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case studies about valuations and surveys

Jon

 

the mortgage company arranged the wrong type of report

Some people tell us the lender arranged the wrong type of house survey. They may say the basic report didn’t flag up problems - which they’ve now had to pay to put right.

  • We can look into whether it was reasonable for a mortgage lender to rely on a particular survey or valuation. And if the lender gave the impression the survey was their view, we may say they’re responsible for any mistakes. In general, we can’t look into complaints about surveyors - but the Royal Institution of Chartered Surveyors (RICS) can give more information about how to resolve problems.
  • If a buyer didn’t receive the type of survey they’d asked for, the mortgage lender might have made an administrative mistake. But “Home Buyer” reports are generally much more detailed than basic valuation reports - and in some cases, we think the buyer could have known they’d got the wrong type of report. If they didn’t raise any concerns at the time, we might decide it was reasonable for the lender to assume they were happy.
  • If we find something’s gone wrong - and decide the mortgage company’s responsible - we’ll look at the individual circumstances and tell the lender to put things right. For example, we might say it’s fair for the lender to cover all or some of the costs of repairs that the more detailed report would have flagged up.

Julie

 

the survey or valuation was wrong - and now I've lost out

Some people tell us they’ve lost out because the survey on the house they’re buying didn’t flag up important problems. Others are unhappy the valuation didn’t match the asking price - and that, as a result, the lender isn’t willing to lend as much money.

  • In general, we can’t look into complaints about surveyors (though we may be able to help with complaints about Colley’s). The Royal Institution of Chartered Surveyors (RICS) set standards for surveyors - and can give more information about how to sort out problems.
  • On the other hand, we can look into whether it was reasonable for a mortgage lender to rely on the information they got from a surveyor. We may also say a mortgage lender is responsible for a survey if we decide they gave the impression it was their view. And we’ll double-check the mortgage company used a surveyor qualified by RICS.
  • If we decide something’s gone wrong - and the lender is responsible - we’ll consider how the buyer lost out. For example, if the surveyor didn’t spot a particular problem, we might tell the lender to pay for the necessary repairs.
  • From our experience, there may be a 10-20% difference between the valuation price and the asking price for a property. If the difference is bigger, we’ll look into whether it’s reasonable for the lender to rely on the valuation.
  • To reach our decision, we’ll consider any independent valuations the prospective buyer has arranged. If we decide it’s unfair for the lender to rely on the valuation they got, we can tell them to stick to their original lending decision. Or if things have moved beyond that point, we’ll look at the individual circumstances and find a fair way to put things right.

 

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