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Lenders to make professional negligence claims

Published on 12 Feb 2010 under category: legal

UK surveyors could be facing legal action from lenders who incurred losses from inaccurate valuations.

Bradford and Bingley is part of a mass mail-out threatening legal action to UK surveyors potentially guilty of over-valuing properties during the housing boom.

Lenders including GE Money, Bradford & Bingley and GMAC-RFC have contacted surveyors to tell them that they have incurred losses, after the repossessed homes sold for much lower than the original valuation.

The above companies specialised in sub-prime mortgages, buy-to-let and self-certified mortgages. Bradford & Bingley, nationalised after its collapse in September 2008, has experienced high arrears rates with recent figures showing that 5.88 per cent of its mortgages are either in possession or more than three months behind.

Many surveyors have said that the claims have led to hikes in their insurance rates, leading to the Royal Institute of Chartered Surveyors telling lenders to have evidence to back up accusations.

If you require advice on Professional Negligence please call us on +44 (0)20 7831 0101 and ask for Peter Mellett.