Surveyors NegligenceSurveyors Negligence
Scullion v Bank of Scotland
Surveyors Negligence - Surveyors Negligence
Outline case:
Emmett Thomas Scullion, a buy to let investor purchased a flat in Cobham, Surrey. The purchase price of £352,950 was supported by a valuation from Colleys Surveyors (now part of Bank of Scotland). This valuation amounted to £353,000 with a rental assessment of £2000 per month. The developer offered a gifted deposit of 15% of the purchase price.
Once Mr Scullion realised that his self-funding investment was in fact making a loss due to the rental income amounting to nearly half the cited figure he decided to sell and take a loan to cover his loss.
Scullion subsequently took action against Bank of Scotland claiming that the surveyor owed him a duty of care. This 3rd party duty of care had previously been established in the case of Smith v Bush in 1990. This 3rd party duty of care was allowed on the basis that an average consumer in a relatively low value transaction (compared to commercial transactions) would rely on the lenders valuation report and that the surveyor would reasonably expect the purchaser to rely on his report.
In the case of Scullion v Bank of Scotland the purchaser bought his property via a buy to let mortgage. There could be a suggestion that this should be treated as a commercial transaction and therefore not benefitting from the 3rd party duty of care. Richard Snowden QC sitting as deputy High Court judge on 18th March 2010 said that a buy to let purchase is no different to a residential house purchase in that the duty of care that was owed by the surveyor applies to buy to let purchasers also. In fact, Richard Snowden QC went on to add that the purchaser is more likely to be reliant upon the valuation of the surveyor as the purchaser is likely to be dependent upon the rental income from the property.
This outcome is great news for the buy to let investor who has found themselves the victim of overvaluations by a surveyor.
http://www.lawreports.co.uk/WLRD/2010/CHAN/Scullion_v_BofS.htm
Surveyors Negligence - Product Information
Surveyors Negligence - Surveyors Negligence
Whilst most people are aware that there has been a significant adjustment in prices in the housing market, some of us are aware that even after accounting for the general fall in the market there appears to be a problem with certain properties in certain areas that cuts deeper than a market adjustment.
We have become aware of people who have purchased properties for tens of thousand of pounds more than comparable properties in the same building or in the same proximity. In these cases mistakes appear to have been made in the valuation of the properties at the time of purchase. In these cases the purchaser is financially disadvantaged by many thousands of pounds.
If you feel that you have purchased a property that was over-valued we can help you to find out if your suspicion is in fact correct and we can help redress your losses by assisting you in the preparation for a negligence claim against the surveyor who performed your valuation.
The Financial Claims Centre will investigate your individual circumstances. If this research indicates that an over-valuation did in fact occur on your new build property at the date of purchase and if this research indicates that a claim is possible and viable we will investigate and pursue the claim on your behalf.