Not upheld: alleged undervalue sale of repossessed property and poor communication complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Mr D complained that Halifax sold his repossessed property at undervalue and failed to keep him adequately informed, resulting in unreasonable costs including a council tax bill and a £7 charge to check title updates. Halifax obtained two independent valuations recommending a £300,000 asking price to achieve a £240,000-£250,000 sale, and ultimately sold the property for £247,000, which was the highest of five offers received and within the valuation range. The ombudsman found Halifax acted fairly in relying on professional valuations and marketing recommendations, and that while communication could have been better, it did not cause material loss. The ombudsman also determined Halifax was not responsible for updating the property title (the buyer's solicitor's responsibility) or the council tax issue, as Halifax had appropriately notified the council of the repossession.

The Ombudsman's reasoning

Halifax complied with MCOB 13.6.1 R by obtaining independent professional valuations and marketing the property in line with expert recommendations. The achieved sale price of £247,000 was within the estimated range and higher than the estate agent's expected outcome, demonstrating reasonable steps to obtain the best price. While communication could have been clearer, particularly via email once the property sold, this did not cause material loss as the sale price and outcome would have been the same regardless. The ombudsman found Halifax was not responsible for updating the property title (buyer's solicitor responsibility) or the council tax issue, as Halifax had notified the council appropriately.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website