Allied Trust Bank Ltd v Edward Symmons & Partners
Allied Trust Bank Ltd v Edward Symmons & Partners
- 1994
- Estates Gazette (1994) 22 EG 116-126(11) .
QBD 30 September 1993. A company (C) contracted to purchase a property to convert into apartments and terraced houses and applied to the plaintiff (T) for a loan. The defendant firm of surveyors (S) provided a valuation report stating the open market value to be £595,000. T provided a loan based on 70% of the purchase price. C failed to pay interest or principal and the property was sold for £220,000. T claimed that S negligently valued the property and a more correct figure should have been £350,000 on which valuation T would have lent £245,000. T lost £125,000. S had presumed that planning permission would be granted for the proposed development. Claim dismissed, open market value of freehold property must include such additional amount, as in the open market, prospective purchasers would pay for a property on the prospect of obtaining planning permission for development, over and above that which they would pay if there was no hope that planning permission could be obtained.
ASSET VALUATION
ABOUT RICS-RICS MEMBERS
FALLING MARKET
HOPE VALUE
MORTGAGE VALUATION
NEGLIGENCE
OPEN MARKET VALUE
PLANNING PERMISSION
RICS APPRAISAL AND VALUATION MANUAL
RESIDUAL VALUATION
SURVEYORS
VALUERS
QBD 30 September 1993. A company (C) contracted to purchase a property to convert into apartments and terraced houses and applied to the plaintiff (T) for a loan. The defendant firm of surveyors (S) provided a valuation report stating the open market value to be £595,000. T provided a loan based on 70% of the purchase price. C failed to pay interest or principal and the property was sold for £220,000. T claimed that S negligently valued the property and a more correct figure should have been £350,000 on which valuation T would have lent £245,000. T lost £125,000. S had presumed that planning permission would be granted for the proposed development. Claim dismissed, open market value of freehold property must include such additional amount, as in the open market, prospective purchasers would pay for a property on the prospect of obtaining planning permission for development, over and above that which they would pay if there was no hope that planning permission could be obtained.
ASSET VALUATION
ABOUT RICS-RICS MEMBERS
FALLING MARKET
HOPE VALUE
MORTGAGE VALUATION
NEGLIGENCE
OPEN MARKET VALUE
PLANNING PERMISSION
RICS APPRAISAL AND VALUATION MANUAL
RESIDUAL VALUATION
SURVEYORS
VALUERS