Barclays sued by property developers over revaluation


Vale Heritage Developments is suing Barclays Bank for more than £200,000 after the lender overruled a valuation and ordered a site to be revalued.

Papers filed at the High Court say that in 2005, Vale bought a farm to develop with the help of a £570,000 Barclays commercial loan, later increased to £980,000.

Strutt & Parker, working for Vale, valued the farm at £1.05m in 2008.

However, Vale claims that in 2009 Barclays thought the £1.05m was a misrepresentation. The lender then had the site re-valued at £500,000 through former real estate servicing firm DTZ.

The court papers say: “The misrepresentation that Pennant Farm had a value of £500,000 was untrue, in that the market value of Pennant Farm in or around July 2009 was considerably in excess of £500,000.”

Vale claims Barclays has not revealed a copy of the DTZ valuation despite being asked to do so.

Vale points out that sections of the farm were sold for £430,000 in March and April 2010.

Vale says it is suffering ongoing losses so does not have a total figure it wants from Barclays.

However, the firm is certain it wants more than £200,000 from the lender, the maximum bracket available in UK civil courts.

A Barclays spokesman says: ““As this matter is subject to ongoing litigation, it would inappropriate for us to make any comment except to say that Barclays is defending the claim.”

Vale is owned by Glyn Goodwin and his ex-wife Carol as joint owners of parent firm Special Care.

Vale were not available for comment at the time of publication.