Not upheld: Mortgage administration / arrears handling complaint against Stonehaven UK Ltd trading as Canada Life Home Finance

Decision detail

Summary

Mr B complained that Canada Life declined his application for a further advance on his lifetime mortgage based on an incorrect property valuation. The property was initially valued at £2,400,000 in 2023, but when revalued in 2025 for the further advance application, a RICS registered surveyor valued it at £2,280,000, later revised to £2,400,000. Both valuations were insufficient for Canada Life to approve the £75,000 advance. Mr B believed the surveyor was incompetent, the fee was excessive, and Canada Life should have commissioned a second opinion. The ombudsman found that Canada Life appropriately appointed a qualified surveyor, fairly handled Mr B's appeal, and properly declined the application as it did not meet lending criteria. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman reasoned that lenders are entitled to appoint independent qualified experts (RICS registered surveyors) to value properties and rely on their valuations. The ombudsman cannot assess the contents of valuations as surveyors fall outside FOS remit and valuations are not regulated activities. Canada Life followed a fair appeals process by forwarding Mr B's concerns to the surveyor for reconsideration. Lenders are entitled to set their own lending criteria, and Mr B's application simply did not meet those criteria. The valuation fee was not unreasonable compared to industry standards.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website