St Anne’s Street Limited, the developer behind the luxury new apartments in St Anne’s Gardens, went into receivership on 25th April 2023 without completing the project. This has left many purchasers at risk of significant financial loss as the completion was contingent upon planning permission being granted.
Insurance Coverage Denial:
Due to the lack of a building certificate on the plot, the insurer of the New Home Warranty Policy has denied coverage. As a result, many purchasers are at risk of losing their reservation fees and deposits of up to 25%. Solicitors should have warned their clients about the risks associated with the property not being registered with the warranty scheme and the potential loss of deposits if the landlord became insolvent.
Unprotected Deposits:
Some solicitors failed to inform clients that their deposits were being held as agents by the Seller’s solicitors, making them vulnerable to the release of the full deposit to the landlord after the exchange of contracts. Clients should have been advised about this risk, and their deposits should have been protected.
Investing in a Recently Incorporated Company: Solicitors neglected to advise clients that they were investing in a recently incorporated company with limited financial history. Clients should have been informed about the higher risks associated with such investments and the possibility of administration, allowing them to make informed decisions about their deposits.
How Can Specters Solicitors Help You?
If you are facing the risk of losing your reservation fee and deposit due to negligent solicitor advice, Specters Solicitors can assist you with potential professional negligence claims. With a wealth of experience in dealing with similar cases, we offer a “No Win No Fee” agreement, ensuring that you won’t have to bear additional financial burdens while seeking justice. Our dedicated team encourages all affected clients to come forward and explore the possibility of recovering their lost deposits.
The St Anne’s Gardens development crisis has left many purchasers at risk of losing their hard-earned deposits due to negligent solicitor advice. Specters Solicitors, with their extensive experience in handling professional negligence claims, stands ready to help affected clients pursue the compensation they deserve. If you believe you have been affected by professional negligence, contact Specters Solicitors below to explore your options and protect your investment.
