Valuation Fees

[Zak]

Hi,

I have had three loans for the last 10 years with Lloydstsb and they have recently requested a new valuation of my properties. i told them I did not need one but they insisted that their records needed updating and one would be required.

The valuator duly arrived and reported directly to the bank. They have told me that they would be recovering the cost of £780 for the valuation from my account. I have asked for documentation showing in writing where they have said that valuations can be made at anytime and the costs recovered from me. They have failed to come up with any documentation with regards to two of the loans, and the one they could find shows no evidence of the valuation costs.

What I want to know is; Are they legally allowed to do this and have they got any obligation to come up with a copy of the loans to make them leagal?

[des8]

Re: Valuation Fees

Are these business loans?
If so the answer to your question about passing on the charge is that it is standard in most banking documents that the bank retains the right to demand a revaluation of assets.
So most probably they can, but it should so state in the loan agreement, (and probably did:tinysmile_cry_t

The reason is that a change in the valuation of the assets often means that the business is in breach of its loan agreement as its loan to value (LTV) ratio is affected.
If this is the case for you be aware that it is easy for these valuations to be manipulated.
Questionable under-valuations of properties are not unknown.
If you think your property has been undervalued, challenge its accuracy, and question the reason behind the inaccuracy."