Tiuta International Limited v De Villiers Surveyors Limited
[2016] EWCA Civ 661.
This case concerns a common situation where a borrower required
additional funds to complete a development. De Villiers
Surveyors Limited had been instructed by the lenders Tiuta to value
a partly completed residential development in February 2011.
They valued it at £3.25 million in its then state of
development and £4.9 million on completion. Tiuta
advanced funds of just over £2.5million. In November
2011 the developer sought an increase in the loan to
£3,088,252 on the same security. De Villiers prepared a
fresh report and valued the property at £3.25 million and
£4.9 million on completion. In a further valuation
carried out in December 2011 the property was valued at £3.5
million in its then condition and £4.9 million on
completion. Additional funds were advanced. The loan
was not repaid and the property was sold resulting in a loss to
Tiuta of the order of £700,000.
