Is This Correct?

RBSBuyer

Looking for some advice on whether I have a valid claim against the Royal Bank of Scotland

Short story is, family members selling house they have Scottish Home Report and independent valuation.

I offer to buy at valuation price, accepted.

Had previously put in offers against other property's and had had talks with bank, so no problems re mortgage.

Put offer into action with mortgage advisor at bank, family members solicitor send SHR and valuation to advisor, completed paperwork with advisor and it is sent of to RBS mortgage centre, so far no problems.

A few weeks later I was telephoned by centre, told that they did not require the SHR as house was being sold by relation, but I would have to get an independent valuation completed?

I explained that the valuation was independent and had been done with one of the banks approved assessors/surveyors.

No they are not accepting valuation, I would have to pay £190 for them to get another one of their approved assessors to value property.

I asked reason why? they told me it is the government law as property is being sold by relation, it needed an independent valuation.

A few days later I received through post confirmation of mortgage offer with original valuation copy attached.

Move in day is at end of July. and mortgage centre has now been back in touch to inform me agreed offer of mortgage will be cancelled, unless I pay them £190 for second valuation.

This I have now reluctantly done.

Is this right? Do I have grounds to complain?

Sorry about short story, you should have seen longer version:(

Thank you for any advice

amnblog

Pay it and move on

dunstonh

I'm not sure what the problem is. They carried out a service that you knew cost £190 but they didnt collect the money at the time but wanted it before completion. You then paid it to allow completion to occur.

What exactly do you wish to complain about?

holly_hobby

Some lenders (with prior agreement) will accept a personally instructed survey IF done by a panel surveyor within a short time of application, but will charge an admin fee.

Some lenders will only work with a survey they have instructed.

You could speak to them about the fact they are requesting a further survey fee, when they have used the actual survey report commissioned and paid for by you. But be prepared that they may cite it was their decision to utilise the existing suvey, with the £190 being reqd as an admin fee in doing so.

Its annoying yes, even a tad cheeky, its up to you if you want to raise this with them. You could give them a call/write to them and ask for their comments re the survey used and see what they come back with - they may amend the fee request to an admin charge instead - but don't hold your breath.

Hope this helps

Holly

kingstreet

So, there's still only one lot of £190 to be paid, but later than expected?

TBH I'm not surprised they want another valuation if this is a family purchase. Accepting an existing report could leave them open to possible fraudulent activity.

RBSBuyer

dunstonh wrote: »

I'm not sure what the problem is. They carried out a service that you knew cost £190 but they didnt collect the money at the time but wanted it before completion. You then paid it to allow completion to occur.

What exactly do you wish to complain about?

Sorry do not understand your answer?

Original independent valuation was paid by seller and given to bank, all ok. Mortgage approved!

Now they want another independent report paid for by myself.

Costing £190 in order to allow completion even though they used original sellers valuation to offer me mortgage??

RBSBuyer

kingstreet wrote: »

So, there's still only one lot of £190 to be paid, but later than expected?

TBH I'm not surprised they want another valuation if this is a family purchase. Accepting an existing report could leave them open to possible fraudulent activity.

Possible fraudulent activity? By the banks own recognised independent valuer?

RBSBuyer

holly_hobby wrote: »

Some lenders (with prior agreement) will accept a personally instructed survey IF done by a panel surveyor within a short time of application, but will charge an admin fee.

Some lenders will only work with a survey they have instructed.

You could speak to them about the fact they are requesting a further survey fee, when they have used the actual survey report commissioned and paid for by you. But be prepared that they may cite it was their decision to utilise the existing suvey, with the £190 being reqd as an admin fee in doing so.

Its annoying yes, even a tad cheeky, its up to you if you want to raise this with them. You could give them a call/write to them and ask for their comments re the survey used and see what they come back with - they may amend the fee request to an admin charge instead - but don't hold your breath.

Hope this helps

Holly

Thank you Holly

It appears that you are the only one who has actually read and understood what I was trying to say:)

holly_hobby

RBSBuyer wrote: »

Original independent valuation was paid by seller and given to bank, all ok. Mortgage approved!

Now they want another independent report paid for by myself.

Costing £190 in order to allow completion even though they used original sellers valuation to offer me mortgage??

Sorry the impression I got from your 1st post, was that you had commissioned and paid for the initital survey (with an RBS panel surveyor), but the bank wanted to instruct survey themselves, with a further survey fee to you of £190. When instead it was actually the Vendor whom instructed and had the survey done, which you have submitted hoping to utilise and save yourself a survey fee into the bargain ? (think thats the gist).

Basic (ie lender) survey's are not normally transferrable between parties - so I think you may have to bite the bullet on this one .... which I know may seem unfair to you and pedantic of the lender, but its just the way it works I'm afraid.

Sorry ... but I do think you'll be banging your head against a wall, and possibly delay completion, for no actual gain .... I am guessing when you did your initial fee calcs, a survey fee formed part of the assessment, so to be fair, you're not actually down or out of pocket by this, even if its a tad annoying why they are requesting another valuation.

Anyhoo, ultimately its up to you however how you want to play it with them .... but I can't see you evading the fee ...

Hope this helps .... sorry

Holly xx

RBSBuyer

holly_hobby wrote: »

Sorry the impression I got from your 1st post, was that you had commissioned and paid for the initital survey (with an RBS panel surveyor), but the bank wanted to instruct survey themselves, with a further survey fee to you of £190. When instead it was actually the Vendor whom instructed and had the survey done, which you have submitted hoping to utilise and save yourself a survey fee into the bargain ? (think thats the gist).

Basic (ie lender) survey's are not normally transferrable between parties - so I think you may have to bite the bullet on this one .... which I know may seem unfair to you and pedantic of the lender, but its just the way it works I'm afraid.

Sorry ... but I do think you'll be banging your head against a wall, and possibly delay completion, for no actual gain .... I am guessing when you did your initial fee calcs, a survey fee formed part of the assessment, so to be fair, you're not actually down or out of pocket by this, even if its a tad annoying why they are requesting another valuation.

Anyhoo, ultimately its up to you however how you want to play it with them .... but I can't see you evading the fee ...

Hope this helps .... sorry

Holly xx

Thanks Holly
As I understand it under Scottish law lenders take sellers SHR and independent surveyors valuation as fact, when buying as per the RBS did when I bought my first flat through them.

It is also Legislation in Scotland that sellers have to have a SHR before selling, so do not understand that RBS thing that it was not required?

But to be honest the SHR only has a few meaning full pages the rest is cut and paste rubbish. Its the independent extra paid for valuation is the important bit!

Anyway!!

The second valuation has been done today by another RBS approved assessor and he did mention its to do with " the keep at arms length rule"???

In 5 minutes and gone. £190 pound worth

It seems if buying from relation, its a requirement not to take the sellers word, but to get an independent valuation.

But the original independent valuation was the one submitted and accepted by my own local RBS advisor to begin with???:(

I think I will complain, as I have been offered mortgage based on first RBS approved valuation, only to be told I have to pay for a second RBS approved valuation.

Any way whatever happens all bank accounts etc will be moved from RBS to an other, who I hope will give better customer service / satisfaction and Mortgage will be moved as soon possible.

Thank you, and to all other's who tried to offer helpful advice:T

Thrugelmir

RBSBuyer wrote: »

The second valuation has been done today by another RBS approved assessor and he did mention its to do with " the keep at arms length rule"???

Correct. Collusion between parties is how parties is how fraud is committed. Buyer, Seller, Valuer are all connected and in essence fix the transaction to over value the property. So there needs to be third party independent verification.