- Converting commercial units into residential use
- Developing sites near landfills, rail infrastructure, or former depots
- Refinancing an existing asset where prior environmental records are limited
How a Phase 1 Desktop Study supports decision-making
A high-quality Phase 1 Desktop Study provides more than a risk flag. It should clearly identify potential pollutant linkages and give reasoned conclusions. If further work is recommended, it should outline the scope in a proportionate way so budgets can be set realistically. That supports investment committees, quantity surveyors, and project managers who need a defensible basis for abnormal cost allowances.
EnviroSolution’s Phase 1 Desktop Study service is designed to be clear, planning-compliant, and easy to use within due diligence packs. If you need confidence for funding, legal enquiries, or acquisition decisions, start with the Phase 1 Desktop Study and build from there.
Order your Phase 1 Desktop Study here: https://envirosolution.co.uk/services/phase-1-desktop-study/.
Speed up your transaction process
Transactions move quickly when evidence is organised. A clear Phase 1 Desktop Study can be shared with valuers, solicitors, lenders, and insurers as part of a coherent due diligence pack. That reduces last-minute queries and helps avoid “deal drift” caused by uncertainty. If further work is needed, the Phase 1 Desktop Study provides a transparent basis for budget allowances and programme planning, which is exactly what funders want to see.
Start with the Phase 1 Desktop Study to make your deal cleaner and faster.
What you’ll receive from EnviroSolution
EnviroSolution’s Phase 1 Desktop Study is written for real-world planning decisions: clear structure, clear risk logic, and clear recommendations. We include the key evidence planners expect—site history, environmental context, a conceptual site model, and a reasoned risk conclusion—so your submission is easier to review and less likely to trigger follow-up queries. That saves time at validation and reduces the risk of conditions being over-scoped.