NEWS: Scullion appeal to Supreme Court withdrawn – no duty of care owed by mortgage valuer to BTL investors – relief for valuers and their insurers
The appeal by buy-to-let (BTL) investor Mr Scullion – due for hearing at the Supreme Court today – was withdrawn on confidential terms this morning.
This means that the Court of Appeal decision of 2011 (link to judgment here) remains binding and that the potential wave of BTL investor claims arising from the property slump of 2007/8 is now most unlikely to materialise.
Hard-pressed valuers and their insurers will welcome this development which removes significant uncertainty and is likely to lead – over time – to the re-entry to the insurance market of a number of large insurers which had withdrawn previously, and to new entrants. The outcome should also boost the demand for proper independent valuation advice by persuading BTL investors that when making major financial investments in any property it is essential that they seek their own appropriate level of professional report, rather than rely upon their lender's version given the lender's different interest and considerations.