The Nationwide Building Society is suing Fairweathers Chartered Surveyors for an allegedly negligent valuation of an Oxfordshire property.
According to a claim form issued at the High Court, Nationwide is seeking to recover more than £350,000, alleging breach of contract, negligence and negligent misstatement on the part of the surveyors in the valuation of Forestry House, Great Hazeley, in 2006.
It says that, in reliance on a March 2006 valuation report that assessed the market value as £725,000 and the proposed investment value of £1.45m, it loaned an initial £485,000 to Stadhampton Ventures to assist in the purchase of the property as an investment for £650,000.
And it claims that, in reliance on a second valuation report in November 2006 that assessed the market value with the benefit of an income stream as £975,000 and its investment value again at £1.45m, it made a further loan of £149,000.
Nationwide says that, following a third valuation report in December 2007 that assessed the projected market value with assumed vacant possession as £1.5m and again assessed the investment market value as £1.45m, it made a loan facility totalling £1.015m including the previously loaned sums – a further amount of £381,000.
The claim form says that Stadhampton defaulted on the loan by October 2009 and, in August 2010, the property was valued by Savills at only £537,000. Receivers were appointed and, in September 2011, the owner of an adjoining property bought it for £425,000.
Nationwide received the net proceeds of sale of £400,000, and now claims damages in the sum of £350,000, representing the difference between the market value attributed to the property in the third valuation report and its true value. It also seeks to recover interest.
Nationwide alleges that Fairweathers failed to provide adequate advice in respect of the security provided by the property and failed to exercise the skill and care reasonably expected of a valuer. It says that it would not have made any of the loans if Fairweathers had exercised due skill and care in its valuations.
However, in its defence, Fairweathers denies that it was in breach of contract or negligent, maintaining that each individual valuation was correct and did not involve any over-valuation. It says that, alternatively, the valuations were within a permissible range of deviation.
The valuer says that it exercised reasonable skill and care, and that the property did form proper security for the loan facilities. It denies that any loss suffered by Nationwide resulted from its valuations.
Nationwide Building Society v Fairweathers Surveyors Ltd t/a Fairweathers Chartered Surveyors
HQ14X02676
Issued by Leigh Griffiths-Cole of Eversheds LLP
The Nationwide Building Society is suing Fairweathers Chartered Surveyors for an allegedly negligent valuation of an Oxfordshire property. According to a claim form issued at the High Court, Nationwide is seeking to recover more than £350,000, alleging breach of contract, negligence and negligent misstatement on the part of the surveyors in the valuation of Forestry House, Great Hazeley, in 2006. It says that, in reliance on a March 2006 valuation report that assessed the market value as £725,000 and the proposed investment value of £1.45m, it loaned an initial £485,000 to Stadhampton Ventures to assist in the purchase of the property as an investment for £650,000. And it claims that, in reliance on a second valuation report in November 2006 that assessed the market value with the benefit of an income stream as £975,000 and its investment value again at £1.45m, it made a further loan of £149,000. Nationwide says that, following a third valuation report in December 2007 that assessed the projected market value with assumed vacant possession as £1.5m and again assessed the investment market value as £1.45m, it made a loan facility totalling £1.015m including the previously loaned sums – a further amount of £381,000. The claim form says that Stadhampton defaulted on the loan by October 2009 and, in August 2010, the property was valued by Savills at only £537,000. Receivers were appointed and, in September 2011, the owner of an adjoining property bought it for £425,000. Nationwide received the net proceeds of sale of £400,000, and now claims damages in the sum of £350,000, representing the difference between the market value attributed to the property in the third valuation report and its true value. It also seeks to recover interest. Nationwide alleges that Fairweathers failed to provide adequate advice in respect of the security provided by the property and failed to exercise the skill and care reasonably expected of a valuer. It says that it would not have made any of the loans if Fairweathers had exercised due skill and care in its valuations. However, in its defence, Fairweathers denies that it was in breach of contract or negligent, maintaining that each individual valuation was correct and did not involve any over-valuation. It says that, alternatively, the valuations were within a permissible range of deviation. The valuer says that it exercised reasonable skill and care, and that the property did form proper security for the loan facilities. It denies that any loss suffered by Nationwide resulted from its valuations. Nationwide Building Society v Fairweathers Surveyors Ltd t/a Fairweathers Chartered SurveyorsHQ14X02676Issued by Leigh Griffiths-Cole of Eversheds LLP
