Not upheld: Complaints handling failures complaint against Market Harborough Building Society

Decision detail

Summary

Mr and Mrs H complained that Market Harborough Building Society's valuation of their property at £650,000 was artificially low, compared to their estate agent's valuation of £800,000 and the eventual sale price of £755,000 in 2019. They argued MH was responsible for the valuation because they paid the £495 fee and that MH's complaint handling was inadequate. The ombudsman found that MH's responsibility was limited to appointing a suitably qualified expert (a RICS-approved surveyor) and that the valuation was conducted for MH's lending purposes, not for Mr and Mrs H's benefit. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that MH's responsibility was limited to appointing a suitably qualified expert to conduct the valuation for MH's lending purposes, not to guarantee a particular valuation outcome. By appointing a RICS-approved surveyor, MH fulfilled its obligations appropriately. The fact that Mr and Mrs H paid for the valuation did not change that it was conducted for MH's purposes, not theirs. The ombudsman rejected the argument that MH bore responsibility for the valuation's content or that the complaint handling process was inadequate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website