House valuation incorrect.

Dezincification

My son bought a flat in Glasgow in 2014 the bank accepted the surveyor valuation of £85000 for his mortgage. He had the flat valued in June 2022 and received a  valuation of £80000. The original valuation was wrong. The surveyor must have used sold prices from other flats in the same building that were superior to my sons flat. Does anyone know if he has any claim against the bank. The surveyor in no longer in business.

diystarter7

Dezincification said:

My son bought a flat in Glasgow in 2014 the bank accepted the surveyor valuation of £85000 for his mortgage. He had the flat valued in June 2022 and received a  valuation of £80000. The original valuation was wrong. The surveyor must have used sold prices from other flats in the same building that were superior to my sons flat. Does anyone know if he has any claim against the bank. The surveyor in no longer in business.

What price do you think it should have been in 2014 and what price now?
How would you prove they got it wrong
Has the area gone downhill since 2014?
Are there many empty flats around that area

Thanks

user1977

No, the bank wasn't giving him advice about the value of the property, so there isn't a claim against the bank. But (assuming he bought on the open market) there would have been a Home Report which he would have relied upon. So potentially he would have a claim against the surveyor if they were negligent in their valuation (the fact they're no longer in business doesn't mean he can't make a claim against them).

The relevant evidence is what the market was like at the time - the price now is neither here nor there.

p00hsticks

I'm going to ask that this thread be moved over to the House Selling and Renting board - Deaths, Funerals and Probate doesn;t seem relevant.....

MikeJXE

Has the length of the lease anything to do with the reduced valuation ? 

herebeme

You’d get more answers in the buying and selling forum. 

In short. Not against the bank. 

Question to help people understand current valuation:

Has your son done any layout or other alterations?
Has your son done decoration? (His taste may not be others taste). 

Was this a new built when he bought? If so, what is the state of the property and appliances versus purchase? 

Was the sale price fully fitted versus now perhaps the surveyor is pricing without white goods etc? 

Have large numbers of similar size flats been built in the area since he bought his?
Has this area of Glasgow become more depressed in the period since bought? 

Overall Glasgow flat prices trends in the period suggest this movement is not beyond expectation. 

user1977

MikeJXE said:

Has the length of the lease anything to do with the reduced valuation ? 

It's Scotland, we don't do daft things like use leasehold tenure for flats.

MikeJXE

user1977 said:

MikeJXE said:

Has the length of the lease anything to do with the reduced valuation ? 

It's Scotland, we don't do daft things like use leasehold tenure for flats.

Oh I didn't know that lol

herebeme

I didn’t know that either! English leaseholds are the pits (I’m in one). 

Sarah1Mitty2

Current valuation is likely to be much lower than June because a lot has changed since then, but that is the risk you take in buying and selling, no chance of getting anything from the bank, they will just ignore you probably. However he has lived in the flat for 8 years that is what housing is for, getting a bonus when you sell isn`t a given anymore unfortunately.