View more on these topics

BTL landlord wins payout from surveyor for over-estimating rental income

A buy-to-let landlord has won compensation from a surveyor judged to have over-estimated the rental income on a new build flat, according a report in The Observer.

The property, in Cobham Surrey, was bought in 2002 and valued at its asking price of £352,950. The surveyor, Colleys, which is now part of Lloyds Banking Group, estimated a rental income of £2,000 a month.

The landlord was only able to earn £1,000 a month from the property and sold it at a loss in 2006.

He subsequently took legal action against Colleys claiming it owed him a duty of care, and was awarded £72,000 earlier this month, according to The Observer. The damages covered loss of rental income and the administration costs of purchasing and selling the property.

A Colleys spokesman told the Observer: “Valuations are never 100 per cent accurate. We look at comparable properties in a locality let out in the period of time just before the valuation. It’s not a science but it’s usually correct even in today’s market where there are fewer transactions than in the past.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment