Countrywide in £21m provision for property value claims

[Zoiderman]

If only you meant in the literal sense.

[oracleslave]

I was gobsmacked.

If only you meant in the literal sense.

[Zoiderman]

We were remortgaging once, and the surveyor turned up and asked us how much we wanted it valued for.

I was gobsmacked. And they wonder why banks got in trouble...

[Doggy Styles]

Yep, Henry Cooper was among the list of celebs that got stung quite badly in that escapade.

Indeed. He even had to sell his left hook to get by.

[Churchill]

Don't forget that many of the Lloyds of London Names are effectively sole traders with unlimited liability.

There was a stink kicked up several years ago after it became apparent that many of the tulipy bits of work were being lined up for the small names while the juicy risk free insurance was going to the big companies...

Who'd have thought

Yep, Henry Cooper was among the list of celebs that got stung quite badly in that escapade.

[bobspud]

Don't forget that many of the Lloyds of London Names are effectively sole traders with unlimited liability.

There was a stink kicked up several years ago after it became apparent that many of the tulipy bits of work were being lined up for the small names while the juicy risk free insurance was going to the big companies...

Who'd have thought

[centurian]

It's all covered by their insurance anyway.

And who is underwriting the insurance - probably the banks suing them - they just don't know it yet, until the claim filters through all the resales and repackaging etc. In the meantime, they have paid the traders that bought this derivative. a stonking fat bonus.

[mos]

As long as they do not have to admit liability ...

[AtW]

Provisions made in the last two years against legal claims have topped £21m. The cost in 2011 was £9.4m, significantly more than the company's loss for the year of £7.3m.

There have been over 100 filings at the High Court against Countrywide or its subsidaries since January 2011.

The vast majority of the cases have been brought by mortgage providers such as Bank of Scotland, Barclays, Yorkshire Buildings Society and Northern Rock.

In its accounts Countrywide said: "In common with others in the industry we continue to experience professional indemnity insurance claims in our surveying division arising from the property market between 2004 and 2007. An estimate of these exceptional losses was established at the end of 2010 and further data and trends have resulted in an exceptional charge of £9.4 million in 2011."

The cost of fighting the cases over the last two years, £21.3m, is roughly equivalent to the loss Countrywide has suffered over the same period, £20.3m.

Countrywide owns 47 brands including Hamptons, Taylors, Bairstow Eves and Andrew Reeves. Turnover for 2011 was £498.9m, up 6.4pc on the previous year. The loss before tax reduced from £13m to £7.3m.

Countrywide has one of the most active surveying departments in the country leaving it particularly vulnerable to claims arising from the boom in the housing market between 2004 and 2007. While the bulk of the claims are against Countrywide Surveyors, a number are against its subsidiary SecureMove Property Services.

A spokesman said Countrywide carried out over 1.7m valuations between 2004 and 2007. The number of claims it was facing was therefore a tiny fraction.

The company said it expected the claims would tail off but declined to comment on the current level.

Source: Countrywide in £21m provision for property value claims - Telegraph

FFS, when I had surveyor working for bank to value flat I tried to buy then the first thing he asked from the doors how much I am paying for it? WTF I thought! He should have been fired on spot for asking for asking price when it's his fooking job to determine value of the place!!!