Monday, October 25, 2010

Surveying firm overestimated the rent buyer was likely to get by 100%

Landlord wins buy-to-let case against surveyor

Emmett Scullion, a self-employed builder from Portsmouth, bought an apartment in Cobham, Surrey, to augment his pension. The property was valued at its asking price of £352,950 in a valuation by local surveying firm Colleys, now part of Lloyds Bank. The survey said the flat could be let for £2,000 a month.

Posted by mark @ 10:19 AM (1688 views)
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8 thoughts on “Surveying firm overestimated the rent buyer was likely to get by 100%

  • this is exactly what was talked about on hpc over the last few months….this judgement will force suveyors to be more and more cautious and gradually it will be another catalyst for a downward spiral in houseprices

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  • talking about the gullible public, we were out sat night, yeh it was a great night btw, anyway we were talking to a couple who claimed they were making a great return from a property they bought, I quizzed them a little, at the end of the conversation we had worked out they were actually losing £3000 a year on the rental income, a loss of 3k per year, when they thought they were getting a return of 10% to begin with, they simply forgot the renovation costs, ongoing costs, gas tests, elec test, etc etc etc this is how stupid the public are.

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  • financial planner says:

    HOW ON EARTH did he sell for LESS in 2006 than 2002??? Answer. Because all the easy money had been made by 2002 in the SE. nearly a decade later and prices are no higher…

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  • Always someone elses fault .

    What are our courts coming to .

    What happened to personal responsibility .

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  • Professional indemnity insurers are not used to having to pay out big money for surveyors valuation errors – this will rattle their cage..!

    ..if this sets a precedent, and a whole raft of claims come forward, the surveyors will get into the habit of under-valuing everything to cover their backs..

    ..could provoke quite a seismic change in the way that business works..

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  • In gambling the most fundamental rule is that if you can’t win you can’t lose either. If surveyors can lose by overestimating values and rentals, how do they win by underestimating them?

    fp @3.- do inflation and the value of the £ come into that calculation?

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  • Amateur btl is dead. The banks will not lend as the rent valuations mean the investment decision is likely to be rejected. With no one to offload to Are the courts the only option?

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  • Reading between the lines I don’t think this is such a landmark case – the fact that Colleys have made no change to their surveying guidelines since the case is a big pointer that this was actually a mistake in input or a human error rather than a problem with the process.

    The guy should consider himself very lucky that he got compensated for making a purchase at what must have been a stupidly high price to have also fallen in price in a Home County between 02 and 06 (should have been valued upwards of 490k if in trend for the S.E.).

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