Allied Trust Bank Ltd v Edward Symmons & Partners
Language: English Series: Estates Gazette ; (1994) 22 EG 116-126(11)Publication details: 1994Subject(s): Summary: QBD 30 September 1993. A company (C) contracted to purchase a property to convert into apartments and terraced houses and applied to the plaintiff (T) for a loan. The defendant firm of surveyors (S) provided a valuation report stating the open market value to be £595,000. T provided a loan based on 70% of the purchase price. C failed to pay interest or principal and the property was sold for £220,000. T claimed that S negligently valued the property and a more correct figure should have been £350,000 on which valuation T would have lent £245,000. T lost £125,000. S had presumed that planning permission would be granted for the proposed development. Claim dismissed, open market value of freehold property must include such additional amount, as in the open market, prospective purchasers would pay for a property on the prospect of obtaining planning permission for development, over and above that which they would pay if there was no hope that planning permission could be obtained.| Item type | Current library | Call number | Copy number | Status | Date due | Barcode | |
|---|---|---|---|---|---|---|---|
| Law report | London Journal article | ABS50954 (Browse shelf(Opens below)) | 1 | Available | 2921-1001 |
QBD 30 September 1993. A company (C) contracted to purchase a property to convert into apartments and terraced houses and applied to the plaintiff (T) for a loan. The defendant firm of surveyors (S) provided a valuation report stating the open market value to be £595,000. T provided a loan based on 70% of the purchase price. C failed to pay interest or principal and the property was sold for £220,000. T claimed that S negligently valued the property and a more correct figure should have been £350,000 on which valuation T would have lent £245,000. T lost £125,000. S had presumed that planning permission would be granted for the proposed development. Claim dismissed, open market value of freehold property must include such additional amount, as in the open market, prospective purchasers would pay for a property on the prospect of obtaining planning permission for development, over and above that which they would pay if there was no hope that planning permission could be obtained.