The evidence that I have a buy-to-let mortgage based on a considerably inflated valuation given by a 3rd party surveyor- appointed by my mortgage lender; the Chelsea Building Society becomes more and more compelling. Not least on account of the huge fraud that was exposed on B2L loans from CBS and the overall collusion to inflate valuations between 2006-2008, (revealed in Aug 09 at the sum of £40m).
I am looking in the first instance for any buy-to-let customers with CBS who have pursued action and achieved a positive resolution or recompense, if anyone has any relevant information I would be truly grateful. I made this purchase in 2007 and it has been nothing but a noose around my kneck ever since curtailing any further investment and hemorrhaging money on a monthly basis. I believe strongly that a property valued at 110k in 2007 that is now approximately at 75k in 2011 - a drop that is nowhere near in line with the overall depreciation of the area is quite definitely a case for the ombudsman.
I took out a mortgage with CBS in May 2006. It wasn't a B2L though I also have a noose around my neck. Let me explain.
I bought my 4 bed detached from the builder of a small development. The asking price was 167,500.00. I put a deposit of 67k down and took a 100.5k mortgage from CBS. The house was built in 2003, (without full PP). The couple who tried to buy the property before me had problems drawing down their mortgage because of issues with the PP, but had been renting the property while the builder was getting this sorted. When eventually (11 months later) the couple were given the go ahead, the builder put the price up 42k.
Anyway, we have been having problems with subsidence since we moved in , which in the last year it has become very severe to the point where the house may be condemned pending the next structural survey. I spoke to the couple to see if they had noticed anything and was told that the house had been filled and replastered inside and the all the plaster at the bottom of the building chipped away and redone, not once but twice because of the massive cracks and was very apparent with the difference in plaster work, the floors upstairs had to be refitted as the joists were protruding to the point the laminate flooring was boasting and the windows were not opening or closing. This was the reason they decided to look for somewhere else. The surveyor should identified the structural defects straight away, due to the clear cracking on the exterior walls. The advice I got from my own independent QS was that the house was not worth the paper the deeds were written on.
I know that this is not exactly the same position as you are in, however, the valuation was certainly fraudulent, if it was infact ever carried out to begin with. It is my belief that who ever compiled the report, never set eyes on our property, and used the internet to determin the average market trend for our area.
So you see, CBS is guilty of valuation fraud in more than one area of lending, which is in complete breach of 'The Responsible Lending' condition as set out by the FSA!
