Highways compensation - mortgage co wont waive without valuation?

mogchops

Hi,
We are due some compensation from the Highways agency, but before we can receive it, they have to have the mortgage co waive their interest in it. Fine, can understand if someone has arrears etc.

We have no arrears, squeaky clean with mortgage co for 8 yrs. They phoned me today to advise that they are unable to allow the money to be paid to us unless we pay to have a valuation of our house. They say this is their policy, and wont budge.

I am not taking this lying down, the compo is 1600, survey would be 160 odd, thats 10% fgs!! Please does anyone know is this just their company policy? Or is this normal practice?

I have complained and waiting on call back on Monday.

kingstreet

The lender needs to establish that the HA works aren't going to adversely affect the value of its security. Having a surveyor do that seems a reasonable route to adopt and the fee in question appears reasonable.

opinions4u

Would they pay it directly off your mortgage capital? That would be more than beneficial long term.

dunstonh

As much as you dont like it, their response is fair and common sense. They need to make sure the work isnt going to kock x% off the value of the property. The fact the valuation costs £160 is about right and would still cost that if the compensation was £200 or £200,000.

What they are asking is the norm in these things.

mogchops

thank you for the replies, I understand what you're saying, just seems a bit frustrating for such a small amount!

Yes it can be offset straight against the mortgage, and that is what we will do, if we cant resolve the survey thing. Would rathe3r it all off the mortgage than haveto pay for a survey!

kingstreet

Paying for the surveyor inspection will also tell you if the property is going to be adversely affected. If it is, you may then find £1,600 isn't adequate.

mogchops

kingstreet wrote: »

Paying for the surveyor inspection will also tell you if the property is going to be adversely affected. If it is, you may then find £1,600 isn't adequate.

The works were all completed 4 years ago, its a noise/pollution issue, not a structural issue, no physical effect on house.

mogchops

Update....

After complainging to mortgage co - they are paying the survey fee. REesult!

dunstonh

It is a result. At the moment, the bank complaints departments are flooded. On small value redress cases (i.e. those that wont cost that much to make them go away) they are often refunding. I suspect £160 is well within that as most floor limits are closer to £1000 when in backlog.

mogchops

dunstonh wrote: »

It is a result. At the moment, the bank complaints departments are flooded. On small value redress cases (i.e. those that wont cost that much to make them go away) they are often refunding. I suspect £160 is well within that as most floor limits are closer to £1000 when in backlog.

I completly agree with you... As I was happy to take the complaint further, got plenty of time, not bothered about the wait... when I told the chap that, he said he would speak to manager & call me back.... and hey presto!