Residential site of 119 apartments freed up for sale following complex legal case
A residential site at Ford Lane, Salford, is on the market after a complex legal case following the administration of developer, Prime Noble Properties, in 2019.
Previously, 78 of 119 apartments had been sold on a leasehold basis, while the freehold of the site was sold by FSL to another company.
However, Prime Noble Properties fell into administration before the development completed.
JMW Solicitors has advised Begbies Traynor to unlock the sale of the site.
James Williams and Sam Baines of JMW’s restructuring and insolvency team assisted Begbies Traynor (Paul Stanley) and joint administrator Mazars (Patrick Lannagan) in obtaining orders for sale against 53 leasehold properties, freeing up the disposal of the site and the repayment of funds to stakeholders.
Paul Stanley, regional managing partner at Begbies Traynor, said: “Cases where properties are subject to fractional selling are becoming more common – when actual leases are granted, there is often a deadlock position which cannot be overcome by the various stakeholders.
“After analysing the head lease, sub-leases and various charges alongside the JMW team, and following careful consideration of a multitude of legal cases, we were able to formulate a strategy that we believed would be acceptable to the court and to the vast majority of stakeholders. The court orders granted will now allow the site to be marketed and sold.”
James Williams, restructuring and insolvency partner at JMW, said: “This site was typical of many where investor funds are taken for leases off plan at a discount to the value of finished apartments.
“If the development fails before the scheme has gotten off the ground, there are complex issues to navigate around title, security and priority, rendering the site unsaleable while the leases are in place.
“We’re pleased to have been able to support the appointed administrators, combining expertise on security law, Land Registry priority provisions and statutory and case law to deliver a solution that would be acceptable to the judge, and will now allow the sale of the site to move forward.”
