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Overvaluation

Language: English Series: Estates Gazette Case Summaries ; (1995) EGCS 21(1) (18/2/95)Publication details: 1995Subject(s): Summary: "BFG Bank AG v Brown & Mumford Ltd" QBD 2 February 1995. The surveyors admitted negligence in overvaluing a development site but contended that the bank was contributorily negligent in lending on a speculative development in breach of its own lending guidelines. Held, the bank was entitled to rely on the valuations and advice that planning permission was likely.

"BFG Bank AG v Brown & Mumford Ltd" QBD 2 February 1995. The surveyors admitted negligence in overvaluing a development site but contended that the bank was contributorily negligent in lending on a speculative development in breach of its own lending guidelines. Held, the bank was entitled to rely on the valuations and advice that planning permission was likely.