CityLivingGetting a top-up loan can cost a lot in fees for banks, brokers and lawyers. Why? asks Edel Morgan

Recently when applying for a top-up loan on his house to build a sunroom, Sean from Lucan , who e-mailed City Living, was told by his bank that he would have to pay €100 to his bank to carry out a survey of his house to determine its value.

He asked the bank why it couldn't contact an estate agent or look up a property internet site to find out how much houses are currently selling for in his estate.

"How is someone looking around my house going to prove its value unless they check what houses are selling for in the area?" he argued, adding that even if he never did a thing to the house, it stands to reason that its value will have increased in line with price growth in Dublin.

After much protest, the bank finally agreed to a drive-by valuation for €45. Tired and emotional, he reluctantly agreed but asked how a drive-by valuation would determine the market value of the house "just by looking at it".

"We just need to know your house is definitely there," was the reply. "But you gave me a mortgage on the house last year. Do you think I'm making repayments every month on a house that isn't there?"

"It's a legal thing" was the concise answer.

His friend was recently issued a top-up loan cheque through his solicitor - some financial institutions insist the cheque is collected at a solicitor's office - and he had to pay over €300 for the privilege.

There appear to be entire networks of banks, solicitors and mortgage brokers looking after each other at the expense of the consumer.

The surveyor Sean's mortgage broker recommended when buying his house was the same surveyor that his bank sent out to carry out the drive by valuation. Nice work if you get it.

Dermott Jewell?

emorgan@irish-times.ie