Cases - Cavendish Funding Ltd v Henry Spencer & Sons Ltd
Record details
- Name
- Cavendish Funding Ltd v Henry Spencer & Sons Ltd
- Date
- [1998]
- Citation
- 1 EGLR 104, CA
- Legislation
- Keywords
- Negligence in valuations and surveys
- Summary
-
The claimant lenders made a short term non-status loan on the security of residential property. Before agreeing to lend, the claimants followed their normal practice of obtaining 2 independent valuations of the property; however, they then inexplicably based their lending decision on the higher valuation. It was held that, while the lender's conduct might be described as unreasonable (resulting in a finding of contributory negligence), it had nevertheless sufficiently relied on the valuation for the valuer to be held liable for the consequences.