In a case that has had implications for property investors everywhere, a landlord has finally withdrawn his appeal against a surveyor. In the original case, the buy to let property investor won his case and was awarded £72k by the High Court. But the Court of Appeal later overthrew the award and although it looked as if the landlord would take his case to the Supreme Court, he has now withdrawn it.
The background of Scullion Vs. Bank of Scotland
Mr Scullion, a property investor, originally applied for a mortgage to buy a property in Surrey with the express intention of letting it. A valuation was carried out and the surveyor reported that the property could expect to earn around £2k per month in rental income. Unfortunately, Mr Scullion was never able to get more than £1,100 per month and eventually he sold the property at a loss. In order to try and recoup some of his losses, he took the surveyor to court.
Judge’s decision
The original judge awarded in Mr Scullions favour. He concluded that the surveyor should have known that (even though there is no duty of care in transactions motivated by commercial gain) Mr Scullion would be relying on information contained within the valuation report to help him make a decision as to whether the property was a good investment.
A successful appeal
The Appeal Court subsequently overturned the decision. They concluded that there was no duty of care and that a property investor could reasonably be expected to seek out his own commercial advice. So if you think you have a potential claim against a surveyor for dodgy advice, think again.
