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He is responsible to give a red book valuation for bank borrowing purposes, unfortunately, he was 40% over, and as result my client has lost substantially
Client?What is your interest in this? Who is your client? The developer?
Is hean experienced developer or is this the first time?
Whenwas the valuation done which valued is 1.75 million? Has the market dipped inbetween the valuation being done and the property being finished?
I'mgoing to be brutally honest with you and tell you that whilst the surveyor mayor may not have been negligent with regard to over valuing the property. Theactual value of it and what it can achieve in a depressed market can often beremarkably different.
Ifyour client had no experience of this, I think that he may have a chanceagainst the value or the lender for irresponsible lending. However, I thinkthat in this case, I am sorry to have to tell you that I simply think yourclient is himself a bad bargain and is now looking to offload the blame ontosomeone else. That is not to say the solicitor will not take this on (andobviously charge for the privilege) but I would be very surprised if it got tocourt and I would be even more surprised if it was successful in a claimagainst the surveyor.
I'msorry, I appreciate that this is not the answer you wanted but there is nopoint in me misleading you. I have a duty to advise you truthfully and honestlyeven if that answer is unfavourable.
Of course,a different law you may take a different view because there are always twosides to every argument. No one ever goes to court expecting to lose and yetone side always does. Each of them has been encouraged to go by their solicitor(who gets paid regardless) on the promise that they have a reasonable chance ofsuccess.
By allmeans intimate a claim against the surveyor it is not one that I would betaking to court unless the solicitor acting for me is doing it no win no feeand my legal costs are insured, in case I lose and get a costs order against me.
I cansee that this legal battle could easily cost £50,000 if your client lost thecase
Doesthat answer the question? Can I help further? Can I answer any specific points?
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Dear Law, I'm sorry I was called to a farewell supper and had to leave you.
Everything you say makes absolute sense. I might need to reflect overnight to see if there is possible foothold or case where we can get some sort of compensation. If we can prove that my client had relied on the valuation and was seduced by the price suggested which is understandable, then of course he would have been extremely happy. He is inexperienced on valuations and lives in a "Peter Pan world" so clearly would have been reliant on these sums.
Dear Law, thanks for your assistance, I'll explain this to him tomorrow. Is there any case law to support his position?
Dear Law, your advise has been very helpful. I am going to suggest that the lender (it's a private lender outside of FSA regulations) take's the hit so that the creditors on the house, agents and lawyers fees can be paid. The shortfall can be made up by the surveyors insurance company. The developer is inexperienced on new builds and is numerically dyslexic. If the lender had checked his credentials thoroughly, they'd have realised he was a high risk.
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