The problems are a result of Amber’s insistence on receiving confirmation of a written valuation of the property whilst tenanted in addition to the residential valuation of the property. However, the valuer has refused to carry out this request on the grounds that it is impossible to determine the value of the property whilst tenant if the property is actually empty.
Explaining the situation, Ian Crampton, sales director at Ferndown Ltd, said: “My client is buying a property to let, but at the moment it is empty. As instructed, the valuer carried out a rental valuation on the property and submitted this to Amber. However, despite instructing both solicitors to exchange on the properties, they cannot complete as Amber has this ridiculous condition that insists on something that cannot be done.
“The situation is now at a stalemate. Both parties are incurring unnecessary costs as a result of the delay. Amber has the residential valuation from the valuer, and a tenanted valuation cannot be done if there is no tenant in the actual property. The whole situation is ridiculous. I have not experienced this situation with any other lender.”
Amber has insisted that its conditions are normal practice in the industry and states in its terms and conditions the reason for the written confirmation of the tenanted valuation is in case this is less than the residential valuation, in which case the loan amount would be reduced.
Mike Amber, sales and marketing director at Amber Home Loans, said: “This practice is not unique and there are certainly other lenders that look for both types of valuations. I would recommend the broker comes back to us directly so we can discuss the case and look for a resolution.”
