Cases - Mortgage Corporation v Halifax (SW) Ltd

Record details

Name

Mortgage Corporation v Halifax (SW) Ltd

Date

[1999]

Citation

Lloyd's Rep PN 159

Keywords

Negligence in valuations and surveys

Summary

Any repayments made by a borrower before defaulting must be taken into account in calculating the lender's total loss on the mortgage loan. This applies as much in a 'smaller transaction' case as in a 'no transaction' one. However, in a smaller transaction case the court should also make a finding as to what repayments would have been made on the hypothetical smaller loan, in order to assess what sum should be deducted from the total loss so as to arrive at the correct measure of damages.

On a valuation of a very expensive house in Hampstead, the judge adopted a bracket equating to approximately 15.5%.