The answer is yes. You cannot safely rely on the “valuation report” carried out by the bank. The focus is different to that of a purchaser. The lender’s surveyor inspections establish a ‘value’ of the property bearing in mind the amount of the proposed loan. Some of these valuers are architects or engineers, but most are not. The valuer is not particularly concerned with defects except to the extent that they affect the value. Even an architect or engineer looking at a house to assess its value will not be looking for faults or checking all the matters they would check as part of a survey on behalf of a purchaser. Lenders advise borrowers not to rely on their “valuation report” and that for the borrowers’ own protection they should get the house surveyed. Bearing in mind the fees payable for lenders’ “valuations” you will appreciate that the examination of the property is fairly superficial. As of now, there has been no reported case in Ireland of a borrower who relied on a lender’s surveyor succeeding in an action when defects are found in a house which the borrower felt the lender’s surveyor should have seen. Several cases have been brought to Court but none of these have succeeded. Overall, therefore, our advice is that you should place no reliance on the valuation carried out on behalf of your lender.
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