Cases - Chelsea Building Society v Goddard & Smith
Record details
- Name
- Chelsea Building Society v Goddard & Smith
- Date
- [1996]
- Citation
- EGCS 157
- Legislation
- Keywords
- Negligence in valuations and surveys
- Summary
-
The claimants lent £1.25m, at a loan-to-value ratio of 80%, to fund the purchase of a residential property. The purchaser was a foreign national and, in reaching their decision to lend, the claimants relied on the management accounts of a foreign company and on what was clearly an unsatisfactory report from unqualified accountants. This was held to amount to contributory negligence and the lenders were held responsible for 25% of their losses.