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Surveyors don't look at lease terms when valueing - madness?

deFoix
deFoix Posts: 213 Forumite
Seventh Anniversary 100 Posts Combo Breaker
edited 7 February 2017 at 8:56PM in House buying, renting & selling
Discussed on another thread but I think reasonable to start another on this issue...

Funny I just checked my RICs homebuyers report. In the valuation section the surveyor specifically states that he didn't inspect the lease and therefore indemnifies himself from anything it might say. He then valued my flat based on a fictional term, service charge and ground rent...

"For the purposes of this valuation we have assumed a lease with an unexpired term of at least 85 years or more, ground rent of £250pa, or less, and a service charge of no more than £1,500pa."

I think this takes the biscuit. I don't expect the surveyor to be a legal expert but they should at least check the term, ground rent and service charges and value accordingly!

What is the point of doing a valuation if they're not evening going to check things that materially affect the value - often significantly?

I want the law to change so that EAs are forced to include unexpired lease term, ground rent and service charge particulars in the marketing packs. Long for the day when these are search fields on Rightmove and Zoopla :-)
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Comments

  • kinger101
    kinger101 Posts: 6,639 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 7 February 2017 at 8:59PM
    You could have asked these things at any time before you instructed the surveyor. Most people would ask before putting in an offer. You might task yourself with finding out and then ask the surveyor if they're willing to redo the calculation once you present them with the facts.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • deFoix
    deFoix Posts: 213 Forumite
    Seventh Anniversary 100 Posts Combo Breaker
    I didn't need to because I understood the particulars. However as discussed on other threads many people don't realize how crucial this information is.

    The point I'm making is that the valuation is based on a flawed methodology and most EAs are very bad at giving this information out before an offer is made.
  • But all of that is for your solicitor to do. And they're qualified ( Assuming you got at least a half decent one )
  • deFoix
    deFoix Posts: 213 Forumite
    Seventh Anniversary 100 Posts Combo Breaker
    sparky130a wrote: »
    But all of that is for your solicitor to do. And they're qualified ( Assuming you got at least a half decent one )

    Surely it's (too) late by then. This info should be available before people make offers. And then if that's the case why does the surveyor even bother giving a potentially misleading valuation?
  • deFoix
    deFoix Posts: 213 Forumite
    Seventh Anniversary 100 Posts Combo Breaker
    Most every day people on the street would expect a RICs surveyors valuation to be pretty much on the ball (save some rare concealed defect).
  • kinger101
    kinger101 Posts: 6,639 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Boler1985 wrote: »
    I didn't need to because I understood the particulars.

    So you had the information you wanted?
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • kinger101
    kinger101 Posts: 6,639 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Boler1985 wrote: »
    This info should be available before people make offers

    Ask the vendor. If they don't give it, don't make an offer.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • deFoix
    deFoix Posts: 213 Forumite
    Seventh Anniversary 100 Posts Combo Breaker
    kinger101 wrote: »
    Ask the vendor. If they don't give it, don't make an offer.

    All very good for people like you and me who understand the issues/risks and ask the right questions. Not everyone is so lucky.
  • Boler1985 wrote: »
    Surely it's (too) late by then. This info should be available before people make offers. And then if that's the case why does the surveyor even bother giving a potentially misleading valuation?

    Not really. Because any information the EA ( who don't work for you) gives will need verifying by your solicitor anyway.
  • deFoix
    deFoix Posts: 213 Forumite
    Seventh Anniversary 100 Posts Combo Breaker
    sparky130a wrote: »
    Not really. Because any information the EA ( who don't work for you) gives will need verifying by your solicitor anyway.

    So you'd be happy making an offer without this info?
This discussion has been closed.
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