Applying a valuation margin of error of 8 per cent, rather than the generally accepted margin of 5 per cent for standard residential properties, the defendant surveyors’ valuation was not negligent. This margin was appropriate because of the lack of consistency and clarity in relation to comparables and the difficulties presented in valuing in July 2004, when the market was volatile. Had the valuation been negligent, the judge would have made a finding of 60 per cent contributory negligence against the lender (Paratus AMC Ltd v Countrywide Surveyors Ltd).
Register Now As you are not an existing subscriber please register for your free daily legal newsfeed service.Register
If you have any questions about the service please contact firstname.lastname@example.org or call Lexology Customer Services on +44 20 7234 0606.
- Mills & Reeve LLP
- United Kingdom
- March 8 2012
If you are interested in submitting an article to Lexology, please contact Andrew Teague at email@example.com.