Valuation by lender surveyor cost me £25,000

by Readers Question

15:44 PM, 5th September 2016
About 2 years ago

Valuation by lender surveyor cost me £25,000

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Valuation by lender surveyor cost me £25,000

When the valuation by a surveyor for the existing bank is substantially lower then market expectation. Force to get a second valuation which is in line with market expectation but with a different lender.complaint

Having approach the first lender and complained about the surveyor valuation and I gave personal facts etc. They were all ignored. Now I am facing a cost of £25,000 plus the cost that I have incurred because the funds were not made available to me earlier.

Just to put it in perceptive the first lender surveyor valuation was £525,000 and the second was £750,000.

The first surveyor always had something against me or the property or both. I been advised there is nothing I can do. I cannot be the only one has suffered like this. The first bank is Aldermore.

Can I take any action against the bank since the surveyor had a direct contract with the Bank not me.

Many thanks

Annis



Comments

Neil Patterson

15:48 PM, 5th September 2016
About 2 years ago

Hi Annis,

You can certainly try the lender's complaints procedure and although it is possible you may get back any fees they have charged you I have not experienced a lender cover outside losses incurred before. But never say never.

The contract for the surveyor will be between them and the bank, so you could try contacting the surveying company, but they may only refer you back to the bank.

S.E. Landlord

17:43 PM, 5th September 2016
About 2 years ago

I doubt that there is any comeback as it is unlikely you would have had an unconditional commitment to providing the funds or to provide them by a certain time.

Graham Bowcock

10:07 AM, 6th September 2016
About 2 years ago

Dear Annis

This seems to be a frequent issue highlighted on this site and which I have commented on before. The valuer is acting for the lender so your chances of a comeback are limited. Under RICS rules the valuer must have a formal complaints procedure so you could ask for a copy of this and raise any issues. However, it is a grey area as to how much responsibility is owed to somebody who is not the client. The valuer is under no obligation to explain themselves to you.

As I have said before a decent report should explain quite simply how a value has been arrived at. The difference between £525,000 and £750,000 is not really acceptable, assuming the terms of engagement are similar. A reasonable firm should at least give some feedback to the bank, if not to you.

Graham

Paul Green

14:26 PM, 6th September 2016
About 2 years ago

The mortgage company's and surveyors are covering there arse because they can not predict the direction of the housing market after Brexit. The surveyours win because they under value it and can't be held responsible by the banks in the event of a crash and the mortgage banks win because customers pay higher interest rates due to the higher LTV..

Were the losers ...it's a scam, we are being ripped off.

if they keep undervaluing house prices then this will become true and house prices will crash...,their the ones profizising it ...

Nick Pope

9:22 AM, 10th September 2016
About 2 years ago

Once again on this site it's the surveyor who gets the blame for "undervaluing" - there is no such thing. Valuers give an opinion based on experience and research. The complaints are only voiced when an owner/purchaser has a different view. I'm not saying we can't get it wrong. However so far as I am aware all lenders will allow an appeal against a valuation and evidence can be submitted to back up the valuation assumption. You should then receive a reasoned response with explanations as to how the original and subsequently provided comparable evidence relates to the property being valued. I am always happy to provide reasoned details of the comparison.
Whilst you have no direct contractual connection with the valuer, if you have concerns as to the skills or probity of the valuer than you can contact the RICS and make a complaint.
Finally, and I have said this before, valuers have all been advised to base values on the evidence and not to take specific account of Brexit - that's for the lenders to decide as they are the experts on the economy and its future performance and they can alter their lending criteria to take account f the perceived. risks
It is odd that I have never, in 45 years, had a complaint if I have valued a property at more than the applicants opinion.


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