Not upheld: delays in loan redemption process; administrative errors complaint against Lenvi Servicing Limited

Decision detail

Summary

Ms G sought to redeem her Help to Buy loan through Lenvi Servicing Limited starting in January 2025 but experienced significant delays over several months. She claims losses exceeding £20,000 and argues Lenvi's process is unfit for purpose. Lenvi offered £300 compensation for inconvenience and £500 valuation fee refund. The ombudsman found that while Lenvi made minor errors (incorrectly confirming valuation acceptance and experiencing communication delays), the majority of delays resulted from Ms G's failure to submit required documents promptly, particularly the application form which was not submitted until May 2025, four months after initial contact. The ombudsman upheld Lenvi's offered remedy as fair and reasonable, finding that had Ms G submitted documents as required, the redemption would likely have been completed before the original valuation expiry date.

The Ombudsman's reasoning

The ombudsman found that while Lenvi caused minor delays through miscommunication about valuation acceptance and slow communication regarding valuation errors, the majority of delays resulted from Ms G's failure to submit required documents promptly. Ms G did not submit the application form until May 2025, four months after initial contact, leaving only four weeks before valuation expiry. Lenvi clearly outlined requirements in January 2025 and repeatedly reminded Ms G what was outstanding. Once all documents were eventually received, Lenvi processed the valuation quickly (approved within three days). The ombudsman concluded that had Ms G submitted documents as required, redemption would likely have been completed before the original valuation expiry date of 17 June 2025.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website