Relying On A Valuation Report?

Hubbard v Bank of Scotland PLC [2014] EWCA Civ 648 The Court of Appeal has recently recognised the limitations inherent in a mortgage valuation and the limited duty of care owed by the surveyor carrying out the report.

Facts

Mrs Hubbard bought a property in 2005 with a loan from the Bank of Scotland. Unbeknown to her, the property was partly built on an infilled quarry. The Bank's surveyor, Colleys, had inspected the property and prepared a valuation report.

The valuation report noted two cracks at the property but concluded "no recent movement, no further action". However, the valuation report did not purport to be a full structural survey and through its guidance noted its limited scope, indicating the option to request a more detailed report, and suggested obtaining "independent advice" for any problems highlighted.