Property investors launch High Court action after ‘risk free’ purchases of flats lose them millions

More than 40 property investors are taking High Court action after saying they lost money when buying student accommodation properties.

The Irish investors, who include Ireland’s former prime minister Brian Cowen, bought apartments at the height of the property boom for £240,000, only to discover that last year they were selling at around £72,000.

They are accusing legal firm Punch Robson Solicitors, which they say advised them, of negligence.

The development, Carr Mills in Leeds, was completed some 12 years ago. It went into receivership in 2011.

The solicitor acting for the group, Chris Waters of Meaby & Co, said the anticipated value of the total claim is £14m.

He said: “We are aware that UK-based investment schemes of this nature were prominent with Irish investors between 2004 and 2008.

“At the time, these investment schemes were being sold as having low or no risk, with participants generally funding purchases with the benefit of 100% mortgages.

“Properties were often overvalued or failed to perform in line with representations made. Some of these developments have gone into receivership leaving participants with significant outstanding liabilities.

“Hundreds of Irish citizens who bought into ‘risk free’ schemes have been left with crippling lifetime debt. We’re keen to hear from anyone affected.”

http://www.yorkshirepost.co.uk/news/former-irish-pm-in-dispute-with-law-firm-over-leeds-student-flats-1-8652138

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3 Comments

  1. Mark Connelly

    The Irish piled into every development like lemmings off a cliff. They were sold by Irish property clubs.

    If they believe they were overvalued then sue the surveyors who valued them on behalf of the banks who gave the mortgages.

    Once again investors greedy for a quick buck screw up and want to blame everyone and anyone for their own failings and market dynamics.

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  2. drakeco75

    Think im going to sue Paddy Power because I backed the wrong horse in the Gold Cup

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  3. 1stTimeBuyer

    ‘risk free’, no such thing.  They need to consider it a lesson learned in being so greedy without looking into the investment themselves first.

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