Flooding—issues in banking and finance


Produced in partnership with Michael Barlow of Burges Salmon
Practice notes

Flooding—issues in banking and finance


Produced in partnership with Michael Barlow of Burges Salmon

Practice notes
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Effects of flooding on underlying assets

Flooding can give rise to a number of issues in the context of a banking or finance Transaction. This Practice Note highlights the issues in relation to the following:

  1. •

    individual risks

  2. •

    planning Policy

  3. •

    Availability of insurance

  4. •

    borrower default

It also explains the steps that a lender can take to mitigate the risks posed.

Individual risks

Flooding can cause significant damage to businesses, property and people. It can affect an individual’s decision whether to buy or rent a property. It can also have an effect on a property’s value. In ‘Deep Water Horizon’, 2018, the Royal Institution of Chartered Surveyors (RICS) discusses the increased frequency of flooding and how this can be addressed and managed through the surveying profession.

The value of a house or commercial property may be adversely affected due to the risk of flooding. This is not only because of the damage that flooding can cause but also as a result of the costs of flood insurance cover. Whilst the flood insurance market

Michael Barlow
Michael Barlow

Burges Salmon

Michael leads the environment team and the cross-firm water sector team. Michael covers contentious and non-contentious business for a range of clients from a variety of sectors.

He has substantial experience of running cases in criminal courts, tribunals and civil courts to the Supreme Court as well as other methods of dispute resolution including arbitration and mediation.

On the non-contentious side, Michael has particular expertise in energy efficiency, contaminated land and environmental permitting but has advised on a broad range of topics over the last 15 years.

Michael is a former editor of the Environmental Law Review, regularly lectures on environmental law and contributes articles to environmental journals.

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Jurisdiction(s):
United Kingdom
Key definition:
Transaction definition
What does Transaction mean?

The purchase, sale, subscription or underwiting of a particular investment

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